The Importance Of Consumer Behavior In Banking

1. Consumer behavior in banking

The banking industry has endured some dynamic transformations in the recent years and is constantly developing due to financial globalization, technological advancements and changes in consumer tastes and needs for banking services (ref). Figuring out the behavioural intentions of customers is of great importance within this industryIn the bank industry of great importance is to figure out the behavioral intentions of customers, since favorable intentions will have a positive impact on future earnings (Arbore and Busacca, 2009). O’Cass and Grace (2004) reveal that customers who stay with the bank long-term tend to consume more of the bank products, while at the same time offer word-of-mouth advertising and are less likely to seek alternative banking service providers. In relation to that, it has to be noted that positive behavioral intentions may be a signal of customer retention and loyalty (Zeithaml et al., 1996). In his line of work, Clemes et al (2014) uses the comprehensive hierarchical modeling to investigate the interrelationships between higher systems of marketing formations such as service quality, customer satisfaction, perceived value, corporate image and customer switching costs and how they connect to the behavior of bank customers. 1.1. Behavioral intentions

Behavioral intentions are signs that indicate whether customers will remain or leave a company. Marinkovic and Obradovic, (2015) identify that phrases