Customers' relationship expectations and costs as segmentation variables: preliminary evidence from banking

TLDR: In this paper, a qualitative study based on three focus groups was designed to provide initial input on different types of expected relational benefits and costs, and quantitative data were collected from a survey of 209 real bank customers.

Abstract: Purpose – This paper aims to explore benefits customers expect from a long‐term relationship with their bank and the costs associated with such a relationship; it further tests these relational benefits and costs as segmentation variables.Design/methodology/approach – A qualitative study based on three focus groups was designed to provide initial input on different types of expected relational benefits and costs. Then, quantitative data were collected from a survey of 209 real bank customers.Findings – Analysis reveals five types of expected benefits and two types of costs. Four clusters were formed out of these seven expected benefits/costs. These clusters are also different on demographic, behavioral and psychographic variables and present clear and consistent relational profiles.Research limitations/implications – Scales developed from the focus groups need further validation. Also, findings should be considered as sector and context specific. This work brings additional insight into the nature of expe...