Banking behaviour after the lifecycle event of “moving in together”: An exploratory study of the role of marketing investments

This study addresses an important issue for both managers and researchers: whether it is advantageous for financial services providers to invest in youth marketing. More specifically, the effectiveness of these investments is evaluated in terms of retention proneness once youngsters enter the lifecycle event of “moving in together”. The study identifies eight constructs of youth marketing and contrasts their impact against the best deal when youngsters decide to move in together and consequently experience the need to buy their first collectivized financial products, such as a joint account or a mortgage for their new home. Furthermore, the influence of the partner, prior patronage behaviour, customer demographics and psychographic variables are tested for. The findings of the study reveal that (i) individuals are likely to change their banking behaviour during crucial lifetime events such as moving in together, (ii) not all youth marketing investments are equally effective, while (iii) the best deal components (e.g. convenience, price conditions, etc.) have a major impact.