Pricing models and customer behaviour in banks

This research analyzes the relevance of pricing models to the behaviour of banking service customers, in particular, how bank pricing models influence the acquisition and retention of retail customers.The survey is based on a dataset of 90,000 bank current account holders at an Italian commercial bank and analyzes their behaviour during the years 2007-2008.The impact of pricing is studied with different types of tests.The findings show which pricing variables are significantly associated with customer acquisition and loyalty, confirming the two-part tariff as the most effective pricing model for current accounts