Youth based segmentation in the Malaysian retail banking sector : The relationship between values and personal e‐banking service preferences

Purpose – The purpose of this research is to address the important question of how to attract and retain a fragmented and ecologically diverse youth segment in a rapidly changing retail banking sector such as Malaysia. Design/methodology/approach – The study utilises a combination of theoretical frameworks, and quantitative techniques to ascertain the most important motivational goals for Malaysian youth when making e‐channels choices. Findings – This study generates empirical evidence which supports the general theory that prominent cultural values such as those that stress integrity of the referent group, self‐reliance and social identity are important influencers of the likelihood of adopting selected electronic banking channels. Research limitations/implications – Further research is needed on all retail banking e‐channels apart from those currently most readily accessible in Malaysia. Similarly, researchers may consider other demographic segments for purposes of generating more robust theoretical frameworks. Practical implications – Service innovation characteristics as well as prominent cultural values that stress, self‐reliance, integrity of the reference group and social identity and compliance may have significant implications for marketing practice even where diverse youth segments are concerned. Originality/value – This study is the first that seeks to ascertain the importance of prominent individual cultural values as predictors of consumer choice in the context of e‐banking services in Malaysia. Therefore, this study thus sets an important benchmark for further research in the area.