Decker Presents Investigates Customers and Banking Industry Changes

SALISBURY, MD---Dr. Wayne H. Decker, professor of management and chair of the Management and Marketing Department in the Franklin P. Perdue School of Business at Salisbury State University, presented the paper, "Retaining Customers as the Banking Industry Changes: An Investigation of Financial Product Demand," (coauthored by Drs. Kashi Khazeh and Robert Winder) at the Society for Advancement of Management Conference in Florida.

The study investigated reasons for which customers switch banks. "A survey of business school alumni," according to Decker, "indicated that most respondents still rely on banks primarily for traditional bank products/services, as shown by the propensity to switch banks to obtain direct deposits and overdraft protection. These persons are disinclined to switch banks for the newer products such as mutual funds, stock brokerage service and supermarket banking.

"Younger respondents appear more likely than older ones to switch banks to obtain additional products, including the newer ones," added Decker. "The larger the respondent's current bank, the more prone the respondent would be to change banks to obtain additional products and services. Not surprisingly, the more the respondent desired ‘one-stop shopping' for banking services, the more prone the respondent would be to switch all accounts to another bank to obtain various products and services. The ‘one- stop shoppers' were the only respondents at all likely to switch banks to obtain the newer bank products and services.

"One-stop shopping may become in greater demand once banks educate their customers as to its availability and if banks become more competitive price wise," said Decker.