Attracting Students through Price Bundling. A Conjoint Study of Swedish Students' Preferences of Retail Banking Services

Article type: Research Article

Authors: Mankila, Merja

Affiliations: Gothenburg School of Economics and Commercial Law, Box 610, 405 30 Gothenburg, Sweden. E-mail: [email protected]

Abstract: The article investigates the Swedish retail banks' application of price bundling in order to attract new customers, students. This is done through a customer survey about students' preferences concerning retail banking services, their price sensitiveness and banking behaviour. The conjoint analysis results showed that the students had relatively heterogeneous preferences, and four distinguishing segments could be found among them, namely a) plain banking, b) cheapest banking, c) modern banking, and d) traditional banking. The central factor in attracting students is the choice of services that are included in the bundle, and not the price. There were only roughly 20 percent who currently had a student bundle.

Keywords: marketing, banking, strategic planning, price bundling, conjoint analysis

DOI: 10.3233/INF-2001-12404

Journal: Informatica, vol. 12, no. 4, pp. 519-546, 2001