Banking on the youth: the case for finer segmentation of the youth market

Purpose – The purpose of this paper is to examine the differences among the different subgroups of the youth market in the context of their financial interests and usage. The study examines what determined their choice of banks. It also looked at what factors influence their satisfaction, loyalty, and behavioral intentions with regard to their banking needs.Design/methodology/approach – Using a multiple‐item survey instrument, 242 Austrian respondents were queried on what factors affect their choice of banks, their choice of financial services, usage patterns, satisfaction, loyalty, and behavioral intentions. Descriptive analysis, factor analysis and cluster analysis were employed in the study. Different tests such as chi‐square tests, discriminant analysis and ANOVA were used to validate the chosen cluster solution.Findings – Differences were found among the four clusters in terms of their interest in financial services, their usage, and their likelihood of switching. In addition, determinants of satisfa...