Abstract
Marketers routinely make use of demographic-based segmentation as a means of targeting customers of financial services. This article builds on growing evidence that a demographic-based approach is ill-founded. Using a large sample we investigate whether demographic information is of use in segmenting customers and find little support for existing practice. Implications for researchers and managers are discussed.
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Appendix
Appendix
Service items
Customers asked to state how important each item is to them when making a purchase [of online financial services] on a scale seven point Likert scale from ‘Very unimportant’ to ‘Very important’.
Website
The website has a useful search function
The website has a good user interface
I know what all my options are when I shop at this website
This site doesn’t waste my time
The site gives me enough information so that I can identify the item to the same degree as if I am in the store
The website lets me know up-front what shipping charges are
The contents of the website were concise and easy to understand
Pricing is clear and easy to understand
Trust
I felt secure giving out credit card information to this site
I feel like my privacy and personal information is protected at this site
You know exactly what you’re buying from this website
Customer Service
After sale support at the site is excellent
It is quick and easy to compete a transaction at this website
The services were delivered by the time promised
Information
The website lets me know about service availability during search
The site helps me research services
I receive an email when the service will be fulfilled
*It's easy to track the shipping and delivery items of items purchased on this website
Ease of contact
Telephone calls are answered promptly
A contact telephone number is displayed on the site so that I can talk to a ‘live’ person
No advertisements
I do not receive junk mail from being on their mailing list
There are no pop-up advertisements
Personalization
The website does a good job of guessing what kind of things I might want
The website is easy to customize
Company image
The company has a well known name
The website fits with my image of the company
Product range
There are hard to find services on this site
The website has services I can’t find on the high street
*Present in original scale. Deleted in this sample as no product tracking takes place.
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Piercy, N., Campbell, C. & Heinrich, D. Suboptimal segmentation: Assessing the use of demographics in financial services advertising. J Financ Serv Mark 16, 173–182 (2011). https://doi.org/10.1057/fsm.2011.21
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DOI: https://doi.org/10.1057/fsm.2011.21