Price Bundling in the Student Banking Market

17 Pages Posted: 20 Feb 2007

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Lisa

Massey University

Claire D. Matthews

Massey University - School of Economics and Finance

Date Written: August 2004

Abstract

Banks in New Zealand have been putting substantial efforts into trying to attract and retain tertiary student customers for a number of years. A popular marketing strategy is price bundling, in which two or more products and services are offered at the same time at a discount. This paper reports on a study into the attitudes of New Zealand tertiary students towards the bank price bundling strategy, and to what extent this strategy assists with the retention of student customers.

Most respondents had a student bank account and the results showed generally positive attitudes among tertiary students toward the bank packages that were offered by banks in New Zealand. A relatively low defection rate was found in this study. It appeared to be their satisfaction, especially their satisfaction with banks and service channels, which contributed to their loyalty (or non-defection) rather than switching barriers.

Keywords: Student banking, Customer retention, Price bundling, New Zealand, Survey

JEL Classification: M31, G21

Suggested Citation

Yao, Xiao Yan and Matthews, Claire D., Price Bundling in the Student Banking Market (August 2004). Available at SSRN: https://ssrn.com/abstract=963868 or http://dx.doi.org/10.2139/ssrn.963868

Xiao Yan Yao

Massey University ( email )

Private Bag 11-222
Palmerston North, 30974
New Zealand

Claire D. Matthews (Contact Author)

Massey University - School of Economics and Finance ( email )

Private Bag 11-222
Palmerston North, 30974
New Zealand

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