Assessing the outcomes of Generation‐Y customers' loyalty

Abstract

Purpose – The purpose of this paper is to examine what factors influence the satisfaction, loyalty, and behavioral intentions of the members of Generation Y 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 satisfaction, loyalty, and behavioral intentions. Factor analysis and regression analysis are employed in the study. Findings – The study finds differences among the three age groups contained in Generation Y in terms of their sources of information, financial services used, likelihood of switching, and number of banks utilized. In addition, determinants of satisfaction, loyalty, and behavioral intention are primarily affected by satisfaction with employees and services rendered. The results indicate that as young people reach certain milestones, their needs become more multifaceted. Consequently, the determinants of satisfaction also change. Originality/value – This paper treats Generation Y as a heterogeneous group rather than homogeneous as many studies usually treat this age cohort. Moreover, given that many banks are trying to “grow” markets, this study looks at how the determinant factors change from one stage to another. Financial institutions will benefit from the insight derived from this paper in crafting their marketing strategies. It indicates what seems to be important to each age group in increasing their satisfaction level.