Understanding Consumer Behaviour in Banking

This assignment delves into the crucial role of understanding consumer behaviour within the banking industry. It emphasizes the significance of organizational awareness and fulfilling consumer expectations to encourage deposits. The text outlines the need for strategic planning tailored to specific consumer segments, emphasizing deep research and various methodologies to attract and influence potential investors. Trust is highlighted as a paramount factor in driving customer confidence and encouraging money deposit.

Consumer Behaviour

Table of Contents
INTRODUCTION ..........................................................................................................................2
TASK 1............................................................................................................................................3
1.1 Current market trend analysis of banking sector...................................................................3
1.2 Current market position of Lloyd banks .............................................................................4
1.3 Impact of Sector’s characteristics on consumer behaviour ..................................................5
2.1 Anticipating and influencing consumer behaviour in the banking sector ............................6
CONCLUSION ..............................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
For making marketing strategies there is need to understand and acknowledge about the
consumer behaviour. For any organization to increase their profit and market values, they need to
convince more and more customers. Consumer behaviour can be defined as analysing and
identifying the nature of the customers for purchasing the goods and services in the market.
Globalization and urbanization has made changes in the preference of the consumers. They
preferences depends on the different features of the products. The report focuses on the buying
behaviour and need of influencing the customers. Through this report different types reader can
easily understand different factors affecting buyers behaviour. In UK costumer don't have faith in
banks established their as compared to other countries. They have negative trust on the banks .
New strategies need to adopted and banks should focus on the getting back the trust factor of the
consumers. This will establish new relationship and increased in source of profit making. This
report focus on the UK based bank i.e. Lloyd's bank and how they influence more consumers.
TASK 1
1.1 Current market trend analysis of banking sector
Millions of customers are their in Lloyd's Banking group established in UK in year 1995.
The form mostly focuses on the retail and financial factors. They mainly focuses on the desire of
consumers, business and communities. Trends can be defined as comparison between the market
current values and previous values or base position. Banking sector are needed to get loans and
invest money in the business sector to generate more revenue. In recent trends, due to improved
technology and innovations the payment methods have improved. This makes the banking sector
more convenient and easier to use. This creates the cashless payment or online payment options.
This leaded to great costumer satisfaction and more benefits. Through increased in the online
payment method, also allowed the payment of the suppliers thorough the cheques. According to
all this it is increasing the market values of the marketing sector. Lloyd's bank give loans to the
small and big business firms and earn more through them. Through this banks contribute more in
the economy of the country. On the basis of the market analysis there is increment in the non
card payments. The main role of banking sector in terms of consumer is to serve, satisfy, please,
delight and retain the costumers. Their are different methods through which customer's can

interact with the banking sector. This newly established trend help the costumer to access all the
details at their mobiles or at home. Through this more consumer can access the services. In UK
banking sector needs to stand on the customer's satisfaction,this can be done through detail
analysing their issues and problems. Lloyd's Bank need to focus on more mobilization and
growth rate of deposit in the banking sector. This sector needs to focus more consumers and
requires huge deposit for earning and making the profit. Through the current trends like new
technology, ATMs, Cards and online banking have changed the quality and services of the
banking sectors. Also new services like transfer of money, bankassurance other promotion
activities can lead to more bank deposit s If banking sector is promoted in an effective way more
consumers will get attracted towards this sectors.
1.2 Current market position of Lloyd banks
Lloyd's Banking Group plc is one of the largest retail bank. The company accounts a total
of £ 1.1 trillion. Lloyd has been financed by the UK government amount of £260 bn to repay
the debt. The total amount expands to 43.5% , which means that UK government nearly
deposited half of banks values. The net income of the organization is 2.09bn and has more than
78.05k employees. The revenue generated by the organization is around 16.62bn . The
organization has different sectors. This comprise of the retail sector, commercial banking,
insurance, consumer finance and many different sectors. Their is large range of banking sectors
of this organisation, it offers different products and services to the consumers. Services like
giving loans, transaction, banking, capital market and management services and risk
management. The insurance provide wide range of benefits and other insurance protection
products. Many different brands are included with the Lloyd such as Bank of Scotland, AMC,
Scottish Widows, Autolease, Colleys and the Lloyd bank. The bank holds the fifth position in
UK. The company has the 19.9 % of shares with the top holders. In 2016, organization had a fell
in cash reserves by 9.57 bn and earned about 2.07bn. The company deposited over 686m in the
market. The market rates of he organization is needed to be upgraded and improved. There is
subsequently decrease in the market values of banking sectors. As per above details the
organisation needs to focus on the consumers behaviours so that more and more customer can
invest into the firm. Higher market growth and profitability can be achieved through influencing
more and more customers to make deposit in the banks. According to the market values new
strategic formula needed to be used in order to achieve the goals . Also there is need to adopt

new polices to carry out this gaols. For banking sectors to attract the consumers is little difficult.
Consumers keep records about the market values in order to invest on the banks. So customer
satisfaction is needed to apply all the market strategies. To overcome the losses there is need of
huge deposit required. Also to attract the customer's new polices and offers need to served.
Providing new services and improving the existing ones can improve the quality of the Lloyd's
banking sector. Some of advantages Lloyd's is taking from the online banking services. Through
this they are competing the competitors and are increasing market performance. Some of the
behavioural aspects and approach of the banking sector of Lloyd's are being discussed below:
 Through digitalization more and more consumers are attracted to invest in the
organization. This is making the company financial supportive and making the deposit of
having profitability 4 times higher .
 Through online transaction consumer can easily track their transaction.
 Also many offers are given by the organization those who make online payments. This is
making to annual saving for the consumers which accounts for £744. This amount is the
digitally saved discount of the consumers.
 This also reduces time spend on purchasing and other threats.
1.3 Impact of Sector’s characteristics on consumer behaviour
Their is great role of sector characteristics on the consumer behaviour. Their are many
decision taken by the customers for investing on the banks. This values may comprise of the
interest rate, convinces, internet banking facility, loan, cheque, online banking, easily
understandable and ATM deposit facility and many more. All this qualities are required by
consumer to invest their money. All this deposit is based on the socio-economic level, personal
and certain physical factors of the consumers. For the banking sectors their there are two main
services played this are to influence the individual and bank characteristics. If banks provides
more service quality then their would be more deposit made by the consumers. In such sectors
there is great needs of identifying the demands of the consumers. For the consumers their choices
for deposit will be based on the banking services, reliability, speed, branches, facilities, no. of
employee, quality of services and problem solving ability and ownership. Business like banks
can promote more consumers by promoting about their banks. They can influence the consumer
by offering loans to consumers in lower then the other banks, giving high interest rates. For
targeting more customers Lloyd's started new offering new discounts to the new comers. It has

not only started services but upgrading the exiting products. Consumer have many trust issues
after the recession period . More than 45% of customers have negative impact on the banking
services provided. People of UK now have less trust on the banking sector and think investing
or saving money in banks can decrease their values. The locality factor towards the banks is
decreased due to recession. They deposited their money in different banking companies to
reduce the losses. The pricing rates, services and products offered to the customers by the other
banks attract them towards their services. Measuring and assuring satisfaction level can make
banks to improve their performance level. Improved services and qualities and regular offers
leads to more influence the costumer chooses in choosing the banks. Many customers needs
personal guidance from the other family and community members to deposit in the banks. If their
review is satisfactory then only the investment would be made by the organization. IN UK
people consider this sector to be very dis-satisfied for depositing money.
2.1 Anticipating and influencing consumer behaviour in the banking sector
Their are some key opportunities made by the the policy makers so that more
consumers can invest in this organization. For influencing consumers,the organisation need to
make the strategic planning which is based on the customer preferences . Some of those
preferences are discussed below :
 Banking sectors needs to aware consumers to invest in the digital dividend. This deposit
made will make significant saving. Consumers financial situation and wealth will
increase. Promotion for these types can be made online thorough the stakeholders and
digital marketing. The deposit can be done with the other family member, colleagues and
communities.
 Banks should increase the promotional activities like welfare programmes and banking
services. This service will make inverters from other countries to invest in the bank. This
will increase the services sector, digital factors , financial factors and deposit of the
stakeholder.
 Some new and innovative schemes needed for the consumers, so they can support to
make the deposit .
 Trust level of the organization should be gained back. Their should be more transparency
and clarity among the banking sector and the consumers.

 Taking feedback and analysing the issues can help the sector to understand the demands
and needs of consumers more clearly.
 Also for the existing costumers banks can provide offers related to family terms or others
this can help banks in gaining trusts .
 Bank should focus on the communication skills of the employees so that trust factor of
employees increases.
 The banking experience of the customers and the chances of improvement should be
focused on this values.
 Training to the members and development programs can help the bank members to
evaluate the understand the customer more clearly. Hospitality management services can
be used to enhance such survives.
Banks also need to focus on the market values so that they don't get under more debt. Through
there is need for deposit form other consumers but polices should also be made for the existing
consumers. Studying about the market strategies and consumer behaviour can uplift the
organization. This methods will also reduce the approach of the competitors. Also they should
focus on gaining the trust factors so that investment of other customers can be their.
CONCLUSION
The study of consumer behaviour in this segments plays key role. People do not make
deposit in the banks unless they know about the organisation. The organisation should fulfil all
the aspect and criteria of the consumers. All this factors should be kept in the mind of the
organization and strategic planning should be made according to it. Segment should target the
issues of the consumer so that people can make more investment. Deep study and research
should be made by the organisation to influence the customers and made them invest into the
banks. Various methodology and techniques should be used to attract more costumers. At last for
depositing money in this sector trust plays key role of consumers.

REFERENCES
Books and Generals
Solomon, M., Russell-Bennett, R. and Previte, J., 2012. Consumer behaviour. Pearson Higher
Education AU.
Horner, S. and Swarbrooke, J., 2016. Consumer behaviour in tourism. Routledge.
Young, W. and et.al., 2010. Sustainable consumption: green consumer behaviour when
purchasing products. Sustainable development, 18(1). pp. 20-31.
Solomon, M.R., 2014. Consumer behavior: Buying, having, and being (Vol. 10). Engelwood
Cliffs, NJ: Prentice Hall.
Schütte, H. and Ciarlante, D., 2016. Consumer behaviour in Asia. Springer.
Zarantonello, L. and Schmitt, B.H., 2010. Using the brand experience scale to profile consumers
and predict consumer behaviour. Journal of Brand Management, 17(7). pp. 532-540.
Schiffman, L. and et.al., 2013. Consumer behaviour. Pearson Higher Education AU.
Gössling, S. and et.al., 2012. Consumer behaviour and demand response of tourists to climate
change. Annals of Tourism Research, 39(1). pp. 36-58.
Akehurst, G., Afonso, C. and Martins Gonçalves, H., 2012. Re-examining green purchase
behaviour and the green consumer profile: new evidences. Management Decision, 50(5).
pp. 972-988.
Gössling, S. and et.al., 2012. Consumer behaviour and demand response of tourists to climate
change. Annals of Tourism Research, 39(1). pp. 36-58.
Gunter, B. and Furnham, A., 2014. Consumer Profiles (RLE Consumer Behaviour): An
Introduction to Psychographics (Vol. 5). Routledge.
Solomon, M.R., Russell-Bennett, R. and Previte, J., 2013. Consumer behaviour: Buying, having,
being. Pearson Australia.
Jansson-Boyd, C.V., 2010. Consumer psychology. New York, NY: Open University Press.
online
What is consumer behaviour?. 2013. [Online]. Available through:
<https://www.consumerpsychologist.com/>. [Accessed on 14- March-2017]