Analysis of Customer Behavior in the Australian Banking Industry

Running Head: CUSTOMER BEHAVIOR
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Customer behaviour
12/23/2018

CUSTOMER BEHAVIOR
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Contents
Introduction...........................................................................................................................................3
Q1. Identifying social and environmental influences in financial market..............................................3
Q2 Influence of Social and Environmental factors on purchase of financial services............................4
7 P’s of Australian Banking Industry.....................................................................................................6
Segmentation.....................................................................................................................................8
Targeting...........................................................................................................................................8
Positioning.........................................................................................................................................9
Conclusion.............................................................................................................................................9
References...........................................................................................................................................11

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Introduction
The report brings about the discussion on the analysis of customer behaviour and the
related aspects. Consumer behaviour is an important study which includes the assessment of
certain external influences affecting the purchase decision of the individuals. Thus, the report
will assess all the social and environmental influences in context to the case study given in
Assessment one. The analysis of these influences will be studied in the case of Australian
banking industry, and the marketing strategies of the firms. In the later part, of the report
there will be description of the 7 or 4 P’s of marketing with context to the banking industry.
Q1. Identifying social and environmental influences in financial market
The case study of NAB (National Australian Bank) has represented different types of
consumer behaviour towards purchasing financial instruments from the banks or financial
institutions. Consumer behaviour is defined as the study of how individuals’ customer,
groups, or organisation and all the activities associated with the purchase, use, and disposal of
the goods and services. Thus, it is important for the marketers to understand consumer
behaviour to devise their strategies to attain higher profits in the industry. NAB is considered
as one of the four largest financial institutions in Australia in the aspects of market
capitalisation. Therefore, the case has represented different types of behaviour which has
been determined through the role of certain factors or influences (Joshi & Rahman, 2015).
Deregulation and the emergence of new forms of technology have created high
competitive market conditions, which has led to a critical impact on the buying behaviour of
consumers towards financial services. Thus, financial or banking institutions must also
identify and understanding the changing patterns of consumer behaviour and become able to
influence them. This has been linked to the assessment one, which showcases the behavioural
patterns of repeat-passive, rational active, no-purchase, and relational-dependent highlights
different ways the consumers behave to determine their decision regarding purchase of
financial instruments from NAB (Hsu, Huang & Galliers, 2014).
Social factors or influences play a vital role in determining the consumer behaviours
of individuals, such as reference groups, culture, social class, role in the society and others.
Similarly, environmental influences also affect the buying decision of consumers towards
financial instruments.

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The social factors in context to the case of National Australian Bank in Assessment
one, includes unawareness of the financial products, social belief related to the insurance
schemes or financial products, and the tax-saving ability of the consumers. In addition, to
these there are some other factors as the social need of the consumers to get access to
education, is one such aspect which helps them to acquire information about the financial
products; thereby making a purchase decision (Basu et al., 2015).
One example of the social factor or influence in the consumer decision towards
financial services or instruments can be reference groups. As it has been commonly found
that individuals make their decisions based in the part what their primary influence groups
has done, towards obtaining financial instruments. This has been one common aspect of
consumer influences in the banking industry across different countries (Mortimer et al., 2015).
The environmental influences includes introduction of new mobile apps, few visits to
the bank/financial institutions, air pollution in the environment of banks and several other
factors influence the purchase decision of consumers and their brand-switching process.
Nowadays, it has been found that certain mobile applications has been introduced which has
reduced the dependency on the paper-work. Thus, these above mentioned factors relate to the
consumer’s purchase decision, and their brand-switching process from one financial
institution to other in the banking industry (Daly & Gebremedhin, 2015).
Q2 Influence of Social and Environmental factors on purchase of financial
services
Following the above discussion, there will be a description how these social and
environmental factors play a role in influencing the purchase decision towards financial
instruments. The social factor, culture, or cultural norms impact the financial decisions of the
consumers, for an example some religions has forbidden or limited the amount of interest to
be charged on loans. Thus, the consumers or investors under this belief may find it
objectionable to invest in organisations which make money through charging interest
(Souiden & Rani, 2015).
Market experience in the financial market, as another social factor affects the decision
to purchase financial instruments. It has been a fact that the groups or individuals with more
money to spend, and appropriate knowledge of the financial instruments will have more
access to capital than other social groups. Thus, it indicates about a favourable decision of the