Consumer Behaviour Theory: A Theoretical and Practical Approach in Banking Industry

Abstract

The study investigates the consumer behaviour construct for the purposes of articulating a consumer decision-making model.  In so doing, the study critically discussed the influence of internal factors, such asfunctional quality, technical quality, perceived value, corporate imageand motivation on consumer behaviour and, importantly, discussed the ways and means by which consumer behaviour principles can be used as a conceptual framework to help managers understand and solve marketing problems. As for the practical application, a sample of 80 customers was interviewed through survey design method. The empirical data was analyzed by using both descriptive and multiple regression techniques. Following a review of the scholarly literature on the aforementioned issues, the study examined the results of a survey which focused on consumer buying behaviour in relation to banking services.  The findings reveal that each of technical quality, perceived value, corporate image and motivation has significant positive relationship with behavioural intention. However, functional quality does not have significant relationship with behavioural intention. Furthermore, it was found as expected that customer behavioural intention is positively and significantly related to the customer actual behavior. This study concluded with an affirmation of the validity of the theories reviewed but with a note of caution regarding their applications to personal services.Managerial and policy implication were discussed; and direction for future research was equally highlighted.

Keywords: Service quality, Perceived value, Corporate image, Motivation, Behavioural responses.