Factors affecting female generation Y consumer’s selection of a bank

Abstract: The South African retail banking industry is a highly competitive environment where major industry players compete for the largest market share of the banked and unbanked consumer market. The consumer segment of focus in this study is the female Generation Y consumer, due to their high disposable incomes, technological savviness, and brand consciousness. Within the retail banking industry in South Africa, the number of formally banked female consumers has increased to 87%, and is noted as being significantly higher than the number of formally banked male consumers, which is 81%. To maintain the largest market share, the major South African retail banks must determine the factors and variables that influence the female Generation Y consumer’s selection of a retail bank, so as to attract consumers from competing retail banks, as well as proactively prevent the attrition of their current consumers. The primary objective of the study was to determine the factors that had an influence of the female Generation Y consumer’s selection of a retail bank using consumers residing in the Gauteng province. The aim of the study was to identify the factor dimensions for purchase intention when selecting a retail bank. These factor dimensions were identified, through a literature review and previous studies, namely price, product selection, innovation, status, and peer referral. A descriptive research approach was followed and data was gathered, using quantitative research methods. A self-administered questionnaire was administered through convenience sampling to research participants at universities, shopping malls, and banking halls, within the Gauteng province. The target population for this study was limited to research participants between the ages of 18 and 36 years, who held a bank account with one of the five major South African retail banks (ABSA, FNB, Standard Bank, Nedbank, and Capitec Bank). A total of 300 questionnaires were distributed and 274 were retained for data analysis. Pearson product moment correlation analysis and regression analysis were used to test the influence of the relationships between various variables in the study. The peer referral subscale developed as a two-factor solution and was split into recommendation and trustworthiness. The remaining subscales were all considered valid...M.Com. (Business Management