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Thesis defense

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Thesis defense

Segmenting the Dutch financial services industry based on

trust and its determinants using latent class analysis

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Theory

› Trust fosters…

▪ Customer loyalty (Morgan & Hunt, 1994; Sirdeshmukh et al., 2002) ▪ Customer satisfaction (Geyskens et al., 1998)

› Segmentation efficient in financial services industry context (Bijmolt et al., 2004; Floh et al., 2014; Muhamad et al., 2012)

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Methodology

› Data

› Dual segmentation approach › Hierarchical Clustering

› Latent Class Analysis

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Results

HC ->

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Customer segments

Segment 1: Heart Followers “High” trust Customer orientation (+) Competence (-)

Young and highly educated

Segment 2:

Rationalists

“Low” trust

Competence (+)

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Contributions to theory

› For research on trust:

▪ Effects of determinants on trust

… differs across segments … can be negative

… or even negative and positive

▪ Literature so far assumes univocal positive relationship (Ennew et al.,

2011; Nienaber et al., 2014)

› For research on segmentation:

▪ Including determinants better for structuring customer

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Managerial Implications

› No one best way for increasing customer trust

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