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)