Date of Award

1993

Document Type

Thesis

Degree Name

Master of Science

Department

Business

First Advisor

Arlene Taich

Second Advisor

Daniel W. Kemper

Third Advisor

Marilyn Patterson

Abstract

This thesis will focus on the study of America's aging population and the impact this population has upon financial institutions and the services and products these institutions provide.

Research has shown that real estate and cash are the primary sources of wealth for the majority of older adults. Banking institutions realize that with the ever-increasing size of this _population. special programs, incentives, and services may need to be provided in order to maintain the loyalty of older clients.

In recent years, financial institutions have hired management consulting firms to confirm that the older banking consumer of the 1990s will dramatically affect the ways banks design, package, market, and deliver their products and services. Some of these consultants believe that the older adult will demand more from his or her financial institution in the form of additional or special services. Other consultants are not sure what, if any, demands will be made from this aged market.

The purpose of the present study is to investigate if, in fact, special services and products would keep present consumers loyal and attract new ones. More specifically, it is hypothesized that there is a positive relationship between existing depositors and potential depositors who are fifty-five years of age or older, and the "special services" that are offered to them by their banks.

The results were beyond expectations. The data collected in this exploratory survey indicated clearly that older adults do not bank at specific financial institutions because of special services.

Two major factors played key roles in the refutation of the hypothesis. First, the majority of respondents said they did not bank at particular institutions because of special services. Secondly, the majority of respondents said that special services were not as important as location. interest rates, and convenient hours. However, the majority of the sample did indicate that while these special services may not play a key role in the selection of a financial institution~ they did, in fact, use the special services provided to them.

Creative Commons License

Creative Commons Attribution-NonCommercial 4.0 International License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Included in

Business Commons

Share

COinS