Some Common Demographic and Psychographic Dimensions for Banking
Demographic Dimensions
Geographic region – Pacific, New England, South Atlantic, Mid-West, etc.
City, County, or SMSA (size) – under 5,000, 5,000-9,999, 10,000-14,999 etc.
Age—infant, under 6, 6-11, 12-17, 18-24, 25-34, 35-49, 50-64, 65 and over.
Sex—male, female
Family size—1-2, 3-4, 5 and over.
Family life cycle—young, single; married, no children; young, married with youngest child under 6; young, married with children; older, married with no children; older single; other.
Income—Under $5,000, $5,000-$9,999, $10,000-$14,999, $15,000-$19,999, $20,000-$24,999, $25,000-$29,999, $30,000-$34,999, $35,000 and higher.
Occupation – professional and technical, sales, managerial, proprietor, clerical craftsman, retired student, other.
Education – Grade school or less, some high school, graduated high school, some college, college graduate.
Psychographic Dimensions
Others come to me for financial advice.
I talk with my friends about finances.
I will have more money next year.
I like doing business with a high-class bank.
I wish it were easier to cast checks.
I am careful about balancing my checkbook.
I want to do all my banking by phone.
I want to do all my banking by ATM.
I put some money in risky investments.
I am too busy to care about banking.
I have trouble getting cash out of state.
I am tired of being asked for ID.
I like bank people to greet me with a smile.
I like a bank to treat me as someone special.
I like a personal relationship with my banker.
I like the bank to balance my checkbook.
I am heavily into debt.
I can’t get to my balance my checkbook.
I am heavily into debt.
I can’t get to my bank when it is open.
I wish I had a lot of money.
I am tired of being treated as a number.
I like to visit with the people in my bank.
I travel on business trips often.
Information concerning activities related to the usage of the new product may also be valuable. For example, the asset management account has a discount brokerage option. Knowing the targeted users’ behavior with respect to the frequency of transactions can provide useful input into the pricing of this option.
Other questions focusing on how the proposed product may be improved or changed can be valuable inputs into design considerations and have adoption and usage implications. The specific additional information that the new product manager may wish to acquire will be a function of such things as the type of new product being considered, the market that is targeted, the type of competition that exist s in the market that is targeted, the type of competition that exists in the market, previous experience with new products in the market, and other considerations. The key point is that, during this stage of the development process, the new product manager must have the proper information to make the decision to either pass the concept on for further development, kill it, or make the necessary changes in the concept that will allow it to continue in the development process. Basic information requirements have been suggested and are summarized in Figure 4-7 as a series of question.
FIGURE 4-7 Questions to Be Answered in the Concept Evaluation Stage
What are the banker’s objectives that bear on new product/service development? ROI? Payback? Break-even?
Does the concept provide the potential for satisfying these objectives?
What are the specific strengths/weaknesses/ of the bank?
Financial strengths/weaknesses
Technical strengths/weaknesses
Personnel strengths/weaknesses
Management strengths/weaknesses
Marketing strengths/weaknesses
What are the success requirements inherent in the new product/service opportunity?
Do bank’s strengths “fit” new product/service success requirements?
What is the present state of the market?
What does the user profile look like?
Have price levels been evaluated?
How does the concept stand up in the marketplace?
Is it clearly understood?
What benefits/problems are perceived in the concept?
How does the concept compare with competitive offerings?
What is the estimated market potential for the concept?
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