This lesson explores financial services consumer behaviour, decision-making processes, and the challenges consumers face.

3.1 The Financial Services Consumer

Understanding the consumer is central to successful marketing. The University of Edinburgh syllabus requires students to “understand and discuss the challenges facing financial consumers in financial decision-making” . The consumer can be an individual (B2C) or a business (B2B), and purchasing behaviour is influenced by:

  • Psychological Factors: Motivation, perception, beliefs, and attitudes.

  • Personal Factors: Age, life stage, occupation, and lifestyle.

  • Social Factors: Reference groups, family, and social class.

3.2 The Consumer Decision-Making Process

The process for financial services is often longer and more complex than for everyday goods :

  1. Problem/Need Recognition: Identifying a financial need.

  2. Information Search: Gathering information from various sources.

  3. Evaluation of Alternatives: Comparing different products and providers.

  4. Purchase Decision: Selecting a product and provider.

  5. Post-Purchase Behaviour: Evaluating the purchase and deciding whether to continue the relationship.

3.3 Financial Literacy, Capability, and Inclusion

The University of Edinburgh syllabus includes “Financial literacy, capability and inclusion” as a specific topic . This examines challenges facing financial consumers and the role of marketing in promoting better financial outcomes.

3.4 The Role of Trust and Relationships

Trust is a key element of financial services marketing . Financial products are often purchased based on trust in the provider, making relationship building essential for customer acquisition and retention.

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