The use of conjoint analysis in determining financial services pricing

Abstract:

Credit Communal de Belgique, like most of the Belgian banks has decided to rise the pricing of its transfering products through an appropriate pricing of its services to its retail customers. Before introducing this pricing, it was important to consider the perception of the cost and of the consequences of this new pricing on the behaviour of the consumer of transferring products. The study measured the choice between the different means of payment used by the customers (retail banking) in each situation. The data were gathered with 750 customers of Credit Communal de Belgique through the classic interviews technique. The data were processed by computer according to the "trade-off method". For each of the above mentioned situations, the future behaviour of the customers was observed on the basis of the proposed price levels with the help of simulations. These simulations also gave an answer to the question: At what level must the price of a service be fixed in order to increase or reduce the use of this service? The results allowed to set up a pricing system taking into account the expectations of the customers and the demands of the banks.

Marc Vandercammen

Author

This is a long description of some author details.

This could also be of interest:

Research Papers

Research Papers

Research Papers

  • PDF