Marketing research study of the banking habits and attitudes of the students of Oklahoma State University

Abstract

Scope and Method of Study: Primary research was conducted in a personal interview survey of a random sample of the resident student population of the Oklahoma State University. Secondary research on bank marketing research indicated significant demographic, bank usage, and attitudinal factors to be measured. A basic questionnaire supplemented by a semantic differential scale measured the utilization by students of banks and bank services in general, and of the three Stillwater banks in particular. The profitability of student checking accounts, and the opinions and attitudes of students on bank services and the local banks were measured. Image profiles of the local banks were developed.

Findings and Conclusions: Almost half of the students have a checking account before they come to college, maintain that account in an out- of-town bank, and never use a Stillwater bank. Segments of particular interest are female residence hall students, who have a low level of usage of local checking accounts, and married students who maintain local checking accounts but out-of-town savings accounts. Proportionately fewer residence hall students use local banks than town students, who use local banks as well as out-of-town banks. Cost, convenience, friendliness, and parental influence are factors in the decision to maintain out-of-town accounts. Students prefer a modern, attractive bank to an old-fashioned, unattractive bank, and they rate banking-by-mail, drive-up and walk-up windows, and convenience in parking high on their list of preferences. Convenience in bank location is overweighed by other factors. An average balance of $200 and low activity make the student account potentially profitable. The Stillwater banks share only 36 percent of the checking accounts held by students. A large potential exists for increasing the market shares of the banks for checking accounts, savings accounts, and for general usage by students. Suggestions for realizing that potential, based upon appropriate advertising and direct mail appeals, were offered by the author for consideration by the Stillwater banks.