Author(s)

A. Prinzie & D. Van den Poel

Abstract

Investigating purchasing patterns for financial services using Markov and MTD models A. Prinzie & D. Van den Poel Department of Marketing, Ghent University, Belgium Abstract Over the past two decades, the financial markets have become more competitive resulting in diminishing profit margins and blurring distinctions between banks, insurers and brokerage firms. Hence, nowadays a small number of large institutions offering a wider set of services dominate the financial-services industry. These developments stimulated the implementation of Customer Relationship Management (CRM). Given the increasing customer-acquisition cost, marketers realize that the best prospects for the sales of current and new financial services are the current customers. So cross-sell actions are created to motivate existing customers to use additional services from the firm. A great opportunity lies in cross-selling insurance products to bank clients and vice versa. In this study, we investigate purchase patterns of financ

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