Pricing models and bank customer behaviour

This research analyses the relevance of pricing models to the behavior of banking service customers, in particular, how bank pricing models influence the acquisition and retention of retail customers. The survey is based a dataset of 90,000 current bank account holders at an Italian commercial bank, and records and analyzes their acquisition and abandonment behavior during the years 2007-2008.The findings show which pricing variables are significantly associated with customer acquisition and loyalty. Finally, this research identifies the main characteristics of the most effective pricing models for current accounts