Trust-based segmentation Preliminary evidence from technology-enabled bank channels

Purpose - Trust has proven to be a key variable in understanding and predicting consumer behavior in the self-service technology and e-commerce contexts. However, it has never been examined as a segmentation variable. This study seeks to investigate the possibility of using trust in two self-service bank channels: internet, and phone banking, to segment potential users of these channels. Design/methodology/approach - Using data from a survey of 762 real bank customers discriminant analysis is used to test variables differentiating two groups of customers having, respectively, "high" and "low" trust in internet and phone banking. Findings - Results show that the groups of "high" and "low" channel-trustors are different in a number of attitudinal, behavioral and psychographic criteria. In addition, the two groups react differently in terms of intention to use internet, and phone banking. Research limitations/implications - This work contributes to existing literature on trust by opening an additional use of and a new research perspective on trust. Its findings are limited to the sector, technology and cultural context of the study. Practical implications - In this paper several suggestions for bank managers to better target the adopters of self-service technology-based channels are discussed. Originality/value - This is the first attempt to examine trust as a segmentation variable and to bring evidence for its relevance for marketing decisions.