Document Type

Article

Publication Date

5-13-2006

Abstract

The Baby Boom generation's peak earning years are rapidly coming to a close as its members approach age sixty. The reduction of defined benefit pension plans, minimal retirement savings, and greater life expectancies has created a looming economic crisis. The need for Boomers to save more and prepare better is well-researched and publicized. And while an ever-increasing amount of investment and financial information is available to the public, this wealth of information seems to overwhelm consumers into inaction. Clearly they could use some good advice. What has not received much academic research attention is the value Boomers place on professional financial advisory relationships in planning their retirements. The financial services industry continues to develop strategic plans based upon the belief that this consumer group highly values the advice of a trusted financial advisor in this endeavor. This belief has not been substantiated. Understanding the key factors that motivate consumers to seek out financial advice and develop long-term satisfactory financial advisory relationships would have significant effect on how the investment industry delivers retirement services. The extensive literature written about sales and relationship marketing focuses on the importance of service levels, transaction quality, and trust in building consumer loyalty. This qualitative research effort will build on prior literature, and move beyond the obvious importance of trust, to explore the specific factors and advisor behaviors most highly attributed by Baby Boomers to creating long-term financial advisor satisfaction. We seek to discover both compelling and non-compelling factors that drive loyalty and non-loyalty, and capture trigger moments that cause an increase or decrease in loyalty. A review of similarity theory and relationship marketing literature and six preliminary phenomenological interviews indicate that consumer-advisor values similarity may play a role in consumer satisfaction.

Keywords

financial planners -- marketing

Rights

© The Author(s). Kelvin Smith Library provides access for non-commercial, personal, or research use only. All other use, including but not limited to commercial or scholarly reproductions, redistribution, publication or transmission, whether by electronic means or otherwise, without prior written permission is strictly prohibited.

Department/Center

Design & Innovation

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