FIN 2035 ? Consumer Behaviour and Financial Needs

Integrated Case Study Assignment

Please read the case below and answer the questions that follow.

Inspired by: Barnes, James. Consumer Behaviour and Financial Needs. Institute of Canadian Bankers, 1999.

In this case, you will use the main concepts discussed in this course to determine how the FSR can help satisfy the needs of the clients who are described in the following case. As you read the case, think about the role of the FSR in serving these people and ensuring their satisfaction.

Robert and Celine have been married for 5 years. Robert is 32 years old and Celine is 30. Both are dedicated to their careers. Robert works for a large pharmaceutical company. He recently completed his MBA after studying part-time for the past several years. Starting in sales, Robert quickly advanced to a position in marketing management with his employer. With his education and experience, he expects to continue to advance in his organization. Celine works as an elementary school teacher and runs a small tutoring service.

Robert and Celine have a three year old daughter. They plan to move out of their small apartment in the city and buy a house in the suburbs before the arrival of their second child within the next two years.

Robert and Celine both enjoy travel and attending theatre and concerts. They hope to take a trip to Europe before the arrival of their next child. They would like to be mortgage free in less than ten years.

Robert and Celine expect their expenses to increase over the next few years thanks to the mortgage on their suburban home, the need for a second car, higher property taxes and expenses related to the arrival of a second child. At the same time, Celine expects to take time off work to raise her new child.

Robert and Celine have a joint chequing account and credit cards with a bank they consider to be their main financial institution. They each have products and services with other financial institutions. Celine has a small RRSP savings account with a credit union near her school. Robert has an online investing account and RRSP with another bank.

Despite having assets at several financial institutions, Robert and Celine have never had the benefit of professional financial planning and advice. In fact, with their busy lifestyles, they rarely visit their financial institutions, preferring to do most of their banking online.

Considering their current financial situation and the prospect of higher expenses, they wonder how they can achieve their objectives while growing their nest egg for the future. ?I think it?s time to call a financial planner? said Robert.

Robert and Celine?s Financial Position

Assets

Savings $3000

RRSPs $35,000

Non-Registered Investments $18,000

Liabilities

Credit Card Debt $9000

Case Study Questions

Answer the following questions based on the information in the case.

1. Provide a detailed customer profile for Robert and Celine based on the information in the case. You can make assumptions where appropriate.

2. With respect to their financial planning, at which stage of the purchase decision process is this couple. Explain your answer.

3. Outline the couple?s financial needs and the products or services required to meet those needs. Describe their interaction preferences -- how they would like to be served by their bank.

4. Describe the most important internal (psychological), external (social) and situational influences on the couple?s use of financial products and services.

5. Develop some likely scenarios which project the financial and family situation for Robert and Celine five and ten years from now.

6. How can the couple?s main financial institution retain Robert and Celine as customers? How can their main financial institution develop a long-term financial relationship with this couple? Should they attempt to build a long-term relationship with Robert and Celine? Why or why not?

FIN 2035 - Consumer Behaviour and Financial Needs Integrated Case Study Assignment Please read the case below and answer the questions that follow. Inspired by: Barnes, James. Consumer Behaviour and Financial Needs. Institute of Canadian Bankers, 1999. In this case, you will use the main concepts discussed in this course to determine how the FSR can help satisfy the needs of the clients who are described in the following case. As you read the case, think about the role of the FSR in serving these people and ensuring their satisfaction. Robert and Celine have been married for 5 years. Robert is 32 years old and Celine is 30. Both are dedicated to their careers. Robert works for a large pharmaceutical company. He recently completed his MBA after studying part-time for the past several years. Starting in sales, Robert quickly advanced to a position in marketing management with his employer. With his education and experience, he expects to continue to advance in his organization. Celine works as an elementary school teacher and runs a small tutoring service. Robert and Celine have a three year old daughter. They plan to move out of their small apartment in the city and buy a house in the suburbs before the arrival of their second child within the next two years. Robert and Celine both enjoy travel and attending theatre and concerts. They hope to take a trip to Europe before the arrival of their next child. They would like to be mortgage free in less than ten years. Robert and Celine expect their expenses to increase over the next few years thanks to the mortgage on their suburban home, the need for a second car, higher property taxes and expenses related to the arrival of a second child. At the same time, Celine expects to take time off work to raise her new child. Robert and Celine have a joint chequing account and credit cards with a bank they consider to be their main financial institution. They each have products and services with other financial institutions. Celine has a small RRSP savings account with a credit union near her school. Robert has an online investing account and RRSP with another bank. Despite having assets at several financial institutions, Robert and Celine have never had the benefit of professional financial planning and advice. In fact, with their busy lifestyles, they rarely visit their financial institutions, preferring to do most of their banking online. Considering their current financial situation and the prospect of higher expenses, they wonder how they can achieve their objectives while growing their nest egg for the future. \"I think it's time to call a financial planner\" said Robert. Robert and Celine's Financial Position Assets Savings $3000 RRSPs $35,000 Non-Registered Investments $18,000 Liabilities Credit Card Debt $9000 Case Study Questions Answer the following questions based on the information in the case. 1. Provide a detailed customer profile for Robert and Celine based on the information in the case. You can make assumptions where appropriate. 2. With respect to their financial planning, at which stage of the purchase decision process is this couple. Explain your answer. 3. Outline the couple's financial needs and the products or services required to meet those needs. Describe their interaction preferences -- how they would like to be served by their bank. 4. Describe the most important internal (psychological), external (social) and situational influences on the couple's use of financial products and services. 5. Develop some likely scenarios which project the financial and family situation for Robert and Celine five and ten years from now. 6. How can the couple's main financial institution retain Robert and Celine as customers? How can their main financial institution develop a long-term financial relationship with this couple? Should they attempt to build a long-term relationship with Robert and Celine? Why or why not