How to apply the Theory of Planned Behavior (TPB): An example

The Theory of Planned Behavior (TPB) is an effective framework for studying how subjective norms and perceived behavioural control influence students’ decisions regarding bank choices. This theory posits that people’s intentions to perform a specific behaviour are influenced by three key factors: attitudes, subjective norms, and perceived behavioural control. Here’s how each of these elements could apply to the decision-making process students use when selecting a bank:

1. Subjective Norms

Subjective norms refer to the social pressures or influences that people feel from important individuals or groups around them. In the context of students choosing a bank, subjective norms might encompass the following:

• Family Influence: Students are often influenced by family recommendations on financial matters, especially if they’ve had little prior experience with banks. If parents or family members have positive experiences or trust a certain bank, students may feel encouraged to select the same institution.
• Peer Influence: Students might also feel pressure from friends or classmates when choosing a bank. If a specific bank is popular among peers due to benefits such as low fees, student-friendly services, or accessible ATMs near campus, students might be more inclined to follow suit.
• Influence of Professors or University Staff: Universities sometimes partner with specific banks, and professors or university staff may endorse certain banks, consciously or unconsciously influencing students’ choices.

In a study guided by TPB, researchers could measure subjective norms by asking students about the influence of their family, friends, and university on their bank choice decisions. The degree to which subjective norms impact intentions could reveal how much social influence drives students toward certain financial institutions.

2. Perceived Behavioral Control

Perceived behavioural control refers to the degree to which individuals feel they have control over performing a behavior, in this case, selecting a bank that meets their needs. Several factors could impact students’ perceived control in choosing a bank:

• Availability of Resources: Students may perceive limited control if they feel they don’t have adequate knowledge about banks or financial services. Banks that make information easy to access and understand can help enhance students’ sense of control.
• Financial Literacy: Students with higher financial literacy may feel more in control when selecting a bank. This knowledge gives them confidence to evaluate different options, understand fees, and assess benefits like overdraft protection or credit-building tools.
• Access and Convenience: Factors like the availability of nearby ATMs, accessible customer service, and mobile banking apps may affect students’ perceived control. If a bank offers multiple ATMs on or near campus, for example, students may feel more empowered to choose that bank.

To assess perceived behavioural control, researchers could ask students about how confident they feel in their ability to choose a bank, what resources they rely on to make this decision, and any barriers they encounter.

3. Applying TPB to Measure Bank Choice Intentions and Behavior

To apply TPB in exploring students’ bank choices, a survey-based study could measure each component:

• Attitudes toward Bank Choices: This involves students’ evaluations of different banks. For example, some students may prioritize low fees, while others may value customer service or online banking features.
• Subjective Norms: Questions could gauge how much influence students perceive from family, friends, or university-related endorsements in their choice of bank.
• Perceived Behavioral Control: This could be measured by asking students about their confidence and knowledge in making bank choices, as well as any perceived barriers to switching or selecting a bank.

Once data is collected, the model could analyze how each factor affects students’ intentions and behaviors in choosing a bank. This approach provides insight into which factors most strongly impact student bank choices and how banks could tailor their services and marketing to address these influences.

4. Practical Implications for Banks

Using insights from TPB, banks could adopt strategies to improve their appeal to students by:

• Leveraging Social Influence: Collaborating with universities and engaging with student communities can help build subjective norms in favour of the bank. Sponsorship of campus events, scholarships, and student advisory boards can make the bank a familiar name among students and faculty.
• Enhancing Perceived Behavioral Control: Offering financial education sessions or interactive resources that help students understand banking options can empower students, giving them greater control and confidence in their decision.

The Theory of Planned Behavior, therefore, provides a comprehensive framework for exploring how subjective norms and perceived behavioural control affect students’ bank choices, offering valuable insights into social and psychological factors that shape financial decisions.

Posted by Glenn Stevens (Contact)