Modeling consumers' choice behavior: an application in banking

The study proposes and tests a model of consumer bank choice behavior in a south eastern city in the USA, based on the economics of information theory. The model expands the domain of inquiry beyond the initial level attributes to the first‐order latent construct and the second‐order (composite) levels. Results suggest that consumer bank choice behavior can be represented as a global construct with three viable components (search, credence and experience) and provide implications for bank managers.