Investigating factors that influences undergraduates students' decisions on choosing a bank in Ho Chi Minh city
Abstract
Banking industry is becoming more popular and developing about all quantity
and quality services. Furthermore, many financial institutions and banks are efforting
provide a lot of similar banking services to customers. The customers have more choice to
choose a banking services supplier. Into competitive market, customer is the factor to
determine the survival of the bank. Which bank has more care and loyalty of customer, the
bank will be developed and can compete with others. Thus, there is a need to investigate
factor promote customers’ decision on selecting a bank.
“A Standardized Model of Service Provider Selection Criteria for Different
ServiceTypes: a Consumer-oriented Approach” of Kugytė, Šliburyte (2005) is adapted to
investigate the students’ decision on choosing a bank in Ho Chi Minh City. Primary data
were collected based on questionnaire and in-depth interview. A questionnaire with fivepoint Likert scale on five variables such as pricing, convenience, service quality,
recommendations by other, reputation is survey and get 311 valid questionnaires. After
factor analysis, 36 indicators are remain and regrouped into 9 factors (pricing, staff
conduct, convenience in transaction, recommendation by other, core service, image,
reputation, convenience in study & work and tangibles)
After regression analysis, results indicate that staff conduct, core service,
tangibles and convenience in study & work are significant important influencing students’
decision on choosing a bank. In with, Staff conduct contributes the most important factor
in explaning students’ decision on selecting a bank. And, this research has not yet found
any evidences can prove the pricing, recommendations by other, image, reputation factors
have a correlation with the students’ decision. Futhermore, convenience in transaction has
a negative relationship with students’ decision on selecting a banking service provider
The result is helpful to provide practical recommendations to marketers, leaders
of banks and directions for futher study.