Determinants on deposit decision of individual customers : a case study of Eximbank - Buon Ma Thuot branch

Abstract

The present empirical study focuses on identifying key factors that have influences deposit decision of individual customer at Eximbank in Buon Ma Thuot City. Identifying the factors that affect customers’ decision to deposit at banks has become an essential asset for many banks in their effort to attract new customers and to maintain existing ones. For the purpose of the present study, primary data were collected based questionnaire. A total of 350 respondents from 1 branch and 2 transaction rooms of Eximbank were selected. The opinion of the respondents on 29 variables of 6 components indicating determinants on deposit decision of individual customer were measured with Likert five point scale ranging from five to one depending on the importance. Result of this study shows that there are 5 components: Bank personnel, Bank’s location and layout, Pricing dimension, Bank responsiveness, Marketing and promotion, which had positively impact on deposit decision of individual customer except for Reputation of bank. In these 5 components, the most effect on deposit decision of customer is “Pricing dimension” and the least one is “New bank location and layout”. In addition, several managerial implications suggest Eximbank managers should focus on “Pricing dimension” component most to attract more customer in its fund mobilization.