An Analysis Of The Factors Influencing Young Generations' Bank Selection In Ho Chi Minh City

Abstract

The selection of a bank is a critical aspect of banking strategy in today's highly competitive environment. Banks must identify and enhance factors that contribute to customer retention to effectively plan marketing strategies aimed at retaining existing customers and attracting new ones. This study aims to investigate the importance of bank selection criteria and identify the most influential factor affecting young customers' bank selection decisions in Ho Chi Minh City. Utilizing responses from 250 young individuals, a quantitative methods was employed. Seven factors, comprising 27 attributes rated on a 5-point Likert scale, were used to assess bank selection criteria. Non-probability convenience sampling was utilized, and factor analysis was conducted to streamline the variables. The findings indicate that several key factors significantly influence young customers' bank selection process, including Convenience, Technology Factor, Brand Image, Bank's Promotion Strategies, and Security, with Brand Image and Convenience being the most impactful. These findings provide valuable insights into the decision-making process of young customers when selecting a bank. Notably, Relatives' Influence and Staff Quality were found to be unreliable predictors of young individuals' bank choices due to their inconsistent relationship with the selection process. In other words, young individuals who regularly visit the bank tend to favor banks that excel in offering convenience and flexibility, such as easy access, widespread availability, comprehensive services, and advanced technology. Given these results, it is recommended that banks conduct frequent marketing research to continuously monitor and evaluate evolving customer perspectives, enabling them to develop products and services tailored to the preferences of the young generation