Browse > Article
http://dx.doi.org/10.13106/jafeb.2021.vol8.no1.457

Factors Affecting the Choice of Banks: Do Bank's Interest Rate, Employee Image and Brand Matter?  

DAO, Le Kieu Oanh (Banking University of Ho Chi Minh City)
LOC, Huynh Huu (Vietnam Joint Stock Commercial Bank for Industry and Trade in Ho Chi Minh City)
NGUYEN, Van Chien (Department of Finance and Banking, Faculty of Economics, Thu Dau Mot University)
HANG, Le Thi Thuy (University of Finance - Marketing)
DO, Thi Tuyet (Vietnam Trade Union University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.1, 2021 , pp. 457-470 More about this Journal
Abstract
The banking system provides a number of important functions for the economy and is also the lifeblood and financier of the economy in each country. Large amounts of idle money have not been exploited by banks; however, banks still depend on loans, including loans from foreign banks, to meet the growing demand, as such, for banks, the cost of capital is high, the stability and business efficiency are low and banks have not promoted their internal resources to grow steadily. To achieve the goal, this research analyzes the factors affecting the choice of bank for the deposit decisions of customers in Vietnam. The study used a sample data of 250 individuals and SPSS software was used to analyze the data. The results showed that customer policy has a positive effect on customers' deposit decisions in a bank, and this is new evidence regarding behavioral theory in the case of Vietnam. Results further demonstrated that other factors such as employee image, brand, interest rate, relative influencing, and transaction time positively impact the choice of bank for the deposit decisions of customers. However, the bank's promotion strategies had no impact on the choice of bank for the deposit decisions of customers. Besides, employee image is the most influential factor in the deposit decisions, followed by the bank's brand and interest rate.
Keywords
Customer Policy; Employee; Consumer Behaviour; Relatives; Brand; Marketing Promotion;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Adem, S. B. (2015). Determinant of commercial bank deposits in Ethiopia: A case of commercial bank in Ethiopia. Master thesis. Addis Ababa University. http://etd.aau.edu.et/handle/123456789/5011
2 Ajzen, I. (1991). The Theory of Planned Behavior TPB). Organizational Behavior and Human Decision Processes, 50, 179-211. https://doi.org/10.1016/0749-5978(91)90020-T   DOI
3 Ajzen, I., & Fishbein, M. (1980). Understanding attitudes and predicting social behavior. Englewood Cliffs, NJ: Prentice-Hall.
4 Almossawi, M. (2001). Bank selection criteria employed by college students in Bahrain: An empirical analysis. International Journal of Bank Marketing, 19(3), 115-125. https://doi.org/10.1108/02652320110388540   DOI
5 Anderson, W. T., Cox, E. P., & Fulcher, D. H. (1976). Bank selection decisions and market segmentation. Journal of Marketing, 40(1), 40-45. https://doi.org/10.2307/1250674   DOI
6 Blackwell, R. D., Miniard, P. W., & Engel, J. F. (2006). Consumer behavior (10th ed). Mason, OH: Thomson South-Western.
7 Chigamba, C., & Fatoki, O. (2011). Study the factors that influence the choice of commercial banks of college students in South Africa. International Journal of Bank Marketing, 6(6), 14-31. https://doi.org/10.5539/ijbm.v6n6p66   DOI
8 Dao, L.K.O., Nguyen, T.Y., Hussain, S., Nguyen, V.C. (2020). Factors affecting non-performing loans of commercial banks: The role of bank performance and credit growth. Banks and Bank Systems, 15(3), 44-54. http://dx.doi.org/10.21511/bbs.15(3).2020.05   DOI
9 Denton, L., & Chan, A. K. K. (1991). Bank selection criteria of multiple bank users in Hong Kong. International Journal of Bank Marketing, 9(5), 23-34. https://doi.org/10.1108/02652329110007129   DOI
10 Duong, N. T. T., Phan, T. H., Hoang, N. T., & Vo, T. T. T. (2020). The effect of financial restructuring on the overall financial performance of the commercial banks in Vietnam. Journal of Asian Finance, Economics, and Business, 7(9), 75-84. https://doi.org/10.13106/jafeb.2020.vol7.no9.075   DOI
11 Finger, H., & Hesse, H. (2009). Determinants of commercial banks' deposits at the Lebanon Financial Center. International Monetary Fund Working Paper. Available at https://www.imf.org/external/pubs/ft/wp/2009/wp09195.pdf
12 Hair Jr., J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multivariate data analysis with readings. Englewood Cliffs, NJ: Prentice-Hall.
13 Howard, J. A., & Sheth, J. N. (1969). The theory of buyer behavior. New York, NY: Wiley.
14 Keng, C. J., Tran, V.D., Liao, T.H.,Yao, C. J & Hsu, M.K (2014). Sequential combination of consumer experiences and their impact on product knowledge and brand attitude. Internet Research, 24(3), 270-291. https://doi.org/10.1108/IntR-09-2012-0189   DOI
15 Kennington, C., Hill, J., & Rakowska, A. (1996). Consumer selection criteria for banks in Poland. International Journal of Bank Marketing, 14(4), 12-21. https://doi.org/10.1108/02652329610119283   DOI
16 Laroche, M., Rosenblatt, J. A., & Manning, T. (1986). Services used and factors considered important in selecting a bank: An investigation across diverse demographic segments. International Journal of Bank Marketing, 4(1), 35-55. https://doi.org/10.1108/eb010771   DOI
17 Devlin, J. F. (2005). A detailed study of financial exclusion in the UK. Journal of Consumer Policy, 28, 75-108. https://doi.org/10.1007/s10603-004-7313-y   DOI
18 Nguyen, Q. N. (2011). Factors affecting the decision of individual customers to choose a bank to save money. Financial and Monetary Market Review, 18(339), 28 - 29.
19 Moradzadeh, A., Kord, H., Tamandani, N. K., & Parvaresh, A. (2014). The ranking of the factors affecting the increase of the customers' interest in depositing their money in a bank. International Journal of Economy, Management, and Social Sciences, 3(12), 822-826.
20 Mukherjee, S., Bhattacharjee, S., Singha, S.S. (2017). Workplace spirituality: Perception of employees in selected B-Schools at Kolkata. Purushartha, 10(1), 70-78. Available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2925638
21 Nguyen, V. C. & Do, T. T. (2020). Impact of exchange rate shocks, inward FDI, and import on export performance: A cointegration analysis. Journal of Asian Finance, Economics, and Business, 7(4), 163-171. https://doi.org/10.13106/jafeb.2020.vol7.no4.163   DOI
22 Tran, V. H. (2012). Factors affecting the individual customers' decision to deposit at Vietcombank Long An. Master thesis, University Economics of Ho Chi Minh City.
23 Tran, V. D & Vu, Q.H. (2019). Inspecting the relationship among E-service quality, E-trust, E-customer satisfaction and behavioral intentions of online shopping customers. Global Business & Finance Review, 24 (3), 29-42. DOI: 10.17549/gbfr.2019.24.3.29   DOI
24 Tran, T. N., Nguyen, T. T., Nguyen, V. C., & Vu, T. T. H. (2020). Energy consumption, economic growth, and trade balance in East Asia - A panel data approach. International Journal of Energy Economics and Policy, 10(4), 443-449. https://doi.org/10.32479/ijeep.9401   DOI
25 Truong, D. L., & Pham, K. A. (2011). Research on the savings behavior of people in Kien Giang province. Banking Review, 3(2), 48 - 53.
26 Abbam, A., Dadson, I., & Say, J. (2015). An empirical analysis of bank choice in Ghana. European Journal of Business and Management, 7(12), 32-35. https://doi.org/10.1.1.734.9425   DOI
27 Yavas, U., Babakus, E., & Karatepe, O. M. (2013). Does hope moderate the impact of job burnout on frontline bank employees' in-role and extra-role performances? International Journal of Bank Marketing, 31(1), 56-70. https://doi.org/10.1108/02652321311292056   DOI
28 Abbas, S., Nguyen, V. C., Yanfu, Z. Y., & Nguyen, H. T. (2020). The impact of China exchange rate policy on its trading partners: Evidence-based on the GVAR Model. Journal of Asian Finance, Economics, and Business, 7(8), 131-141. https://doi.org/10.13106/jafeb.2020.vol7.no8.131   DOI