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Demographic factors and customers’ bank choice criteria

Katarzyna Schmidt-Jessa
Katarzyna Schmidt-Jessa
   | 28 wrz 2023
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Data publikacji: 28 wrz 2023
Zakres stron: 237 - 253
DOI: https://doi.org/10.2478/ceej-2023-0014
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© 2023 Katarzyna Schmidt-Jessa, published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 International License.

Figure 1.

The most and the least important criteria of the bank's choice and demographic factors of the customers
The most and the least important criteria of the bank's choice and demographic factors of the customers

Bank selection criteria

No Criteria Criteria - abbreviation Literature
1 recognisable brand brand Narteh & Owusu-Frimpong (2011), Saleh et al. (2013); Narteh & Braimah (2020)
2 reputation reputation Almossawi (2001), Devlin & Gerrard (2005), Arora & Kaur (2019)
3 friends/family recommendation recommendation Kennington et al. (1996), Almossawi (2001), Blankson et al. (2007)
4 cost of services cost Devlin & Gerrard (2005), Blankson et al. (2007), Amin (2008), Arora & Kaur (2019),
5 convenient bank's localisation localisation Boyd et al. (1994), Lee & Marlowe (2003), Amin (2008), Devlin & Gerrard (2004), Blankson et al. (2009), Jahiruddin & Haque (2009)
6 easy and friendly online and mobile banking e-banking Devlin & Gerrard (2005), Mohd Suki (2018), Butt et al. (2022)
7 others others Martenson (1985), Kennington et al. (1996)

Comparison of bank selection between different age groups

Bank choice criteria <=25 (63) 26–35 (114) 36–45 (125)
n p r n p r n p r
brand 18 0.286 5 35 0.307 5 35 0.280 4
reputation 22 0.349 4 28 0.246 6 28 0.224 6
recommendation 31 0.492 3 39 0.342 3 34 0.272 5
cost 32 0.508 1 73 0.640 1 96 0.768 1
localisation 18 0.286 5 38 0.333 4 51 0.408 3
e-banking 32 0.508 1 66 0.579 2 76 0.608 2
Bank choice criteria 46–55 (89) 56–65 (80) >=66 (44) F
n p r n p r n p r
brand 33 0.371 4 24 0.270 4 17 0.386 4 0.678
reputation 20 0.225 5 10 0.125 6 4 0.091 6 3.253**
recommendation 18 0.202 6 15 0.188 5 5 0.114 5 6.303**
cost 58 0.652 1 58 0.725 1 27 0.614 1 3.055**
localisation 43 0.483 3 41 0.513 3 21 0.477 3 2.675**
e-banking 51 0.573 2 49 0.613 2 23 0.523 2 0.535

j.ceej-2023-0014.apptab.001

Correlation Matrix
brand reputation recommendation cost localisation e-banking
Correlation brand 1.000 0.018 −0.147 −0.117 −0.0133 −0.147
reputation 0.018 1.000 −0.020 −0.068 −0.183 −0.177
recommendation −0.147 −0.020 1.000 −0.220 −0.075 −0.166
cost −0.117 −0.068 −0.220 1.000 −0.189 0.239
localisation −0.133 −0.183 −0.075 −0.189 1.000 −0.194
e-banking −0.147 −0.177 −0.166 0.239 −0.194 1.000
Sig. (1-tailed) brand 0.342 <0.001 0.004 0.001 <0.001
reputation 0.342 0.327 0.061 0.000 0.000
recommendation 0.000 0.327 0.000 0.045 0.000
cost 0.004 0.061 0.000 0.000 0.000
localisation 0.001 0.000 0.045 0.000 0.000
e-banking 0.000 0.000 0.000 0.000 0.000

Comparison of bank selection between men and women

Bank choice criteria Women (299) Men (216) z
n p r n p r
brand 76 0.254 5 86 0.398 4 −3.472**
reputation 65 0.217 6 47 0.218 6 −0.005
recommendation 94 0.314 4 48 0.222 5 2.309**
cost 205 0.686 1 139 0.644 1 1.001
localisation 119 0.398 3 93 0.431 3 −0.741
e-banking 172 0.575 2 125 0.579 2 −0.078

Principal components analysis – all respondents

Factor Eigenvalue % of total variance % of cumulative variance Factor loading
Factor 1 1.515 25.251 25.251
cost of services 0.736
e-banking 0.765
Factor 2 1.244 20.726 45.977
reputation 0.679
localisation −0.815
Factor 3 1.117 18.612 64.589
brand −0.742
recommendation 0.763

j.ceej-2023-0014.apptab.002

Communalities
Initial Extraction
brand 1.000 0.688
reputation 1.000 0.527
recommendation 1.000 0.740
cost 1.000 0.550
localisation 1.000 0.775
e-banking 1.000 0.595

Comparison of bank selection between different education groups

Bank choice criteria Secondary (225) Higher (241) Vocational (39) F
n p r n p r n p r
brand 74 0.329 4 72 0.299 4 11 0.282 5 0.334
reputation 53 0.236 6 52 0.216 6 5 0.128 6 1.253
recommendation 60 0.267 5 64 0.266 5 13 0.333 4 0.399
cost 149 0.662 1 175 0.726 1 14 0.359 3 10.447**
localisation 99 0.440 3 91 0.378 3 20 0.513 1 1.745
e-banking 129 0.573 2 141 0.585 2 20 0.513 1 0.159

Comparison of bank selection between different place of residence groups

Bank choice criteria Town below 50 thous. inhabitants (117) Town of 50 to 150 thous. inhabitants (98) City of 150 to 500 thous. inhabitants (106)
n p r n p r n p r
brand 43 0.368 4 32 0.327 4 25 0.236 6
reputation 17 0.145 6 17 0.173 6 31 0.292 5
recommendation 31 0.265 5 26 0.265 5 36 0.340 3
cost 72 0.615 1 70 0.714 1 79 0.745 1
localisation 58 0.496 3 45 0.459 3 36 0.340 3
e-banking 66 0.564 2 57 0.582 2 59 0.557 2
Bank choice criteria City above 500 thous. inhabitants (104) Village (90) F
n p r n p r
brand 40 0.385 3 22 0.244 5 2.315
reputation 26 0.250 5 21 0.233 6 2.271
recommendation 24 0.231 6 25 0.278 4 0.841
cost 65 0.625 1 58 0.644 1 1.610
localisation 34 0.327 4 39 0.433 3 2.511**
e-banking 64 0.615 2 51 0.567 2 0.234

Demographic profile of the respondents

Category Description N % Category Description N %
gender women 299 58.06 occupation unemployed 36 6.99
men 216 41.94 student 28 5.44
age <=25 63 12.23 working 364 70.68
26–35 114 22.14 retired 87 16.89
36–45 125 24.27 place of residence village 90 17.48
46–55 89 17.28 town below 50,000 inhabitants 117 22.72
56–65 80 15.53 town of 50 to 15,000 inhabitants 98 19.03
>=66 44 8.54 city of 150 to 500,000 inhabitants 106 20.58
education primary 10 1.94 city above 500,000 inhabitants 104 20.19
vocational 39 7.57 average net income per person* less than 435 EUR 125 24.27
secondary 225 43.69 436–870 EUR 287 55.73
higher 241 46.80 871–1,305 EUR 70 13.59
1,306 EUR and more 33 6.41

Bank selection factor – the whole sample

Bank choice criteria whole sample F
n p r
brand 162 0.315 4 75,738**
reputation 112 0.217 6
recommendation 142 0.276 5
cost 344 0.668 1
localisation 212 0.412 3
e-banking 297 0.577 2

Comparison of bank selection between different income groups

Bank choice criteria Less than 435 EUR (125) 436–870 EUR (287) 871 EUR - 1.305 EUR (70) 1.306 EUR and more (33) F
n p r n p r n p r n p r
brand 28 0.224 5 101 0.352 4 22 0.314 5 11 0.333 4 2.282
reputation 23 0.184 6 59 0.206 6 25 0.357 3 5 0.152 6 3.355**
recommendation 38 0.304 4 75 0.261 5 19 0.271 6 10 0.303 5 0.304
cost 84 0.672 1 193 0.672 1 49 0.700 1 18 0.545 2 0.853
localisation 64 0.512 3 107 0.373 3 24 0.343 4 17 0.515 3 3.305**
e-banking 65 0.520 2 177 0.617 2 36 0.514 5 19 0.576 1 1.543

Comparison of bank selection between different occupation groups

Bank choice criteria Unemployed (36) Retired (87) Working (364) Student (28) F
n p r n p r n p r n p r
brand 9 0.250 5 29 0.333 4 116 0.319 4 8 0.286 5 0.337
reputation 12 0.333 4 9 0.103 6 85 0.234 6 6 0.214 6 3.439**
recommendation 13 0.361 3 17 0.195 5 103 0.283 5 9 0.321 4 0.357
cost 20 0.556 1 57 0.655 1 250 0.687 1 17 0.607 1 1.010
localisation 9 0.250 5 38 0.437 3 155 0.426 3 10 0.357 3 1.692
e-banking 18 0.500 2 48 0.552 2 214 0.588 2 17 0.607 1 0.460
eISSN:
2543-6821
Język:
Angielski
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Dziedziny czasopisma:
Biznes i ekonomia, Ekonomia polityczna, Teoria ekonomii, systemy i struktury, Mikroekonomia, Makroekonomia, Polityka gospodarcza
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