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Article
Publication date: 1 March 1995

Ibrahim A. Hegazy

The purpose of this paper is to determine the number of selection criteria of Islamic and commercial banks in Egypt and to identify the relative influence that each attribute may…

Abstract

The purpose of this paper is to determine the number of selection criteria of Islamic and commercial banks in Egypt and to identify the relative influence that each attribute may exert on the selection process. Findings indicate differences in the important selection criteria of Islamic and commercial banks in Egypt. Although the number of attributes was similar, differences prevailed in the relative importance of selection criteria. This finding could be linked to the fundamental difference between these two banking systems that are widely spread in the Middle East.

Details

International Journal of Commerce and Management, vol. 5 no. 3
Type: Research Article
ISSN: 1056-9219

Article
Publication date: 21 June 2021

Suzanna ElMassah and Heba Abou-El-Sood

As the popularity of Islamic banking and financial instruments continues to rise globally, a recurring empirical question is what specifically makes consumers choose Islamic…

Abstract

Purpose

As the popularity of Islamic banking and financial instruments continues to rise globally, a recurring empirical question is what specifically makes consumers choose Islamic banking. This paper aims to investigate the determinants of bank type selection, especially in culturally diverse settings where the Islamic banking sector is well-established. It further examines whether consumers’ gender/religion influences their choices. One intuitive prediction is that Muslim consumers opt for Islamic banking products as “ethical” because of conviction-related reasons. However, the reality is not necessarily straightforward.

Design/methodology/approach

This paper uses structural equation modeling to examine data collected from a survey questionnaire of 790 respondents in an emerging market setting. Further analysis is made based on gender and religion to remove related bias.

Findings

Results suggest that overall consumer awareness significantly affects the selection of Islamic banking products. The positive effect of awareness is more significant for Muslim consumers relative to non-Muslims. Interestingly, social stimuli and bank attributes have an insignificant effect on the banking choices of both Muslims and non-Muslims.

Practical implications

Results suggest that Islamic banks’ marketing managers should adopt differentiated strategies for men and women, focusing on the core benefits of the service or personal interactions with consumers, respectively, along with a focus on different aspects of personal service for each gender. Awareness should be enhanced by adopting informative and effective marketing strategies to attract and retain consumers in the competitive bank environment. Islamic banks (IB) should pay attention to the religious effect without considering it as the sole variable motivating potential customers. They should design segmented and customized marketing strategies based on gender-religion market segmentation to suit different groups’ needs.

Originality/value

The findings fill a gap in the literature and provide Islamic bankers with insights to help design and articulate their business strategies to appeal to consumers in a multicultural context. Examining an integral part of gender and religion mitigates biased estimates due to the omission of variables. The study contributes to the existing literature on customer preferences for IB with a relatively large, new data set.

Details

Journal of Islamic Marketing, vol. 13 no. 11
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 28 October 2013

Bedman Narteh

– The paper aims to investigate small and medium-scale enterprises (SMEs) bank selection and patronage behaviour in the Ghanaian banking sector.

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Abstract

Purpose

The paper aims to investigate small and medium-scale enterprises (SMEs) bank selection and patronage behaviour in the Ghanaian banking sector.

Design/methodology/approach

A detailed literature review was used to identify five determinants of bank selection and other patronage factors which were used to survey 503 SMEs randomly selected from the data base of the National Board for Small Scale Industries in Ghana. Exploratory factor analysis, multiple regression and correlation analysis were used for the data analysis.

Findings

The study found price competitiveness, credit availability, perceived service quality, staff attributes and bank attributes as determinants of SME bank selection. In addition, loans and overdrafts, cash collection, transfers, bank guarantees, advisory services and training were among the core services patronized by the SMEs.

Practical implications

The study highlights the importance of factors considered important to the SME bank selection and patronage behaviour. It thus provides practical leverage to banks on how to attract, serve and retain SMEs in Ghana.

Originality/value

The study is the first of its kind that investigated both bank selection and patronage behaviour at the same time and provides important insight for banks on how to attract, satisfy and manage SMEs. It also makes a major contribution to the literature on SME banking behaviour especially in a sub-Saharan Africa and responds to the recent call for more studies on SME practices in emerging economies.

Details

Management Research Review, vol. 36 no. 11
Type: Research Article
ISSN: 2040-8269

Keywords

Article
Publication date: 16 October 2007

Charles Blankson, Julian Ming‐Sung Cheng and Nancy Spears

The aim of this paper is to investigate bank choice/selection criteria in a range of cultural and country economic scenarios. More specifically, the purpose of this study is to…

4038

Abstract

Purpose

The aim of this paper is to investigate bank choice/selection criteria in a range of cultural and country economic scenarios. More specifically, the purpose of this study is to understand international consumers' selection criteria of banks using the USA, Taiwan, and Ghana as illustrations.

Design/methodology/approach

Following a literature review, the paper adopts the classical multi‐step scale development process which demanded that thorough attention be paid to every step of the process. The study employed exploratory and confirmatory factor analyses to assess the reliability of the results.

Findings

The study reveals three key dimensions/factors/strategies that are consistent across all three economies. The paper concludes that open and liberalized business climate appear to explain consumers' decisions.

Research limitations/implications

This research is based on the college student cohort and thus the results do not represent the public. This poses generalizability questions without further replications and validations. This study did not examine whether there were consumers' switching behaviors involving banks.

Practical implications

Insights derived from this study will provide bank managers and advertising executives with the building blocks for understanding consumers' choice criteria of banks in industrialized, newly industrialized and liberalized developing economies.

Originality/value

A comprehensive validated scale measuring international consumers' selection of banks is proposed. In view of the scarce stream of empirical studies dealing with consumers' selection of banks in liberalized developing nations, this research comes at an opportune time, as several governments in these economies are encouraging bank savings, channeling college students' loans through bank accounts and proactively attracting global banks to establish branches in their countries. This study complements the extant literature dealing with consumers' selection of banks. Finally, a cross‐national and cross‐cultural dataset of consumers' choice criteria of banks have been put forward that would enhance further appreciation of the subject of banks selection in varying economies.

Details

International Journal of Bank Marketing, vol. 25 no. 7
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 24 April 2023

Enyew Mulu Zelie

This study aimed to explore the importance of various factors considered in the bank selection decisions of micro- and small-sized enterprises (MSEs) in Ethiopia.

Abstract

Purpose

This study aimed to explore the importance of various factors considered in the bank selection decisions of micro- and small-sized enterprises (MSEs) in Ethiopia.

Design/methodology/approach

The study used a structured questionnaire to collect data from 300 MSEs selected through a convenience sampling technique. Descriptive statistics, exploratory factor analysis and linear regression analysis methods are used to identify the most important factors determining bank selection by MSEs.

Findings

The results of exploratory factor analysis revealed that the availability of credit at a reasonable interest rate, lower service charges and the availability of better automated teller machine (ATM) services are the priorities of MSEs in their bank selection decisions. In addition, the results of regression analysis indicated that price competitiveness is the most important factor determining bank selection decisions of MSEs.

Research limitations/implications

This study has two major limitations: first, due to resource constraints, the samples included in this study were taken only from the capital city of the country, Addis Ababa. As customer preferences are likely to vary from region to region, future studies could be carried out by including samples from other cities and rural areas of the country. Second, the study relied on a single data collection instrument. The use of additional data collection instruments, such as interviews and focus group discussions, could provide additional insights into the topic.

Practical implications

Commercial banks need to devise a flexible lending policy and set affordable interest rates and collateral requirements to meet the credit needs of MSEs. MSEs, on the other hand, need to improve their bankability by improving their operating and financial reporting practices. Further research can be conducted by covering other cities and the rural parts of the country.

Originality/value

The topic of bank selection has not been explored with a specific reference to MSEs in Ethiopia. The present study addressed this gap by investigating the factors influencing bank selection decisions of MSEs.

Details

International Journal of Bank Marketing, vol. 41 no. 6
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 9 March 2015

Nuradli Ridzwan Shah Mohd Dali, Shumaila Yousafzai and Hanifah Abdul Hamid

The main aim of this paper is to identify whether certain consumers behave irrationally when it comes to select banking products. This paper builds on one of the most significant…

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Abstract

Purpose

The main aim of this paper is to identify whether certain consumers behave irrationally when it comes to select banking products. This paper builds on one of the most significant banking products that is the credit card.

Design/methodology/approach

This is an exploratory research paper. Therefore, only descriptive analysis on the differences between three credit card user groups such as the Islamic credit card users, conventional card users and users who decide to use both credit cards, conventional and Islamic, were presented.

Findings

The demographic and psychographic factors for the three different groups differ. In addition, there are four factors that influence the credit card selection. The factors are insurance/takaful provided by the credit issuers, cost associated with the credit card, the reward points programme offered and the convenience factors. Furthermore, the study found that three of the factors except insurance/takaful are significantly different between three credit card groups.

Research limitations/implications

This paper is limited to the context of Malaysia and the respondents are mostly from the same ethnic. Therefore, it could not be generalised in the context of other countries and further studies comparing different culture or ethnic could benefit and enrich the topic of study.

Practical implications

The Islamic and conventional banks could focus on several factors influencing customers’ selection and could focus to improve certain lacking areas as perceived by the consumers. The ability to increase the perceptions of the consumers regarding their credit cards will enable their products to be chosen in the market.

Originality/value

There was a significant amount of literature discussed in the Islamic banking selection factors. However, little attention being paid to the selection of a specific bank’s product. This study offers a study that looks into the selection of the credit card offered by the banks in respect to the irrational behaviours of the religious consumers in economic activities as compared to the conventional economists. This paper will contribute to the body of existing literature of banking selection.

Details

Journal of Islamic Marketing, vol. 6 no. 1
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 1 June 2001

Mohammed Almossawi

To plan an appropriate marketing strategy for attracting new customers, commercial banks need to identify the criteria on which potential customers determine their bank selection…

8551

Abstract

To plan an appropriate marketing strategy for attracting new customers, commercial banks need to identify the criteria on which potential customers determine their bank selection decision. The study focuses on examining the bank selection criteria being employed by college students in Bahrain. A total of 1,000 students aged 19‐24 (45 per cent male and 55 per cent female) of the University of Bahrain served as a sample for the study. Our examination relied on 30 selection factors extracted from relevant literature, personal experience and interviews with some bank officials and college students. Findings reveal that the chief factors determining college students’ bank selection are: bank’s reputation, availability of parking space near the bank, friendliness of bank personnel, and availability and location of automated teller machines (ATM). Findings suggest that it may be necessary to deal with male and female students as distinctive segments with different priorities in their bank selection process.

Details

International Journal of Bank Marketing, vol. 19 no. 3
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 5 April 2013

Hameedah Sayani and Hela Miniaoui

This study aims to identify the determinants of bank selection for Islamic and conventional banks in the United Arab Emirates (UAE).

3554

Abstract

Purpose

This study aims to identify the determinants of bank selection for Islamic and conventional banks in the United Arab Emirates (UAE).

Design/methodology/approach

Data were collected from 246 respondents in the Emirates of Dubai and Sharjah and focused on aspects such as bank products, service quality, profit, reputation, cultural and religious factors, in addition to demographic attributes of the sample. Multiple discriminant analysis is used to identify the most important determinants of bank selection.

Findings

The study concluded that the determinants for bank selection are more distinguishable amongst Islamic bank customers. Bank reputation and expectation of profit on deposits are not determinants of bank selection; however, religious preferences are the most important considerations in selection between Islamic and conventional banks.

Research limitations/implications

Use of convenience sampling due to lack of resources may result in insufficient representation of population. Additionally, analysis of differences between the Muslim and non‐Muslim population with respect to their bank selection process may provide an avenue for future research.

Practical implications

The study has implications for both Islamic and conventional banks that can appropriately target the customers using bank selection determinants that are valued by the customers.

Originality/value

The study adds to the existing literature on consumer preferences for Islamic and conventional banks in the context of the UAE with a relatively large and recent data set.

Details

International Journal of Bank Marketing, vol. 31 no. 3
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 26 July 2011

Bedman Narteh and Nana Owusu‐Frimpong

This study aims to offers a deeper insight into bank selection of Ghanaian students so as to offer bank managers the opportunity to tailor‐measure programmes aimed at attracting…

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Abstract

Purpose

This study aims to offers a deeper insight into bank selection of Ghanaian students so as to offer bank managers the opportunity to tailor‐measure programmes aimed at attracting and retaining customers.

Design/methodology/approach

The study employed both qualitative and quantitative methods to investigate the problem. The “drop and pick” convenience sampling method adopted resulted in 223 completed questionnaires. The mean ranking and factor analysis methods were employed to identify the major factors that influence the respondent bank selection.

Findings

Over all, student customers consider image, attitude and behaviour of staff, core service delivery and technology‐related factors as the major issues that influence consumers' decision to open and maintain an account.

Research limitations/implications

The limitation of the study relates to the student population used for the study, which limits the generalisability of the findings. The study, however, contributes to the academic knowledge of bank selection and provides insights into the critical factors considered by sample students in their bank selection decisions.

Practical implications

In a market where consumers respond differently to a marketing offer, market segmentation becomes a necessity and therefore differences in male and female consumers' selection criteria emanating from this study provide an excellent opportunity for the banks to adopt segmentation‐based strategies to serve the customers.

Originality/value

In this paper, gender and educational level provide a deeper understanding of bank selection criteria among the Ghanaian bank customers. The four constructs can be used by bank management as bases for designing marketing strategies to deliver efficient service, and engage in relationship marketing practices to attract and retain customers.

Details

International Journal of Bank Marketing, vol. 29 no. 5
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 26 March 2019

Sangeeta Arora and Harpreet Kaur

The purpose of this paper is to develop, measure and empirically validate a scale that captures the full dimensionality of selection attributes considered by customers when…

Abstract

Purpose

The purpose of this paper is to develop, measure and empirically validate a scale that captures the full dimensionality of selection attributes considered by customers when choosing a bank.

Design/methodology/approach

Focus group interviews were conducted and a well-structured questionnaire was designed. The validity of this scale was tested in accordance with the psychometric scale development procedure.

Findings

Contrary to some assertions in past literature, the results suggested service delivery and cost/price as among the most important determinants of the bank selection decisions of consumers.

Practical implications

The practical implications drawn from this study involve the seven constructs which could be adopted by the bank managers, advertising executives and marketing experts in providing good quality services resulting in overall higher levels of customer satisfaction. These decision makers can apply the constructs from the study to identify factors most appealing to both potential and existing customers and build up effective marketing strategies to attract new customers and retain existing ones.

Originality/value

This research paper signifies the leading studies for advancing a validated tool to measure the customers’ selection decisions for banks. As a result, this valid and reliable scale would bring standardization to research conducted in the field of bank selection attributes.

Details

International Journal of Bank Marketing, vol. 37 no. 3
Type: Research Article
ISSN: 0265-2323

Keywords

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