reduce a large number of variables and form extremely diverse and rich factors. Some typical studies are as follows:
Almossawi (2001) studied in Bahrain, identified four factors, 30 variables:
(1) Technology/reputation.
(2) Convenience.
(3) Financial benefits.
(4) Interaction between staff and customers.
Mokhlis et al. (2008) studied in Malaysia, there were 29 variables and nine factors:
(1) Attraction
(2) People's influence
(3) Service provision
(4) Branch location
(5) Feeling of security
(6) Promotional strategy
(7) ATM services
(8) Close distance
(9) Financial benefits.
Narteh & Owusu-Frimpong (2011) conducted a study in Ghana and identified 16 variables and four factors:
(1) Image
(2) Employee attitude
(3) Distribution of key services
(4) Technology
More than thirty different factors can be listed in about twenty studies that the author has consulted in Table 1.1. The research results on the list of factors in the mentioned studies can be found in detail in Appendix 3.
1. Service quality, / service quality / Service delivery | 9. Introduction / Social and Media Influence / People Influence | 17. Distribution system / Distribution of key services | 25. Promotion /Strategy promotion /Advertising strategy |
2. Products / Services | 10. Convenience | 18. Reputation | 26. ATM Services |
3. Credit Availability | 11. Efficiency | 19. Employee attitude | 27. Trustworthiness |
4. Technology | 12. Physical amenities | 20. Skills | 28. Warranty |
5. Feeling safe | 13. Accessibility | 21. Attraction | 29. Image |
6. Reputation, word of mouth and other | 14. Financial benefits /Prices / Interest Rates / Free Service | 22. Branch Location / Proximity | 30. Payment methods |
7. Reception. | 15. Value added services | 23. Interaction between employees and customers. | 31. Convenient location and ATM |
8. Fast, efficient service | 16. Relationship | 24. Response |
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Table 1.1 List of factors affecting bank selection
Source: Author's 2013 literature review results Some factors such as Convenience, Price/Financial Benefits, Introduction,
Reputation… is mentioned quite commonly in most previous studies. However, some factors are only present in this study but not in other studies. Specifically, the Product factor is present in the study of Narteh & Owusu- Frimpong (2011) and Coetzee et al. (2012), the Image and reputation factor, the Relationship factor in the study of Coetzee et al. (2012), the Distribution factor
Service factor is mainly found in the study of Narteh & Owusu-Frimpong (2011), Image factor in the study of Narteh & Owusu-Frimpong (2011), Attractiveness factor in the study of Mokhlis et al. (2008), Skills factor in the study of Blankson et al. (2007), Credit Availability factor in Zineldin (1996).
On the other hand, the component variables measuring the factors are also not uniform and a component variable can measure different factors in different studies. This issue will be presented in detail in section 1.3.3 (inconsistency in component variables). This further confirms that the theory of factors affecting bank choice is not yet stable.
1.3.3. Inconsistency in the component variables forming the factor
Depending on the research context, the data collected will have different factors extracted and the composition of the explanatory variables. In addition, a variable can be used to explain different factors in different studies. From this, it can be concluded that in most studies on this topic, the composition of the variables measuring the factors is not clear and stable.
First, the number and composition of variables measuring the same factor are very different in studies. A typical study on this topic by Blankson et al. (2007) when comparing the criteria for choosing a bank among three countries, the United States, Taiwan and Ghana, which have different cultures and levels of economic development. The research results show that there are four factors affecting the choice of a bank in the United States and Taiwan, including Convenience, Skills, Introduction and Free banking services; in Ghana, there are only three factors affecting the choice of a bank: Skills, Introduction and Free banking services. It is worth noting that although they all measure the Skill factor, the number and composition of independent variables in these three countries are not the same, in the United States there are five variables, in Taiwan there are six variables, in Ghana there are eleven variables.
Table 1.2 Bank selection factors in the US, Taiwan and Ghana
America
Taiwan | Ghana | |
Skill Friendly staff Access to money in the bank Good service Close proximity | Skill Friendly staff Good service Consistency Fast service Good customer service | Fast service Good customer service Good service delivery Skills Friendly staff Access to money in the bank Safe Convenient Location Consistency Convenience Bank reputation |
Source: Blankson et al. (2007)
Another example of the Convenience factor is also mentioned in the studies of Kennington et al. (1996) and Blankson et al. (2007) but the number and composition of the Convenience factor variables in the two studies are not the same. In the study of Blankson et al. (2007), the Convenience factor has nine variables, twice as many as the number of variables in the study of Kennington et al. (1996). Besides, the Convenience factor of Blankson et al. (2007) has variables that Kennington et al. (1996) does not have such as security, organizational reputation.
Table 1.3 Comparison of the components of the Convenience factor
Convenience Factor
Kennington et al. (1996) | Blankson et al. (2007) |
Near home or work | Convenient location |
Good location | Close to home |
Convenience Factor
Kennington et al. (1996) | Blankson et al. (2007) |
Good trading hours | Security |
Multiple branches | Organizational reputation |
Close to space | |
Close to home and work | |
Good location | |
Good time | |
Multiple branches |
Source: Kennington et al. (1996) and Blankson et al. (2007)
Second, an independent variable can be used to describe different factors in different studies as seen in many studies. For example, the variable Fast Service . This variable measures the factor Convenience in the study of Blankson et al. (2007) in the US, but is a variable measuring the factor Service provided in the study of Narteh & Owusu-frimpong (2011). Another example is the variable Convenient ATM location which is a component of the factor Convenience in Almossawi (2001) but is a component of the factor ATM Service in Mokhlis et al. (2008).
The results of the literature review show the diversity of factors affecting bank choice, and the component variables used to measure the factors are not consistent among the research results. Researchers on bank choice have inherited the set of variables from previous studies, and conducted qualitative and quantitative research to explore the problem such as Mokhlis et al. (2008), Narteh et al. (2011), Ukenna et al. (2012). However, there are also studies that only inherit the set of variables and conduct formal quantitative research such as Lymperopolos (2006). In this study, the author inherited the set of variables from previous studies.
The study referred to and supplemented variables from studies in Vietnam to create a questionnaire (see Appendix 4) and propose research questions.
1.4. Research model of factors
1.4.1. Formation of variable list
The observed variables were synthesized by the listing and comparison method to eliminate variables with similar meanings, obtaining 53 observed variables which are the most common variables from the studies of Kennington et al. (1996), Almossawi (2001), Rao et al. (2010), Narteh & Owusu-frimpong (2011), Coetzee et al. (2012), Blankson et al. (2007), Zindeldin (1996), Ta & Kar (2000), Saleh et al. (2013) ... and 3 additional variables (variables Q53, Q54, Q55) from the reference of master's thesis topics of Tieu Nguyen Thao (2011), Hoang Huy Thang (2011).
Table 1.4 List of 56 research variables
Variables influencing bank choice
1. Wide branch network | 29. Introduction from friends and relatives |
2. Convenient parking | 30. Your family has been doing business with this bank for many years. |
3. Branch near home | 31. Information from mass media |
4. Branch near workplace | 32. Influenced by another trusted source |
5. ATM location in convenient place | 33. Bank staff have knowledge, skills and professional proficiency |
6. Wide ATM network | 34. Customer service staff care and sympathize with customers |
7. ATMs operate 24 hours | 35. Appearance of bank employees |
8. Banks work during lunch break | 36. Friendly bank teller |
Variables influencing bank choice
9. Banks work on Saturdays | 37. Bank employees give useful advice |
10. Longer trading opening hours | 38. Convenient transaction number retrieval system |
11. Diverse products | 39. Providing online banking services |
12. Fast service | 40. The bank has an ATM system |
13. Good service quality | 41. Flexibility in negotiating loans |
14. Accurate account transactions | 42. Availability of loan funds |
15. Effective error correction | 43. Banks have advertising strategies |
16. The bank's products and services meet the needs | 44. Banks have loyalty programs for customers. |
17. Be socially responsible | 45. Have customer gifts |
18. The bank is famous for its good service. | 46. I have an acquaintance who works in a bank. |
19. Pioneering bank with new products and services | 47. Know and trust someone at the bank as an individual |
20. Feeling safe | 48. The bank is connected to the ATM systems of other banks. |
21. Customer information security | 49. Transaction points are designed luxuriously and modernly. |
22. Bank with good reputation | 50. The bank has a long history |
23. Bank reputation | 51. Large bank size |
24. Low minimum account balance | 52. Bank with strong finances |
25. Low bank fees compared to other banks | 53. The bank has a 24/7 hotline. |
26. Low interest rate | 54. Staff are available to come to your location. |
Variables influencing bank choice
you to advise, support you | |
27. High savings interest rates | 55. Business partners influence the choice of bank |
28. My employer uses the same bank/payroll agency | 56. The bank fulfills its commitment |
Source: Author's 2013 literature review
1.4.2. Research method Data collection tools
The list of 56 variables summarized from the literature review is the basis for the author to create a survey questionnaire consisting of two parts: Part 1 includes 56 questions about specific factors affecting bank selection; Part 2 includes 9 questions about demographic characteristics such as gender, age, income level, current bank... The observed variables are measured by the perceptions of individual customers of banks, using a 5-point Likert scale, with 1 being completely unimportant and 5 being very important. The questionnaire is presented in Appendix 4.
Sampling and data collection methods
The study used a convenience sampling method, collecting survey forms through self-filled paper forms and online surveys. The questionnaire has 56 observation variables using a Likert scale, so the expected sample size is n = 56*5 =
280. The survey actually yielded a total of 322 completed responses.
Paper surveys were sent to students of Master's and Second Degree classes at Ho Chi Minh City University of Economics. The number of paper surveys distributed was 100 for respondents to fill out themselves, 75 were collected, and 68 were screened to be valid.
For online surveys, questionnaires are sent to approx.
10,000 email addresses over a period of five weeks. Email database collected