Demographic factors and customers’ bank choice criteria

Category	Description	N	%	Category	Description	N	%
gender	women	299	58.06	occupation	unemployed	36	6.99
gender	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

* Net Income was originally in Polish zloty. In order to convert it to euro, we used the exchange rate from 31 December 2021. According to the National Bank of Poland exchange rate table the exchange rate was EUR/PLN 4.5594.

Table 2.

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)

Table 3.

Bank selection factor – the whole sample

Bank choice criteria	whole sample			F
Bank choice criteria	n	p	r	F
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

Note: n – number, p – proportion, r – ranking, F – test statistics,

** - significance at 0.05 level. The explanation relates to all tables

Table 4.

Comparison of bank selection between men and women

Bank choice criteria	Women (299)			Men (216)			z
Bank choice criteria	n	p	r	n	p	r	z
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

[i] Note: z – test statistics. In brackets, there is the total number of respondents in a given group. The explanation relates to all tables

Table 5.

Comparison of bank selection between different age groups

Bank choice criteria	<=25 (63)			26–35 (114)			36–45 (125)
Bank choice criteria	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
Bank choice criteria	n	p	r	n	p	r	n	p	r	F
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

[i] Note: Post hoc tests conducted proved that – when it comes to reputation, there are statistically significant differences between the youngest and the oldest respondents (two groups – 56–65 and over 66 years old). When it comes to the recommendation, there are statistically significant differences between the youngest (<=25) and all age groups, excluding 26–35 years old. When it comes to cost, there are statistically significant differences between two pairs – the youngest and both middle-aged groups (36–45 and 46–55 years old). When it comes to localisation, there are three pairs of significant differences, the first two for the youngest and the oldest (both groups) and the third between the youngest and 46–55 years old

Table 6.

Comparison of bank selection between different education groups

Bank choice criteria	Secondary (225)			Higher (241)			Vocational (39)			F
Bank choice criteria	n	p	r	n	p	r	n	p	r	F
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

[i] Note: Post hoc tests conducted proved that – when it comes to the cost of services, there are two statistically significant differences for the pairs secondary and vocational education, as well as higher and vocational education

Table 7.

Comparison of bank selection between different occupation groups

Bank choice criteria	Unemployed (36)			Retired (87)			Working (364)			Student (28)			F
Bank choice criteria	n	p	r	n	p	r	n	p	r	n	p	r	F
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

[i] Note: Post hoc tests conducted proved that – when it comes to reputation there are two statistically significant differences, for the pair unemployed and retired and for the pair retired and working

Table 8.

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)
Bank choice criteria	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
Bank choice criteria	n	p	r	n	p	r	F
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

[i] Note: Post hoc tests conducted proved that – when it comes to localisation, there is a statistically significant difference between people living in the smallest towns and the largest cities, as well as between those living in the smallest towns and those living in cities of 150 to 500 thousand inhabitants

Table 9.

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
Bank choice criteria	n	p	r	n	p	r	n	p	r	n	p	r	F
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

[i] Note: Post hoc tests conducted proved that – when it comes to reputation there are three statistically significant differences, between those of 871–1.305 EUR income and the other three groups. When it comes to localisation, there are two statistically significant differences, for those who have less than 435 EUR and two middle-income groups

Table 10.

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

[i] Note: n=515

[ii] Source: own compilation

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

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

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

References

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Articles in this issue

DOI: https://doi.org/10.2478/ceej-2023-0014 | Journal eISSN: 2543-6821 | Journal ISSN: 2544-9001

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Language: English

Page range: 237 - 253

Published on: Sep 28, 2023

Published by: Faculty of Economic Sciences, University of Warsaw

In partnership with: Paradigm Publishing Services

Keywords:

banks,

JEL:

G21,

J10,

D90

Related subjects:

Business and economics,

Political economics,

Economic theory, systems and structures,

Microeconomics,

Macroeconomics,

Economic policy

© 2023 Katarzyna Schmidt-Jessa, published by Faculty of Economic Sciences, University of Warsaw
This work is licensed under the Creative Commons Attribution 4.0 License.

Volume 10 (2023): Issue 57 (January 2023)

Demographic factors and customers’ bank choice criteria

Figures & Tables

Table 1.