Demographic factors and customers’ bank choice criteria

Schmidt-Jessa, Katarzyna

Demographic factors and customers’ bank choice criteria

Central European Economic Journal

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

By: Katarzyna Schmidt-Jessa

Open Access

|Sep 2023

Figures & Tables

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)
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

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
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

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
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

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

Demographic profile of the respondents

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

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

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

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

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

Journal RSS Feed

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

Publication frequency: 1 issue per year

Keywords:

banks,

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.

Previous article Volume 10 (2023): Issue 57 (January 2023)Next article

Demographic factors and customers’ bank choice criteria

Figures & Tables

Figure 1.

Bank selection criteria

Comparison of bank selection between different age groups

j_ceej-2023-0014_apptab_001

Comparison of bank selection between men and women

Principal components analysis – all respondents

j_ceej-2023-0014_apptab_002

Comparison of bank selection between different education groups

Comparison of bank selection between different place of residence groups

Demographic profile of the respondents

Bank selection factor – the whole sample

Comparison of bank selection between different income groups

Comparison of bank selection between different occupation groups

Paradigm

My account