Abstract:
This research investigates the factors influencing the choice of commercial
banks. A survey was conducted on 130 individual clients who are using the
Vietcombank’s services in Danang City, Vietnam. Results of the multiple regression
analysis for the total sample indicate that the bank choice decision is based on
primarily on six selection criteria. “Financial benefits” has the most positive impact
on tendency to choose banks, then “service”, “reputation”, “marketing” and
“recommendation”. By contrast, “attractiveness” was ranked fifth did not play
significant role in influencing customer’s decision in choosing the bank. The research
aims to bridge the existing gap in nationwide banking literature and gives some
suggestions which are expected to have an impact on marketing efforts of
Vietcombank (Danang branch) in particular and Vietnamese banks in general. Some
policy implications to retain old customers and attract potential customers have been
discussed.
