"ANALYSIS ON THE FACTORS INFLUENCE THE CHOICE OF COMMERCIAL BANKS BY CUSTOMERS CASE STUDY: VIETCOMBANK, DANANG BRANCH, VIETNAM"

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.