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Proceedings of the First Middle East Conference on Global Business, Economics, Finance and Banking
(ME14 DUBAI Conference) Dubai, 10-12 October 2014
ISBN: 978-1-941505-16-8 Paper ID_D4115
1
www.globalbizresearch.org
An Empirical Analysis of Attributes Influencing Bank Selection
Choices by Customers in the UAE: The Dubai Context
Shirin KHaitbaeva,
Canadian University in Dubai,
School of Business Administration, UAE.
Abdulaziz Ahmed Al-Subaiey,
Canadian University in Dubai,
School of Business Administration, UAE.
Chris I. Enyinda,
Canadian University in Dubai,
School of Business Administration, UAE.
Email: [email protected]
___________________________________________________________________________
Abstract
This paper quantifies the determinants of banks selection attributes by university students-
customers in Dubai leveraging multi-attribute model algorithm. The motivation for this paper
is that there is little or no research that empirically examined retail bank selection attributes
important to university student-customers when choosing a bank in the UAE. Our paper fills
this gap by utilizing AHP algorithm to model determinants of bank selection and preference
by university student-customers. Leveraging effective marketing strategies to procure and
retain today’s savvy university student-customers is more ever imperative. Therefore, it
behooves forward looking C-level bank marketers to properly identify the requisite selection
attributes that matter the most to potential customers when deciding on a bank to patronize.
The study focuses on examining the bank selection attributes utilized by university student-
customers. A sum of 100 students of Canadian University of Dubai served as a sample for the
research. We used seven prominent bank selection attributes derived from relevant bank
marketing literature, interviews with some undergraduate students, and one attribute from
our own experience. Results indicate that three premier factors influencing student-
customers’ bank preference are service charge, proximity to location and ATM, and
convenience. The results also indicate that for the focal banks as a whole, ENBD is the most
preferred choice. Thus, results of this paper provide insightful and valuable information to
bank C-suit executives on the selection attributes that are important to nowadays university
student-customers.
_____________________________________________________________________
Key Words: Consumer behavior, Retail bank preference, Selection attributes, AHP algorithm
JEL Classification: M31, C83
Proceedings of the First Middle East Conference on Global Business, Economics, Finance and Banking
(ME14 DUBAI Conference) Dubai, 10-12 October 2014
ISBN: 978-1-941505-16-8 Paper ID_D4115
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1. Introduction
Arguably, since the recent global financial crisis, bank customers have become
increasingly fastidious and savvy when selecting a bank that they can trust and can meet their
banking service needs. Indeed, retail banks must understand these hard facts and formulate
appropriate marketing strategies to regain their trust and offer services that can meet and
exceed both established and emerging value expectations. Unfortunately, growing list of retail
banks is yet to discern the most prominent service attributes that matter to customers. This
means that bank marketers must endeavor to understand consumer behavior of today‟s savvy
customers. The growing constituent is university students. Given the knowledge economy era,
university students are increasingly becoming a profitable and well informed segment of
customers for banks to target, attract, and retain. According to Chigamba and Fatoki (2011),
university students constitute a valuable target market for banks. According to Almossawi
(2001), “to plan an appropriate marketing strategy for attracting new customers, commercial
banks need to identify the criteria on which potential customers determine their bank selection
decision.” Arguably, retail banks in the UAE must leverage requisite marketing strategies to
target and serve student-customers. It also means that C-suit bank marketers must take into
account consumer selection attributes and preferences when formulating marketing strategies
that will meet and exceed their value expectations. Furthermore, because of the changing
landscape of competitive marketplace, it behooves forward looking banks to “obtain
information concerning customers‟ patronage factors towards a specific financial institution”
(Haron et al., 1994). Haron et al. (1994) attest that “the success and survival of the individual
commercial bank depends on the bankers‟ ability to understand customers‟ needs and to find
effective ways to satisfy these needs.”
We proposed a multi-attribute decision making algorithm developed by Saaty (1980) to
model bank selection attributes by student-customers attending Canadian University of Dubai,
UAE. Eliashberg (1980) attests that “the modeling of preferences for multiattribute
alternatives has received an increased attention in marketing (consumer behavior) and
management science (decision analysis)”. Bank selection attributes are qualitative and
quantitative in nature, and selecting bank options is equally conflict. As a multi-attribute
decision making process, the AHP enables decision makers or a group of decision makers to
set priorities and deliver the best decision when both quantitative and qualitative aspects of a
decision must be considered. The AHP encompasses three basic functions, including
structuring complexity, measuring on a ratio scale, and synthesizing. It is a powerful
operational research methodology useful in structuring complex multi-attribute problems or
decisions in many fields such as marketing (consumer behavior), operations and supply chain
management, engineering, education, economics, and host of other areas. Furthermore, the
Proceedings of the First Middle East Conference on Global Business, Economics, Finance and Banking
(ME14 DUBAI Conference) Dubai, 10-12 October 2014
ISBN: 978-1-941505-16-8 Paper ID_D4115
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AHP advantages includes its reliance on easily derived expert opinion data, ability to
reconcile differences (inconsistencies) in expert judgments and perceptions, and the existence
of Expert Choice Software that implements the AHP (Calantone et al. 1989).
The purpose of this paper is to add to the current body of literature by empirically
quantifying the determinants of bank selection by university student-customers and the choice
of bank. Essentially, we will evaluate the relative importance of multiple selection attributes
and bank choice or options. Thus, the AHP algorithm is utilized to rank the focal banks based
on some attributes of student-customer preference. The remainder of the paper is structured
into the following sections, beginning with the review of relevant literature, methodology.
Next, the case study, data collection and analysis are presented. Finally, the empirical results
and discussions, and conclusions and managerial implications are presented.
2. Literature Review
A growing list of studies using diverse research methodologies and approaches to
investigate factors influencing customers‟ selection of banks and financial institutions has
graced the bank marketing literature (e.g., Aregbeyen, 2011; Maiyaki, 2011; Lee, J., and J.
Marlowe, 2003; Haque et al., 2009; Khazeh and Decker, 1992; Anderson et al. 1976; Denton
and Chan, 1991; Turnbull and Gibbs, 1989; Javalgi et al., 1989). Sayani and Miniaoui (2013)
used multiple discriminate analyses to identify the most important determinants of bank
selection for Islamic and conventional banks in the UAE. Bank selection determinants used in
their study were bank products, service quality, profit, reputation, cultural and religious
factors, and demographic attributes. Their study suggests religious preferences are considered
the most important attributes when choosing between Islamic and conventional banks.
Specifically, extant literature exist that examined how students select the bank to do business
with (e.g., Hinson et al., 2013; Cicic et al., 2004; Mokhlis et al., 2008; Almossawi, 2001; Ta
and Har, 2000; Gerrard and Cunningham, 2001; Chigamba and Fatoki, 2011; Sharma and
Rao, 2010; Narteh and Owusu-Frimpong, 2011). Almossawi (2001) findings reveal that the
primary factors determining college students‟ bank selection include bank‟s reputation,
availability of parking space near the bank, friendliness of bank personnel, availability and
location of automated teller machines (ATM). Moreover, Almossawi (2001) and Lenka et al.
(2009) note the importance of technology in commercial bank selection.
Dabone et al. (2013) in their study considered factors that determine customer choice of
bank including occupation of customers, proximity and convenience, and safety of deposit.
Their findings suggest that proximity and convenience is the most important factor in
influencing customers‟ bank choice. The most important factors considered important in bank
selection by both Muslims and Non-Muslims were fast and efficient services, speed of
transactions, friendliness of bank personnel, confidentiality of banks, reputation and image of
Proceedings of the First Middle East Conference on Global Business, Economics, Finance and Banking
(ME14 DUBAI Conference) Dubai, 10-12 October 2014
ISBN: 978-1-941505-16-8 Paper ID_D4115
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bank, knowledgeable about their business, lower interest charges on loans, and parking
facilities and accessibilities (Haron, 1994). Chigamba and Fatoki (2011) identified six crucial
factors influencing choice of commercial banks, including easy of opening an account,
availability of ATM in several locations, availability of ATM 24 hours, provision of fast and
efficient service, convenient branch location, and appropriate range of service offered.
Maiyaki (2011) asserts that customers‟ consider size of bank total assets, nearness of the bank
to your office or house (residence), convenient access to bank location, personal security of
customer, and ease of procedures of account opening as most important in bank selection.
A number of studies have argued that friendliness of staff, hours of operations,
convenience of location, low service charges and efficiency of banking services are the main
selection criteria of a specific bank (e.g., Holstius and Kayank, 1995; Yue and Tom, 1995;
Mylonakis et. al., 1998; Coyle, 1999; Driscoll, 1999; and Moosawi, 2001). Krisnanto (2011)
notes selecting a bank tend to be based on the secondary data such as recommendations of
friends and family members. When selecting a bank, it is not only the price of the serves or
how fast a transaction can be done, but also friendliness of tellers (Loukas, 2012; Channon,
1986; Krisnanto, 2011; Frangos, 2012; Aregbeyen, 2011; Mokhlis 2009; Fulcher, &
Anderson, 1976; and Goiteom, 2011). According to Caratelli (2013), customers look at the
reputation of a bank before other attributes such as technology and prices. Customers consider
the opinion of their families and friends as important when selecting a bank (Caratelli, 2013;
Channon 1986; Aregbeyen, 2011; Fulcher and Anderson, 1976; and Goiteom, 2011). Renman
and Ahmed (2008) opine that the location is one of the most important criteria influencing
customer choices among other factors such as customer services, online banking facilities,
and overall bank environment. Mokhlis (2009) argues that customers tend to emphasis on
electronic services (ATM) which gives them quick and convenient access to the bank service.
A convenient ATM services can save customers time (Saleh, 2013; Channon 1986; Mokhlis,
Hazima, & Safrah, 2008; Marimuthu, Jing, & Ping, 2010; Hinson Osarenkhoe and Okoe
2013; Sayuti, & Rahimiu, 2013; Frangos, 2012 and Aregbeyen, 2011). Security of banks or
deposits is an important criterion for selecting a bank given the recent global financial
meltdown (Channon 1986; Mokhlis, Hazima, & Safrah, 2008; Frangos, 2012; and Aregbeyen,
2011). Other bank selection factors important to savvy customers are technology and mobile
banking services which includes remote deposit capture, two-way text banking, apps for
location branches and ATMs using GPS, and bill payment (Sayuti and Rahimiu, 2013;
Frangos, 2012; and Aregbeyen, 2011). Tables 1 and 2 report on the university student and
non-student-consumer selection attributes, respectively.
Table 1: University Student-Consumer Selection (Preference) Attributes
Attributes Author/Year
Bank reputation, service provision, proximity of location Sivula, M. W. (2013)
Proceedings of the First Middle East Conference on Global Business, Economics, Finance and Banking
(ME14 DUBAI Conference) Dubai, 10-12 October 2014
ISBN: 978-1-941505-16-8 Paper ID_D4115
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and ATM, student‟s special programs or benefits,
recommendation, secure feeling, and online service
Service charge, reputation, availability of parking space
near the bank, friendliness of bank personnel, availability
and location (proximity) of automated teller machines
(ATM)
Almossawi (2001)
Reliability, convenience, accessibility, responsiveness Rao and Sharma (2010)
Price, proximity, service, attractiveness, recommendations,
marketing
Chigamba and Fatoki (2011)
Image, attitude and behavior of staff, core service delivery,
technology-related factors
Narteh and Owusu-Frimpong (2011)
Secure feeling, proximity of branch and ATM, bank‟s
reputation, service fee, online service, service provision,
student‟s benefits, recommendation
Tai and Zhu (2013)
Service charge, financial benefits, close proximity to home
and work, price
Cicic et al. (2004)
Hinson et al. (2009)
Table 2: Non-student-consumer Preference attributes
Criteria of consumer preferences Author/s
Friends` recommendations; Reputation of the bank
Availability of credit; Friendliness of staff; Service charges
on accounts
Goiteom, (2011).
Reliability; Responsiveness; Assurance; Empathy
Dependent variable; Customer satisfaction
Yaseen, & Abraheem, (2011).
Bank image; friends' recommendations; reputation;
friendliness;
Fulcher, & Anderson, (1976).
Friendliness of bank personnel; recommendations of
friends and relatives; service provision; branch
locationsecure feeling; free gifts for customers; ATM
service; low interest rates on loans
Mokhlis (2009).
customer services; convenience (location); online banking
facilities and overall bank environment; Safety of Funds;
secured ATMs; ATMs availability; reputation,
personal attention; pleasing manners; confidentiality;
closeness to work; timely service; friendly staff willing to
work; rate of return; low fees
Aregbeyen, (2011)
Pricing; service quality; friendly and efficient staff
convenience of bank and ATM location; internet banking;
security and reliability
Frangos, (2012)
Recommendation from a friend; the bank‟s reputation
availability of loans; friendly employees; appropriate
charges
Krisnanto, (2011)
Reliability; responsiveness; value added service;
convenience and assurance; convenient ATM locations; 24
hours availability of ATM services; internet banking
facility; number of branches
Sayuti, & Rahimiu, (2013)
Convenience; bank staff-customer relations; and banking
services/financial benefits
Hinson, Osarenkhoe and Okoe (2013)
Cost-benefits; service delivery; convenience;
friends/relatives‟ influence
Marimuthu, Jing, & Ping, (2010)
Secure feelings; ATM service; financial benefits
service provision; proximity; branch location
Mokhlis, Hazima, & Safrah, (2008)
Speed; security; convenience; high quality operating
services; friendly Staff; flexibility; quality in foreign
exchange; international money transfer services;
officers knowledgeable about international services;
attractive pricing; global branch network; knowledge of US
Channon (1986).
Proceedings of the First Middle East Conference on Global Business, Economics, Finance and Banking
(ME14 DUBAI Conference) Dubai, 10-12 October 2014
ISBN: 978-1-941505-16-8 Paper ID_D4115
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financial conditions; reputation.
3. Methodology
3.1 Research Objectives
The premier objective of this research is to determine the factors considered important
and rank choice of retail banks leveraging AHP algorithm based on student-consumers‟
preference. Specific objectives include
1. Ranking of attributes influencing consumers‟ preference.
2. Ranking of retail banks under different attributes of consumers‟ preference.
4. Analytic Hierarchy Process Algorithm
Bank selection attributes and bank choice are typical multi-attribute decision making
problem that involves multiple attributes that can be both qualitative and quantitative. The
AHP is an example of multi-attribute decision making selected to model bank selection
attributes and bank choice. The proposed AHP allows decision-makers to model a complex
problem in a hierarchical structure, showing the relationships of the overall goal, attributes
(objectives), and alternatives. Due to its usefulness, the AHP has been widely used in
research. Some studies that have used AHP include supply chain management (e.g., Gaudesi
and Borghesi 2006; Enyinda et al, 2009), marketing (e.g., Dyer and Forman 1991; Enyinda, et
al., 2011), and retail bank marketing (e.g. Enyinda, 2014; Ta and Har, 2000; Jantan and
Kamaruddin, 1998).
4.1 Application of AHP to Bank Selection Attributes and Bank Preference
A typical AHP is composed of four-phases. 1) The construction of the hierarchy which
describes the problem. The overall goal depicted at the top of the structure, with the main
attributes on a level below. The „parent‟ attributes can be sub-divided on the lower-levels. 2)
Deriving the weights for the lowest level attributes. This can be done by performing a series
of pair-wise comparisons in which each attribute on each level is compared with its family
members in relation to their significance to the parent. However, to compute the overall
weights of the lowest level, matrix arithmetic is required. 3) The options available to the
decision-maker are scored with respect to the lowest level attributes or utilizing the pair-wise
comparison method. 4) Adjusting the options‟ scores to reflect the weights given to the
attributes, and adding the adjusted scores to produce a final score for each optimum (Roper-
lowe and Sharp 1990). The hierarchy structure is consist of bank selection attributes,
including friendliness of staff (FOS), proximity of location and ATM (PLA),
recommendations (REC), service charge (SCH), service quality (SQU), social medial
presence (SMP), convenience (CON), and reputation (REP). The alternatives are the
consumers‟ bank preference. Following are the four of the leading Banks in the UAE,
Proceedings of the First Middle East Conference on Global Business, Economics, Finance and Banking
(ME14 DUBAI Conference) Dubai, 10-12 October 2014
ISBN: 978-1-941505-16-8 Paper ID_D4115
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including Abu Dhabi Commercial Bank (ADCB), Emirates National Bank of Dubai (ENBD),
Union National Bank (UNB), and Mashreq Bank (MB).
Figure 1: Bank Selection Attributes and Preference Decision Hierarchy
4.2 AHP steps
1. Define an unstructured problem and determine the overall goal. According to Simon
(1960), the methodology of decision-making process encompasses identifying the problem,
generating and evaluating alternatives, designing, and obtaining actionable intelligence. The
overall goal of the focal firm is in the first level of the hierarchy, shown in Figure 1.
2. Build the hierarchy from the top through the intermediate levels (criteria on which
subsequent levels depend on) to the lowest level contains the list of alternatives.
3. Construct a set of pair-wise comparison matrices for each of the lower levels. The pair-wise
comparison is made such that the attribute in row i (i = 1, 2, 3, 4…n) is ranked relative to each
of the attributes represented by n columns. The pair-wise comparisons are done in terms of
which element dominates another (i.e. based on the relative importance of each elements).
These judgments are expressed as integer values 1 to 9 in which aij = 1 means that i and j are
equally important; aij = 3 signifies that i is moderately more important than j; aij = 5 suggests
that i is strongly more important than j; aij = 7 indicates that i is very strongly more important
than j; aij = 9 signifies that i is extremely more important than j.
4.3 Establishment of Pairwise comparison matrix A
The pair-wise comparisons are accomplished in terms of which element dominates or
influences the order. The AHP is then used to quantify these opinions that can be represented
in an n-by-n matrix as follows:
Bank Selection Attributes and Preference
FOS PLA REC SCH SQU SMP
ADCB ENBD UNB MB
CON REP
Proceedings of the First Middle East Conference on Global Business, Economics, Finance and Banking
(ME14 DUBAI Conference) Dubai, 10-12 October 2014
ISBN: 978-1-941505-16-8 Paper ID_D4115
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A=[aij]=wi/wj =
nnnn
n
n
wwwwww
wwwwww
wwwwww
/...//
....
....
....
/...//
/...//
21
22212
12121
(1)
4.4 Eigenvalue and Eigenvector
Saaty (1990) recommended that the maximum eigenvalue, λmax, can be determined as
λmax =
n
j
ija1
Wj/Wi. (2)
Where λmax is the principal or maximum eigenvalue of positive real values in judgment
matrix, Wj is the weight of jth factor, and Wi is the weight of i
th factor.
If A represents consistency matrix, eigenvector X can be determined as
(A - λmaxI)X = 0 (3)
4.5 Consistency test
Consistency index (CI) and consistency ration (CR) are used to check for consistency
associated with the comparison matrix. A matrix is assumed to be consistent if and only if aij
* ajk = ajk i jk (for all i, j, and k). When a positive reciprocal matrix of order n is consistent,
the principal eigenvalue possesses the value n. Conversely, when it is inconsistent, the
principal eigenvalue is greater than n and its difference will serve as a measure of CI.
Therefore, to ascertain that the priority of elements is consistent, the maximum eigenvector or
relative weights/λmax can be determined. Specifically, CI for each matrix order n is determined
by using (3):
CI = (λmax – n)/n – 1. (4)
Where n is the matrix size or the number of items that are being compared in the matrix.
Based on (3), the consistency ratio (CR) can be determined as:
CR = CI/RI = [(λmax – n)/n – 1]/RI. (5)
Where RI represents average consistency index over a number of random entries of same
order reciprocal matrices shown in Table 1. The CR is acceptable, if its value is less than or
equal to 0.10. If it is greater than 0.10, the judgment matrix will be considered inconsistent.
To rectify a judgment matrix that is inconsistent, decision-makers‟ judgments should be
reviewed and improved.
Table 3: Average RI for Different Numbers of n
N 2 3 4 5 6 7 8 9 10
RI 0.00 0.58 0.90 1.12 1.24 1.32 1.41 1.45 1.49
Proceedings of the First Middle East Conference on Global Business, Economics, Finance and Banking
(ME14 DUBAI Conference) Dubai, 10-12 October 2014
ISBN: 978-1-941505-16-8 Paper ID_D4115
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4.6 Synthesized Matrix
To synthesize the pair-wise comparison matrix in (1), divide each element of the matrix
by its column total. The priority vector is derived by dividing the sum of the rows associated
with the synthesized matrix by the sum of the columns. Alternatively, the priorities of the
elements can be obtained by finding the principal eigenvector w of the matrix A (Saaty,
1980). For the priorities of the alternative ai, the priorities then are aggregated as follows:
P(ai) = ∑kwkPk(ai). (6)
Where wk is the local priority of the element k and Pk(ai) is the priority of alternative ai
with respect to element k of the upper level.
5. Sampling and Data Collection
We used a case study methodology to achieve an in depth knowledge of bank selection
attributes and bank choice of the focal banks. Yin (1994) popularized the use of case study
methodology. Indeed, a case study can be a relevant approach to investigate a phenomenon in
its own natural environment where complex links and underlying meanings can be pursued as
well as to enable the researcher study the entire supply chains (Miles and Huberman 1994;
Yin, 1994). According to Oke and Gopalakrishnan (2009), a case study is also relevant “where
existing knowledge is limited because it generates in-depth contextual information which may
result in a superior level of understanding.” We selected our sample from Canadian
University of Dubai students (CUD). The sample was given to a wide spectrum of majors in
CUD. We collected the data through self-administered questionnaire distributed to a sample
of 100 full-time students. Convenience sample method was utilized. The data collection
period spans from June – July 2014. Out of the 100 questionnaires distributed 97 were
received, among which 82 were considered valid. Thus, we able to achieve a response rate of
82%. Table 4 summarizes the sampling design.
Table 4: Summary of sampling Design
Target Population: Elements: Student-customers of the focal Banks
Sample size: 100
Sampling units: Focal Retail Banks
Extent: Dubai, UAE
June-July 2014
Sampling Technique Non-probability; Judgmental Sampling.
Scaling Technique AHP 1-9 scale.
The collected data were through literature review and validated by interviews with subject
matter experts to determine factors that tend to influence bank selection and bank preference.
We then developed the questionnaire from the hierarchy tree depicted in Figure 1 to facilitate
pair-wise comparisons between all the bank selection attributes and bank alternatives at each
level in the hierarchy using Saaty‟s 1-9 scale. Finally, CUD students responded to several
pairwise comparisons with respect to the goal and the major attributes. We used the survey
Proceedings of the First Middle East Conference on Global Business, Economics, Finance and Banking
(ME14 DUBAI Conference) Dubai, 10-12 October 2014
ISBN: 978-1-941505-16-8 Paper ID_D4115
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questionnaire results as input for the AHP. It took 28 judgments (i.e., 8(8-1)/2) to complete
the pairwise comparisons shown in Table 2. The other entries are ones along the diagonal as
well as the reciprocals of the 28 judgments. We used the data shown in the matrix to derive
the criteria priorities. The priorities provide a measure of the relative importance of each
attribute. The bank selection attribute priorities can be determined manually or automatically
(i.e., using the AHP Expert Choice Software).
6. Empirical Results and Discussion
Both Figures 2a and 2b report on the bank selection attribute priority scores. Service
charge is considered the most important bank selection attribute by student-customers,
followed by proximity of location and ATM, convenience, and reputation, respectively.
Table 5 reports the summary synthesis with respect to goal. With respect to individual
selection attributes ADCB is known for friendliness of staff, recommendations, service
quality, social media presence, convenience, and better reputation. For ENBD, it has better
proximity of location and ATM, recommendations, little or zero service charge, ties with
ADCB in service quality and social media presence.
Figure 2a: Major Bank Selection Attribute Priority
Figure 2b: Bank Selection Attribute Priority
Model Name: Bank Selection Determinants and Consumer Preference
Priorities with respect to:
Goal: Bank Selection Attributes and Bank Preference
Service Charge .278
Proximity of Location and ATM .237
Convenience .171
Reputation .108
Service Quality .087
Friendliness of Staff .050
Recommendations .035
Social Media Presence .033
Inconsistency = 0.07
with 0 missing judgments.
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Model Name: Bank Selection Determinants and Consumer Preference
Treeview
Goal: Bank Selection Attributes and Bank Preference
Friendliness of Staff (L: .050)
Proximity of Location and ATM (L: .237)
Recommendations (L: .035)
Service Charge (L: .278)
Service Quality (L: .087)
Social Media Presence (L: .033)
Convenience (L: .171)
Reputation (L: .108)
Alternatives
ADCB .331
ENBD .361
UNB .120
MB .188
* Ideal mode
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Table 5: Summary Synthesis with respect to Goal
6.1 Prioritizing for Decision Attributes
The overall priority is determined using equation (6). For a given alternative bank
preference, priority is determined for each of the eight bank selection attribute. Specifically,
multiply each bank choice row by the corresponding selection attribute priority. The output of
each row is summed together to determine the bank choice or preference overall score. As
mentioned previously, data for pairwise comparisons were analyzed utilizing the Expert
Choice Software. The pair comparisons made by the subject matter experts or respondents
were consistent. The consistency ratio of the comparisons were less than or equal 0.10. They
are acceptable for the questionnaires administered to CUD student-customers. Table 5 depicts
the priority weights determined for the bank preference or choice using the pairwise
comparison data for the aggregate sample and for the bank selection attributes. The results
show that for the bank as a whole, ENBD is the most important bank with a mean weight or
priority of 0.387. The priorities for ADCB and MB are 0.312 and 174, respectively.
Essentially, ENBD > ADCB > MB > UNB. Thus, ENBD is judged as the overall best or
preferred bank.
Table 6: Attribute priorities (weights) used in the ranking model
Attribute FOS
0.050
PLA
0.237
REC
0.035
SCH
0.278
SQU
0.087
SMP
0.033
CON
0.171
REP
0.108
Priority
ADCB 0.413 0.115 0.390 0.346 0.400 0.390 0.368 0.399 0.312
ENBD 0.360 0.622 0.390 0.415 0.379 0.390 0.169 0.159 0.387
UNB 0.120 0.202 0.152 0.093 0.140 0.152 0.096 0.081 0.127
MB 0.106 0.060 0.068 0.146 0.80 0.068 0.368 0.360 0.174
Consistency 0.01 0.09 0.02 0.10 0.01 0.02 0.06 0.04
Model Name: Bank Selection Determinants and Consumer Preference
Synthesis: Details
Level 1 Alts Prty
Friendliness of Staff (L: .050)
ADCB .020
Friendliness of Staff (L: .050)ENBD .018
Friendliness of Staff (L: .050)UNB .006
Friendliness of Staff (L: .050)
MB .005
Proximity of Location and ATM (L: .237)
ADCB .027
Proximity of Location and ATM (L: .237)ENBD .147
Proximity of Location and ATM (L: .237)UNB .048
Proximity of Location and ATM (L: .237)
MB .014
Recommendations (L: .035)
ADCB .014
Recommendations (L: .035)ENBD .014
Recommendations (L: .035)UNB .005
Recommendations (L: .035)
MB .002
Service Charge (L: .278)
ADCB .096
Service Charge (L: .278)ENBD .115
Service Charge (L: .278)UNB .026
Service Charge (L: .278)
MB .041
Service Quality (L: .087)
ADCB .035
Service Quality (L: .087)ENBD .033
Service Quality (L: .087)UNB .012
Service Quality (L: .087)
MB .007
Social Media Presence (L: .033)
ADCB .013
Social Media Presence (L: .033)ENBD .013
Social Media Presence (L: .033)UNB .005
Social Media Presence (L: .033)
MB .002
Convenience (L: .171)
ADCB .063
Convenience (L: .171)ENBD .029
Convenience (L: .171)UNB .016
Convenience (L: .171)
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(ME14 DUBAI Conference) Dubai, 10-12 October 2014
ISBN: 978-1-941505-16-8 Paper ID_D4115
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ratio (CR)
7. Conclusion and Managerial Implication
This paper examined the most important criteria in selecting the best Bank in the UAE.
All banks face a wide variety of competition in order to be chosen between all those local and
international Banks. And they compete on different criteria to attract the special customers.
For Banks to achieve sustainable success in today‟s consumer market-centric environment,
anticipating criteria of consumers is more compulsory than ever. Thus, competing and
winning in today‟s global marketplace requires the ability of firms to identify and understand
the most important selection attributes that matter the most for student-customers and the
knowledge of how to formulate and implement better market strategies to attract and retain
them. Indeed, banks that leverage the most important selection attributes and marketing
strategies will gain competitive advantage and grow wallet share.
The proposed AHP can be used to support retail bank marketers interested in determining
factors that can influence student-customers to patronize their banks. We evaluated the
importance of each bank selection attribute to determine the best bank choice. This research
offers a number of contributions. It empirically derived bank selection attributes to be
considered bank management decisions. It provides an added support that AHP can be used in
modeling bank selection attribute and help today‟s savvy university student-customers to
choose the best bank of their choice. Finally, the paper extends the streams of research in
retail bank selection and preference by demonstrating that AHP can be used to support this
important and difficult decision.
7.1 Limitations of the study
The study was restricted to focal university students in Dubai. The study concentrated
only on one university among other higher institutions in the UAE. Thus, caution must be
exercised in generalizing the results of this study to the rest of UAE. The study focused on a
single segment of the customer-students. However, it did not take into account other
customers.
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