DETERMINANTS OF CUSTOMER DECISION IN BANKING SERVICES: A CASE STUDY IN BINH DUONG, VIETNAM

Bank services have become increasingly diverse and can be enjoyed by people from various backgrounds such as services and payment transactions or purchases, online or telephone account payments through banks. This study aimed to identify the factors that affect individual customers' banking decisions in Binh Duong province, Vietnam and the degree of influence of those factors. Qualitative research methodology combined quantitative research were used with 185 individual clients in the pacific during the period from September 2020 to February 2021. Survey data was analyzed using descriptive statistics, exploratory factor analysis by SPSS 22.0. The Cronbach’s alpha was used to test the reliability of the scales. This study suggests a modified model to examine the acceptance factors of service quality, convenience, competition, service fee / price and referral. Results showed that, there were five factors that positively affect the individual customers' decision to choose a bank in Binh Duong, namely service quality, convenience, competition, service fees / prices and referral. In which, the referral was the strongest factor affecting the decision of individual customers to choose a bank, followed by the quality of service, service fee/ price and finally the competition, and convenience. From this research result, commercial banks in Binh Duong are supported to have appropriate policies to attract potential individual customers and retain old ones.