Determinants of Garment Owners’ Perception in Selection of Banks: Evidence from Bangladesh

Abstract

Purpose: This study aims to provide bank management in the banking industry with a useful insight into the bank selection determinants of a profitable major segment of garment owners. It is motivated by the need to address the limitations of the studies in this field. Methodology: Exploratory factor analysis has been employed to examine a sample of 176 garment owners as respondents in the capital of Dhaka and its outskirts of the citychosen from selected commercial banks using a convenience sampling method. The respondents are reached by employing prior appointments withthe designed questionnaire at the various bank’s premises, garment owner’s offices, and their homes. Respondent's feedback is analyzed and presented through the Factor analysis, Multiple Regression Analysis, and ANOVA One-way Test. Findings: The research finding showed that “Promises and guarantees made by the bank” “Price offering (incl. terms and conditions)”, and “Range of services and their features” are very important three factors for the garment owners in Bangladesh. Limitations: The study focuses only on some commercial banks ignoring all other types of banks operating in Bangladesh. Practical Implications: The study has made recommendations to understand the banking behavior in identifying the appropriate marketing strategies needed to attract new customers and retain the existing profitable major segment of garment owners. Originality: The findings of the study clearly showed and explained the concern of how garment owners, a profitable major segment for banks, choose their banks other than the customer as a whole.