A Research on the Basic Motivational Factors in Consumer Bank Selection: Evidence from Northern Cyprus

Banks and Bank Systems, Volume 2, Issue 4, 2007

Okan Veli afakli (Turkey)

A research on the basic motivational factors in consumer bank selection: evidence from Northern Cyprus
Abstract

Commercial banks need to identify the criteria on which potential customers determine their bank selection decision in order to plan an appropriate marketing strategy for keeping present customers and attracting new ones. The study focuses on examining bank selection criteria employed by customers residing in various cities of Northern Cyprus. The findings reveal that the chief factors determining customers’ bank selection are: “Service Quality and Efficiency”, “Bank Image”, “Convenient Location”, “Parking facilities”, “Financial factors” and “Affected opinion”. The findings also show that it may be necessary to deal with different demographic characteristics of respondents as distinctive segments with different priorities in their bank selection process.
Keywords: Northern Cyprus, bank selection, motivational factors. JEL Classification: G21.

Introduction Considerable amount of studies related to the factors effective in consumer bank selection is observed (Anderson et al., 1976; Evans, 1979; Kaynak and Yavas, 1985; Ross, 1989; Kazeh and Decker, 1993; Hegazi, 1995; Metawa and Almossawi, 1998). This information is essential for banks to identify the appropriate marketing strategies needed to attract new customers and retain existing ones (Kaynak and Kucukemiroglu, 1992). With growing competitiveness in the banking industry (Grady and Spencer, 1990), and similarity of services offered by banks (Holstius and Kaynak, 1995), it has become increasingly important that banks identify the factors that determine the basis upon which customers choose between providers of financial services. In this regard, the basic aim of the study is to research the basic motivational factors in consumer bank selection in Northern Cyprus. 1. Literature review The issue of bank selection

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