Determinants of The Bank Choices in Loan Purchase of Individual Customers -an Empirical Study in Ho Chi Minh City, Vietnam

Abstract

The banking industry reaches more challenges and increasing competitiveness from globalization and integration to the other economies of the world and in Vietnam, retail banking is a strategic focus for the banking industry. To come over those obstacles, the many approaches have been applied in which one of them is to identify the customers’ issues and their related problems as their choice decision, their behavior, types of products, or services. Along with that trend, this study is to identify determinants influencing individual customers’ decisions for the bank choice in loan purchase in Ho Chi Minh City through the qualitative and quantitative methods with tools of content analysis, the experts’ consultations, group discussions, and in-depths structured interviews, and surveyed questionnaires. The findings show that Loan Policy, Price Perception, Service quality, Images and Reputation have a positive impact on influencing individual customers’ decisions for the bank choice in loan purchase. Also, many managerial recommendations have been established to bank managers for loan products under the endeavor of single individuals.