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Investigating Consumer Preference in Banking Services: A Conjoint Analysis Study

Author

Listed:
  • Dimas Maulana
  • Sudarso Kaderi Wiryono
  • Mustika Sufiati Purwanegara

Abstract

Purpose: This paper attempts to measure the consumer preference of banking services in Indonesia through the use of a conjoint analysis study. The study is expected to show kinds of combination of services and features that customers perceive to be important. Design/methodology/approach: The paper used conjoint analysis to study consumer preferences towards Indonesian banking services. Twelve unique orthogonal profiles are generated to enable the preference measurement. The conjoint study design is comprised of eight attributes that each has two levels. A sample of 655 respondent was collected through an online survey. Findings: Convenience of having transactions anywhere and anytime is the most crucial aspect of customers. That is, online banking facilities and ATM locations were found to provide the highest utility for customers. Meanwhile, supporting features such as information or notification is an attribute that customers are willing to trade off. Practical implications: Practitioners could use the study to find the best service combinations that they could offer to customers. Practitioners could also know which attributes customers are willing to make a trade off in comparison to other factor utilities. Originality/value: Testing customer preference in the banking industry is still relatively needed in the banking industry. Furthermore, the use of conjoint study is a valuable study that shows a new perspective of measurement in the service industry.

Suggested Citation

  • Dimas Maulana & Sudarso Kaderi Wiryono & Mustika Sufiati Purwanegara, 2019. "Investigating Consumer Preference in Banking Services: A Conjoint Analysis Study," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 187-197.
    • Handle: RePEc:ers:ijebaa:v:vii:y:2019:i:3:p:187-197
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    References listed on IDEAS

    as
    1. Vithala R. Rao, 2014. "Applied Conjoint Analysis," Springer Books, Springer, edition 127, number 978-3-540-87753-0, June.
    2. Alina Filip & Laurentiu-Dan Anghel, 2009. "Customer Loyalty and its Determinants in a Banking Services Environment," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 11(26), pages 288-297, June.
    3. A. Salim & M. Setiawan & R. Rofiaty & F. Rohman, 2018. "Focusing on Complaints Handling for Customer Satisfaction and Loyalty: The Case of Indonesian Public Banking," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 404-416.
    4. Elisabeth Honka & Ali Hortaçsu & Maria Ana Vitorino, 2017. "Advertising, consumer awareness, and choice: evidence from the U.S. banking industry," RAND Journal of Economics, RAND Corporation, vol. 48(3), pages 611-646, August.
    5. Andrus Kotri, 2006. "Analyzing Customer Value Using Conjoint Analysis: The Example Of A Packaging Company," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 46, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    6. A. Salim & M. Setiawan & R. Rofiaty & F. Rohman, 2018. "Focusing on Complaints Handling for Customer Satisfaction and Loyalty: The Case of Indonesian Public Banking," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 404-416.
    7. Song-Oh Yoon & Itamar Simonson, 2008. "Choice Set Configuration as a Determinant of Preference Attribution and Strength," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 35(2), pages 324-336, June.
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    More about this item

    Keywords

    Consumer preferences; conjoint analysis; banking industry; Indonesia.;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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