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Factors Influencing Customers’ Bank Selection Decision in Azerbaijan

Author

Listed:
  • Teymur Akhundov

    (University of Finance and Administration)

Abstract

Background. This research investigates the determinants of bank selection criteria and their linkage to the common satisfaction level of the banks in Azerbaijan. Aim. The study is motivated to investigate the current situation, find critical points and main related factors, inform bank executives and appropriate staff about real tendencies during the crisis and pandemic period. Methods. It is based on 2 surveys of 162 and 352 respondents respectively of different private and state-owned commercial banks. 13 main different factors for bank selection and 16 factors for credit cards usage were selected for better and proper analysis. Results. The findings of the study reveal that speed and quality of service, proven and strong shareholders, innovativeness and variety of services (credit cards), ATM network and accessibility, respect and friendliness staff, brand name at the market, and low interest rate on loans are the most important influencing factors for customers during the bank selection decision, while the other factors received the less rating, however, this does not mean that they are not important at all. The research found some similarities with the other research in different countries. The study could be used by banks and as the starting point for the next similar studies in the country. The findings of the second survey reveal that Risk and Security group has significant impact to the usage of credit cards while the other parameters don’t have such evidence.

Suggested Citation

  • Teymur Akhundov, 2024. "Factors Influencing Customers’ Bank Selection Decision in Azerbaijan," ACTA VSFS, University of Finance and Administration, vol. 18(1), pages 68-91.
    • Handle: RePEc:prf:journl:v:18:y:2024:i:1:p:68-91
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    File URL: https://acta.vsfs.eu/pdf/acta-2024-1-04.pdf
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    References listed on IDEAS

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    1. S. T. Katircioglu & S. Fethi & D. Unlucan & I. Dalci, 2011. "Bank selection factors in the banking industry: An empirical investigation from potential customers in Northern Cyprus," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 61(1), pages 77-89, March.
    2. Kinsey, Jean, 1981. "Determinants of Credit Card Accounts: An Application of Tobit Analysis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 8(2), pages 172-182, September.
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    More about this item

    Keywords

    Azerbaijan; banks; selection; usage; importance; customer’s decision; credit cards;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General

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