Factors Affecting Customers’ Decision for Taking out Bank Loans: A Case of Greek Customers

Abstract

The concept of loyalty has received much consideration from both academics and practitioners in various industries and is a predominant research topic in the banking industry. Identifying the factors that affect customers' decision to take out a loan from a particular bank has become an essential asset for many banks in their effort to attract new customers and to maintain existing ones. The purpose of the present study is to identify factors that influence Greek customers' decision to take out a loan from commercial banks. A number of variables (demographics, service quality and satisfaction) have been examined as potential factors influencing customers' decision to take out a loan. A randomly selected sample of Greek citizens (n=277) was chosen in order to test our hypotheses. A questionnaire with self-determined scales was created after ensuring the instrument's validity through confirmatory factor analysis. Logistic regression results show that personal marital status, customer service, shop design and interest rates are the most significant predictors of taking loans. Several managerial implications suggest bank managers should focus on giving loans to single individuals as well as change their interest rates policies by decreasing rates for all kinds of loans, especially housing loans.

Conceptualizing the Impact of Religiosity on the Preferences for Islamic Banking in Mirpur (Azad Jammu and Kashmir): An Empirical Analysis

“…This shows a positive relationship between service quality and customers' selection of an Islamic bank. This result is also consistent with the existing empirical literature (Frangos et al, 2012;Saleh et al, 2013;Zulfiqar et al, 2014). Moreover, the variable of general education is also statistically significant, with an expected positive sign.…”

“…Awareness regarding the financial teachings of Islam has a positive impact on the consumers' choice for selecting a bank (Awan & Azhar, 2014;Hassan, Chachi, & Abul-Lattif, 2008;Tara et al, 2014). The quality of services, such as online banking, convenient ATM locations, and speedy service have been found significant in some earlier studies conducted to determine the motives behind a particular choice of bank (Frangos, Fragkos, Sotiropoulos, Manolopoulos, & Valvi, 2012;Saleh, Rosman, & Nani , 2013;Zulfiqar et al, 2014). The concept of religiosity has been extensively debated in the behavioral and experimental economics perspective.…”

Factors Associated with Taking out a Personal Finance from Islamic Banks: A Study from Almadinah, Saudi Arabia

“…Factors that are associated with taking out a personal loan from conventional banks have been investigated extensively (Frangos et al, 2012;Mehtap-Smadi, 2010;Rao & Sharma, 2010;Senyücel, 2009). However, such studies on Islamic banks are rare and will be covered in this section.…”

Personal Characteristics and Banking Behaviour of Customers: Further Evidence from Usmanu Danfodiyo University Sokoto-Nigeria

“…Finally, "religious principles" is the key bank selection criterion of the Islamic bank customers, while customers" demography plays some role in determining which selection criteria matter more than others do. Frangos et al (2012) also conducted a study to identify the factors that influence Greek customers" decision to take out a loan from commercial banks. They randomly selected a sample of 277 Greek citizens in order to test the hypotheses, using a questionnaire with self-determined scales.…”