Journal of Business Studies Quarterly 2010, Vol. 1, No. 2, pp.

56-69

ISSN 2152-1034

Bank Selection Criteria Employed by MBA Students in Delhi: An Empirical Analysis

A Sajeevan Rao, Fortune Institute of International Business, New Delhi R K Sharma, Institute of Information Technology & Management, New Delhi

Abstract This paper presents the factor influencing the choice criteria in respect of selecting a bank by MBA students. In particular, it finds those criteria, which have become significantly important in motivating the choice. A quantitative methodology, using responses given by three hundred and twelve students, is employed in the analysis. Findings show that reliability is a significant choice criterion, which includes employees courtesy, parking facility, loyalty programs, brand name, security system and low charges with the bank. Other factors, which have also increased in importance are the responsiveness, value added services and convenience. Assurance factors, such as speedy services, good rate of interest and zero balance account facility are also significant in importance in motivating choice of a bank. Key Words: Banks, India, Customer Service, Generation Y, MBA students. Introduction The issue of how customers select banks has been given considerable attention by researchers (for example: Anderson et al. 1976; Evans 1979; Kaynack and Yavas 1985; Ross 1989; Kazeh and Decker 1993; Hegazi 1995; Metawa and Almossawi 1998). Exploring such information will help 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. The relevant literature indicates that a great deal of research effort has been expended to investigate bank selection criteria for broad categories of customers (Yue and Tom, 1995). One promising segment, which, arguably, has not been given enough attention, is

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the younger age group. Banks which are planning to cultivate this vibrant market segment must understand how individuals belonging to such segments select their banks. A review of literature also indicates that studies related to bank selection criteria have been mainly conducted in the USA and some European countries (Denton and Chan, 1991). Although such studies have contributed substantially to the literature on bank selection, their findings may not be applicable to other countries, due to differences in cultural, economic and legal environments. A set of determinant factors that have a significant role in bank selection in one nation may prove to be insignificant in another. This article focuses on studying the bank selection criteria being employed by a crucial segment (i.e. MBA students) of potential customers (aged 21-28) in India. In India, the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with the Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. During those days, public had lesser confidence in the banks. As an aftermath deposit mobilization was slow. Earlier savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to traders. Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. Seven banks forming subsidiary of State Bank of India was nationalized in 1960. On 19th July, 1969, major process of nationalization was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country were nationalized. Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership. Major development occurred in 1991, under the chairmanship of M Narasimham Rao, when a committee was set up by his name, which worked for the liberalization of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking were introduced. The entire system became more convenient and swift. Time is given more importance than money. Over the years, banks are also customizing themselves. The Indian banking industry is passing through a phase of customers market. The customers have more choices in choosing their banks. A competition has been established within the banks operating in India. With stiff competition and advancement of technology, the services provided by banks have become more easy and convenient. In this paper, the researchers have tried to study attributes a bank has to provide in Indian banks or in other words try to assess what are the variables that attract a MBA student to choose banking services.

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Literature Review Thomas Foscht, Judith Schloffer, Cesar Maloles III, Swee L. Chia (2009) found the differences among the three age groups contained in Generation Y in terms of their sources of information, financial services used, likelihood of switching, and number of banks utilized. In addition, determinants of satisfaction, loyalty, and behavioral intention are primarily affected by satisfaction with employees and services rendered. There results indicated that as young people reach certain milestones, their needs become more multifaceted. Consequently, the determinants of satisfaction have also changed. A study conducted by Mamunur Rashid, M. Kabir Hassan (2009) in Bangladesh in six full fledged Islamic banks found non-Islamic factors such as Corporal efficiency, CoreBanking Services, Confidence, etc. were given higher weights by majority of the respondents. The report recommends introducing complete E-Banking solution, to increase advanced marketing efforts and to hire experienced human resources for better Islamic Banking activities in Bangladesh. Charles Blankson , Ogenyi Ejye Omar , Julian Ming-Sung Cheng (2009) identified four key factors - convenience, competence, recommendation by parents, and free banking and/or no bank charges - to be consistent across the two economies. The recommendation of the study is that in the context of an open and liberalized market environment, retail bank marketing strategies should be standardized irrespective of the national development stage. It concludes that retail bank managers particularly in developing countries should learn to provide consistent and good customer care. Omar Masood, Jamel E. Chichti, Walid Mansour , Muzafar Iqbal (2009) research attempt is made to assess the degree of customer awareness, satisfaction as well as selection criteria. A sample of 200 respondents took part in this study. The responses where shows a certain degree of satisfaction, there few respondents also have expressed their dissatisfaction with some of the Islamic bank's services. Dominic Celestine Fernandez (2008) conducted a survey and results indicated no attribute obtained was an outright determinant of bank selection choices. This was attributed to the diverse needs of respondents as revealed by this survey. While some determinants such as location was of prime importance when selecting a bank, other factors that emphasize of better social interaction between banker and client, is gaining prominence partly due to the influence of Asian culture. It also revealed the use of the consumer decision making model when selecting bank choices. As a whole, this study was able to achieve its objective in understanding and providing a snapshot of the important determinants in bank selection based on the feedback from survey respondents. How a larger sample over a greater length of time is deemed to provide a better understanding of trends in Malaysia. Charles Blankson, Julian Ming-Sung Cheng, Nancy Spears (2007) study reveals three key dimensions, factors, strategies that are consistent across all three economies. The paper concludes that open and liberalized business climate appear to explain consumers' decisions. This research is based on the college student cohort and thus the results do not represent the public. This poses generalizability questions without further replications and validations. This study did not examine whether there were consumers' switching behaviors involving banks.

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A study conducted by Erdener Kaynak, Talha D. Harcar (2005) revealed banks were evaluated more positively by customers in areas such as extra services offered by the bank, image of the bank, and convenience of the bank. James F. Devlin and Philip Gerrard (2004) presented an analysis of trends in the relative importance of choice criteria in respect of selecting a retail bank. And pointed that the influence of recommendations has increased significantly and is now the most important choice criterion. Other factors which have also increased in importance are the offering of incentives, having a wide product range and economic factors, such as interest rate paid and fees and charges levied. Locational factors, such as choosing a bank close to home or work place, have decreased significantly in importance in motivating choice. Certain criteria have remained broadly constant through time, amongst them, and perhaps surprisingly, are choosing on the basis of a bank's image and reputation and expectations about level of service. Ron Shevlin and Catherine Graeber (2001) explored the various factor the influence a customer in choosing a particular bank. They pointed out that ATM (Automatic Teller Machine) being the primary reason for a customer choice for a bank and further branch visit and referral from friends and relatives are most prevalent sources of influence in Texas, USA. Findings of Mohammed Almossawi (2001) reveal that the chief factors determining college students bank selection are: banks reputation, availability of parking space near the bank, friendliness of bank personnel, and availability and location of automated teller machines (ATM). Findings of Huu Phuong Ta, Kar Yin Har (2000) indicated indicate that undergraduates place high emphasis on the pricing and product dimensions of bank services. The results are of interest to bank managers because they provide information on the importance of the selection criteria as well as areas of strengths and weaknesses of banks. Burc lengins (1998) findings concluded that respondents prefer the extended loyalty programs, the continuous information flow from the bank, the off-site ATMs, the maximum five-minutes waiting time in the branches and a simple application for all the accounts the bank offers. Carolyn Kennington, Jeanne Hill, Anna Rakowska (1996) pointed that most important variable influencing customer choice are reputation price and service. Josee Bloemer, Kode Ruyter and Pascel Peeters (1998) investigated how image, perceived service quality and satisfaction determine loyalty in retail banking. The key findings by Laroche, Rosenblatt, and Manning (1986) on diverse demographic segments included importance of location convenience, speed of service, competence and friendliness of bank employees. Meidan (1976) revealed that about 90% of the respondents banked at the branch nearest to there home place and place of work. Convenience, in terms of location, was also found to be the single most important factor for selecting a bank. Objectives of the study The paper attempts to identify the various factors that affect the choice of MBA Students in choosing a bank namely: ATM facility, Friendliness of employee, Debit card facility, Loan facility, Parking facility, Speed of services, Loyalty program, Internet banking facility, Rate of Interest, Bank timing, Convenient display of counters, Free home delivery of Drafts, Phone banking facility, Minimum account balance, Bank charges, Overdraft facility, Brand name, Close to where you live or work, Security 59

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arrangement, Locker facility, De-mat Facility, Referral from friend and relatives, Computerization of the bank, Continuous flow of information from bank and Simple application for all transactions. A statistical approach Factor Analysis has been used for the study. Finally, practical implications concerning the customers choice of bank have been highlighted. Methodology and Data Collection For the purpose of the study primary data was collected from MBA Students who have a bank account with the help of a well drafted Questionnaire. A sample of 312 students was selected by following the non-probabilistic convenience sampling, as it is appropriate for exploratory studies. Further convenience sampling method was used for two reasons firstly respondents are selected because they happen to be in right place at the right time and secondly, convenience sampling technique is not recommended for descriptive or casual research but they can be in exploratory research for generating ideas (Malhotra, 2005). The survey was conducted during the period of August 2009 to November 2009. Previous studies on banking as well as theories of consumer behaviour have shown demographics to be a factor, influencing he adoption of technology-based product and services. The demographic characteristics of the students depict that the majority of the respondents (63.5%) were males and 36.5% of the respondents were females. 5.8% of the students were with less 10000 rupees income followed by 32.7% with 10001-20000 rupees 23.1% with 20001-30000 rupees 23.1% 30001-40000 rupees and 15.4% of students with more than 40000 rupees per month as house hold income. Apart from that 19.2% of the students were from science background 51.9% from commerce background 17.3% and 11.5% of the student were from other backgrounds in their graduation. Factor Analysis Factor Analysis is a data reduction statistical technique that allows simplifying the correlational relationships between a numbers of continuous variables. Exploratory factor analysis is used in order to identify constructs and investigate relationships among key interval scaled questions regarding reasons for choosing a bank services from 312 students. To test the following steps were taken: The correlation matrices were computed. It revealed that there is enough correlation to go ahead for factor analysis. Kaiser-Meyer-Olkin Measure of Sampling Adequacy (MSA) for individual variance was studied. It found sufficient correlation for all the variables. (KMO & Bartletts Table 1) To test the sampling adequacy, Kaiser-Meyer-Olkin MSA is computed which is found to be 0.704. It is indicated that the sample is good enough far sampling. The over all significance of correlation matrices is tested with Barlett Test of Sphericity provided support for the validity of the factor analysis of the data set. (KMO & Bartletts Test Table 1) 60
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After the standards indicate that data is suitable for factor analysis, Principal Components Analysis was employed for extracting the data, which allows determining the factor underlying the relationship between a numbers of variables. The total variable Explained box is suggesting that it extracts one factor accounts for 74.62% of the variance of the relationship between variables. (Total Variance Explained Table 3). Loading on factors can be positive or negative. A negative loading indicates that this variable has an inverse relationship with the rest of the factors. The higher the loading the more important is the factor. However Comrey (1973) suggested that anything above 0.44 could be considered salient, with increased loading becoming more vital in determining the factor. All the loadings in the research are positive. (Communalities Table 2) Rotation is necessary when extraction technique suggest there are two or more factors. The rotation of factors is designed to give an idea of how the factors initially extracted differ from each other and to provide a clear picture of which item load on which factor. There are only six factors, each having Eigen value exceeding 1 for mobile banking drivers. The Eigen values for six factors were 5.533, 2.257, 2.039, 1.325, 1.219, and 1.059 respectively. (Total Variance Explained Table 3) The percentage of total variance is used as an index to determine how well the total factor solution accounts for what the variables together represent. The index for present solution accounts for 74.620% of the total variations for choosing a bank services. It is pretty good extraction as it can be economize on the number of factors (from 18 it has reduced to 6 factors) while we have lost 25.380% information content for factors in choosing a bank. The percentage of variance explained by factor one to six for factors effecting in choosing a bank are 30.739, 12.541, 11.325, 7.362, 6.772 and 5.881 respectively (Total Variance Explained Table 3). Communalities Table 2 tells us that after six factors are extracted and retained; the communality is 0.657 for variable 1, 0.731 for variable 2 and so on. It means 74.6% of the variance of variable 1 is being captured by the six extracted factors together. The proportion of variance in any one of the original variables, which is being captured by the extracted factor, is known as communality (Nargundkar, 2002). Large communalities indicate that a large number of variance has been accounted for by the factor solution. Varimax rotated factor analytic results for factor influencing the choice of a bank is shown in Rotated Component matrix Table 5. The six factors shown in table 5 have been discussed below: Factor 1: Reliability It is the most vital factor, which explains 30.74% of the variation. Reliability factors such as employees in the bank are friendly and courteous (0.670), Parking facility (0.515), Loyalty Program (0.453), good brand name of the bank (0.847), security arrangement with the bank (0.737) and low bank has low bank charges(0.440) emerge with good positive correlations. This yields a great influence while choosing a banking service.

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Factor 2: Convenience There are four loads to this factor. The factor Convenience is the second important factor, which accounts for nearly 12.54% of the variations. The factors parking facility with the bank (0.589), free delivery of demand draft (0.789), Phone banking (0.849), and free home cash delivery (0.849) signifies that consumers want convenience in banking and they want to save time. Factor 3: Assurance There are three significant variables with a variation of 11.33% and these factors are speedy services (0.500), bank provide good rate of interest (0.782), zero balance account facility (0.835) depicts that the students want assurance of the services from the bank. Factor 4: Value Added Services This factor has the two significant variables, which has 7.36% of the variation, and this comprises of three loadings depicting the value added services required by the consumers. The factor loading of 0.571, 0.867 and -0.621 representing debit card facility, loan facility and loyalty programs respectively show value added services are also a significant factor in choosing a bank. Factor 5: Accessibility The next important factor, which carries a loading of 6.77% of the variation, comprises of four loadings, ATM facility, debit card facility speed in services and internet banking with rotated value of 0.780, 471, .455 and 0.592 signifies that easy accessibility to their bank accounts is vital factor in choosing a bank. Factor 6: Responsiveness Responsiveness is the next factor, which influences a consumer in choosing a bank and has 5.88% of the variation. This factor has two loading namely the employees in the bank are friendly and courteous (0.476), and convenient display of counters (0.889) Conclusion and Implications To attract the students i.e. future customers banks had to set up many kinds of hi tech-services such as ATM, Phone banking, Internet banking, computerization and so on. In turn the banks have to understand the customer needs so as to take care of its customers satisfaction. It is clear from the research conducted that banks need to provide tailor made service for it customers. In todays era customers require more and more personalized and value added services like ATM, E Banking, Phone banking etc. All these factors imply that they do not want to spend their valuable time waiting for their turn in a queue. Students also wants that the banks should also need to improve upon the 62
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display of counters again which imply that the customer wants speed in the services. Apart from this students also want easy access to their accounts and want that there should less paper work. Banker should also provide that kind of service where they charge nominal fee for the transactions, better rate of interest and low minimum balance so as to increase the number of clientele. As another product banker should also try to build good brand image, as many of the respondents prefer to have accounts in renowned banks and security arrangement are good so they can be assured safety of their money. Another factor which influences a customer to choose a bank is dependability, which imply how much a customer can depend on a bank for a service e.g. loan facility. Bankers have to keep this in account that customer do not open an account for only for saving money but also want other services like locker facility, car loan, personal loan, home loans etc. Scope for further Research As the survey conducted was only confined to Delhi region results may vary if research is in conducted in other parts of India. And further if the study is conducted taking all the students of all the B-Schools the results may vary. But if the survey is conducted in whole India result may substantially vary. As the research conducted in metropolitan city area result may not be the same if the survey is conducted in semi urban area. The main limitation of the survey was that it was only confined to MBA students; if all of the Post-Graduation students would have been included, the results may not be the same. References Anderson, W.T., Fox, E.P. and Fulcher, D.G. (1976). ``Bank selection decision and market segmentation'', Journal of Marketing, Vol. 40, pp. 40-5. Burc. Ulengin (1998). Using Hierarchical information integration to examine customer preferences in banking, International Journal of Banking, September 1998 Volume16, issue 5, pp 202-210. Comrey, A.L. (1973). A First Course in Factor Analysis. San Diego: Academic Press. Carolyn Kennington, Jeanne Hill, Anna Rakowsha (1996). Customer Selection Criteria for banks in Poland International Journal of Bank Marketing December 1996 Volume 14 issue 4 Page no 12-21. Charles Blankson, Julian Ming-Sung Cheng, Nancy Spears (2007). Determinants of Bank selection in USA, Taiwan and Ghana International Journal of Bank Marketing Volume 25 issue 7. Page no 469 489. Charles Blankson, Ogenyi Ejye Omar, Julian Ming-Sung Cheng (2009). Retail bank selection in developed and developing countries: A cross-national study of students' bank-selection criteria Thunderbird International Business Review Volume 51 Issue 2, Pages 183 198. 63

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Denton, L. and Chan, A.K.K. (1991). ``Bank selection criteria of multiple bank users in Hong Kong'', International Journal of Bank Marketing, Vol. C9 No. 4, pp. 23-34. Erdener Kaynak, Talha D. Harcar (2005). American consumers' attitudes towards commercial banks: A comparison of local and national bank customers by use of geodemographic segmentation, International Journal of Bank Marketing Jan 2005 Volume: 23 Issue: 1 Page: 73 89. Evans, R.H. (1979). ``Bank selection: it all depends on the situation'', Journal of Bank Research, Vol. 12, pp. 243-249. James F. Devlin and Philip Gerrard (2004). Choice criteria in retail banking: an analysis of Recent Trends Journal of Strategic Marketing Volume 12, Number 1 / March 2004 Page 13-27. Kaynak, E. and Yavas, U. (1985). ``Segmenting the banking market by account usage: an empirical investigation'', Journal of Professional Service Marketing, Vol. 1, pp. 177-88. Kazeh, K. and Decker, W. (1993). ``How customers choose banks'', Journal of Retail Banking, Vol. XIV No. 4, Winter, pp. 92-93. Kaynak, E. and Kucukemiroglu, O. (1992). ``Bank and product selection: Hong Kong'', International Journal of Bank Marketing, Vol. 10 No. 1, pp. 3-16. Grady, B. and Spencer, H. (1990), Managing Commercial Banks, Prentice-Hall Englewood Cliffs, NJ. (1997). ``GCC youths shaping tomorrow's world'', Gulf Marketing Review (GMR) September edition, pp. 6-10. Huu Phoung Ta, Kar Yir Har (2000). A Study of Bank Selection Decision in Singapore using the Analytical Hierarchy Process, International Journal of Bank Marketing July 2000 Volume 18 issue 4 Page no 170-180. Hegazi, I.A. (1995). ``An empirical comparative study between Islamic and conventional banks' selection criteria in Egypt'', International Journal of Contemporary Management, Vol. 5 No. 3, pp. 46-61. Holstius, K. and Kaynak, E. (1995). ``Retail banking in Nordic countries: the case of Finland'', International Journal of Bank Marketing, Vol. 13 No. 8, pp. 10-20. Josee Bloemer, Pascal Peter (1998). Investigating Drivers of Bank Loyalty: The Complex Relation between image, service quality and satisfaction International Journal of Bank Marketing December 1998 Volume 16 issue 7 Page no 276-286.

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Laroche, Rosenblatt, and Manning (1986). Services used and factors considered important in selecting a bank: an investigation across diverse demographic segment International Journal of bank marketing Volume-4, issue-1, pp-35-55. Meidan A (1976). Branch managers attitude on bank objectives and operations, Proceedings of the European Academy of Advanced Research in Marketing Conference, Paris, France, May 26-29 Insead, pp. 215-228. Malhotra, N K (2005). Marketing Research: an applied Orientation, Pearson Education. (India Branch), New Delhi. Mohammed Almossawi (2001). Bank selection criteria employed by college students in Bahrain: an empirical analysis, International Journal of Bank Marketing Jun 2001 Volume: 19 Issue: 3 Page: 115 125. Metawa, S. and Almossawi, M. (1998). ``Banking behavior of Islamic bank customers: perspectives and implications'', International Journal of Bank Marketing, Vol. 16 No. 7, pp. 299-313. Nargundkar, Rajendra (2002). Marketing Research: Text and Cases, Tata McGraw Hill, New Delhi. Mamunur Rashid, M. Kabir Hassan (2009). Customer Demographics Affecting Bank Selection Criteria, Preference, and Market Segmentation: Study on Domestic Islamic Banks in Bangladesh International Journal of Business and Management, Volume 4, No 6. Omar, Masood, Jamel, Chichti, Walid, Mansour, Muzafar, Iqbal. (2009). "Islamic bank of Britain" case study analysis International Journal of Monetary Economics and Finance Volume 2, Number 3-4 Page no 206-220. Robert L Miller, Ciaran Acton, Deiredre A Fullerton and John Maltby. (2002). SPSS for Social Scientists, Palgrave Macmillan New York USA. Ross, D. (1989). ``Your banks and how to choose them'', Accountancy, Vol. 104, p. 130. World Population Prospects (WPP) (1995) United Nations Publication, New York, NY. Shevlin, Ron, Catherine Graeber (2001). "What Influences Consumers Choice of Banks?" Forrester Research, Inc. October 2001. Thomas Foscht, Judith Schloffer, Cesar Maloles III, Swee L. Chia (2009). Assessing the outcomes of Generation-Y customers' loyalty International Journal of Bank Marketing Volume: 27 Issue: 3 Page: 218 241.

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Yue, H. and Tom, G. (1995). ``How the Chinese select their banks'', Journal of Retail Banking, Vol. XVI No. 4, Winter. Business India-Indian Banking system. Retrieved from on November 12, 2009 from: http://economics.about.com/cs/finance/a/india_banking.htm Dominic Celestine Fernandez. (2008). Determinants of Bank Selection Choices in Malaysia: A Demographic based Investigation. Retrieved on November 13, 2009 from: http://cheras.nottingham.edu.my/mba/2008/dominicfernandez.pdf

Author Biography

A Sajeevan Rao is a Professor of Marketing at Fortune Institute of International Business, New Delhi. He has 13 years of teaching experience and 4 years of industry experience, he has done B.Com (H), M.Com, Ph.D. PGDM (Marketing). His current area of interest is Market Research and Services Marketing. He published many Papers & articles and also attended and presented papers in international seminars & symposia like IIM Banglore, to name a few, like Attributes used by young consumers when gauging a fashion product (Denim Jeans), The Magnitude of Adoption of retailing in India, The Internal Marketing and the Commitment of the Employees a case study of Khadi Gram Udyog. Dr. Rao has conducted international seminar on "Strategic Imperatives and core competencies of Indian Organizations". A Sajeevan can be reached at: sajeevan.rao@gmail.com. Rajkumar Sharma is a Professor of Finance at the Institute of Information Technology & Management, New Delhi. His qualifications are Ph.D in Accounting, MBA (Finance), M Com and PGDIT. He has published many Research Papers in reputed Journals. Dr. Sharma has 8 years of teaching and 15 years of administration experience of Indian Air Force. He has been regularly delivering live expert lectures on Accounting and Finance at Indira Gandhi National Open University, New Delhi at AIR FM 105.6 MGZ. He has been delivering Expert lectures on Accounting, Finance and Management topics, live telecast on DD-National Channel (GYAN DARSHAN) at Indira Gandhi National Open University (IGNOU), Delhi. He has been working as guide/evaluator for MBA/M.Phil dissertations and Ph.D thesis of students of many universities in India. Rajkumar can be reached at: rksharma992@yahoo.com.

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Appendix
KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig. .704 3110.382 153 .000

Table 1

Communalities Bank has Atm facility The employees in the bank friendly and courteous The bank has debit card facility The bank has loan facility Bank has Parking facility Bank has speedy services Bank has Loyalty Programmes Bank has internet banking facility Bank provide good interest rates Bank has convinient display of counters Bank provide has free homedelivery of drafts bank provide free home cash delivery Bank has phonebanking facility Bank has zero balance account facility Bank has good brand name Bank has good security arrangements Bank has low bank charges Bank provide overdraft facility Initial 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Extraction .657 .731 .718 .885 .676 .703 .848 .597 .783 .846 .782 .762 .708 .779 .733 .847 .716 .662

Extraction Method: Principal Component Analysis.

Table 2

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Total Variance Explained Initial Eigenvalues % of Variance Cumulative % 30.739 30.739 12.541 43.280 11.325 54.605 7.362 61.967 6.772 68.739 5.881 74.620 4.850 79.470 3.817 83.287 3.067 86.354 2.937 89.291 2.464 91.755 1.810 93.565 1.671 95.237 1.372 96.609 1.233 97.842 .941 98.783 .692 99.475 .525 100.000 Extraction Sums of Squared Loadings Total % of Variance Cumulative % 5.533 30.739 30.739 2.257 12.541 43.280 2.039 11.325 54.605 1.325 7.362 61.967 1.219 6.772 68.739 1.059 5.881 74.620 Rotation Sums of Squared Loadings Total % of Variance Cumulative % 2.790 15.498 15.498 2.729 15.162 30.661 2.495 13.858 44.519 2.112 11.734 56.253 1.921 10.672 66.925 1.385 7.694 74.620

Component 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Total 5.533 2.257 2.039 1.325 1.219 1.059 .873 .687 .552 .529 .444 .326 .301 .247 .222 .169 .125 .094

Extraction Method: Principal Component Analysis.

Table 3

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a Rotated Component Matrix

1 Bank has Atm facility The employees in the bank friendly and courteous The bank has debit card facility The bank has loan facility Bank has Parking facility Bank has speedy services Bank has Loyalty Programmes Bank has internet banking facility Bank provide good interest rates Bank has convinient display of counters Bank provide has free homedelivery of drafts bank provide free home cash delivery Bank has phonebanking facility Bank has zero balance account facility Bank has good brand name Bank has good security arrangements Bank has low bank charges Bank provide overdraft facility

Component 4

5 .780

.670 .571 .867 .515 .589 .500 .453 -.621 .592 .782 .455 .471

.476

.889 .789 .849 .677 .835 .847 .737 .440 .486

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 7 iterations.

Table 4

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