Exploring the bank selection criteria in India: scale development and validation

Abstract

Purpose The purpose of this paper is to develop, measure and empirically validate a scale that captures the full dimensionality of selection attributes considered by customers when choosing a bank. Design/methodology/approach Focus group interviews were conducted and a well-structured questionnaire was designed. The validity of this scale was tested in accordance with the psychometric scale development procedure. Findings Contrary to some assertions in past literature, the results suggested service delivery and cost/price as among the most important determinants of the bank selection decisions of consumers. Practical implications The practical implications drawn from this study involve the seven constructs which could be adopted by the bank managers, advertising executives and marketing experts in providing good quality services resulting in overall higher levels of customer satisfaction. These decision makers can apply the constructs from the study to identify factors most appealing to both potential and existing customers and build up effective marketing strategies to attract new customers and retain existing ones. Originality/value This research paper signifies the leading studies for advancing a validated tool to measure the customers’ selection decisions for banks. As a result, this valid and reliable scale would bring standardization to research conducted in the field of bank selection attributes.