Bank Selection Criteria in the Saudi Community Empirical Study of Saudi Banks Customers in Tabuk City

Bank Selection Criteria in the Saudi Community
Empirical Study of Saudi Banks’ Customers in Tabuk City

Bakhita Hamdow Gad Elkreem Braima

University of Tabuk/ faculty of business administration


The study aims to investigate the determinant factors of bank choice among Saudi community; to rank these determining factors according of the customer’s priority; and to examine whether Saudi banks ‘customers will be a homogeneous group concerning the way they select a bank or follows a descriptive survey research design, quantitative research approach is adopted through the semi-open structure questionnaire. Total of 178 respondents from different banks (full fledge Islamic, conventional and Islamic window banks) as of a single point in time in the form of quantitative measures. Exploratory Factor Analysis is employed to rank factors effect bank choice criteria among Saudi people. Results of factor analysis reveal that ranks of factors affect customer decision in selecting a bank service based on mean, are satisfaction(mean =4.05) ,service quality (mean=3.74),Islamic value (mean =3.7),service cost(mean=3.5),financial intermediate (mean =3.39). Moreover it discovers that Customers in Saudi banks are homogeneous. Lessons to be learned from the study result, Saudi banks should focus on service quality,; note that Saudi Arabia is one of transfers’ countries, and Islamic banks should be emphasizing on customers ‘trust about services consistent with sharia’h provision.

Keywords: bank choice, factor analysis, Islamic value, service quality, customer behavior

Free Full-text PDF  Free Full-Appendixes PDF

How to cite this article:
Bakhita Hamdow Gad Elkreem Braima. Bank Selection Criteria in the Saudi Community Empirical Study of Saudi Banks’ Customers in Tabuk City. Global journal of Economics and Business Administration, 2018, 3: 15. DOI:10.28933/gjeba-2018-09-3001


1. Kaynak E. and Holstius, K. (1995), Retail banking in Nordic countries: the case of Finland, International Journal Of Bank Marketing, Vol. 13 No. 8, pp. 10-20
2. Kaynak, E, and Whiteley, A.(1999), Retail bank marketing in Western Australia, International ,Journal Of Bank Marketing, Vol. 17 No. 5, pp. 221-232.
3. Kaynak, E, and Kucukemiroglu, O. (1992), Bank and Product Selection Hong Kong”, International Journal Of Bank Marketing, Vol. 10 No. 1, pp. 3.
4. Narteh, B, and Owusu-Frimpong, N.(2011), An analysis of students’ knowledge and choice criteria in retail bank selection in sub-Saharan Africa : the case of Ghana, The International Journal Of Bank Marketing, Vol. 29 No. 5, pp. 373-397.
5. Frost, F.A. and Kumar, M. (2000), INTSERVQUAL: an internal adaptation of the GAP model in a large service organization, Journal of Services Marketing, Vol. 14 No. 5, pp. 358-77.
6. Philip, G. and Hazlett, S.A. (1997), the measurement of service quality: a new P-C-P attributes model, International Journal of Quality & Reliability Management, Vol. 14 No. 3, pp. 260-86.
7. Broderick, A.J. and Vachirapornpuk, S. (2002), Service quality in Internet banking: the importance of customer role, Marketing Intelligence & Planning, Vol.20 No.6, pp. 327-335.
8. Parasuraman, A., Zeithaml, V.A. and Berry, L.L. (1985), A conceptual model of service quality and its implication for future research, Journal of Marketing, Vol. 49, pp. 41-50.
9. Parasuraman, A., Zeithaml, V.A. and Berry, L.L. (1988), SERVQUAL: a multiple item scale for measuring consumer perception of service quality, Journal of Retailing, Vol. 64 No. 1, pp.12-40
10. Omo Aregbeyen (2011),the determinants of bank selection choices by customer evidence from Nigeria ,international journal of business and social sience,vol2,No,22;Dec 2011 pp:276-288
11. Almossawi,M.(2001). Bank selection criteria employed by college students in Bahrain: empirical analys,International Journal of Bank Marketing, 19/3, 115-125, MCB University Press.
12. Cicic M., Brkic N. and Agic E. (2004). Bank Selection Criteria Employed by Students in a Southeastern European Country: An Empirical Analysis of Potential Market Segments’ Preferences; University of Sarajevo
13. Syed, A. M., & Guruswamy, D. (2007). Customer preferences for retail banking services in Ethiopia: with special reference to retail banks in Mekelle City.
14. Rehman, H.U., & Saima, A. (2008). An empirical analysis of the determinants of bank selection in Pakistan: A customer view. Pakistan economic and social review, volume 46, No 2.
15. Boyd, W. L., Leonard, M., & White, C. (1994). Customer preferences for financial services: An analysis. International Journal of Bank Marketing, volume, 12, No. 1.
16. Tilahun Aemiro Tehulu, Gedifew Agalu Wondmagegn ,(2014), Factors Influencing Customers’ Bank Selection Decision in Ethiopia: The Case of Bahir Dar City, Research Journal of Finance and Accounting ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol.5, No.21,pp. 57-68 .
17. Irfan Ahmed, Saira Ashfaq, Shahid Mahmood , Umar Farooq, Determinant Attributes of Customer Choice of Banks, Supplying Mortgage Products , Journal of Economics and Behavioral Studies Vol. 4, No. 5, pp. 287-296, May 2012 (ISSN: 2220-6140
18. Muhamad Jantan ,Abdul Razak Kamaruddin (July1998), customer choice in retail banking A A M Journal ,Vol 3, No2 ,pp.19- 32
19. Gazie S. Okpara & Onuoha A. Onuoha, (November 2013) , Bank Selection and Patronage By University Students: A Survey of Students in Umudike, Nigeria , Asian Business Review, Volume 2, (Issue 4) ISSN 2304-2613 (Print); ISSN 2305-8730 (Online)
20. Ahmad Azrin Adnan, (2013) Noor Azeanti Mohd Nasir and Dalfiza Mohd Yusof(2013), Bank Choice Behaviors among Malaysian Muslims: A Qualitative Approach , International Research Journal of Social Sciences, Vol. 3(2),1-8.
21. Kabiru&Ibrhim(2014) , ASSESSING THE INSIGHT OF MUSLIM ACCOUNT HOLDERS’ IN CONVENTIONAL BANK TO PURCHASE ISLAMIC BANK PRODUCTS, Journal of Emerging Economies and Islamic Research 2014, Vol 2, No. 3, pp.1-21
22. Ahmad, N., & Haron, S. (2002). Perceptions of Malaysian corporate customers towards Islamic banking products and services. International Journal of Islamic Financial Services, 3(4), 13-29.
23. Dar, Humayon, and Presley John. (September-2000)―Lack of Profit Loss Sharing in Islamic Banking: Management and Control Imbalances, International Journal of Islamic Financial Services,vol: 2.No :2 .pp:1-49
24. Salman Masood1*, Sumaira Rehman2, and Chaudhry Abdul Rehman3, (December 2014 ,Cognizing Customer Awareness and Perception of Islamic Banking Products in Pakistan, International Journal of Operations and Logistics Management -ISSN: 2310-4945; e-ISSN: 2309-8023 Volume: 3, Issue: 4, pp: 322-336 .
25. Adi Zakaria Afiff * and Rifelly Dewi Astuti(June 2009), The Addition of Spiritual Dimension on Customer Value to Investigate the Relationship of Customer Value, Customer Satisfaction and Behavior Intention on Islamic Banks Saving Products in Indonesia, ASEAN MARKETING JOURNAL June 2009 – Vol.I – No. 1,pp. 13 – 23
26. MURYANI ARSAL1, NIK INTAN NORHAN BT ABDUL HAMID2, ROSFIAH ARSAL3., AND MUHAMMAD BASRI4(2014), CONSUMER BEHAVIOR OF THE ISLAMIC BANKING, International Journal of Science Commerce and Humanities ,Volume No 2 No 7 ,p.59-64.
27. Rahmatina A. Kasri and Salina Hj. Kassim(2009) Empirical Determinants of Saving in the Islamic Banks: Evidence from Indonesia, JKAU: Islamic Econ., Vol. 22 No. 2, pp: 181-201 (2009 A.D./1430 A.H.)
28. Agarwal P. K.(Feb.2017), Influencing factors for bank selection intention in Ethiopia: A study conducted in Arba Minch Town, Business and Management Research Journal Vol. 7(2):pp. 10 – 16. ,ISSN: 2026-6804 ©2017 International Research Journals .
29. Aleksyeyenko Alina(2010) individual and banks ’characteristics that impact an individuals’ demand for services, A thesis submitted in partial fulfillment of the requirements for the degree of MA in Economics Kyiv School of Economics, Ukraine.
30. Cooper, D. R. and Schindler, P. S. (2003), Business research methods, New York, McGraw-Hill Higher Education.
31. Pallant, J. (2010), SPSS survival manual: A step by step guide to data analysis using SPSS. , Maryborough Victoria, Canberra, Australia, McPherson’s Printing Group.
32. Field, A.P. (2005), Factor Analysis Using SPSS, Discovering Statistics using IBM SPSS Statistics, London: Sage, pp.166-204.

Terms of Use/Privacy Policy/ Disclaimer/ Other Policies:
You agree that by using our site, you have read, understood, and agreed to be bound by all of our terms of use/privacy policy/ disclaimer/ other policies (click here for details).

This work and its PDF file(s) are licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.