Consumer’s Satisfaction and Behaviour Towards Personal Financing

Abstract

The unprecedented changes in the financial market have put a great pressure on financial service providers. As more competitive financial products and services emerge in the market, financial institutions have no choice, but to enhance their competitive advantages. Thus, consumer behavior in purchasing products and services must really be understood by the service providers. Unfortunately, the literature on customer satisfaction and the purchase decision is hardly seen in the finance industry. This paper originally develops a model of the relationship between consumer satisfaction and purchase decision in the finance industry focusing on personal finance. The mediating role of customer satisfaction in the purchase decision is emphasized in this research model. This model had been used to focus purchase decisions by adapted Theory Planned Behaviour (TPB). A clear understanding of the relationship attitude, subjective norms and perceived behavioral control towards purchase behavior had found by previous research. But lack of studies focused on the small-medium enterprises (SME’s) that nowadays have become a platform for the economy in Malaysia. Hence, this conceptual model had focused on SME’s behavior in selecting personal finance. The conceptual model offers insight into the general nature of a recovery that specifically to the understanding of SME’s behavior as well as in purchase personal loan.