Factors Influencing Customers’ Preferences on Banking Services in the City of Mati, Davao Oriental

Abstract

This research investigates the factors that influence customers’ preferences in banking services in the City of Mati. A survey was conducted among 400 bank customers within the City of Mati that involved interviews with bank customers to explore how customers choose their banks. Respondent’s views were presented and examined with test of reliability, descriptive statistics, and Exploratory Factor Analysis (EFA). Finding from the study revealed that Facilities, Services, and Values which includes good working order, the bank has a debit card facility, bank has speedy service, strong commitment to meeting customers' needs, interior decor of the bank , prompt response to bank statement queries, promptness of service, sustained trust on delivery, and maintenance of sound relationship, and Price which includes adequate numbers of tellers, low interest rate of loans, bank provide good interest rate, low service charges, influential marketing campaign, higher returns on saving, and individualized the attention to customers were the most significant factors influences on customers preference on banking services; and in contrast, Fundamental which includes adequate numbers of tellers, low interest rate of loans, bank provide good interest rate, low service charges, influential marketing campaign, higher returns on savings, individualized the attention to customers identified as least significant factor in this study, however, it still holds importance for banking services. Results of this study contribute to the existing literature on customers’ preferences on the banking services and offer practical insights for local customers and bankers, Government, academe, and business sectors seeking to enhance their competitive advantage.