Characterizing bank choices among clients : an exploratory factor analysis

Abstract

This study aims to extract the underlying factors characterizing bank choices, determine the level of each factor, and ascertain the significant difference among clients in Davao del Sur when grouped by profile. The study used the quantitative research design as the method with the application of Exploratory Factor Analysis. Initially, focus group discussion was undertaken with 25 individuals to determine items that served as parameters preliminarily. Afterwhich, thematic analysis was undertaken by breaking the data into smaller segments and using an inductive approach to comprise the data. To test its suitability and coherence, the questionnaire underdone a pilot testing with 30 respondents, checked and validated by the experts in the field. Data were gathered to 250 respondents identified as bank clients in the province of Davao del Sur through an online platform using systematic random sampling and snowball sampling. The following approaches were taken to achieve the study's objectives: descriptive statistics; t-test; One-way (ANOVA); and Exploratory Factor Analysis (EFA). Results revealed a Kaiser-Meyer-Olkin (KMO) index of adequacy of 0.692, which surpassed the baseline of 0.5. Likewise, Principal Component Analysis (PCA) revealed five components or dimensions characterizing bank choices. These are factors characterizing bank choices among clients in Davao del Sur: Accessibility and Convenience; Products and Services; Electronic Services; Third-party Influences, and Bank Appearance.

Keywords: characterizing bank choices, accessibility and convenience, products and services. electronic services, third-party influences, bank appearance, exploratory factor analysis, Philippines