IDEAS home Printed from https://ideas.repec.org/a/ers/ijebaa/vviiy2019i3p187-197.html
   My bibliography  Save this article

Investigating Consumer Preference in Banking Services: A Conjoint Analysis Study

Author

Listed:
  • Dimas Maulana
  • Sudarso Kaderi Wiryono
  • Mustika Sufiati Purwanegara

Abstract

Purpose: This paper attempts to measure the consumer preference of banking services in Indonesia through the use of a conjoint analysis study. The study is expected to show kinds of combination of services and features that customers perceive to be important. Design/methodology/approach: The paper used conjoint analysis to study consumer preferences towards Indonesian banking services. Twelve unique orthogonal profiles are generated to enable the preference measurement. The conjoint study design is comprised of eight attributes that each has two levels. A sample of 655 respondent was collected through an online survey. Findings: Convenience of having transactions anywhere and anytime is the most crucial aspect of customers. That is, online banking facilities and ATM locations were found to provide the highest utility for customers. Meanwhile, supporting features such as information or notification is an attribute that customers are willing to trade off. Practical implications: Practitioners could use the study to find the best service combinations that they could offer to customers. Practitioners could also know which attributes customers are willing to make a trade off in comparison to other factor utilities. Originality/value: Testing customer preference in the banking industry is still relatively needed in the banking industry. Furthermore, the use of conjoint study is a valuable study that shows a new perspective of measurement in the service industry.

Suggested Citation

  • Dimas Maulana & Sudarso Kaderi Wiryono & Mustika Sufiati Purwanegara, 2019. "Investigating Consumer Preference in Banking Services: A Conjoint Analysis Study," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 187-197.
    • Handle: RePEc:ers:ijebaa:v:vii:y:2019:i:3:p:187-197
    as

    Download full text from publisher

    File URL: https://www.ijeba.com/journal/318/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Vithala R. Rao, 2014. "Applied Conjoint Analysis," Springer Books, Springer, edition 127, number 978-3-540-87753-0, December.
    2. Alina Filip & Laurentiu-Dan Anghel, 2009. "Customer Loyalty and its Determinants in a Banking Services Environment," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 11(26), pages 288-297, June.
    3. A. Salim & M. Setiawan & R. Rofiaty & F. Rohman, 2018. "Focusing on Complaints Handling for Customer Satisfaction and Loyalty: The Case of Indonesian Public Banking," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 404-416.
    4. Elisabeth Honka & Ali Hortaçsu & Maria Ana Vitorino, 2017. "Advertising, consumer awareness, and choice: evidence from the U.S. banking industry," RAND Journal of Economics, RAND Corporation, vol. 48(3), pages 611-646, August.
    5. Andrus Kotri, 2006. "Analyzing Customer Value Using Conjoint Analysis: The Example Of A Packaging Company," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 46, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    6. A. Salim & M. Setiawan & R. Rofiaty & F. Rohman, 2018. "Focusing on Complaints Handling for Customer Satisfaction and Loyalty: The Case of Indonesian Public Banking," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 404-416.
    7. Song-Oh Yoon & Itamar Simonson, 2008. "Choice Set Configuration as a Determinant of Preference Attribution and Strength," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 35(2), pages 324-336, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mustaqim Adamrah & Yos Sunitiyoso, 2024. "Effect on New Loan Repayment Fine Clause on Bank Jaya Artha's Customer Satisfaction and Recommendation," Papers 2401.04605, arXiv.org.
    2. Bodo Herzog, 2018. "Valuation of Digital Platforms: Experimental Evidence for Google and Facebook," IJFS, MDPI, vol. 6(4), pages 1-13, October.
    3. James Agarwal & Wayne DeSarbo & Naresh K. Malhotra & Vithala Rao, 2015. "An Interdisciplinary Review of Research in Conjoint Analysis: Recent Developments and Directions for Future Research," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 2(1), pages 19-40, March.
    4. Greg Lewis & Bora Ozaltun & Georgios Zervas, 2021. "Maximum Likelihood Estimation of Differentiated Products Demand Systems," Papers 2111.12397, arXiv.org.
    5. Mengelkamp, Esther & Schönland, Thomas & Huber, Julian & Weinhardt, Christof, 2019. "The value of local electricity - A choice experiment among German residential customers," Energy Policy, Elsevier, vol. 130(C), pages 294-303.
    6. Kashaev, Nail & Aguiar, Victor H., 2022. "A random attention and utility model," Journal of Economic Theory, Elsevier, vol. 204(C).
    7. Matevž Rasković & Barbara Mörec, 2012. "Organizational Change and Corporate Sustainability in an Economic Crisis: Evidence from Slovenia," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 14(32), pages 522-536, June.
    8. Mark Armstrong & John Vickers, 2018. "Patterns of Competition with Captive Customers," Economics Series Working Papers 864, University of Oxford, Department of Economics.
    9. Valentino Dardanoni & Paola Manzini & Marco Mariotti & Christopher J. Tyson, 2020. "Inferring Cognitive Heterogeneity From Aggregate Choices," Econometrica, Econometric Society, vol. 88(3), pages 1269-1296, May.
    10. Hristina Nikolova & Cait Lamberton, 2016. "Men and the Middle: Gender Differences in Dyadic Compromise Effects," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 43(3), pages 355-371.
    11. Daria Gunina & Michal Novák & Tomáš Kincl & Lenka Komárková, 2018. "Mass Media Communication & Companies' Market Position: The Case Of The Czech Mortgage Market," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2018(2), pages 41-55.
    12. Christian P Theurer & Andranik Tumasjan & Isabell M Welpe, 2018. "Contextual work design and employee innovative work behavior: When does autonomy matter?," PLOS ONE, Public Library of Science, vol. 13(10), pages 1-35, October.
    13. Pavanini, Nicola & Ioannidou, Vasso & Peng, Yushi, 2019. "Collateral and Asymmetric Information in Lending Markets," CEPR Discussion Papers 13905, C.E.P.R. Discussion Papers.
    14. Anoek Castelein & Dennis Fok & Richard Paap, 2020. "A multinomial and rank-ordered logit model with inter- and intra-individual heteroscedasticity," Tinbergen Institute Discussion Papers 20-069/III, Tinbergen Institute.
    15. Wei Zhou & Zidong Wang, 2020. "Competing for Search Traffic in Query Markets: Entry Strategy, Platform Design, and Entrepreneurship," Working Papers 20-12, NET Institute.
    16. Xiang Wu & Bin Hu & Jie Xiong, 2020. "Understanding Heterogeneous Consumer Preferences in Chinese Milk Markets: A Latent Class Approach," Post-Print hal-02489646, HAL.
    17. Isihara, Paul & Shi, Chaojun & Ward, Jonathan & O'Malley, Leo & Laney, Skyler & Diedrichs, Danilo & Flores, Gabriel, 2020. "Identifying most typical and most ideal attribute levels in small populations of expert decision makers: Studying the Go/No Go decision of disaster relief organizations," Journal of choice modelling, Elsevier, vol. 35(C).
    18. Poulissen, Davey & de Grip, Andries & Fouarge, Didier & Künn, Annemarie, 2021. "Employers’ willingness to invest in the training of temporary workers: a discrete choice experiment," Research Memorandum 010, Maastricht University, Graduate School of Business and Economics (GSBE).
    19. Wittmer, Andreas & Rowley, Edward, 2014. "Customer value of purchasable supplementary services: The case of a European full network carrier's economy class," Journal of Air Transport Management, Elsevier, vol. 34(C), pages 17-23.
    20. Levon Barseghyan & Francesca Molinari, 2023. "Risk Preference Types, Limited Consideration, and Welfare," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 41(4), pages 1011-1029, October.

    More about this item

    Keywords

    Consumer preferences; conjoint analysis; banking industry; Indonesia.;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:ijebaa:v:vii:y:2019:i:3:p:187-197. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ijeba.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.