Ethnicity and Choice Criteria in Retail Banking: A Malaysian Perspective

Abstract

This exploratory research empirically investigates variation in bank choice criteria between three distinct cultural groups in Malaysia, namely Malays, Chinese and Indians. The author predicted that, due to differences in values and lifestyles of the three ethnic groups, cultural differences would be observed in the level of importance members of each group attached to specific bank choice criteria. A quantitative methodology, using responses given by 482 Malaysia’s undergraduates, is employed in the analysis. The results of this comparative analysis indicate that there is a difference in bank choice criteria based on ethnic backgrounds, and bank marketers can capitalize on these differences, by identifying them and designing appropriate operations and marketing strategies, leading to increased customer satisfaction and competitive advantage.