Ooi Eng Cheong

8/21/2019 Ooi Eng Cheong

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Independent Study

The marketing strategies of Bank Rakyat Klang in promoting personal loans

OOI ENG CHEONG

ni!ersity of "er#y

Independent Study Commen$ement "ate%

20th April 2013

Independent Study Completion "ue "ate%

31st July 2013


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The marketing strategies of Bank Rakyat Klang in promoting personal loans

OOI ENG CHEONG

Dissertation submitted in part fulfillment of the

requirements of the University of Derby for the degree

ofMaster of usiness in

!dministration

D"# CH!N$HENE% &E'

(ord Count% )*+,)


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Abstract

This resear$h aims to identify the fa$tors that influen$e the marketing strategies of Bank

Rakyat Klang in promoting personal loan- The o#.e$ti!e of this resear$h is to identify

the fa$tors that influen$e the $ustomers/ $hoi$e of a #ank in o#taining a personal loan-0nother o#.e$ti!e is to determine the relationships #et1een the fa$tors that influen$e the

$ustomers/ $hoi$e of a #ank and the marketing strategies of Bank Rakyat Klang in

promoting personal loans- The third o#.e$ti!e is to analy2e ho1 the $ustomers/ de$ision

making fa$tors $an #e used to impro!e the marketing strategies of Bank Rakyat Klang in

promoting personal loans- The 1riter $hose 3uantitati!e resear$h method in the form of a

3uestionnaire to help him to a$hie!e the o#.e$ti!es of this resear$h- 4uantitati!e

resear$h method 1as $hosen as it is a statisti$ally relia#le method- In addition5 it ena#les

a large amount of data from a large num#ers of parti$ipants to #e analysed and

summarised- It is easier to analysed statisti$al data in $omparison to the data $olle$ted

through 3ualitati!e resear$h- 4uantitati!e resear$h method ena#les the 1riter to $ompare

the statisti$al data 1ith the past resear$hes as 1ell- The 3uestionnaires 1ere distri#uted

to 67 $ustomers of Bank Rakyat Klang- 8irst of all5 the 1riter identified the $ustomers

1ho ha!e o#tained loans from Bank Rakyat Klang- Then5 the 1riter $hose 67

parti$ipants randomly a$$ording to ra$e and age group- 'ater5 the results 1ere analysed

#y using S9SS :)-7- One of the limitations of this resear$h is that there are ))+ Bank

Rakyat in ;alaysia 1ith < lo$ated in Klang5 #ut this resear$h only $o!ers Bank Rakyat

Klang- Ne=t5 the total populations in ;alaysia are :>-, million 1ith >?,>*? ;alaysians

in Klang #ut this resear$h only in!ol!ed 67 $ustomers in Klang- Through this resear$h5 it

$an #e $on$luded that the lo$ation of the #ank5 interest rate of the loan5 terms and

$onditions of the loan5 the appli$ation of te$hnology5 longer loan repayment period and

$ustomer loyalty influen$e the $ustomers/ $hoi$e for a #ank in o#taining a personal loan-

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Acknowledgement

I 1ould like to e=press my deepest gratitude to my mother ;adam 'ee for her

!alua#le guidan$e and #lessings-

I am !ery grateful to the management groups of Bank Rakyat Klang for

pro!iding me 1ith an en!ironment to $omplete my resear$h su$$essfully-

I 1ould also like to thank my super!isor "r- Chantheney for her un1a!ering

support during the entire $ourse of this resear$h 1ork-

I am deeply inde#ted to my Head of department ;r- Chan5 1ho modeled me #oth

te$hni$ally and morally for a$hie!ing greater su$$ess in life-

I 1ould like to e=press my sin$ere thanks to 'e$turer "r- Chantheney for her

$onstant en$ouragement and support throughout the $ourse5 espe$ially for the useful

suggestions gi!en during the $ourse of the resear$h period-

I am !ery grateful to my internal guide5 ;s- @enny for #eing instrumental in the

$ompletion of my resear$h-

'astly5 I 1ould like to take this opportunity to e=tend my deepest appre$iation to

my family and friends 1ho ga!e me moral support throughout the resear$h period-

Table of Content

ii


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0#stra$t i

0$kno1ledgement ii

Ta#le of $ontent iii

'ist of Ta#les =

'ist of 8igures =ii

'ist of 0ppendi= =ii

Chapter )% Introdu$tion

)-) Ba$kground of the study )

)-: Ba$kground of the organi2ation <

)-< Resear$h pro#lem <

)-+ Resear$h o#.e$ti!es +

)-6 Signifi$an$e of the study 6

)-6-) To the resear$her +

)-6-: To the Bank Rakyat Klang 6

)-6-< To the respondents 6

)-6-+ To the #anking industry 6

)-* Rationale of the study 6

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)-? Resear$h 3uestions *

)-> Con$eptual frame1ork *

)-, Hypotheses >

)-)7 The s$ope of the study>

)-)) "efinition of terms,

)-))-) ;arketing strategy,

)-))-: Elements of the marketing strategy )7

)-))-< Theories in the marketing strategy )7

)-): Organi2ation of the study ):

)-)< Summary of the $hapter )<

Chapter :% 'iterature Re!ie1

:-7 Introdu$tion )+

:-) ;arketing mi= A+9s)+

:-: History of the resear$h)6

:-:-) The study of fa$tors 1hi$h influen$e the $onsumers/ $hoi$e

$riteria in retail #ank sele$tion

)6

:-:-: The study of the fa$tors that affe$t $ustomers/ de$ision for

taking out #ank loans

)>

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:-:-< The study of the marketing strategies )>

:-:-

:-:-


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3.3 Resear$h population and sampling


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+-:-:-< Interest rate +:

+-:-:-+ Terms and $onditions +<

+-:-:-6 0d!ertisement ++

+-:-:-* 0ppli$ation of te$hnology +6

+-:-:-? 'onger repayment period +*

+-:-:-> Customer loyalty +?

+-< Inferential analysis +>

+-


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6-) Introdu$tion 66

6-: Con$lusion of the study 66

6-:-) Resear$h 4uestion ) 6*

6-:-: Resear$h 4uestion : 6*

6-:-:-) 'o$ation of #ank 6?

6-:-:-: Customer ser!i$e 6?

6-:-:-< Interest rate 6?

6-:-:-+ Terms and $onditions 6>

6-:-:-6 0d!ertisement 6>

6-:-:-* 0ppli$ation of te$hnology 6,

6-:-:-? 'onger repayment period 6,

6-:-:-> Customer loyalty *7

6-:-< Resear$h 3uestion < *)

6-:-


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6-:-


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Ta#le


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List of figures

8igure )-) Con$eptual frame1ork of the resear$h ?

List of Appendi

0ppendi= ) Num#er of #anks in Klang area ?*

0ppendi= : 4uestionnaires for the $ustomers ??

xi


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0ppendi= : Kotler/s ;odel of Buyer Beha!ior >)

xii


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Chapter 1! "ntroduction

1#1 $ackground of the study

The demands of the present generation are far greater than their age- 0s a result5 a steady

sour$e of in$ome is not suffi$ient to meet these demands and lu=uries- 0$$ording to

;ourmouras et al- A:7):5 the demand for personal loans in ;alaysia are gro1ing at a

rapid rate- The findings #y Narain et al- A:7) #ran$hes5 )) Islami$ #anks 1ith :< #ran$hes and ) international #ank 1ith

) #ran$h- 0ppendi= ) gi!es detailed information a#out the #anks in Klang- These$ommer$ial5 Islami$ and international #anks offer !arious types of loan in$luding

personal loan- 9ersonal loan is a $onsumer loan granted for personal5 family or

household use A8it$h5 :77*- In ;alaysia5 personal loans are a!aila#le from as little as

R;)777 to R;)67777 or more Ai;oney;y5 :7)


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The interest rates for a personal loan $an #e $lassified into%

a fi=ed0 fi=ed interest rate refers to an interest rate that remains the same throughout the full

loan term despite flu$tuations in the market AKno1les F Castillo5 :7):- 0lthough the

fi=ed interest rate prote$ts a #orro1er from interest rate mo!ements5 the #orro1er has torepay the amount as agreed in the loan agreement until the loan is paid in full- If the

#orro1er 1ishes to make e=tra payments5 he has to in$ur an additional fee- In ;alaysia5

the personal loans are usually of the fi=ed interest rate type- The interest rate for a

personal loan in ;alaysia ranges from as lo1 as


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Bank Rakyat 1as founded in Septem#er ),6+ after an e=pansion of the $ooperati!e

mo!ement in 9eninsular ;alaysia ABankRakyat05 :7)- The $ooperati!es formed their respe$ti!e

union #anks in order to pro!ide finan$ial needs to their mem#ers- )) union

#anks merged and form Bank 0gong in ),6+ AIslam5 :7):- 'ater5 in ),*?5

Bank 0gong 1as repla$ed #y Bank Ker.asama ;alaysia Berhad 1ith its

mem#ership opened to $ooperati!es and indi!iduals- The name 1as $hanged to

Bank Ker.asama Rakyat ;alaysia Berhad in ),? 1hi$h

allo1s it to pro!ide finan$ing to nonmem#ers A;uhamat5 Rosly F @aafar5 :7))- 'ater5

Bank Rakyat 1as pla$ed under the ;inistry of 8inan$e and the ;inistry of 'and and

Cooperati!e "e!elopment in ),>,- In ),,


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0ll the #anks in Klang offer !arious kinds of loan and ha!e their o1n spe$ialties- Thus5

to sur!i!e in this $ompetiti!e 1orld5 Bank Rakyat Klang has to ha!e a good marketing

strategy to o#tain a $ompetiti!e ad!antage o!er the other #anks- Besides5 that Bank

Rakyat ;alaysia also fa$e $ompetition from li$ense money lenders- ;arketing strategy

is the key to all types of #usinesses in$luding the #anks- Therefore5 in this study the

1riter 1ishes to find out the fa$tors that influen$e the $ustomers/ $hoi$e of a #ank in

o#taining personal loans- By indentifying the fa$tors that influen$e the $ustomers/

#eha!iour the marketing strategies that are apt for Bank Rakyat Klan $an #e identified-

1#( &esearch )b*ecti+es

)- To identify the fa$tors that influen$e the $ustomers/ $hoi$e of a #ank in o#taining a

personal loan-

:- To determine the relationships #et1een the fa$tors that influen$e the $ustomers/

$hoi$e of a #ank and the marketing strategies of Bank Rakyat Klang in promoting

personal loans-


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1#,#2 To $ank &akyat .lang

This study helps Bank Rakyat Klang to e!aluate the effe$ti!eness of its $urrent

marketing strategies in promoting personal loans- pon $ompletion of this study5 Bank

Rakyat Klang $an further impro!e its marketing strategies in promoting personal loans

#y o!er$oming its 1eaknesses and strengthening its strengths-

1#,#3 To the respondents

Through this study5 the respondents are a#le to gain a #etter insight of Bank Rakyat

Klang- In addition5 this study $an help to $reate a1areness among the respondents

regarding the produ$ts that are a!aila#le at Bank Rakyat Klang-

1#,#( To the banking industry

This study $an ser!e as a referen$e to other #anks on ho1 they $an impro!e their

marketing strategies in promoting personal loans-

1#/ &ationale of the study

0ll the #anks in Klang offer personal loans and ha!e their o1n marketing strategies- 0s

su$h5 it is pro!en that Bank Rakyat Klang is fa$ing a lot of $hallenges and $ompetitions

in the #anking industry- In order to sur!i!e in this $ompetiti!e 1orld5 Bank Rakyat

Klang has to ha!e a good marketing strategy to o#tain a $ompetiti!e ad!antage o!er the

other #anks A(est5 8ord5 F I#rahim5 :7)7

Based upon the pre!ious studies5 this resear$h 1ill analy2e the marketing strategies used

#y Bank Rakyat Klang in promoting personal loans- This resear$h 1ill identify the

fa$tors that attra$t $ustomers to o#tain a personal loan from this #ank- In addition5 this

resear$h 1ill also find out 1hether these #anks use the $on!entional marketing strategies

or ne1 marketing strategies in promoting personal loans- Consensus 1ill #e #uilt a#out

the su$$ess or failure of the marketing strategies of Bank Rakyat Klang in promoting

personal loans- It 1ill also o#ser!e ho1 #ankers impro!e their marketing strategies to

promote personal loans- 8urthermore5 #ased on the findings the resear$her $an identify

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the 1eaknesses in the strategies used that might #e one of the $auses 1hy there are still a

num#er of ;alaysians 1ho resort to #orro1 money from the loan sharks-

1# &esearch uestions

This paper seeks the ans1ers for the follo1ing 3uestions-

&esearch uestion 1%

(hat are the fa$tors that influen$e the $ustomers/ $hoi$e of a #ank in o#taining a

personal loan

&esearch uestion 2%(hat is the relationship #et1een the fa$tors that influen$e the $ustomers/ $hoi$e of a

#ank and the marketing strategies of Bank Rakyat Klang in promoting personal loans

&esearch uestion 3%

Ho1 $an the marketing strategies of Bank Rakyat Klang in promoting personal loans #e

impro!ed

1# Conceptual framework

The $on$eptual frame1ork ser!es as the foundation for the entire resear$h pro.e$t-

8igure )-) is a detailed representation of the relationship #et1een fa$tors that influen$e

the marketing strategies of Bank Rakyat Klang in promoting personal loans and the

$ustomers/ $hoi$e of #ank in o#taining personal loans- The independent !aria#les are

lo$ation of the #ank5 $ustomer ser!i$e5 interest rate5 terms and $onditions set #y the

#ank5 ad!ertisement5 appli$ation of te$hnology5 longer repayment period and $ustomer

loyalty- The dependent !aria#le is the $ustomers/ $hoi$e of a #ank to o#tain personal

loans-

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Independent !aria#les "ependent !aria#le

8igure )-)% Con$eptual frame1ork of the resear$h

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1#4 5ypotheses

Eight hypotheses ha!e #een designed for this resear$h- They are as follo1s%

H) 'o$ation of the #ank influen$es the $ustomers $hoi$e of #ank in o#taining

personal loans-

H: Customer ser!i$e influen$es the $ustomers $hoi$e of #ank in o#taining personal

loans-

H< Interest rate influen$es the $ustomers $hoi$e of #ank in o#taining personal loans-

H+ Terms and $onditions set #y the #ank influen$e the $ustomers $hoi$e of #ank in

o#taining personal loans

H6 0d!ertisement influen$es the $ustomers $hoi$e of #ank in o#taining personal loans

H* 0ppli$ation of te$hnology influen$es the $ustomers $hoi$e of #ank in o#taining

personal loans-

H? 'onger repayment time influen$es the $ustomers $hoi$e of #ank in o#taining

personal loans-

H> Customer loyalty influen$es their $hoi$e of #ank in o#taining personal loans-

1#10 The scope of the study

This study is $ondu$ted to e=amine the marketing strategies used #y Bank Rakyat

Klang- The 1riter $hose to $ondu$t resear$h in Klang as no similar resear$h has #een

$arried out in Klang #efore- 8urthermore5 the 1riter li!es in Klang and is $on!enient to

$arry out the resear$h- The 1riter is not a#le to $ondu$t resear$h in all the $ities in

;alaysia as it is time and energy $onsuming- Therefore5 this resear$h in!ol!es 67

$ustomers of Bank Rakyat Klang only-

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1#11 6efinition of terms

a- 9ersonal loan refers to a small amount of $redit that is paid #a$k in instalments and is

used for personal $onsumption purposes A@ent2s$h5 :77*-

#- ;arketing strategy is a pro$ess that allo1s an organi2ation to fo$us its resour$es on

the ma=imum opportunities 1ith the o#.e$ti!es of in$reasing sales as 1ell as to

maintain a sustaina#le $ompetiti!e ad!antage ABkStrategi$5 :7)-

d- Interest rate is the per$entage of the amount #orro1ed that must #e paid to the lender

in addition to the repayment of the prin$ipal amount AG1artney5 et al-5 :77,-

e- Te$hnology refers to the systemati$ appli$ation of s$ientifi$ or other organi2ed

kno1ledge to pra$ti$al tasks A'ipsit25 ),,


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1#11#2 8lements of the marketing strategy

There are < main elements of marketing strategy in an organi2ation- They are strategy

$ontent5 strategy formulation pro$ess and strategy implementations-

Strategy $ontent means the spe$ifi$ offerings5 timing5 relationships and pattern of

resour$e deployment organi2ed #y an organi2ation in its 3uest for $ompetiti!e ad!antage-

8or e=ample5 pull !ersus push strategy and differentiation !ersus generi$ strategy of $ost

leadership- Strategy formulation pro$ess refers to the a$ti!ities that an organi2ation is

in!ol!ed in for determining the strategy $ontent- 8or instan$e5 $ompetitor analysis5

market opportunity analysis and de$ision making styles- Strategy implementation means

ho1 the strategy is $ondu$ted- It refers to the a$tions taken #y the organi2ation and the

relationships #et1een the organi2ation and the e=ternal $onstituen$ies to a$$omplish the

strategy for instan$e5 $oordination me$hanisms5 $ontrol systems and organi2ation

stru$ture A&aradara.an F @aya$handran5 ),,,-

1#11#3 $asic theories related to marketing strategy

There are > theories in marketing strategy- They are institutional theory5 game theory5

signalling5 inno!ation5 produ$t 3uality5 market share5 market pioneering as 1ell as

market orientation-

The institutional theory stated that the a$tions of the organi2ations and the $onse3uen$es

of these a$tions are influen$ed #y the #eliefs5 rules and kno1ledge systems that

$hara$teri2e the $onte=t of the organi2ation ASheth F Sisodia5 :77*-

0$$ording to the game theory 5 the organi2ations rational ma=imise their utility- This

theory stated that the organi2ations 1ill stri!e to a$hie!e the most preferred out$omes

and their $ompetitors 1ill also #eha!e in the same 1ay AHult5 :7))-

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The signalling theory stated that $ompetiti!e signals are regarded as announ$ements to

$on!ey information or to o#tain information from the ri!als A&aradara.an F

@aya$handran5 ),,,-

The inno!ation theory #rings long term profita#ility of the organi2ation- It refers to a pro$ess of $reati!e destru$tion- It regards profits in an inherently dynami$ en!ironment

as an out$ome of dis$o!ery as 1ell as inno!ation 1hi$h $an pro!ide the organi2ation

1ith a differential ad!antage o!er its ri!als A@a$o#son5 ),,:-

The produ$t 3uality theory stated that 3uality is any fa$tor other than pri$e has an impa$t

on the demand $ur!e of a produ$t- 0$$ording to this theory5 if an organi2ation offers a

high pri$e for a high 3uality produ$t targeted at a small market ni$he5 the organi2ation

1ill e=$lude it from the $ontest for market share dominan$e in the #roader market

automati$ally AOnk!isit F Sha15 :77>- Besides5 this theory also stated that 1hen

$onsumers are not $ertain of the 3uality of a produ$t5 they tend to use pri$e as an

indi$ator of 3uality-

The market share theory stated that there is a strong relationship #et1een the market

share and profita#ility- In markets 1ith imperfe$t information regarding the performan$e

of produ$ts5 the high market share of a #rand represents superior 3uality to the

$onsumers A"onelly F 'inton5 :7):- In these markets5 the $ustomers tend to ha!e more

$onfiden$e in high market share #rands-

The market pioneering theory stated that the organi2ation 1hi$h is the first to introdu$e a

ne1 produ$t into the market or employ a ne1 pro$ess has a $ompetiti!e ad!antage

related to #eing the first to enter a market- 'astly5 the market orientation theory stated

that in order to #e su$$essful5 the organi2ation needs to determine the needs and 1ants

of the $ustomers and satisfy them more effe$ti!ely than their ri!als do A9ride F 8errell5

:7):-

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1#12 )rgani%ation of the study

The study $ondu$ted on the marketing strategies of Bank Rakyat Klang in promoting

personal loans is di!ided into 6 $hapters stated #elo1 along 1ith other #asi$ $omponents

of dissertation su$h as a#stra$t5 a$kno1ledgement5 ta#le of $ontent5 list of figures and

ta#les5 referen$e list5 and appendi$es%

Chapter 1

This $hapter introdu$es the finan$ial institutions that are a!aila#le in Klang5 the

definition of personal loan5 types of personal loans and types of interest rates- In

addition5 this $hapter also in$ludes the ma=imum personal loan amount5 the range of

interest rate for personal loan5 the a!erage personal loan repayment period5 resear$h

pro#lem5 resear$h o#.e$ti!es5 signifi$an$es of this resear$h5 rationale of the study5 s$ope

of the study5 definition of terms5 the introdu$tion to marketing strategy and its theories as

1ell as the #a$kground of Bank Rakyat-

Chapter 2

This $hapter aims to pro!ide a $omprehensi!e insight on the term marketing mi=-

Besides5 this $hapter 1ill in$lude fa$tors that influen$e the $onsumers/ $hoi$e $riteria in

retail #ank sele$tion and the fa$tors that affe$t $ustomers/ de$ision for taking #ank loans-

In addition5 the marketing strategies of Bank Rakyat and gaps of the literature are also

in$luded in this $hapter-

Chapter 3

The third $hapter is the methodology part of the paper that en$ompass the resear$h

purpose5 $on$eptual frame1ork5 resear$h approa$h5 resear$h strategy5 data analysis5 data

3uality Arelia#ility and !alidity5 ethi$al $onsideration applied during the $olle$tion of data as 1ell as resear$h plan-

Chapter (

The fourth $hapter 1ill $on$lude the results dra1n from data analysis and dis$uss on

these results-

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Chapter ,

Chapter 6 refle$ts the resear$h o#.e$ti!es- This $hapter also in$ludes re$ommendations

for Bank Rakyat Klang on ho1 it $an further impro!e its marketing strategies to

promote personal loans5 limitations of resear$h and suggestions for further resear$h-

1#13 -ummary of the chapter

This $hapter su$$essfully highlighted the finan$ial institutions that are a!aila#le in

Klang- In addition5 this $hapter $o!ers the definition of personal loan5 types of personal

loans5 types of interest rates5 the ma=imum personal loan amount5 the range of interest

rate for personal loan and the a!erage personal loan repayment period in Klang-

Besides5 this $hapter $o!ers the pro#lem statement of this resear$h and > possi#le

resear$h 3uestions 1ere de!eloped from the pro#lem statement- Resear$h o#.e$ti!es are

highlighted as 1ell- 8urthermore5 the signifi$an$es of this resear$h5 rationale of the study

and the s$ope of the study 1ere $riti$ally e!aluated- This is follo1ed #y definition of

terms used in this resear$h- 8inally5 this $hapter dis$usses the introdu$tion to marketing

strategy and its theories5 the #a$kground of Bank Rakyat and the organi2ation of the

study-

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Chapter 2! Literature &e+iew

2#0 "ntroduction

This $hapter aims to pro!ide a $omprehensi!e insight on the term marketing mi=-

Besides5 this $hapter 1ill in$lude fa$tors that influen$e the $onsumers/ $hoi$e $riteria in

retail #ank sele$tion and the fa$tors that affe$t $ustomers/ de$ision for taking out #ank

loans- In addition5 the marketing strategies of Bank Rakyat Klang and gaps of the

literature are also in$luded in this $hapter-

2#1 7arketing mi 9('s:

In ),*75 the term marketing mi= 1as introdu$ed #y ;$Carthy ABarker F 0ngelopulo5

:77?- It $omprises of +9s- +9s in$ludes produ$t5 pri$e5 promotion and pla$e- This term

1as designed to ena#le mutual satisfying e=$hanges 1ith a target market A'am#5 et al-5

:7)7- In order to a$hie!e optimal results in marketing5 these + elements must #e

#lended 1ell- This theory has #een used in the marketing field for the last four de$ades-

0 marketing mi= #egins 1ith the produ$t strategy- (ithout the produ$t5 there is nothing

to determine the pri$e5 to promote or to determine the pla$e- 9rodu$t strategy in$ludesthe physi$al unit itself5 its pa$kaging5 1arranty5 #rand name5 aftersale ser!i$e5 !alue and

organi2ation image- 9rodu$ts $an $ome in t1o forms- It $an #e tangi#le solid goods like

tele!isions or ser!i$es su$h as #anking ser!i$es AStrader5 :7))-

9la$e strategy is $on$erned 1ith the lo$ation 1here the produ$ts 1ill #e made a!aila#le-

It in!ol!es all the #usiness a$ti!ities asso$iated 1ith storing of the produ$ts and ser!es

as the pla$e 1here #usiness 1ill take pla$e 1ith the $ustomers AStolt5 :7)7- It should #e

easily a$$essi#le to pro!ide $on!enien$e to the $ustomers-

9romotion strategy in$ludes ad!ertising5 pu#li$ relations and personal selling- 0 good

promotion strategy $an help an organi2ation to in$rease its sales- The aim of a promotion

is to in$rease a1areness of the produ$ts or ser!i$es among the $onsumers AOldroyd5

:7):J Kotler5 :77


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Ho1e!er5 a good promotion strategy does not guarantee a su$$ess- It has a strong

$orrelation 1ith the other three 9s $omponents-

No1adays5 the $onsumers often take into $onsiderations the pri$e of the produ$ts 1hen

they o#tain a produ$t or ser!i$e- It is the most fle=i#le element among the +9s-;arketers $an raise or lo1er the pri$es of the produ$ts a$$ording to the market- 9ri$e is

an important fa$tor to o#tain a $ompetiti!e ad!antage AStolt5 :7)7-

The appli$ations of +9s are limited- In ),>)5 Booms and Bitner proposed ?9s marketing

mi=- The ?9s in$ludes produ$t5 pri$e5 promotion5 pla$e5 parti$ipants5 physi$al e!iden$e

and pro$ess-

2#2 5istory of the research

2#2#1 The study of factors which influence the consumers; choice criteria in retail

bank selection

In this $ompetiti!e 1orld5 many #anks found themsel!es fa$ing aggressi!e $ompetition

and unlimited opportunities- In$reasing le!els of $ompetition for finan$ial ser!i$es ha!e

in$reased the need of the #ank to find and attra$t ne1 market segments-

;any resear$hes ha!e #een $ondu$ted to identify the fa$tors that influen$e the

$ustomers in $hoosing a #ank either for a loan or other purposes- 0 resear$h 1as $arried

out in S1eden to identify the $onsumers/ $hoi$e $riteria in retail #ank sele$tion- This

resear$h 1as $arried out among 66> S1edish #ank $ustomers and 6< #ank #ran$h

managers- The resear$h sho1ed that the $hoi$e 1as random- Se!eral fa$tors 1hi$h

influen$ed the $onsumers/ $hoi$e $riteria in retail #ank sele$tion 1ere identified- They

are a!aila#ility of loans5 #ank lo$ation5 influen$e of parents/ $hoi$es and payment of

salary !ia a $ertain #ank A;artenson5 ),>


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lo$ation5 a!aila#ility of parking $lose to a #ank and the a!aila#ility of a 1ide range of

loans and mortgages 1ere the main fa$tors affe$ting the $ustomers/ de$isions to sele$t a

#ank-

8urthermore5 a study 1as $arried out among :7, uni!ersity students in ;aryland5 S0

#y Kha2eh and "e$ker A),,: to identify the fa$tors that influen$e the $ustomers/

de$ision to $hoose a #ank- The main findings 1ere 3uite similar to the aforementioned

reasons- 0$$ording to resear$h5 the main fa$tors are the #ank/s reputation5 interest rates

on loans5 3ui$k loan appro!al and $ustomer ser!i$es-

0$$ording to a resear$h 1hi$h 1as $ondu$ted in S1eden to identify the fa$tors that

influen$e the $onsumer/s $hoi$e $riteria in #ank sele$tionJ pri$e5 ad!ertising and

$on!enien$e of lo$ation 1ere found to play minor roles in #ank sele$tion- 0$$ording to

this resear$h5 there is no #ank that $an offer all produ$ts and #e the #est for all

$ustomers- Ho1e!er5 there are a num#er of leaders in terms of deposit #ase5 in terms of

loans outstanding #ase5 in terms of assets and a ni$he leader #ank Aineldin5 ),>


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the resear$h5 pri$ing and produ$t dimensions of #ank ser!i$es 1ere the t1o main $riteria

in #ank sele$tion ATa5 ),>-

8urthermore5 a resear$h 1as $arried out in 0thens to identify the #ank $hoi$e $riteria and

the fa$tors that affe$t $ustomers/ $hoi$e in sele$ting a #ank for mortgage loan- The

resear$h 1as $arried out among )7,: #ank $ustomers in 0thens- 4uestionnaire 1as

distri#uted to $ustomers- Through this resear$h5 four distin$t fa$tors 1ere identified as

the main $hoi$e $riteria that affe$t $onsumer/s #ank $hoi$e for personal loan- They are

#ank ser!i$e 3uality5 produ$t attri#utes5 $ommuni$ation and a$$ess A'ymperopoulos5),,)- 0$$ording to resear$h5 the 3uality of $ustomer ser!i$e is the most important

aspe$t that the $ustomers take into $onsideration 1hen sele$ting the #ank for personal

loan purpose-

2#2#2 The study of the factors that affect customers; decision for taking out bank

loans

;any resear$hes ha!e studied the $riteria of #ank sele$tion #ut there are only t1o that

studied the fa$tors that affe$t $ustomers/ de$ision for taking out #ank loans- The first

resear$h 1as $ondu$ted in :7): among :?? #ank $ustomers in Gree$e A8rangos5 :7):-

0$$ording to this resear$h5 there 1ere four main fa$tors that influen$ed the $ustomers/

17


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de$ision for taking out #ank loans namely $ustomer ser!i$e5 shop design5 interest rates

and personal marital status-

Nurfahana A:7)) did a resear$h on the fa$tors that attra$t the tea$hers to o#tain )0slah

9ersonal 8inan$ingI loan from Bank Rakyat- The resear$h 1as $arried out among *7

tea$hers 1ho 1ere tea$hing in a primary s$hool in Gua ;usang5 Kelantan- Nur fahana

identifed three main marketing strategies that 1ere employed #y the Bank Rakyat Gua

;usang to attra$t the tea$hers to o#tain )0slah personal 8inan$iangI loan- Nurfahana

had dis$ussed three marketing strategies namely promotion strategy5 pri$e strategy and

produ$t strategy in her study-

2#2#3 The study of the marketing strategies

2#2#3#1 'lace strategy

0 good lo$ation is strongly asso$iated 1ith an in$rease in the potential sale as it $ould

attra$t more $ustomers A(eon5 et al-5 :7)7- In terms of the lo$ation of #anks5 (eon et

al- found that the #ran$h $hara$teristi$s and the $ustomer $hara$teristi$s are the t1o

important fa$tors- The num#er of #ran$hes of other finan$ial institutions in the region is

an utmost fa$tor 1ith regards to the #ran$h $hara$teristi$s- GIS analysis #ased on

data#ase 1as used 1hen analysing the lo$ations of the #ank #ran$hes- The regional

e$onomi$ strength5 the regional e$onomi$ foundation and the demand indu$ti!ity 1ere

$hosen as the detailed lo$ation fa$tors of a #ank #ran$h- These formed the #asis of the

analysis- ;oreo!er5 (eon et al- A:7)7 had $on$luded that the lo$ation of a #ank

influen$ed the profit- It 1as found that the profita#ility of #ank/s #ran$h in a region

in$reased if the num#er of #ran$hes of other finan$ial institutions in that region

in$reased-

18


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0$$ording to Haron F 02mi A:7765 all the #anks in ;alaysia pro!ide ser!i$es that are

easily a$$essi#le #y the $ustomers- In order to ha!e easy a$$ess to the ser!i$es

pro!ided #y the #ank5 the #ank $hose appropriate pla$e that is $on!enient and

rea$ha#le for the $ustomers- The ma.ority of the #anks in ;alaysia realised that

lo$ation of the #anks and their #ran$hes played an important role in the su$$ess of

their #usinesses-

2#2#3#2 'rice strategy

9ri$e is one of the elements of the marketing mi=- 0mong the + elements in the

marketing mi=5 pri$e strategy is the most persuasi!e element- It has a great impa$t on the

$ustomers- Ri2al F 8ran$is A:7)7 stated that pri$e is the first fa$tor that a $ustomer

$onsiders 1hen pur$hasing a produ$t- They found that lo1 pri$e strategy $an help to

attra$t as 1ell as to retain $ustomers and it is a potential marketing strategy-

8or the $onsumers5 pri$e represents the 3uality of a produ$t ABru$ks F Naylor5 :777-

Therefore5 a produ$t has to #e gi!en an appropriate pri$e a$$ording to its 3uality- 0

produ$t that is not gi!en a reasona#le pri$e may affe$t the sales and may $ause produ$t/s

failure- Henard F S2ymanski A:77) stated that the pri$e has a strong asso$iation 1ith

the sales of the produ$t- 0s su$h5 the pri$e of a produ$t must al1ays #e in $onformity

1ith the other +9s-

In #anking5 the pri$ing strategy is the $harge that is imposed on the #orro1ers-

0$$ording to a resear$h5 the pri$ing strategy redu$es re!enue #ut $an $ontri#ute to

$ustomer loyalty AHallo1ell5 :7))- Customer loyalty is hard to a$3uire and retain- 0

proper pri$ing is an important key to $ustomer loyalty AKandampully F Suhartanto5

:777- 0$$ording to Gar!ey A:7)


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2#2#3#3 'romotion strategy

9romotion is to inform5 $on!in$e and influen$e the $ustomer/s de$ision pro$ess

A8ransiska5 et al-5 :7):- It plays an important role in introdu$ing a produ$t or ser!i$e

espe$ially a ne1 produ$t- 0d!ertising5 promotion5 sales pu#li$ity5 personal selling and

pu#li$ relations A9R are $omponents that 1ould help to $ommuni$ate and $hannel

information of produ$ts and ser!i$es to $ustomers A"ore F Crou$h5 :77


35/87

promotional strategy has a great influen$e on the #uying #eha!iours of the $ustomers-

He had o#ser!ed the num#er of pur$hases made for a produ$t o!er a *71eek period-

Neslin noti$ed that more produ$ts 1ere pur$hased during the promotional period

$ompared to the nonpromotional period- His resear$h sho1ed that there 1as an in$rease

#y 67 in sales !ia promotional strategy- Thus5 it is $lear that promotional strategy helps

to attra$t $onsumers and indire$tly in$reases the sales-

2#2#3#( 'roduct strategy

0 produ$t is the #asis of marketing strategy A'an$aster F Reynolds5 :77:- (ithout a

produ$t5 an organi2ation need not ha!e a marketing strategy- 0n organi2ation needs to

ha!e a produ$t in order to pro$eed 1ith pri$e and promotion strategy- "onelly A:7):

defined a produ$t as a physi$al item that meets the needs of a parti$ular type of $ustomer

in terms of 3uality5 appearan$e5 image5 $on!enien$e and !ariety-

The introdu$tion of ne1 produ$ts is one of the elements of produ$t strategy- Ne1

produ$ts are the key to the su$$ess of an organi2ation as it helps to attra$t $ustomers and

thus in$reases the sales- Cooper F Kleins$hmidt A:7)) had $arried out a resear$h to

e!aluate the relationship #et1een the introdu$tion of ne1 produ$ts and the su$$ess of an

organi2ation- The resear$h sho1ed that +7 of the produ$ts 1hi$h are on sale in the

nited States no1 are produ$ts 1hi$h are not a!aila#le 6 years ago- The ma.ority of the

organi2ations are dependent on the ne1 produ$ts for their sales- 0$$ording to Cooper F

Kleins$hmidt the introdu$tion of ne1 produ$ts does not ne$essarily su$$eed- 0 total of


36/87

2#3 &e+iew of key studies

No- Issues studied Resear$h methods "etails of the studies

) Consumer Choi$e

Criteria in Retail

Bank Sele$tion5

;artensonA),> S1edish #ank

$ustomers and 6<

#ank #ran$h

managers

8a$tors 1hi$h influen$e the

$onsumers/ $hoi$e $riteria in retail

#ank sele$tion are a!aila#ility of

loans5 #ank lo$ation5 influen$e of

parents/ $hoi$es and payment of

salary !ia a $ertain #ank-

: 8a$tors affe$ting

the $ustomers/

de$isions to sele$t

a #ank in Hong

Kong5 Kaynak F

Ku$ukemiroglu5

A),,:

4ualitati!e method

This resear$h 1as

$ondu$ted among )7*

Hong Kong

$ustomers from #oth

the domesti$ and

foreign #anks

Strategi$ lo$ation5 parking $lose to

a #ank and the a!aila#ility of a

1ide range of loans and mortgages

1ere the main fa$tors affe$ting the

$ustomers/ de$isions to sele$t a

#ank-

< 8a$tors affe$ting

the $ustomers/

de$isions to sele$t

a #ank in S05

Kha2eh F "e$ker

A),,:

4ualitati!e method

This resear$h 1as

$arried out among

:7, uni!ersity

students in

;aryland5S0-

The main fa$tors affe$ting the

$ustomers/ de$isions to sele$t a

#ank are the #ank/s reputation5

interest rates on loans5 3ui$k loan

appro!al and $ustomer ser!i$es

+ 8a$tors affe$ting

the $ustomers/

de$isions to sele$t

a #ank in

S1eden5

4ualitati!e method

This resear$h 1as

$ondu$ted among 67

#ank $ustomers in

S1eden

9ri$e5 ad!ertising and $on!enien$e

of lo$ation had minor roles on #ank

sele$tion- There is no leading #ank

in all finan$ial areas- 8un$tional

3uality plays a more essential

22


37/87

ineldin A),>

4uantitati!e method

The study 1as

$ondu$ted among :67

$ustomers of a #ank

in Sa#ah

The $ustomers sele$t the #ank for

mortgage loan purpose #ased on

three main reasons- They are

$ustomer ser!i$es5 elements of

Shariah and Islami$ prin$iples and

#ased on pri$ing 1hi$h is interest

rate of the loan

23


38/87

> To identify the

#ank $hoi$e

$riteria and the

fa$tors that affe$t

$ustomers/ $hoi$e

in sele$ting #ank

for mortgage loan

in 0thens

'ymperopoulos

A),,)

4uantitati!e method

This resear$h 1as

$ondu$ted among

)7,: #ank $ustomers

in 0thens

Bank ser!i$e 3uality5 produ$t

attri#utes5 $ommuni$ation and

a$$ess 1ere identified as the main

$hoi$e $riteria that affe$t

$onsumer/s #ank $hoi$e for

personal loan-

, The fa$tors that

affe$t $ustomers/

de$ision for

taking out #ank

loans in Gree$e

8rangos A:7):

4uantitati!e method

This resear$h 1as

$arried out among

:?? #ank $ustomers

in Gree$e

Customer ser!i$e5 shop design5

interest rates and personal marital

status are the main fa$tors that

influen$e the $ustomers/ de$ision

for taking out #ank loans-

)7 The fa$tors that

affe$t $ustomers/

de$ision for

taking out

)0slah 9ersonal

8inan$ingI

Nurfahana A:7))

4uantitati!e method

The resear$h 1as

$arried out among *7

tea$hers of a primary

s$hool in Kelantan

The three main marketing

strategies that are employed #y the

Bank Rakyat Gua ;usang to

attra$t the tea$hers to o#tain

)0slah 9ersonal 8inan$ingI loan

are promotion strategy5 pri$e

strategy and produ$t strategy-

))- 8a$tors that

influen$e the

feasi#ility of a

lo$ation

(eon et al-

A:7)7

GIS analysis The important fa$tors that

influen$e the feasi#ility of a

lo$ation are #ran$h fun$tion5

$ompetition5 population5 in$ome5

future de!elopment potential and

land !alue-

24


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): The influen$e of

pla$e strategy and

$ustomer

attra$tion

(eon et al-

A:7)7

4uantitati!e method

This resear$h 1as

$arried out among

)+> #ank $ustomers

in Korea-

0 strategi$ lo$ation of an

organi2ation is essential to

ma=imi2e profit- The important

fa$tors that influen$e the feasi#ility

of a lo$ation are #ran$h fun$tion5

$ompetition5 population5 in$ome5

future de!elopment potential and

land !alue-

)< The relationships

of $ustomer

satisfa$tion5

$ustomer

loyalty5 and

profita#ility

Hallo1ell A:7))

4ualitati!e method

0 total of )77

$ustomers 1ho

!isited the #ank 1ere

re$ruited- They 1ere

gi!en 3uestionnaires

and short inter!ie1s-

The pri$ing strategy redu$es

re!enue #ut $an $ontri#ute to

$ustomer loyalty- 9ri$e remains an

important fa$tor for the $ustomers

1hen it $omes to making a $hoi$e

for #ank-

)+ To identify the

relationship

#et1een

promotional

strategy and

the

$onsumers/

#uying

#eha!iour5

0l!are2 F

Casielles A:776

4ualitati!e method

The resear$h 1as

$arried out randomly

among )77

$onsumers in

O!iedo5Spain-

9romotion is an important fa$tor

1hi$h the $onsumers take into

$onsiderations 1hen pur$hasing a

produ$t-

25


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)6 The influen$e of

promotional

strategy on

sales5

Neslin A:77:

The resear$h 1as

$arried out in a

Ket$hup $ompany-

Neslin A:77:

o#ser!ed the sales for

*7 1eeks-

He found that there is $onsistently

more pur$hase of the produ$t

during promotional period

$ompared to nonpromotional

period- There 1as an in$rease #y

67 in sales !ia promotional

strategy-

)* To evaluate the

relationshi

p between

introductio

n of new

products

and the

success of

an

organizatio

n.

Cooper F

Kleins$hmidt

A:7))

0rti$les and

ne1spapers-

The fa$tors that influen$e the

su$$ess of produ$t strategy are

re$ognition of a te$hni$al

opportunity5 profi$ient

management5 market need

re$ognition5 suffi$ient de!elopment

resour$es5 1ellmanaged !enture

de$isions as 1ell as a te$hni$al

entrepreneur-

)? To evaluate the

relationshi

p between

introductio

n of new

products

and the

success of

an

Compared and

$ontrasted +< pairs of

ne1 produ$ts 1hi$h

$onsists of a mi=ture

of su$$essful and

unsu$$essful ne1

produ$ts-

In order to ha!e a su$$essful

produ$t strategy5 it is ne$essary to

understand the users/ needs5 pay

attention to marketing and laun$h

pu#li$ity5 employ outside

te$hnology and e=ternal s$ientifi$

$ommuni$ation and the managers

ought to #e responsi#le for their

.o#s-

26


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organizatio

n.

Cooper F

Kleinschmi

dt (2011)

Ta#le :-) Re!ie1 of key studies

2#(


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marketing strategies namely pla$e strategy5 promotion strategy5 pri$e strategy and

produ$t strategy in attra$ting and retaining their $ustomers-

Chapter 3! &esearch 7ethodology

3#0 "ntroduction

This $hapter pro!ides details $on$erning resear$h methodology used to a$hie!e resear$h

o#.e$ti!es- This $hapter in$ludes a dis$ussion on the type of resear$h5 resear$h approa$h5

resear$h population and sampling5 data $olle$tion method5 relia#ility of the resear$h

instrument5 !alidity of the resear$h instrument and data analysis methods- 0t the end of

the $hapter5 the o!erall summary of this $hapter is pro!ided-

3#1 Type of research

0$$ording to Gi!en A:77>5 e=planatory resear$h refers to a type of resear$h that

intends to e=plain rather than des$ri#e a phenomenon like des$ripti!e resear$h- Gi!en

stated that e=planatory resear$h is 3uantitati!e in nature- E=planatory resear$h tests prior

hypotheses #y determining the relationships #et1een !aria#les for instan$e5 the

relationships #et1een independent and dependent !aria#les- The data $olle$ted from

e=planatory resear$h $an #e analysed statisti$ally- 0$$ording to @ohnson F ChristensenA:7):5 the main o#.e$ti!e of des$ripti!e resear$h is to pro!ide an a$$urate des$ription

regarding a phenomenon or e!ent- It does not fo$us on the $auseandeffe$t relationships

#ut it fo$uses on des$ri#ing a situation- It ans1ered the 3uestion L/1hy//5 L/1here//5

L/1hen//5 L/1hat// and L/ho1//-

28


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This resear$h aims to identify the fa$tors that influen$e marketing strategies of Bank

Rakyat Klang in promoting personal loan- "es$ripti!e resear$h plays a role in des$ri#ing

these fa$tors- In addition5 this resear$h also aims to identify the relationship #et1een thefa$tors that influen$e marketing strategies of Bank Rakyat Klang in promoting personal

loans and the $ustomers/ $hoi$e for a #ank in o#taining personal loans- 0s su$h5 the

1riter has $hosen e=planatory resear$h to help him to identify the relationships #et1een

the independent and dependent !aria#les- The independent !aria#les are lo$ation of the

#ank5 the interest rate of the personal loan5 the terms and $onditions of the personal loan5

influen$es from others5 te$hnology5 repayment period and $ustomer loyalty- On the other

hand5 the dependent !aria#le is the $ustomer/s $hoi$e on a #ank in o#taining personal

loan- Thus5 #oth des$ripti!e and e=planatory resear$hes are employed in this $urrent

resear$h-

3#2 &esearch approach

There are three types of resear$h approa$hes- They are 3ualitati!e resear$h5 3uantitati!e

resear$h and triangulation A8li$k5 :77,-

In this resear$h5 the 1riter intends to study the fa$tors that influen$e marketing strategies

of Bank Rakyat Klang in promoting personal loans- Hen$e5 the 1riter has $hosen

3uantitati!e resear$h in the pro$ess of $arrying out this resear$h- The 1riter has $hosen

3uestionnaire as the type of 3uantitati!e resear$h method- 0$$ording to ;ai.s A:7))5

3uantitati!e resear$h is a type of resear$h that e=plains a phenomenon #y $olle$ting

numeri$al data that are analysed #y using mathemati$al methods- On the other hand5

Nykiel A:77? stated that 3uantitati!e resear$h intends to esta#lish fa$ts5 make

assumptions and test hypotheses that ha!e #een stated- It is the most useful resear$h

method in $olle$ting measura#le information-

The 1riter has $hosen 3uantitati!e resear$h as it is a statisti$ally relia#le method

ANykiel5 :77?- In this resear$h5 the $olle$ted data is analysed using S9SS :)-7 and

29


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presented in the form of ta#les- Statisti$ally presented data $an help to eliminate #ias and

thus produ$ing a more a$$urate results $ompared to the data $olle$ted through

3ualitati!e resear$h-

8urthermore5 3uantitati!e resear$h ena#les a large amount of data from a large num#ersof parti$ipants to #e analysed and summarised- It is easier to analysed statisti$al data in

$omparison to the data $olle$ted through 3ualitati!e resear$h ABellini F Rumrill5 :77,-

The 1riter $an $ompare the statisti$al data 1ith the past resear$hes as 1ell-

Besides5 3uantitati!e resear$h is less e=pensi!e and re3uires lesser time in $omparison to

3ualitati!e resear$h 1hi$h in!ol!es inter!ie1s and group dis$ussions ABarnes5 et al-5

:7)


45/87

The resear$h population in this study 1ere $ustomers of 1ho had taken personal loans

from #anks- The resear$h sample of this study 1ere 67 $ustomers 1ho had

o#tained personal loan from Bank Rakyat Klang- The parti$ipants for the $urrent

resear$h must #e #et1een )> and *6 years old as only this age group 1as eligi#le

to o#tain personal loans from Bank Rakyat Klang Awww#bankrakyat#com#my:.

3#3#2 -ampling

The sampling strategy sele$ted for this study is stratified and random sampling- 8irst of

all5 the 1riter approa$hed the #ank $ustomers 1ho 1ere 1aiting to #e attended

#y the tellers and e=plained to them that he 1ished to $ondu$t a resear$h a#out

their $hoi$e of #ank to o#tain a personal loan- Ho1e!er5 only $hose 67

$ustomers 1ho had taken personal loans from Bank Rakyat Klang 1ere $hosen

as samples- The 67 parti$ipants 1ere also $hosen a$$ording to ra$e as in ta#le

*6 years old

No of ;alay parti$ipants


46/87

3#( 6ata Collection

0$$ording to Sol#akk5 et al- A:77,5 data refers to the information that is $olle$ted

during the resear$h- In this resear$h5 the 1riter used 3uestionnaire to o#tain information

asso$iated 1ith the o#.e$ti!es and aims of the resear$h- The distri#ution pro$ess did not

in!ol!e any online appli$ation- The 1riter distri#uted the 3uestionnaire in paper form to

67 $ustomers of Bank Rakyat Klang- Ea$h of the parti$ipant 1as gi!en a $onsent form

and 3uestionnaire- The parti$ipants $ould $hoose not to parti$ipate in the resear$h if they

1ere not $omforta#le 1ith it- The 1riter handed out the 3uestionnaire on the spe$ifi$

days 1hen he 1as at Bank Rakyat Klang- (hen 67 $ustomers had $ompleted the

3uestionnaire5 the data o#tained from the 3uestionnaire 1as analysed #y using S9SS

:)-7-

3#(#1 6ata collection instrument

0$$ording to Blankenship A:77,5 data $olle$tion instruments are the tools for e=ample

3uestionnaires that are used in a resear$h study- Hernon F (hitman A:77) defined

3uestionnaire as a data $olle$tion tool that designs the same set of 3uestions for the

parti$ipants- The 1riter $hose 3uestionnaire as the data $olle$tion instrument in this

resear$h to identify the fa$tors that influen$ed the marketing strategies of Bank Rakyat

Klang in promoting personal loans-

The 1riter $hose 3uestionnaire for the follo1ing reasons%

a- it 1as $heaper in $omparison to inter!ie1s and group dis$ussions ABarnes5 et al-5

:7)


47/87

data $ould #e presented statisti$ally in $omparison to inter!ie1s and group

dis$ussions A@a$kson5 :7):

d- the identities of the parti$ipants $ould remain anonymous and $ontri#uted to

the a$$ura$y of the results AStangor5 :7))-

3#(#2 6e+elopment of the uestionnaire

The 3uestions in the 3uestionnaire 1ere de!eloped #ased on the literature re!ie1 in

Chapter :- :< 3uestions in the 3uestionnaire 1ere taken from a resear$h entitled L8a$tors

affe$ting $ustomers/ de$ision for taking out #ank loans% 0 $ase of Greek $ustomers//- 0ll

the 3uestions had #een tested among :?? #ank $ustomers in Gree$e A8rangos5 :7):-

The 1riter de!eloped the 3uestionnaire #ased on > fa$tors identified in the a#o!e

mentioned resear$h- They are lo$ation of the #ank5 $ustomer ser!i$e5 interest rate5 terms

and $onditions set #y the #ank5 ad!ertisement5 appli$ation of te$hnology5 longer

repayment period and $ustomer loyalty- The 3uestionnaire 1as designed 1ith the aim of

identifying the relationships #et1een these independent !aria#le 1ith the $ustomers/$hoi$e of #ank in o#taining personal loans-

0nother > 3uestions in the 3uestionnaire 1hi$h measured the dependent !aria#le

A$ustomers/ $hoi$e of #ank to o#tain personal loan are adapted #y the 1riter from the

a#o!e mentioned resear$h-

3#(#3 -tructure of the uestionnaire

The 3uestionnaire in this $urrent resear$h $onsisted of : parts as sho1n in 0ppendi= :-

9art ) 1as to eli$it #a$kground information of the respondents- This se$tion 1ould help

the 1riter to identify the parti$ipants and pla$e the respondents in groups- The 3uestions

33


48/87

in this se$tion 1ere regarding the parti$ipants/ age5 gender5 edu$ation le!el5 $areer and

reasons for o#taining personal loan from Bank Rrakyat Klang-

9art : of the 3uestionnaire $ontained hypotheses that 1ere stated in Chapter )- :<3uestions 1ere used to measure independent !aria#le lo$ation of the #ank5 $ustomer

ser!i$e5 interest rate5 terms and $onditions5 ad!ertisement5 appli$ation of te$hnology and

longer repayment period- 0nother > 3uestions 1ere used to measure dependent !aria#le

1hi$h 1as $ustomers/ $hoi$e of #ank to o#tain personal loan-

0ll the 3uestions 1ere a$$essed on a 6point 'ikerttype s$ales AStangor5 :7)) 1hi$h

ranged from L/strongly agreeM to strongly disagreeM - This 1as done in order to o#tain a

#etter ans1er from the respondents- The parti$ipants 1ere re3uired to rate ea$h of the

3uestion a$$ording to 'ikerttype s$ales as sho1n in ta#le


49/87

$ustomers//- :< 3uestions in the 3uestionnaire for the $urrent resear$h 1ere o#tained

from past resear$h- The other > 3uestions in the 3uestionnaire has #een adapted #y the

1riter from the said resear$h- Therefore5 the resear$h instrument in this resear$h is

relia#le-

8urthermore5 a pilot test 1as $arried out among )7 $ustomers at Bank Rakyat Klang

#efore the a$tual resear$h 1as $arried out- The results o#tained from the pilot test 1as

tested #y using Cron#a$h/s 0lpha- The results of the pilot test and a$tual test are as

sho1n in the ta#le #elo1%

=ariables >umber of

"tems

Cronbach;s

Alpha

'ilot test

Cronbach;s

Alpha

Actual test

'o$ation of the Bank 2 .89 .86

Customer Ser!i$e 5 .7 .68

Interest Rate 2 .7 .82

Terms and Conditions 5 . 86 .75

0d!ertisement 3 .71 .77

0ppli$ation of Te$hnology 2 .72 .86

'onger Repayment 9eriod 2 .78 .74

Customer 'oyalty- 2 .8 .81

Customers/ $hoi$e of a #ank

to o#tain personal loans

8 .8 .97

35


50/87

Ta#le to -,?5 1hi$h sho1sa$$epta#le to high relia#ility measurement-

3#(#, =alidity of the research instrument

0$$ording to Bell A:7765 !alidity refers to the degree in 1hi$h a resear$h instrument

measures 1hat it is supposed to measure- The parti$ipants in this resear$h 1ere sele$ted

#ased on stratified random sampling method- Thus5 this resear$h is !alid as all the

$ustomers 1ho had o#tained loan from Bank rakyat Klang had e3ual $han$e to take partin the resear$h-

3#, 6ata Analysis

The data $olle$ted through 3uantitati!e resear$h 1as analysed #y using S9SS :)-7-

0$$ording to ;alhotra A:77+ des$ripti!e analysis using fre3uen$y distri#ution5 mean

and standard de!iation 1ere used to e=plain the fre3uen$y of the respondents/ profile

and !aria#les in the 3uestionnaire- Inferential analysis using 9earson $orrelation

$oeffi$ient test 1as used to test the hypotheses AGra!etter F (allnau5 :77+ that 1ere

de!eloped for this study in $hapter )- The relationships #et1een the lo$ation of the #ank5

$ustomer ser!i$e5 interest rate5 terms and $onditions set #y the #ank5 ad!ertisement5

appli$ation of te$hnology5 longer repayment period5 $ustomer loyalty and the $ustomers/

$hoi$e of #ank to o#tain personal loans 1ere identified #ased on the statisti$al results

36


51/87

o#tained from S9SS :)-7- The effe$ti!eness of the $urrent marketing strategies of Bank

Rakyat Klang 1as e!aluated as 1ell through the statisti$al data-

3#/ Conclusion of the chapter

It $an #e $on$luded that the resear$h methodology $reated for this resear$h study $an

ena#le the 1riter to $ondu$t the study #y using the most appropriate tools- sing these

effe$ti!e tools sele$ted in this $hapter5 the 1riter $an o#tain the results and findings of

the study that are presented in the ne=t $hapter-

Chapter (! 6ata 'resentation? Analysis and @indings

(#1 "ntroduction

In this $hapter the findings and results of the study 1hi$h $onsist of a des$ripti!e

analyses and inferential analysis 1ill #e dis$ussed- The results presented in this $hapter

1ere analysed using S9SS :)-7- The main aim of this $hapter is to pro!ide e!iden$es

regarding the a$hie!ement of the o#.e$ti!es of the study-

"uring the resear$h5 67 3uestionnaires 1ere distri#uted to the $ustomers 1ho had

o#tained loan from Bank Rakyat Klang and all the 3uestionnaires 1ere $olle$ted- The

total num#ers of distri#uted and $olle$ted 3uestionnaires are sho1n in Ta#le +-)-

>ame of $ank >umber of

uestionnaires

distributed

>umber of

uestionnaires

collected

Bank Rakyat Klang 67 67

Ta#le +-)% Total num#ers of 3uestionnaires distri#uted and $olle$ted

(#2 6escripti+e analyses

37


52/87

(#2#1 Characteristics of the respondents

The gender5 age5 edu$ation le!el and $areer of the parti$ipants are sho1n in the

follo1ing ta#les%

"emographi$

8a$tors

Categories 8re3uen$y 9er$entages


53/87

Go!ernment Ser!ants )7 :7-7

Total 67 )77-7

Ta#le +-:% Chara$teristi$ of respondents

Ta#le +-: sho1s that there are


54/87

(#2#2 @reuency analysis of the sample

0$$ording to Baker A:77+5 fre3uen$y is the num#er of times that a s$ore appears- The

respondents rated ea$h 3uestion in the 3uestionnaire a$$ording to 6point 'ikerttype

s$ale- In this resear$h5 fre3uen$y refers to the num#er of times the respondents rate )5 :5 stated that mean is the arithmeti$ a!erage of a set of

!alues- The fre3uen$y5 mean and standard de!iation for ea$h item is sho1n in the

follo1ing ta#les%

(#2#2#1 Location of the bank

'o$ation of the #ank is measured #y t1o items- They are as follo1s%

Location of the bank

"tems 'ercentage of agreement 7ean -td#

6e+iation1 2 3 ( ,

Con!enient lo$ation

attra$ted you to

$hoose our #ank for

personal loan-

2.0 2.0 6.0 22.0 68.0 +-6: -,)7

ou o#tained the

personal loan as the

#ank/s 0T;

ma$hine is a!aila#le

e!ery1here-

2.0 4.0 10.0 30.0 54.0 +->*

Ta#le +-+% 8re3uen$y5 mean and standard de!iation of respondent

for !aria#le )#ank lo$ation

Ta#le +-+ sho1s that ma.ority of the respondents ha!e $hosen Bank Rakyat Klang

#e$ause of its $on!enient lo$ation- *> of the $ustomers strongly agree that $on!enient

40


55/87

lo$ation plays an important role in attra$ting them to o#tain personal loan from Bank

Rakyat Klang- The mean for this item is +-6:- 'ike1ise5 6+ of the respondents strongly

agree that they o#tained the personal loan from Bank Rakyat Klang as the #ank/s 0T;

ma$hine is a!aila#le e!ery1here- The mean for this item is +-


56/87

0$$ording to Ta#le +-6 ma.ority of the $ustomers A?: agree that the #ank staffs are

professional and kno1ledgea#le- On the other hand5 ?: respondents agree that they

1ere $ourteously greeted #y the #ank staffs during their !isit to Bank Rakyat Klang-

Ta#le +-6 also sho1s that 6+ of the respondents agree that their re3uests or 3uestions

1ere promptly ans1ered #y the #ank staffs- In addition5 it 1as found that *> of the

respondents agree that the #ank staffs thoroughly e=plained the loan appli$ation pro$ess

1hen they applied for personal loan and ?> respondents agree that they 1ere kept

informed throughout the loan appli$ation pro$ess- The mean for these 6 items fall in

#et1een


57/87

Ta#le +-* sho1s that the mean for this item is +-+:- 6+ of the respondents strongly

agree that $ompetiti!e interest rates for loan attra$ted them to $hoose Bank Rakyat

Klang- In addition the a#o!e ta#le sho1s that the ma.ority of the $ustomers A*+

strongly agree that they o#tained personal loan from Bank Rakyat Klang as they are

attra$ted #y the pri!ileged interest terms offered in $omparison 1ith other #anks- The

mean for this item is +-67- This is similar to the findings #y 8rangos A:7):5 Kha2eh F

"e$ker A),,: and 0min A:77> 1here the interest rate is one of the fa$tors that affe$t

the $ustomers/ $hoi$e for the #ank-

(#2#2#( Terms and conditions

Terms and $onditions is measured #y 6 items- They are as follo1s%

"tems 'ercentage of agreement 7ean -td

6e+iation1 2 3 ( ,

ou are satisfied 1ith

the loan amount

offered-

0 8.0 10.0 52.0 30.0 4.04 -,::

ou find that the loan

appli$ation a simple

pro$edure and in!ol!es'ess #ureau$rati$

formalities-

0 8.0 8.0 20.0 64.0 +-+7 )-76,

ou are satisfied 1iththe terms and

$onditions regarding

deferral ofinstallments-

0 12 6.0 22.0 60.0 +-6+ -,


58/87

0$$ording to Ta#le +-?5 6: of the $ustomers agree that they are satisfied 1ith the loan

amount offered #y Bank Rakyat Klang- The ta#le also sho1s that *+ of the

respondents strongly agree that the loan appli$ation from Bank Rakyat Klang is a simple

pro$edure and in!ol!es less #ureau$rati$ formalities- In addition5 *7 of the $ustomers

strongly agree that they are satisfied 1ith the terms and $onditions regarding deferral of

installments 1hi$h is imposed #y Bank Rakyat Klang- Besides5 Ta#le +-? sho1s that

slightly more than half of the $ustomers A6+ agree that they are satisfied 1ith the

terms and $onditions set for guarantors- *> of the $ustomers agree they 1ere kept

informed throughout the appli$ation pro$ess- The mean for these 6 items fall in #et1een

+-7+ and +-6+ 1hi$h is agree a$$ording to the 6point 'ikert s$ale- 8rangos A:7):5

Kha2eh F "e$ker A),,: and Hallo1ell A:7)) had done resear$h on influen$e of term

and $ondition set #y #ank #ut their findings found this !aria#le insignifi$ant-

(#2#2#, Ad+ertisement

0d!ertisement is measured #y < items- They are as follo1s%


6e+iation1 2 3 ( ,

ou o#tained the personal loan from us

due to re$ommendation

from others-

0 0 30.0 50.0 20.0 3.90 -?*<

ou kno1 a#out our

personal loan from the

internet-

0 0 44.0 52.0 4.0


59/87

Ta#le +-> sho1s 67 of the $ustomers agree that they o#tained personal loan from Bank

Rakyat Klang due to re$ommendation from others- Besides5 6: of the respondents

agree that they kno1 a#out personal loan offered #y Bank Rakyat Klang through the

internet- In addition5 the a#o!e ta#le sho1s that half of the $ustomers agree that they

o#tained information regarding personal loan offered #y Bank Rakyat Klang through the

flyers or #ro$hures- The mean for these < items fall in #et1een s$ale < and +5 1hi$h is in

#et1een neutral and agree a$$ording to the 6point 'ikert s$ale- Nurfahana A:7))5

0l!are2 F Casielles A:776 and Neslin A:77: found that ad!ertisement 1hi$h is one of

the promotional strategies5 $an help to attra$t $ustomers to o#tain a personal loan from a

#ank- Ho1e!er5 the $urrent resear$h re!ealed that ad!ertisement does not influen$e the

$ustomers/ de$ision for a #ank in o#taining a personal loan-

(#2#2#/ Application of technology

0ppli$ation of te$hnology is measured #y : items- They are as follo1s%


6e+iation1 2 3 ( ,

ou are satisfied 1ith

the short 1aiting timedue to the

employment of highte$hnology-

0 4.0 16.0 28.0 52.0 +-:> -?>)

The #ank pro$essesyour personal loan

appli$ation in a short

time due to its highte$hnology-

0 4.0 16.0 24.0 56.0 +-)+

Ta#le +-,% 8re3uen$y5 mean and standard de!iation of respondent

for !aria#le * D0ppli$ation of te$hnology

45


60/87

Ta#le +-, sho1s more than half A6: of the $ustomers strongly agree that they are

satisfied 1ith the short 1aiting period due to the employment of high te$hnology #y

Bank Rakyat Klang- The mean for this item is +-:>- Besides5 Ta#le +-, also sho1s that

the ma.ority of the $ustomers A6* strongly agree that the #ank pro$esses their personal

loan appli$ations in a short time due to the use of high te$hnology- The mean for this

item is +-66

ou $an e=tend loan

repayment period-

0 4.0 8.0 58.0 30.0 +-)+ -?:,

Ta#le +-)7% 8re3uen$y5 mean and standard de!iation of respondent

for !aria#le ? D 'onger repayment period

Ta#le +-)7 sho1s that 6+ of the respondents strongly agree that they are attra$ted to

the personal loan offered #y Bank Rakyat Klang due to its lo1 installments and long

repayment period- The mean for this !aria#le is +-- Besides5 Ta#le +-)7 also sho1s the

ma.ority of the $ustomers A6> agree that they $hose to o#tain personal loan from

Bank Rakyat Klang #e$ause they are a#le to e=tend their loan repayment period- The

mean is +-)+- 0lthough 8rangos A:7): had done resear$h on this !aria#le5 he did not

find it important in influen$ing $ustomers/ $hoi$e of a #ank in o#taining personal loan-

46


61/87

(#2#2# Customer Loyalty

Customer loyalty is measured #y : items- They are as follo1s%


6e+iation1 2 3 ( ,

ou 1ill re$ommend

your friend or other

family mem#ers too#tain personal loan

from this #ank-

7 +-7 )*-7 :>-7 6:-7 +-:> ->?7

ou are already a$ustomer of this

#ankPits #ran$hes

#efore applying forloan

+-7 >-7 *-7 ::-7 *7-7 +-:* )-) D $ustomer loyalty

Ta#le +-)) sho1s that 6: of the $ustomers strongly agree that they 1ill re$ommend

their friends or other family mem#ers to o#tain personal loan from Bank Rakyat Klang-

The mean for this item is +-:>- Besides5 Ta#le +-)) also sho1s that *7 $ustomers

strongly agree that they 1ere already the $ustomers of Bank Rakyat Klang #efore they

applied for personal loan from the #ank- The mean for this item is +-:*- Based on the

$urrent findings5 it $an #e $on$luded that $ustomer loyalty influen$es the $ustomers to

o#tain a personal loan from Bank Rakyat Klang- Ho1e!er5

Hallo1ell A:7)) and 8rangos A:7): did not find this !aria#le important-

(#3 "nferential analysis

47


62/87

Correlation test is $arried out to identify 1hether or not there is signifi$ant relationship

#et1een independent and dependent !aria#les- There are t1o types of $orrelation test-

They are Spearman Rho and 9earson A(alker F ;addan5 :7)- 9earson produ$tmoment $orrelation $oeffi$ient is $hosen to identify the

relationship #et1een independent and dependent !aria#les in this resear$h ABu$hanan5

:77>- 9earson $orrelation $oeffi$ient is $hosen as the data is normally distri#uted-

The data in this resear$h meet all the re3uirements for 9earson $orrelation $oeffi$ient-

The re3uirements are as follo1s%

a- The s$ale of measurement is in the form of ratio or inter!al

#- &aria#les are normally distri#uted

$- 'inear asso$iation

d- No outliers in the data A@a$kson5 :7):

The $orrelation !alue r indi$ates positi!e or negati!e relationship #et1een the !aria#les-

In a positi!e relationship5 if the !alue of a !aria#le in$reases5 the !alue of the $orrelated

!aria#le in$reases as 1ell and !i$e !ersa- In a negati!e relationship5 if the !alue of a

!aaria#le in$reases5 the !alue of the other !aria#le de$reases and !i$e !ersa-

The interpretation of $orrelation !alue r is #ased on Guilford/s rule of thum# AKelly5

:77, as sho1n #elo1%

7-,7 to ) &ery high negati!e relationship

7-?7 to 7-,7 high negati!e relationship

7-+7 to 7-?7 moderate negati!e relationship

7-:7 to 7-+7 1eak negati!e relationship

48


63/87

7-:7 to 7-:7 no or negligi#le relationship

7-+7 to 7-?7 1eak positi!e relationship

7-+7 to 7-?7 moderate positi!e relationship

7-?7 to 7-,7 high positi!e relationship

7-,7 to ) !ery high positi!e relationship

Ta#le +-): Interpretation of $orrelation !alue r

(#3#1 5ypotheses testing

5ypothesis Pearson

orrelation

-ig#

) Relationship #et1een #ank lo$ation and the $ustomers/$hoi$e of #ank in o#taining personal loans

->)+ -77+

: Relationship #et1een #ank $ustomer ser!i$e and the

$ustomers/ $hoi$e of #ank in o#taining personal loans

-7: ->>,

< Relationship #et1een interest rate the $ustomers/ $hoi$eof #ank in o#taining personal loans

-,7) -7)7

+ Relationship #et1een terms and $onditions set #y the

#ank and the $ustomers/ $hoi$e of #ank in o#taining

personal loans

-> Relationship #et1een $ustomer loyalty and their $hoi$e

of #ank in o#taining personal loans-

-,), -77)

Ta#le +-)


64/87

51! There is a significant relationship between location of the bank and the

customers; choice of bank in obtaining personal loans#

Based on the findings in Ta#le +-))+ and pQ7-77+7-76- The r !alue indi$ates high positi!e

relationship and it is statisti$ally signifi$ant as the p is 7-76- Kaynak F Ku$ukemiroglu

A),,:5 ;artenson A),>,7-76- The r !alue indi$ates no or negligi#le

relationship and it is statisti$ally insignifi$ant as the p is 7-76- Thus5 H7: is a$$epted

and H: is re.e$ted- Ho1e!er5 this finding differs from the findings #y 8rangos A:7):5

Kha2eh F "e$ker A),,: and 0min A:77> 1here $ustomer ser!i$e 1as found to ha!e

signifi$ant and had positi!e relationship 1ith the $ustomers/ $hoi$e of #ank- The $urrent

findings suggest that the relationship #et1een $ustomer ser!i$e and the $ustomer/s

$hoi$e of #ank in o#taining personal loan is negligi#le and insignifi$ant-

50


65/87

(#3#1#3 5ypothesis 3

503! There is no significant relationship between interest rate and the customers;

choice of bank in obtaining personal loans#

53! There is a significant relationship between interest rate and the customers;

choice of bank in obtaining personal loans#

Based on the findings in Ta#le +-)


66/87

Hallo1ell A:7)) did not find any signifi$ant relationship #et1een the terms and

$onditions and the $ustomers/ $hoi$e of #ank in o#taining a personal loan-

(#3#1#, 5ypothesis ,

50,! There is no significant relationship between ad+ertisement and the customers;

choice of bank in obtaining personal loan#

5, B There is a significant relationship between ad+ertisement and the customers;

choice of bank in obtaining personal loan#

Based on the findings in Ta#le +-)


67/87

(#3#1#/ 5ypothesis /

50/! There is no significant relationship between application of technology and the

customers; choice of bank in obtaining personal loan#

5/! There is a significant relationship between application of technology and the


Based on the findings in Ta#le +-) and pQ7-77


68/87

(#3#1# 5ypothesis

50! There is no significant relationship between customer loyalty and the


5! There is ao significant relationship between customer loyalty and the


Based on the findings in Ta#le +-) is a$$epted- Ho1e!er past

resear$h done #y Hallo1ell A:7)) and 8rangos A:7): did not find any signifi$ant

relationship #et1een $ustomer loyalty and the $ustomers/ $hoi$e of #ank in o#taining a

personal loan-

(#( Conclusion of the chapter

Based on the $urrent findings lo$ation of the #ank5 interest rate5 terms and $onditions set

#y the #ank5 appli$ation of te$hnology and longer repayment period are found toinfluen$e the $ustomer/s $hoi$e of #ank in o#taining personal loan- Customer loyalty is

also a signifi$ant fa$tors a$$ording to $urrent findings 1hereas past resear$h #y

Hallo1ell A:7)) and 8rangos A:7): found it insignifi$ant- On the other hand5 $ustomer

ser!i$e and ad!ertisement do not influen$e the $ustomer/s $hoi$e of Bank Rakyat Klang

in o#taining a personal loan- These t1o findings differ from past resear$h 1here#y

8rangos A:7):5 Kha2eh F "e$ker A),,: and 0min A:77> found $ustomer ser!i$e an

important fa$tor that influen$e $ustomers/ $hoi$e- 0l!are2 F Casielles A:776 and

Neslin A:77: found that ad!ertisement important- 8urther dis$ussion a#out these issues

are dealth 1ith in $hapter 6-

54


69/87

Chapter ,! Conclusion and &ecommendations

,#1 "ntroduction

This $hapter 1ill $on$lude the findings in Chapter + and dis$uss 1hether the o#.e$ti!es

of the study ha!e #een a$hie!ed- The limitations of the study and re$ommendations for

further studies are also in$luded in this $hapter-

,#2 Conclusion of the study

This resear$h aims to identify the fa$tors that influen$e the marketing strategies of Bank

Rakyat Klang in promoting personal loan- The o#.e$ti!e of this resear$h is to identify

the fa$tors that influen$e the $ustomers/ $hoi$e of a #ank in o#taining a personal loan-

0nother o#.e$ti!e is to determine the relationships #et1een the fa$tors that influen$e the

$ustomers/ $hoi$e of a #ank and the marketing strategies of Bank Rakyat Klang in

promoting personal loans- The third o#.e$ti!e is to analy2e ho1 the $ustomers/ de$ision

making fa$tors $an #e used to impro!e the marketing strategies of Bank Rakyat Klang in

promoting personal loans-

4uantitati!e e=planatory and desripti!e resear$h design for data $olle$tion has #een used

in this resear$h to identify fa$tors 1hi$h influen$e the $ustomers/ $hoi$e of a #ank in

o#taining a personal loan- 0 3uantitati!e resear$h method in the form of a 3uestionnaire

has #een used for data $olle$tion- 8eed#a$k from 67 $ustomers of Bank Rakyat Klang

1ho ha!e o#tained a loan from that organi2ation ha!e #een analysed using S9SS :)-7-

The findings from the 3uestionnaires as stated in $hapter + re!ealed that the fa$tors that

influen$ed the $ustomers/ $hoi$e of #ank in o#taining personal loan from Bank Rakyat

Klang differ slightly from the fa$tors that 1ere identified in 'iterature Re!ie1 Chapter

:-

55


70/87

The three resear$h 3uestions that 1ere posed in Chapter One had #een ans1ered in

Chapter 8our- The three 3uestions are as follo1s%

,#2#1 &esearch uestion 1

hat are the factors that influence the customers; choice of a bank in obtaining a

personal loanD

Based on the findings in Chapter +5 lo$ation of the #ank5 interest rate of the loan5 terms

and $onditions of the loan5 appli$ation of te$hnology5 longer repayment period and

$ustomer loyalty influen$e the $ustomers/ de$ision in $hoosing a #ank for a personal

loan- These findings 1ere supported #y the past resear$hes and marketing strategies as

mentioned in $hapter +- Ho1e!er5 8rangos A:7):5 Kha2eh F "e$ker A),,: and 0min

A:77> found that $ustomer ser!i$e influen$ed the $ustomers/ $hoi$e of a #ank in

o#taining a personal loan- Ne!ertheless5 the $urrent findings sho1ed that $ustomer

ser!i$e does not influen$e the $ustomers/ de$ision in $hoosing a #ank for a personal

loan- 'ike1ise5 0l!are2 F Casielles A:776 and Neslin A:77: found that ad!ertisement5

1hi$h is one of the promotional strategies5 $an help to attra$t $ustomers to o#tain a

personal loan from a #ank #ut the $urrent findings sho1ed that ad!ertisement does not

influen$e the $ustomers/ $hoi$e of a #ank in o#taining a personal loan- 0t the same time5

#ased on the $urrent findings5 $ustomer loyalty is signifi$ant 1hereas past resear$h #yHallo1ell A:7)) and 8rangos A:7): found it insignifi$ant- Therefore5 further resear$h

has to #e done on ad!ertisement5 $ustomer ser!i$e and $ustomer loyalty to $ome to a

more $on$lusi!e findings-

,#2#2 &esearch uestion 2%

(hat is the relationship #et1een the fa$tors that influen$e the $ustomers/ $hoi$e of a

#ank and the marketing strategies of Bank Rakyat Klang in promoting personal loans

Based on the findings in $hapter +5 the follo1ing are the relationship #et1een the

fa$tors that influen$e the $ustomers/ $hoi$e of a #ank and the marketing strategies of

Bank Rakyat Klang in promoting personal loans

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,#2#2#1 Location of the bank

The findings of the resear$h sho1ed *> of the $ustomers strongly agree that they 1ere

influen$ed #y strategi$ lo$ation and another 6+ due to the a!aila#ility of its 0T;

ma$hines e!ery1here- Inferential statisti$ sho1ed a positi!e and signifi$ant relationship

#et1een the lo$ation of the #ank and the $ustomers/ $hoi$e for a #ank in o#taining a

personal loan- 9ast resear$h #y Kaynak F Ku$ukemiroglu A),,:5 ;artenson A),>


72/87

$urrent finding is supported #y Kha2eh F "e$ker A),,: 8rangos A:7): and 0min

A:77> 1ho stated that interest rate is one of the fa$tors that affe$t the $ustomers/ $hoi$e

for the #ank- Hen$e5 the marketing strategy employed #y Bank Rakyat Klang through

imposing lo1 interest rate had attra$ted $ustomers to o#tain personal loans from the

#ank-

,#2#2#( Terms and conditions

Based on the findings in Chapter +5 the mean for the 6 items tested for this !aria#le falls

#et1een +-7+ and +-6+- The inferential statisti$ sho1ed that there is a positi!e and

signifi$ant relationship #et1een terms and $onditions set #y the #ank and the $ustomer/s

$hoi$e of #ank in o#taining a personal loan- The $ustomers are satisfied 1ith the rules

and regulations regarding deferral of installments5 rules and regulations set for the

guarantors and 1ith the speed of loan appro!al- Thus5 it is $lear that the terms and

$onditions of the loan affe$t the $ustomers/ de$ision for a #ank in o#taining a personal

loan- Ho1e!er5 past resear$h #y 8rangos A:7):5 Kha2eh F "e$ker A),,: and

Hallo1ell A:7)) on the influen$e of term and $ondition set #y #anks found this !aria#le

insignifi$ant- Ne!ertheless5 terms and $onditions set for taking up a loan is part of pri$e

strategy and is !ital marketing strategy Ri2al F 8ran$is A:7)7J Henard F S2ymanski

A:77)- 0s su$h5 terms and $onditions play important roles in the marketing strategies of

Bank Rakyat Klang in promoting personal loan-

,#2#2#, Ad+ertisement

The mean for these < items tested for this !aria#le is #et1een


73/87

Nurfahana A:7)) had identified that promotional strategy helps to attra$t $ustomers to

o#tain a personal loan from a #ank- In addition5 0l!are2 F Casielles A:776 and Neslin

A:77: found that promotion is an important fa$tor 1hi$h the $onsumers take into

$onsiderations 1hen pur$hasing a produ$t- Neslin A:77: also found that there 1as an

in$rease #y 67 in sales !ia promotional strategy- 0d!ertisement is one of the

promotional strategies- 0$$ording to Oldroyd A:7): ad!ertisement is part of promotion

strategy 1hi$h is an important item in marketing mi= A+9s- Therefore5 further resear$h

need to #e done to find a $on$lusi!e ans1er fot this !aria#le in terms of the marketing

strategies of Bank Rakyat Klang-

,#2#2#/ Application of technology

Based on the findings in Chapter +5 it is kno1n that the ma.ority of the $ustomers

o#tained personal loan from Bank Rakyat Klang as they need not ha!e to 1ait for a long

time due to the ad!an$ement of te$hnology at the #ank as 1ell as fast pro$essing of their

loan appli$ations- The mean for the : items tested for this !aria#le is +-:> and +-


74/87

mean for this !aria#le is +- and +-)+- In addition5 the inferential statisti$ also sho1ed

that there is a positi!e and signifi$ant relationship #et1een longer repayment period and

the $ustomer/s $hoi$e of #ank in o#taining a personal loan- Thus5 it is $lear that longer

repayment period of the loan affe$ts the $ustomers/ de$ision for a #ank in o#taining a

personal loan- Ho1e!er5 #ased on literature re!ie1 no past resear$hes had pro!en that

longer repayment period is one of the fa$tors that influen$e the $ustomers/ $hoi$e of

#ank in o#taining a personal loan- 0lthough 8rangos A:7): had done a resear$h on

longer repayment period among #ank $ustomers in Gree$e5 his findings did not identify

this fa$tor as a determining item- Thus5 this $urrent resear$h has identified longer

repayment period for personal loans as a marketing strategy for Bank Rakyat Klang-

,#2#2# Customer loyalty

The findings in Chapter + $onfirmed that the ma.ority of the $ustomers are satisfied 1ith

the personal loan offered #y Bank Rakyat Klang and 1ill re$ommend to others- The

mean for this item is +-:>- Besides5 the ma.ority of them 1ere $ustomers of Bank Rakyat

Klang #efore they applied for a personal loan from the #ank- This sho1s that these

$ustomers $hose to o#tain a personal loan from Bank Rakyat Klang as they are loyal

$ustomers of the respe$ti!e #ank- The mean for this item is +-:*- In addition5 the

inferential statisti$ sho1ed that there is a positi!e and signifi$ant relationship #et1een

$ustomer loyalty and the $ustomer/s $hoi$e of #ank in o#taining a personal loan-

O!erall5 it $an #e $on$luded that $ustomer loyalty influen$es the $ustomers/ $hoi$e of

#ank in o#taining a personal loan- Hallo1ell A:7)) stated that the pri$e strategy $an lead

to $ustomer loyalty- Ho1e!er5 no past resear$hes had pro!en that $ustomer loyalty is

one of the fa$tors that influen$e the $ustomers/ $hoi$e of #ank in o#taining a personal

loan- Thus5 this $urrent resear$h is a#le to identify the relationship #et1een $ustomer

loyalty and the $ustomers/ de$ision in $hoosing a #ank to o#tain a personal loan-

0$$ording to 9aa!ola A:77* and 8ournier5 Susan F ao A),,?5 $ustomer loyalty need

to #e taken into $onsideration #y marketers- It $an #e $on$luded that $ustomer loyalty

influen$es the $ustomers to o#tain a personal loan from Bank Rakyat Klang- 0s su$h5

$ustomer loyalty plays important roles in the marketing strategies of Bank Rakyat Klang

60


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in promoting personal loan- Ho1e!er5 further resear$h need to #e done to arri!e at a

$on$lusi!e ans1er-

,#2#3 &esearch uestion 3%

5ow can the marketing strategies of $ank &akyat .lang in promoting personal

loans be impro+edD

This resear$h pro!ides !alua#le insights on the fa$tors that influen$e the $ustomers/

$hoi$e of a #ank to o#tain personal loan- Based on the $ustomers/ de$ision making

#eha!ior as stated in Chapter +5 the follo1ing are the re$ommendations for impro!ing

the marketing strategies of Bank Rakyat Klang in promoting personal loan- This also

$o!ers the 1riters re$ommendation for this resear$h-

&ecommendations!

,#2#3#1 Location of the bank

Bank Rakyat Klang should maintain its lo$ation as the ma.ority of $ustomers $hose the

#ank for a personal loan due to its strategi$ lo$ation- In addition5 Bank Rakyat Klang

should pla$e more 0T; at !arious pla$es as it is one of the fa$tors that influen$e the

$ustomers to $hoose Bank Rakyat Klang to o#tain a personal loan- Kaynak F

Ku$ukemiroglu A),,:5 ;artenson A),>


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,#2#3#3 "nterest rate

It is re$ommended that Bank Rakyat Klang offers $ompetiti!e interest rate for a personal

loan in order to attra$t more $ustomers as .ustified #y 8rangos A:7):5 Kha2eh F "e$ker

A),,: and 0min A:77>-

,#2#3#( Terms and conditions

Bank Rakyat Klang should re!ie1s its terms and $onditions for a personal loan no1 and

then to suit the needs of the $ustomers- The terms and $onditions ought to #e fle=i#le

and offer more #enefits to $ustomers in $omparison to its $ompetitors as this fa$tor is

related to produ$t strategy 1hi$h is #asi$ +9s A'am#5 et al-5 :7)75 Strader5 :7))-

,#2#3#, Ad+ertisement

0d!ertisement 1as found to ha!e negligi#le and insignifi$ant relationship 1ith

$ustomers/ $hoi$e of #ank in o#taining a personal loan- It is re$ommended that Bank

Rakyat Klang redu$es its finan$ial allo$ation on ad!ertisement and fo$uses on other

fa$tors su$h as lo1ering interest rate Apri$e strategy that influen$e the $ustomers/ $hoi$e

of #ank in o#taining a personal loan AStolt5 :7)7-

,#2#3#/ Application of technology

Bank Rakyat Klang should $onstantly #e e3uip 1ith the latest te$hnology as the

appli$ation of te$hnology plays an important role in attra$ting $ustomers to o#tain a

personal loan from the #ank- Cooper F Kleins$hmidt A:7)) had mentioned that

te$hnology sa!es time and it $on!inient for $ustomers-

,#2#3# Longer repayment period

It is re$ommended that Bank Rakyat Klang offers longer loan repayment period in

$omparison to its $ompetitors in order to o#tain a $ompetiti!e ad!antage- Strader A :7))

had re$ommended produ$t strategy to attra$t $ustomers-

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,#2#3# Customer loyalty

Documents

Ooi Eng Cheong