FACTORS INFLUENCING DECISION ON HOUSING LOAN SERVICE SELECTION OF KRUNG THAI BANK IN SAKON NAKHON PROVINCE.

Natnaree  Srirueang; Panitee  Karnsomdee

Natnaree Srirueang Graduate Student, Faculty of Liberal Arts and ManagementScience, Kasetsart University, Thailand
Panitee Karnsomdee Department of Business Management, Faculty of Liberal Arts and Management Science, Kasetsart University, Thailand

Keywords: Psychological factors, Marketing mix factors, Service quality, Housing loan service selection

Abstract

Housing Loan is a complex financial product because customer experiences various factors influencing the selection of the bank. Customer psychological factors and housing loan service marketing mix factors have affected on housing loan service quality and housing loan selection. This research explored factors influencing decision on housing loan service selection of Krung Thai Bank in Sakon Nakhon Province, Thailand. The research was a quantitative research with the samples of 280 housing loan customers in Sakon Nakhon Province determined by purposive sampling based on Taro Yamane formula. Data were collected through 5-point Likert scale questionnaires. Cronbach’s alpha coefficient of psychological factors, marketing mix factors, service quality, and decision on housing loan service selection of Krung Thai Bank in Sakon Nakhon Province were 0.930, 0.945, 0.965 and 0.878, respectively. Data were analyzed by descriptive statistics and inferential statistics including Pearson Product-Moment Correlation and Multiple Regression Analysis.
The research results found that customers’ opinion on psychological factors, marketing mix factors, service quality, and decision on housing loan service selection were at the high levels with mean scores of 4.09, 4.06, 4.12, and 3.98, respectively. The research results from hypotheses testing revealed that psychological factors, marketing mix factors, and service quality can predict decision on housing loan service selection up to 48.80% (Adjusted R-Square 0.488) at 0.05 significant level. Service quality has varied according to different demographic factors.Psychological factors had statistically significant direct influenced on service quality with standardized coefficients (β) of 0.742. Marketing mix factors had statistically significant direct influenced on service quality with standardized coefficients (β) of 0.840. Service quality had a statistically significant direct influenced on decision on housing loan service selection with standardized coefficients (β) of 0.667. In conclusion, psychological factors and marketing mix factors had significantly influenced on service quality and service quality had significantly influenced on decision on housing loan service selection of Krung Thai Bank in Sakon Nakhon Province, Thailand proposing financial institutions should focus on these important factors in order to provide excellent service quality and enhance housing loan service selection of customers.