Determinants of bank selection by university undergrads in south east Nigeria: empirical evidence

Abstract

Purpose

The purpose of this paper is to identify and ranks factors that influence bank selection by undergrads in South East Nigeria.

Design/methodology/approach

Totally, 300 undergrads were sampled from two universities. Five-point Likert-type question containing 49 bank selection items was designed to collect primary data. Cronbach's α was used to test the reliability of the instrument while factor analysis with principal component extraction was used to identify the underlying factors.

Findings

Six principal factors were identified and ranked in order of importance. These factors are: bank's financial stability, available and functional ATMs, professional bank staff, family and friends influence, proximity of bank branch to university campus, and internal and external aesthetics of bank.

Practical implications

This study provides insight on the factors that influence the selection of a bank in the emerging and growing undergrads segment of bank market in Nigeria, which has obvious management and theory implications.

Originality/value

Reports bank selection criteria from apparently under-researched and under-reported undergrad segment in a typical sub-Saharan African context.

Citation

D. Nkamnebe, A., Ukenna, S., Anionwu, C. and Chibuike, V. (2014), "Determinants of bank selection by university undergrads in south east Nigeria: empirical evidence", African Journal of Economic and Management Studies, Vol. 5 No. 3, pp. 369-382. https://doi.org/10.1108/AJEMS-08-2011-0054