Investigating Consumer Preference in Banking Services: A Conjoint Analysis Study
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.