The consumer attitude towards the various financial services products in the past was very passive and attracted less interest. But after the advent of technology and new forms of internet-based Banking, have had a great impact on consumer's attitudes and how they purchase financial products and services. The financial services providers are not certain of retaining their customers and have resorted to the traditional technique of the relationships building and loyalty practices. This makes it all the more important for financial services providers to understand the attitudes of customers and influence their decision-making and behavioral patterns.
Consumers tend to search for product information either explicitly or implicitly depend on the attention, perception and other environmental cues related to information on the product. In literature, the choice of a mortgage is conceptualized as a function of value, prepayment, points, type of mortgage sought, etc. A prerequisite for consumers to make good decisions is to have all the relevant information therefore Banks must adopt a mandatory disclosure policy to facilitate this information search.
Table of Contents
I INTRODUCTION
1.1. Home finance system in India
1.2 Banking sector in India
1.3 Banking structure in India
1.4 Technology integration into Banking
1.5 Domestic Mortgage market in India
1.6 Consumer Decision Making on Financial Services
1.7 Need for the Study
1.8 Research Gap
1.9 Problem Statement
1.10 Scope
1.11 Objectives
II REVIEW OF LITERATURE
III RESEARCH METHODOLOGY
3.1 Research design
3.2 Area of the study
3.3 Large scale instrument assessment methodology
3.4 Pilot Study
3.5 Sample design
3.6 Sample size adequacy
3.7 Data editing
3.8 Instrument development
3.9 Data collection
3.10 Statistical Tools
3.11 Software’s used in the Study
IV ANALYSIS AND INTERPRETATION
4.1 Profile Of The Sample Respondents
4.2: Theoretical Model Testing (SEM Analysis)
4.3: Influence of Demographic characteristics of the respondents on the various constructs (ANOVA Tests)
4.4 Satmetrix Analysis of Recommendation
V FINDINGS, RECOMMENDATIONS, SCOPE FOR FURTHER STUDY, CONCLUSION, IMPLICATIONS
5.1 Findings and Recommendations
5.2 Limitations of the Study
5.3 Scope For Further Study
5.4 Implications Of Study
5.5 Conclusion
Research Objective and Core Topics
The research investigates the factors influencing the consumer decision-making process for mortgage services in the Indian retail banking sector. By analyzing demographic, psychographic, and service-oriented determinants, the work aims to construct and validate a model that explains how service quality, relationship quality, bank choice, and brand salience impact customer satisfaction, loyalty, and subsequent advocacy intentions in the mortgage market.
- Consumer behavior in the domestic mortgage market
- Service quality and customer relationship management (CRM) in banking
- Impact of demographic and socioeconomic factors on banking preferences
- Structural Equation Modeling (SEM) of banking satisfaction constructs
- Customer retention and brand advocacy in competitive retail banking
Excerpt from the Book
1.1. Home finance system in India
In a country like India, a house is considered a basic need next to food and clothing. It is also depicted as the second tier from the bottom in the hierarchical levels of the pyramid proposed by Maslow to study motivation. It is not only a necessity but also an asset and a great measure of human wealth. Housing finance and mortgage loans have been sought out by individuals for various purposes like purchase of house/flat, acquisition of land, an extension of house, repairs, renovation, and up-gradation of a house, etc. Normally the repayment period is spread over some time of 15-20 years. By carefully studying the Indian economic scenario, one can presume that there exists a correlation between housing and GDP. Housing for all is the main initiative of the Indian housing finance system. Infrastructure and housing are the main sectors for the sustained growth of the Indian economy in the last ten years. The housing sector is connected with so many other sectors and generates income and demand for material, equipment, and services.
Chapter Summaries
I INTRODUCTION: This chapter provides an overview of the Indian home finance and banking landscape, identifying the research gap in understanding consumer mortgage decision processes while establishing the study's objectives.
II REVIEW OF LITERATURE: This section synthesizes existing research on service quality, customer satisfaction, and loyalty within the banking industry to provide a foundation for the proposed conceptual framework.
III RESEARCH METHODOLOGY: This chapter details the research design, specifically the use of structured surveys and Structural Equation Modeling (SEM) for a sample of 350 banking customers in Bangalore to test proposed hypotheses.
IV ANALYSIS AND INTERPRETATION: This chapter presents the data findings, including demographic profiles, ANOVA tests for customer segments, and SEM model results regarding factors impacting banking loyalty and mortgage choices.
V FINDINGS, RECOMMENDATIONS, SCOPE FOR FURTHER STUDY, CONCLUSION, IMPLICATIONS: This final chapter synthesizes the research outcomes, offering actionable recommendations for banks to improve customer retention and outlining future possibilities for longitudinal research in the field.
Keywords
Mortgage Loans, Retail Banking, Consumer Decision Making, Service Quality, Customer Satisfaction, Bank Loyalty, Brand Salience, Customer Advocacy, Relationship Management, Indian Banking Sector, Structural Equation Modeling, Financial Literacy, Loan Sanctioning, Borrower Behavior, Demographic Analysis
Frequently Asked Questions
What is the core focus of this research?
The research is primarily concerned with identifying the factors that drive consumer decisions when selecting mortgage services and how these choices influence long-term customer bank loyalty and advocacy.
What are the primary themes discussed in this work?
The key themes include the importance of service quality and relationship quality, the impact of brand salience in banking, and how demographic markers (such as age, gender, and income) play a role in mortgage-related financial decision-making.
What is the main research objective?
The primary aim is to propose and validate a comprehensive model that explains the consumer decision-making process for mortgage loans, ultimately helping banks enhance customer satisfaction and advocacy.
Which scientific methodology does the author use?
The author uses a descriptive and conclusive research design, utilizing a structured questionnaire administered to 350 respondents, with data analyzed through Structural Equation Modeling (SEM) and ANOVA tests.
What is covered in the main body of the work?
The main part of the thesis reviews relevant literature, details the research methodology, conducts a profile analysis of respondents, and uses SEM analysis to test several hypotheses regarding loyalty and mortgage decision factors.
Which keywords define this study?
The work is characterized by terms such as Mortgage Loans, Bank Loyalty, Customer Advocacy, Service Quality, and Consumer Decision Making.
How does loan sanctioning time affect customer behavior?
The study finds that the duration for loan approval is a critical factor; customers who receive approvals within 15 days exhibit higher loyalty, while delays significantly impact the perceived service quality and retention potential.
What is the conclusion regarding demographic influence?
The research concludes that age and gender have significant impacts on brand loyalty and service quality perceptions, suggesting that banks should avoid one-size-fits-all marketing strategies and instead cater to the specific needs of different age segments.
- Quote paper
- Dr. P. Tamizhselvan (Author), Dr. A. Sathivel (Author), 2021, Analysing Factors Influencing Consumer Decision Making Process for Mortgage Services, Munich, GRIN Verlag, https://www.grin.com/document/1395477
