Re-Examining the Bank Patronize Behavior in Malaysia: A Logistic Regression Approach

Abstract: This study is aimed at investigating individual as well as bank specific factors affecting bank customers ’ decision prior to patronizing a bank. As many as 394 customers from Islamic and conventional banks are involved in the survey and the data collected are analyzed using logistic regression. The results show that working environment, ease of obtaining financing, return on deposits, extensive branch network, professional advice and asset size are the most significant factors influencing their bank patronize decision. Bank management could utilize the findings by re-think the methods to maintain existing customers, attract new customers and eventually to obtain more profit. Key words: Patronize behavior Islamic banks Logistic regression Malaysia INTRODUCTION scrutiny, even by 2013, Islamic banks only accounts for The past thirty years have seen increasingly rapid entrance of foreign-owned Islamic banks, it raises this advances of Islamic banking and finance. From the question: why such growth target is yet to be achieved by formation of the first commercial bank in 1975 in Dubai, the Islamic banks? In order to find out the reasons behind there are now approximately 300 Islamic banks and 90 this failure, it is imperative to understand the patronag