Research On Bank Customer Choice And Market Behavior

With the development of economic globalization, China’s banking industry has entered a stage of rapid development. With bank products increasingly homogeneous, competition among banks has gradually shifted from business competition to customer resources’competition. Customer resources are scarce, so developing potential customers and maintaining existed customers have become an urgent problem to banks. Customers’ behavior affects banks’market share, which is critical for the survival and development of banks. In order to study the bank customers’choice and market behavior, this paper relatively studies theory of consumer behavior, customer choice theory, the positive feedback theory.We use Erdener Kaynak bank customer choice analysis as the foundation, combining the characteristics of domestic consumers. We propose the analytical framework suitable for banks’customer choice, and then use factor analysis to solve the multicollinearity. At last, we use the Logit model to determine the degree of influence of each factor. Empirical research shows that customer choice of bank is mainly based on personalization preferences and group psychology. Therefore, from two aspects of these, this paper analyses customer choice and market evolution using nonlinear Polya model of positive feedback.This paper comprehensively applies related knowledge of the theory of economics, finance and system, using a combination of theoretical and empirical approach to study the customers’selection and market behavior. Studies have shown that the behavior of banks’customer choice is affected by many factors. The main factor in the process of customer choice is that: Customers’preferences and psychology, service quality and efficiency, convenience, product superiority, image and reputation; Choice behavior of customers’directly affects the market share. Banks want to be in an impregnable position in the fierce market competition. They need to meet the customer’s individual preferences and grasp the customer’s herd mentality to increase market share. Only in this way can the bank enter into a virtuous cycle of positive feedback process.