Banking service in Bangladesh: The impact of service marketing mix on purchase intention of university students

• Author: Ather Y. Fahim,Afzal Hossain,Shahedul Hasan,Md. Humayun K. Chowdhury,Md Yusuf H. Khan,Md. Shamsuzzaman
• Published date: 01 May 2020
• DOI: http://doi.org/10.1002/jsc.2335
• Date: 01 May 2020

RESEARCH ARTICLE

Banking service in Bangladesh: The impact of service

marketing mix on purchase intention of university students

Afzal Hossain

1

| Md. Humayun K. Chowdhury

2

| Shahedul Hasan

3

|

Md. Shamsuzzaman

4

| Ather Y. Fahim

3

| Md Yusuf H. Khan

5,6

1

European University of Bangladesh, Dhaka,

Bangladesh

2

Jagannath University, Dhaka, Bangladesh

3

University of Dhaka, Dhaka, Bangladesh

4

ACI Formulations Limited, Dhaka, Bangladesh

5

International University of Business

Agriculture and Technology, Dhaka,

Bangladesh

6

University of Algarve, Faro, Portugal

Correspondence

Md Yusuf H. Khan, International University of

Business Agriculture and Technology, Dhaka

1230, Bangladesh.

Email: ysf.khn86@gmail.com

Abstract

Banking plays a vital role in the financial life of an industry, and the significance of banks

can be realized from the fact that they are measured as to be the life-blood of themod-

ern economy. The Banking industry is considered as t he mirror of any country. Banks

are especially crucial for developing economies like Bangladesh, which ha s 57 listed

banks. Due to increased competition, banks are trying to grab a new and growing mar-

ket segment like the students' segment. So, there is a gap to explore student's purchase

intention toward banking service as the intention is one of the critical predictors of

behavior. Banks utilize service marketing strategies, a key concept of service marketing,

to retain existing customers, and attract new ones. Therefore, this paper addressed the

impact of a service marketing mix on the purchase intention of banking service among

university students in Dhaka city, the capital of Bangladesh. The results should enab le

marketers to detect the most critical and significant drivers affecting the purchase

intention of university students. All the elements of the service marketing mix except

place, promotion, and physical evidence were significantly related to purchasing inten-

tion. It has implications for bank service marketers regarding the practical design of mix

strategy of service marketing for student segments.

KEYWORDS

Bangladesh, banking service, purchase intention, service marketing mix, university students

1|INTRODUCTION

Though Bangladesh is a developing country, it has noticed a remark-

able expansion of the banking industry. Currently, there are 57 banks

in Bangladesh, including six state-owned commercial banks, two spe-

cialized banks, 40 private commercial banks, and nine foreign com-

mercial banks (Bb.org.bd, 2019). However, state-owned banks have

earned a bad image due to various fraudulent financial practices

(Mahmood, 2019). On the other hand, significant progress has been

made by the private commercial banks in Bangladesh by focusing on

customer needs (Zahid & Islam, 2008). So, competitions have been

intensified as customers have the options for choosing services

between state-owned and private commercial banks. Some commer-

cial banks have reached the top by following innovative services such

as CAMEL rating, which is accepted internationally. As the banking

industry is very dynamic, several changes occur from time to time

(Zahid & Islam, 2008).

Recently,a growing interestin the service marketingmix, also called

7P's of service marketing, has been noticed. Maximum outcomes in

terms of customer satisfaction and loyalty can be achieved through a

service marketing mix, and therefore, firms can remain competitive in

the market (Kushwaha & Agrawal, 2015). According to Krasnikov,

Jayachandran, and Kumar (2009), a successful marketing mix approach

is helpful for banks in achieving better service and support for cus-

tomers, higher efficiency, and cost-saving. To influence the purchase

decisions of customers, marketers attempt to shape customers

JEL classification codes: M31, G21.

DOI: 10.1002/jsc.2335

Strategic Change. 2020;29:363–374. wileyonlinelibrary.com/journal/jsc © 2020 John Wiley & Sons, Ltd. 363