CHAPTER 1

INTRODUCTION

1.1 Background of the Study

The concern for choosing banking services, customer acceptance and customer preference play
an important role in success of bank performance. Customer perception towards brand and
convenience change from person to person in their behavioral pattern, attitude, needs and
expectations (Vasanthi, 2013).

Customer preference attributes in usage of banking services are increasingly becoming popular
because of convenience and flexibility. Majority of the customers are giving preference on
attributes convenience; availability of places, safety and security and familiarity of services
followed by attributes cost of transactions, reliability, and availability of time and accessibility of
services (Giddaiah, & Karamala, 2014).

Onyancha (2013) has stated that in the competitive banking industry, the impact of bank brand
image on the attitudes and behaviors of customers become an important issue. This scholar has
further explained that for banks today, the strength and marketing power of an institution’s brand
is rapidly becoming one of the critical levers for differentiation and success and the results reveal
that banking brand image has positive effects on customer satisfaction and loyalty. It means that
a positive bank brand image not only increases customer loyalty directly, but it also improves
customer satisfaction through the enhancing of perceived service quality, which in turn increases
the loyalty of customers. Bank brand image indeed serves as a lead factor in enhancing service
quality, customer satisfaction, and loyalty.

Banking only works if the consumer is willing to trust the bank company with large sums of
money. Branding is particularly important to the financial sector in the current economy, since
investors and other big spenders are being cautious about making large financial transactions.
High involvement of risk and procedure sometimes lead to inconvenience to customer. While
customer might seek no regulation and procedure even though brand image are convincing,
customer might choose convenience over brand.
The main aim of this paper was to learn about the concepts examine the relationship among bank
brand image, customer satisfaction, convenience and loyalty which helps in consumer decision
making process and how bank brand image and convenience impacts on customer choosing
banking services. The main reason of being engaged in this particular observation was backed up
by the present researcher’s keen interest to groom into a consumer decision making process and
improve the standards of the banking services.

1.2. Objectives of the Study

Generally, the present researcher was concerned to find out the impact of customer preference on
convenience over brand image while choosing banking services. The primary objective of this
research was the extent of brand image, customer satisfaction, convenience and loyalty to choose
banking sector.

The specific objectives of the research project were to--

1. Assess the customer preference on convenience and brand image in banking services,
2. Analyze the customer behavioral pattern, attitude, needs and expectations while
choosing banking services,
3. Evaluate if the customer preference is given by attributes convenience, availability of
places, safety and security and familiarity of services, and
4. Identify the problematic areas faced by customers as multiple bank offer different
services in terms of convenience and brand image.

1.3. Statement of the Problem

In this study, the present researcher believed that the customer satisfaction, customer acceptance
and commitment towards banking services certainly depend on the brand image, convenience,
loyalty and flexibility. Such believe made the present researcher to empirically access and
analyze the impact of customer preference convenience over brand image while choosing
banking services.
For this, the present researcher was interested to assess the overall impact on consumer
preference decision as an outcome of brand image and convenience emphasis on developing
customer acceptance and commitment. So, a single statement of problem was formed in an
interrogative form- how is the impact of customer satisfaction has direct relationship with brand
image, convenience and loyalty while choosing banking services.

More specifically, the present researcher was interested to assess and examine the various factors
considered a customer preference and acceptance decision of choosing banking services on
perceived level of customer satisfaction by assessing with a selected number of consumers in
various places in the Surkhet Valley.

1.4. Research Questions

The present researcher developed a set of four research questions (RQ) to make this study
purposively and thematically more guided and systematic.

RQ1: Overall assessment of the brand image visualize customer expectation

What is the overall assessment of the brand image enable customers to better visualize and
understand the banking service in the past years and their outcomes?

RQ2: Overall factors considering customer preference and acceptance decision

To what extent the overall factors or types customer preference considered while making a
decision choosing banking services?

RQ3: Customer perception towards brand image and convenience

How the general perception of customer needs and expectations are correlated by brand image
and convenience?

RQ4: Problematic areas of customer preference and the corrective measures

What are the major problematic areas of developing effective banking services for customer
satisfaction and customer acceptance and how can these is corrected?
1.5. Working Hypothesis

The present researcher took into consideration a number of propositions in the form of null
hypotheses (H0) to confirm the level of statistical significance of the association between
different selected constructs of the study.

In this study above stated impact on consumer preference decision as an outcome of brand image
and convenience emphasis on developing customer acceptance and commitment. The main
hypotheses taken into account of the study may include --

H01: The overall level of consumer perceived convenience and brand image may be independent
of each other.

H02: The customer loyalty and customer perceived convenience may not have statistically
significant relationship.

H03: The location of bank and customer perceived convenience may not have significant
relationship with each other.

H04: The cost and effort and customers perceived convenience may not have statistically
significant relationship.

H05: The bank name (corporate identity) and customer perceived brand image may not have
statistically significant relationship.

H06: The reliability and customer perceived brand image may not have statistically significant
relationship.

H07: The quality of services and customer perceived brand image may not have significant
relationship with each other.

1.6. Scope of the Study

The present research was conducted to examine the customer preference on convenience over
brand image while choosing banking services. To examine the importance of brand to visualize
customer expectation as well as flexibility in banking services to customers. The researcher
should examine the majority of the customers preference is given by attributes convenience,
availability of places, safety and security and familiarity of services followed by attributes cost
of transactions, reliability, and customer loyalty, availability of time and accessibility of services
to sustain in the competitive marketplace.

1.7. Significance of the Study

This study helps in providing benefits to different people from different perspective. For the
researcher, the said research will help in providing the adequate knowledge and information
about customer preference on convenience over brand image while choosing banking services,
related concepts and theories regarding it and the implementation of such concepts, thoughts,
theories, and models in the practical approach.

For the clients/institutions, said research will help them in carefully examining the missing link
and proper gap analysis to be done to overcome the problem that could be generated in
developing customer satisfaction that take the initiative in bringing the positive results in the
increasing the flow of customers along with brand value creation of the organization.

For the generations of the researchers/learners, said research report will help them in
understanding different variables required customer preference for the effectiveness of brand
image and convenience. The strength and marketing power of an institution’s brand is rapidly
becoming one of the critical levers for differentiation and success. Banks need to provide a
consistent brand experience to prevent customers from switching to rival banks. Hence, the field
of bank service is now emphasizing the importance of customer-oriented marketing making it a
success to sustain for long period of time.

1.8. Limitations of the Study

Generally speaking, the limitations exist over you, or they are imposed by the situation or
environment and delimitations are created by you as a researcher, with a good reason. For a
research like this, it would have provided better picture if the data have been collected from all
over the Nepal but the financial cost of conducting survey all over Nepal will be very high.
Along with that, sufficient sample size would not be achieved as there were less respondents
responding to the questionnaire. So, the sample size of 300-400 numbers of consumers in
different places of Surkhet Valley was taken. Moreover, there consists the limited number of
expertise which the present researcher were unknown about the facets of customer preference,
which is why the present researcher included various theories, models, and concepts related to
the consumer behavior that were studied in the classroom.

On the other hand, out of various theories and concepts related to the customer satisfaction, the
present researcher focused on the Dissonance theory, contrast theory and expectancy
disconfirmation paradigm.

1.9. Definition of Key Terms

For the purpose of making it simple to the readers of this report, the present researcher has
defined a number of key terminologies in this section.

Convenience: a quality or situation that makes something easy or useful for someone by reducing
the amount of work or time required to do something.

Brand: Unique design, sign, symbol, words, or a combination of these, employed in creating an
image that identifies a product and differentiates it from its competitors.

1.10. Organization of Study Report

This academic report has been organized in five distinctive chapters. The brief background of the
study with its introduction and the subject matter has been included in the first chapter. The
second chapter provides the overall information about the grounded theoretical principles that
has been taken into consideration by the present researcher. Various other methodological
paradigms related to the study are comprehended in the third chapter. Fourth chapter includes the
diagnosis of the data and its presentation. Finally on the basis of personal observation and
research, closing remarks and various implications of the study has been produced in chapter
five.
 CHAPTER 2
REVIEW OF LITERATURE

2.1. Introduction

This section deals with the theoretical and conceptual knowledge related to the subject matter of
inquiry of the present research. For this, the whole chapter has been divided into four distinctive
sections. Initially, the in first section, researcher presents review of related theoretical and
conceptual perspective of the field of interest of the present research. Followed by, review of
important policy document related to the present study has been presented in second section.
Further in third section other similar research in Nepalese and international context has been
discussed, and lastly on the basis of knowledge gained from various reviews done in above
section here in fourth section researcher presents conceptual framework she has made. This
conceptual framework serves as the basis of governing the overall ongoing study.

2.2. Review of Theoretical Perspectives

As the main part of review of literature, this section provides with a closer study of various
theoretical and conceptual aspects related to customer preference on convenience over brand
with specific focus on banking services, concept focusing on
consumer preference, convenience, brand acceptance of banks, and customer perception. For this
purpose, the present researcher observed the work of Grimsley (2015), Bove and Johnson (2000),
Frimpon (1999), Akrani (2010), Schiffman and Kanuk (2009), Kotler and Armstrong (2000),
Reichheld and Sasser (1990), Kabir and Carlsson (2010), Zeithaml, Parasuraman and Berry
(1980) and Kim, Han and Park (2001) as the relevant sources of complex learning of the related
conceptual perspectives governing the present research.

Kotlar and Armstrong (2013) have stated that consumer’s preference depends on the products
and services perceived performance relative to consumer’s expectations. If the product’s
performance falls short of expectations, the customer is dissatisfied. If performance matches
expectations, the customer is satisfied. Hence, consumer behavior and preference is very crucial
in choosing banking service.
Kotlar and Armstrong (2000) have suggested that the consumer convenience refers to the ability
of consumer to gain accessibility, availability, reliability, loyalty, in order to understanding and
control over personal, social, economic and political forces in order to take action to improve
their life situations.

Further, these scholars have affirmed that people can form different perception of the stimuli
because of three perceptual processes: selective attention, selective distortion and selective
retention. These scholars have explained that selective attention refers as the marketers that have
to work hard to attract the customer’s attention. Similarly, selective distortion describes the
tendency of people to interpret information in a way that will support what they already believe
and finally, selective retention refers to retaining information that supports their attitudes and
beliefs.

Grimsley (2015) has explained consumer buying behavior as a sum total of a consumer's
attitudes, preferences, intentions and decisions regarding the consumer's behavior in the
marketplace when purchasing a product or service. The scholar has further, stated consumer
behavior draws upon social science disciplines of anthropology, psychology, sociology, and
economics.

Kim et al. (2001) have confirmed the findings of Aaker and Kellers (1990) and found that the
brand personality would affect word of mouth through influencing brand preferences and
customer loyalty. The scholar further stated that the improvement in the relationship between
customer and brand will lead to an increase in the rate of brand preference and that this
preference will lead to customer dependency on the brand. For this trend to continue, a customer
has to give a personality to the brand. Thus, the customer will try to define his/her personality
based on the brand personality. This compatibility trend depends on the elements of brand
personality structure. A distinctive brand personality has an important role and causes the
customers to perceive the brand personality and build a long-term relationship with that
brand. Each brand has its own special personality and is considered as a certain personality by
the consumer.
Bove and Johnson (2000) have explained customer retention and true loyalty as important factor
in high customer relative attitude and high repeat purchase behavior. Hence, understanding the
customer retention is economically more advantageous than constantly seeking new customers.

Mokhlis (2009) has stated that customers are exposed to diversified choices more concerned
about the value for money. It means customers have unlimited switching choices. Banks need to
identify factors that influence the choice of commercial bank selection and work on improving
them. The researcher also points out that secure feeling reflects the desire of banking with a
stable bank and assurance of confidentiality when making a financial transaction. This implies
that secure feeling includes both the security at the bank and the security of the bank.

Zeithaml, Parasuraman, and Berry (1980, as cited in Kabir, & Carlsson, 2010) developed The
Gap Analysis Model, which is a model of service quality. This model shows a combined view of
the consumer-company relationship. The main idea of the model is concentrated on the evidence
that service quality is dependent on the size and direction of the five gaps that can exist in the
service delivery process: a. gap 1: the gap between customer expectations and those perceived by
management to be the customer’s expectations. b. gap 2: the gap between management’s
perception of consumer expectations and the firm’s service quality specifications. c. gap 3: the
gap between service quality specifications and service delivery. d. gap 4: the service delivery,
external communication gap. e. gap 5: the perceived service quality gap, the difference between
expected and perceived services.

Assail (1998) has defined bank brand image as asset of organizations. Brand image are
considered as the most important assets of the company that make customers loyal and have
value for the end consumer. Thus, the brand image helps customers in purchase decision making
and customer loyalty.

Reichheld and Sasser (1990) have observed that customer loyalty is a primary goal for most
businesses today. This leads to an explosion in the use of different types of bonds (i.e. economic
or structural) which bind the customer to the firm through high switching costs.
Hence, the challenge is beyond producing satisfied customers as competitors can do it too, the
challenge is to produce delighted and loyal customers. This challenge is perhaps brought about
by the increasing financial sophistication of customers which is facilitated by efficient use of
information technology and the entry of new aggressive competitors in the marketplace
(Frimpong, 1999).

As Kotler and Keller (2006) have stated that customers are becoming harder to please, they are
smarter, more price conscious, more demanding, less forgiving, and they are approached by
many more with equal or better offers. Customers are more focused on convenience. Customer
seeks loyalty, convenient location, reliability, service quality trustworthiness, brand image to rely
upon to get efficient banking service.

2.3. Review of Related Policy Documents

There are numbers of national and international rules and regulation, acts and policies governing
the issues of consumer preference of banking services related to ongoing study. For this, the
present researcher could explore a few directly related policy, documents, regulations, treaties
and arguments to review.

The Nepal Rastra Bank Act, 1956 states that Nepal Rastra Bank (NRB) has a mandated role to
regulates and supervises Nepal’s banking industry and issues various policies, directives and
circulars that are in line with the international standard but also customized to match the local.

Khatiwada (2012) has stated that banking ethics are moral principles that guide the way a bank
behaves. Acting in an ethical way involves distinguishing between 'right' and 'wrong' and then
making the 'right' choice. While it is relatively easy to identify unethical banking practices, it is
not always easy to create similar hard-and-fast definitions of good ethical practice. Making
money is not unethical, but doing the same in an immoral way is unethical. A business company
must make a profit for competitive return to its shareholders' capital and treat its customers,
employees and other stakeholders fairly.
According to code of conduct Deutsche Bank (2006), acting in the best interests of customers
integral to corporate mission and core values is to do what is best for customers. While seeking
opportunities for innovative and creative solutions for customers, transparency and integrity must
be at the core of all of our business dealings.

According to (ICBA) Independent Community Banker of America (2011), policy of brand

visualizes in bank must correspond to a trademark, trade name or service mark of the business. It
should not have reserved name and deceive or cause material detriment to community.

2.4. Review of Related Studies

This is the final section of review of literature chapter. In this section, various articles, journals
are reviewed related to customer preference on convenience over brand while choosing banking
services. For this purpose, the present researcher observed the work of Zeithaml, Parasuraman
and Berry (1980), Keller (2001), Nair (2013), Yoon (1993) and Kaufman (1967) as a relevant
source of complex learning related review perspectives governing the present research.

Zeithaml et al. (1980) have developed a survey research instrument called SERVQUAL which is
to measure customer satisfaction with various aspects of convenience and brand acceptance. It is
grounded on the evidence that customers can evaluate a firm’s convenience and brand image by
comparing their perceptions of its service with their own expectations. Their discovery suggests
that, SERVQUAL scores measure only two factors: intrinsic service which is functional quality
and extrinsic service quality which is tangible aspects of service delivery or technical quality.

Keller (2001) has suggested that brand responses refer to how customers respond to brand, its
marketing activity, and other sources of information, that is, what customers think or feel about
the brand. Brand responses can be distinguished according to brand judgments and brand
feelings, that is, in terms of whether they arise more from the” head” or from the “ heart.”.
Customers are keen about brand judgments, brand quality, brand credibility, brand consideration,
brand superiority, and brand feelings.
Nair (2013) has conducted a study on customer preference on convenience over brand while
choosing banks: an empirical study. This study attempts to analyze the customer preferences for
the quality of services of the private and public sector banks. This study establishes the strong
relationship between customer satisfaction and customer perception of service which will
determine the success of the product and service in the market.

Yoon (1993) has explained that corporate reputation serve as a mirror in perception of customer
which facilitates the bank to communicate with its customers to make them realize about quality
of their products and services with respect to their competitors to take the competitive advantage.
Hence, brand image is the extent of the faithfulness of consumer to a specific brand, expressed
through their repeatedly purchase decision.

Kaufman (1967) has investigated the determinant factors used in bank selection decisions by
customer was speed of services, friendliness of bank personnel, convenience of location, hours of
operations, and efficiency of personnel.

Hence, this study seeks to fill gaps explaining variation in perception of customer and choice of
their bank selection criteria in the concept related of customer satisfaction, customer loyalty,
brand image, perceived services and convenience.

2.5. Conceptual Framework of the Study

On the basis of overall review works performed, the present researcher has developed a
conceptual framework. Figure 2.1 presents the detail essentials of conceptual framework leading
the present study.
Figure 2.1: Conceptual framework of the study

Convenience
Location
Dimensions of Cost and effort
Consumer Preference Customer loyalty
Availability
Reliability Customer
Awareness satisfaction and
Integrity acceptance
Security
Cost
Communication Brand image
Understanding Bank name
Reach ability Reliability
Bank reputation Quality of
service

While conducting a study on consumer preference on convenience over brand while choosing
banking services, it is important to understand the dimensions of customer value, expectation,
needs and services for expected outcomes. To understand this study we must divide these into
two categories: independent section and dependent section. Dimensions of brand image and
convenience come under independent section whereas customer preference, expectations,
satisfaction comes under dependent section. The ten dimensions of customer preference helps in
gaining expected outcome in the form of customer preference and customer loyalty and also
influences in customer’s choosing bank in terms of convenience over brand visualization.
 CHAPTER 3
RESEARCH METHODOLOGY

3.1. Introduction

This chapter discusses the methodology proposed to investigate the existence of a relationship
between consumer demographic variables, evaluative consumer preference on convenience over
brand image while choosing banking services. The first section discusses about the research
methods shortly followed by the second section which describes the research designs to be used.
The third section is the population of this study which defines on whom the study is conducted.
Fourth section describes the unit of analyses. Fifth section is locating the study. Sixth, seventh,
and eight sections involve sampling techniques used, development of data collection tools, and
proposed mechanism for research administration respectively. Ninth and tenth sections describe
proposed mechanism for data reduction and analyses, and plan of action. Finally, the last section
of this chapter involves the socio-ethical compliances to be made.

3.2. Methodological Paradigms of Research

Kumar (2001) has stated that the purpose of qualitative research is to find out what is in a
consumer’s mind. It is done to access and also get a rough idea about the person’s perspective. It
helps the researcher to become oriented to the range and complexity of consumer activity and
concerns. Qualitative data are collected so researchers can know more about things that cannot
be directly observed and measured, such as feelings, thoughts, intentions, and behavior that took
place in the past are a few examples of those things that can be obtained only through qualitative
data collection methods. The scholar further discusses about focus group, in-depth interviews
and repertory grid technique are typical methods used in these type of research. For this
dissertation researcher want to know feelings, thoughts, intentions and behaviors comparing to
brand extension and convenience factor while choosing banking services.

Craig (1999) has explained quantitative data collection techniques aid as, identifying relevant
constructs and concepts to be examined, survey research provide a means of quantifying these
concepts and examining relevant relationships in-depth. The quantitative research quantifies or
precisely measures a problem. It is often used for sophisticated statistical procedures and
scientifically drawn samples. It is possible to collect quantitative data from respondents by two
means: the communication and the observation (Kinner, & Taylor, 1996).

Statistical analysis of consumer preference often requires a trained consumer panel to show
significant results. Even then, simple statistical procedures, such as analysis of variance, can be
inappropriate for this type of data due to panelist variation: e.g., sensory preferences, personality
differences, and variation in the use of the rating scale. Use of a 1 to 5 preference scale often
varies, even among trained panelists. Some panelists use the lower ranges, some the higher, and
some rate all choices somewhere around the middle of the scale.

Thus, analysis of preference data often is complex, using techniques such as multiplicative
mixed models (Smith, 2003) or principle components analysis (McDaniel, personal
communication, August 27, 2003). These advanced statistical methods make analysis more
precise by factoring out much of the panelist variation interfering with analysis of the data using
a simple analysis of variance (M. McDaniel, personal communication, August 27, 2003).

Individual in-depth interview for this dissertation, this approach will be followed and two
individual in-depth interviews will be made to understand “the feelings, thoughts, intentions and
behavior compare to brand extension and convenience related to customer preference while
choosing banking services” like advice it Kumar (2007). To make these individual in-depth
interviews a list of questions need to be prepared to be asked and answered by the respondent.
Paradigms, which overtly recommend mixed methods approaches allow the question to
determine the data collection and analysis methods applied, collecting both quantitative and
qualitative data and integrating the data at different stages of inquiry (Creswell, 2003).

Therefore, the mixed methodology was chosen to explore the subject matter of the inquiry. By
using mixed methodology, more comprehensive information could be collected for analyzing the
factors that affect consumer preference on convenience over brand while choosing banking
services. A quantitative study test the series of hypotheses around the criteria and demographics
and how they relate to the choice decision of a bank was conducted to determine if any or a
combination of these variables could be linked to choice behavior of consumers. For the research
regarding customer preference and factors regarding convenience over brand, both the qualitative
and quantitative data and information’s are needed. So the present research was conducted as a
blend of qualitative and quantitative approaches.

3.3. Research Designs

A quantitative, descriptive, explanatory and, causal study was used for the purpose of this study.
A brief clarification of the methodological concepts is as follows.

Quantitative research emphasizes the researcher used a quantitative design as a strategy to collect
data that is in numeric form. Brink (1996) stated that this method is useful when numerical data
is collected. According to Burns and Grove (1997), quantitative research is a formal, objective,
systematic process to obtain numerical data. This method is also used to describe variables and
determine the relationships between variables.

While descriptive is the study in which the researcher collected detailed descriptions of the
consumer’s attitudes and feelings towards choosing bank in terms of brand image and
convenience and their reasons for maintaining these attitudes. The purpose of the descriptive
design was to provide the opportunity to identify the variables within the phenomenon of interest
(Burns & Grove, 1997).

Brink (1996) has supported these researchers by maintaining that descriptive research provides
descriptions of variables in order to answer the research questions. Further the scholar has
explained descriptive statistics to describe the attitudes and feelings of respondents. Frequency
tables were constructed to summarize and portray the responses to specific items in the
questionnaire. Blanche and Durrheim (1999) have stated that descriptive statistics are used to
describe and synthesize data pertaining to attitudes and feelings of the consumers preference.
According to Malhotra (2007), causal design determines cause and effect relationship of
independent and dependent variables. This scholar has stated that causal research is used to
obtain evidence of cause-and-effect relationships where decisions are made based on assumed
causal relationships. The scholar suggested that causal research is appropriate to understand
which variables are the cause (independent variables) and which variables are the effects
(dependent variables) of a phenomenon, and to determine the nature of the relationship between
the causal variables and the effect to be predicted.

The exploratory research begins with the phenomenon of interest such as consumer preference
attitudes towards choosing banking services in terms of brand, convenience, loyalty and
satisfaction and also aims to investigate the full nature of the phenomenon (Polit, & Hungler,
1997). The researchers further stated that exploratory research provides promising insights and
attempts to offer understanding of the underlying causes of the nature of the phenomenon.
According to the scholars, exploratory research is appropriate for the study in area with limited
data whereas descriptive and causal studies are those with substantial structure, specific
hypotheses to be tested or research questions to be answered.

Since the present researcher intends to gather the information through structured set of
questionnaire from which statistical views and results are generated and also ask individuals
about their attitudes or preferences towards choosing banking services, the present researcher has
adopted a blend of all three types of research design in the present study. The purpose of
exploratory research design is to gather the preliminary information to define the problem and
understand the problem more narrowly. Similarly, the purpose of descriptive design in this study
is to understand in depth the reasons for choosing a particular bank. Furthermore, the purpose of
casual research design is to determine the nature of the relationship between the consumers’
choice decision of bank and the factors brand, convenience, loyalty and satisfaction influencing
them.

3.4. Source of Information

According to the scholars Cooper and Schindler (2006), the sources of information can be sorted
out into primary, secondary and tertiary sources. The original works of the research study or the
data that has not been interpreted or represent any kind of official opinion or the position is
known as primary sources. Primary sources generally include memos, letters, interviews, laws,
regulations, and most government data with the inclusion of census, economic and labor data.

Secondary data are data that have already been collected for purposes other than the problem at
hand (Malhotra, 2007). The encyclopedias, textbooks, handbooks, newspaper articles, journals
are considered as secondary sources of information.

Malhotra (2007) has affirmed that primary data, secondary data are collected rapidly and easily,
at a relatively low cost, and in a short time. This scholar has further mentioned that secondary
data helps to identify the problem, better define the problem, develop an approach to the
problem, and interpret primary data more insightfully.

Luck et al. (2002) have affirmed that secondary sources should first be considered, which refer to
those for already gathered and available data. These scholars have further mentioned that there
may be internal sources within the client’s firm whereas externally, these sources may include
books or periodicals, published reports, data services, and computer data banks. In contrast to the
secondary data, primary data may be obtained from individuals, from families’ representatives,
or from organizations.

The present researcher used a combine of both the primary and secondary sources of data for the
study. Primary data were collected from respective personals--questionnaire, interview and
observation. Similarly, secondary data were collected from various published articles and
reports. The structured questionnaire was used to collect the primary data for the research from
the individuals so as to know the factors that influence consumer preference while choosing
banking services and in this regard the data were collect from general individuals. The secondary
data was collected through various published and unpublished articles and reports, review,
journals, and research paper via internet through various literary website.

3.5. Population of the Study

Polit and Hungler (1997) have described the population as the totality of all subjects that
conform to a set of specifications. The specification of a population involves identifying which
elements (in terms of kind) are included, as well as where and when (Green, Tull, & Albaum,
2004).

The study essentially focuses on the general customer preference on convenience over brand
while choosing banking services and the basis of numerous characteristics. Census of the
population is neither practicable nor required for the study so a sample from the population has
been selected for the purpose of study. To fulfill the requirement of this study and due to limited
time and budget, among the client who has a bank account, only 400 persons are selected for
primary data collection and for the secondary data, sampling method of past data will be
gathered as essential.

Further, for more understating of unit of analysis the factor influencing consumer preference
while choosing bank are augmented facilities, credit facilities, transaction facilities, availability,
e-commerce, brand image, ambience, operational convenience, and personal attention to be
considered that may have significant influence on consumers’ choice decisions.

According to Cooper, Schindler and Sharma (2012) have described a population of study is the
total collection of elements about which we wish to make some inferences. The population of
study of the current research study was the customer using bank services residing in Surkhet
Valley that are out in the open to banking services and use those services. To fulfill the
requirement of this study and due to limited time and budget, among the client who has a bank
account, only 400 persons are selected for primary data collection and for the secondary data,
sampling method of past data will be gathered as essential.

3.6. Sampling Techniques Used

The basic idea of sampling is that by selecting some of the element, in a population, we may
draw conclusions about the entire population (Copper & Schindler, 2006). There are various
methods for sampling under probability and non probability sampling methods.
According to Malhotra (2007), non-probability sampling relies of the personal judgment of the
researcher rather than chance to select sample elements. The researcher can arbitrarily or
consciously decide what elements to include in the sample. The scholar further explains about
convenience sampling attempts to obtain a sample of convenient elements. The convenience
sampling is the least expensive and least time consuming of all sampling techniques.

As it is not possible to locate all the customers and as the population is likely to be homogenous,
the present researcher intends to use convenient sampling technique to take the proportion of the
population that represents the whole population through which the present researcher intends to
perform the underlying study. The present researcher more specially proposes to use non
probability technique of sampling. More especially convenient sampling, as the population is too
huge and the conducted research is an academic purpose, report conducted is likely to be simply
with limited access and control over various tools and techniques used for data collection and
analysis. In addition, lack of funding has caused various problems like not being able to consider
huge population due to lack of resource like money and even time convenient sampling is
preferred.

Non probability sampling technique seems more appropriate for this research. The study
population of the current research is too large so all the element of the population cannot have
equal, known and non-zero chance of being selected as sample. Under non-probability sampling
technique, convenience sampling technique is adopted for the study. Survey method is used for
collecting the data. The data is collected from customers of Surkhet valley. A well structured
questionnaire is designed for the study and due care is taken to avoid any kind of ambiguity.
Nominal scale is used for all the variables.
3.7. Locating the study

The fieldwork of the current research was conducted in different location in Surkhet valley. The
research study will be conducted by students, employees and staffs thorough questionnaires and
interview. The study was only limited to Surkhet valley as the researcher was exposed to various
constraints like unavailability of sufficient time to go to other geographical locations, and the
financial resources to conduct the study outside the premises.
3.8. Unit of analyses

According to Shekaran and Bougie (2012), units of analyses refer to the level of aggregation of
the data collected during the subsequent data analysis stage. The units of analyses of the present
study are the people who directly or indirectly are exposed to the banking services. The basis of
analysis used by the researcher concerning the consumers purchase behavior, attitudinal changes,
brand loyalty, post purchase behavior and convenience while choosing banking services.