A logistic regression model for the determination of the predictive factors for the demand by customers of bank loans in Greece
|Main Author:||Frangos, Christos C.|
Fragkos, Konstantinos C.
Valvi, Aikaterini C.
Σύγχρονη επιχείρηση και παγκόσμιο οικονομικό περιβάλλον. Νέες προκλήσεις μετά την κρίση. 4ο Διεθνές επιστημονικό συνέδριο. Οκτώβριος, 13-14, 2011
Commercial Banks need to determine the factors that customers base their
decision to receive loans from them. This is appropriate for developing
successful marketing strategies. A general population sample of Greek citizens
was chosen to examine this aspect. We present the results of a sample survey
on 277 citizens. Our instrument was validated through confirmatory factor
analysis, which presented good fit. Binary logistic regression showed that
significant predictors of taking loans were Personal Marital Status, Customer
service, shop design (number of ATM MACHINES, bank branches and
personnel education) and Interest Rates whose odds ratios were all significantly
above 1. These results have important implication for bank managers who
should focus giving loans to single individuals as well as change their interest
rates policy by decreasing the rates for all kinds of loans, especially housing
loans. Through this they will achieve creating a more sensitive image to calls
for a more balanced and fair social policy pursued by the banks.