Factors influencing purchase intention in personal financing:direct and indirect effects

The changes in the financial market have put a great pressure on financial service providers. It had created the competitive financial product and services emerging in the market. Therefore, it is important to enhance their competitive advantages by understanding the consumer behaviour in purchasing certain product relative to satisfaction. In this regard, previous research has fallen short in examining consumer’s actual purchase intention and customer satisfaction. This paper sought to address this issue. This study developed a model of the relationship between customer satisfaction and purchase intention in finance industry focusing on personal banking. The mediating role of customer satisfaction in purchase intention is emphasized in this research model. This study measured purchase intention and three elements- service quality, reputation and marketing mix by collecting the data using self- administered questionnaire. Data were analysed using the structural equation model (SEM) and SPSS. The results showed that respondents from Islamic personal banking expressed a high purchase intention influenced by service quality and reputation. However, conventional personal banking showed that purchase intention had influenced the service quality and marketing mix. Customer satisfaction was found to be an active mediator between service quality and purchase intention for personal banking. Although the outcomes support previous studies, the results were derived from small sample size with an uneven distribution between the types of banks. This limited the generalizability of the results which calls for further research. However, practically this result contributed to create the improvement in finance and service industry by identifying and developing marketing strategies for the long run