Empirical analysis for the relation between customer satisfaction and the chosen bank for deposits (CBD) in China

Currently about forty to sixty percent operating capital of Chinese banks generates from resident deposits. Banks are competing on attracting resident deposit. This paper focuses on the analysis of empirical data for the relation between customer (depositor) satisfaction and CBD. Customer satisfaction is the outcome of comparison between expected qualities and perceived qualities of the service from the banks, and CBD is a kind of decision-making behavior that resident loyalty selects a certain bank to make deposits instead of the others. We investigate what determine a bank's ability to receive resident deposit. Results based on survey suggest that customer satisfaction is the most influential factor. Furthermore, we identify 6 indexes that determine the dynamics of customer satisfaction. We contribute to the literature by assessing the determinants of a bank's competitive advantage and by providing insight into the improvement of such advantage by bank managers.