Abstract:
This paper investigates the selection criteria that students in Saudi Arabia and
South Africa respectively use when selecting a bank for the first time. The
rationale for such a study stems from exploring the difference in selection
criteria based on students' cultural and banking (Islamic vs conventional
banking) backgrounds, so as to identify marketing opportunities for South
African banks, given the relative infancy of the Islamic banking industry in
South Africa. An exploratory factor analysis reveals that the two student
groups place particular emphasis on the functional criteria relating to the
provision of banking products and services, albeit it that the South African
students appear to have a more generalised view on what function means to
them. A cluster analysis further reveals that the Saudi students in general
appear to be more indifferent with regards to the relative importance of the
identified factors. However, the main finding of the paper is that the Saudi
students place more implicit emphasis on trust-related criteria than the South
African students. From a marketing point of view, South African banks must
acknowledge that trust drives the relationship-based approach they adopt to
Muslim students and specifically with regards to complying with Shari'a Law.
Given that the South African students regard criteria related to the functional
role of banks as relatively more important, there is a case to argue that the
marketing campaigns for Muslim students need to be differentiated along the
lines of drivers of trust in the relationship, as opposed to merely the functions
performed by a bank.
