A research on determining behavioral aspects of individual and corporate customers preferences on participation banks: The case of Turkey

Participation banks are seperated from other banks due to the banking activities the principle of interest-free. It is aimed to identify similar and different behavioral aspects of retail and corporate (commercial) customers who prefer participation banks in choosing these banks. In this study covers 12 regional levels throughout Turkey determined by Turkish Statistical Institute. A measurement model has been established with 9 main factors and 33 sub-factors that can affect behavioral aspects of participation bank customers. This model has been tested by second level Confirmatory Factor Analysis to determine whether measurement model is compatible with collected data in line with maximum likelihood calculation technique due to normal distribution of the obtained data. As a data collection tool, a survey form with the same main scale has been used for retail and corporate customer categories and a total of 440 retail and 393 corporate participation bank customers have been reached. In order to obtain more accurate results from the analysis, customers are interviewed face-to-face and filled out the questionnaire. In the findings obtained from the analysis, it has been statistically determined that attitudes, social impact, religious sensitivity, benevolence, trust and awareness factors on behavior of retail customers who prefer participation banks and the image and reputation of participation banks on society are more positive than corporate customers. On the other hand, corporate customers are found to be more sensitive to behavioural satisfaction, accuracy and especially cost-related issues in banking transactions. In addition, it has been revealed that it is not affected by advertisements for participation banks in traditional media tools such as television, newspaper, radio and social media tools such as twitter, facebook and instagram. As a result, measurement models created for individual and corporate clients based on compliance indicators have been verified by Confirmatory Factor Analysis. Keywords: Participation Banks, Bank Customer, Customer Behavior, Structural Equation Model, Confirmatory Factor Analysis.