Abstract
The purpose of this research was to study the factors that influence the decision of Small and Medium Enterprise (SMEs) in the Northeast region of Thailand to use loan services from Kasikorn Bank. The population in this research was 1,746 SMEs entrepreneurs who used loan services for Small and Medium Enterprise customers provided by Kasikorn Bank Public Company Limited in the North-eastern region of Thailand. Multi-stage Cluster Sampling was used in sampling 325 SMEs entrepreneurs and a 5 rating-scale questionnaire was used as a research tool, with the confidence value of independent variables of .96 and the confidence value of dependent variables of .83. The statistics used in analysis were Frequency, Percentage, Mean, Standard Deviation, Multiple Regression Analysis, T-test, and F-test. 7 factors were found to have influence in the decision to use loan services of the Small and Medium Enterprises customers at a high level. These following factors are listed in order from highest to lowest average scores; Service Process, Physical Evidence and Presentation, Personnel, Products, Distribution, Marketing Promotion, and Price. Only 2 factors were found to have an influence on the customers’ decision to use loan services with standardized coefficient of determination for multiple regression at the significance level of .01; Service Process (Beta = .43) and Personnel (Beta = .19) and both factors together could be used to determine 35% of dependent variables with statistical significance.
Highlights
In the modern world, commercial banks are financial institutions that play major and important roles in the country's financial system as they are the largest source for savings and loans
From Multiple Regression Analysis using Ener Method, it was found that all 7 independent variables which were the Product Factors, Price Factors, Distribution Factors, Marketing Promotion Factors, Personnel Factors, Physical Evidence and Presentation Factors, and Service Process Factors had influence in predicting the decision to use loan services of Small and Medium Enterprises (SMEs) in the Northeast region of Thailand, representing 35.3% (Adj R2 = .353)
It was found that the variable that significantly affect the decision to choose the loan service for small and medium enterprise (SMEs) customers at the level of .01 was the Service Process Factor (Beta = .328), which can be interpreted that the service process factors have an influence on the decision to use loan services of Small and Medium Enterprises (SMEs) of Kasikorn Bank in the Northeastern region of Thailand
Summary
Commercial banks are financial institutions that play major and important roles in the country's financial system as they are the largest source for savings and loans. According to the Office of Industrial Economics, production units in the domestic industry sector consist of more than 90% of Small and Medium Enterprises (SMEs) out of the production units in the industrial sector of the whole country These small and medium production units have higher production flexibility or agility in production process than large businesses and rely on smaller funds. There are very in-depth studies that bring the results of marketing research into the design of various financial products and services that are comprehensive This can be used to adjust the banks’ working process to be more efficient and be able to meet the needs of Small and Medium Enterprises (SMEs) customers as much as possible. The objective of this research is determining the factors with influence on the decision to use credit services from Kasikorn Bank of Small and Medium Enterprises (SMEs) customers in the north-eastern region of Thailand
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