Evaluating the consumer cosmopolitanism: Taiwanese consumer behavior in choosing local or foreign banks

Abstract

The aim of this paper is to investigate bank selection behavior by analyzing their global mind-set. More specifically, this study also analysis the consumer cosmopolitanism while they face the decision in choosing local or foreign banks. Following the literature review, the paper proposed four variables, which were past experience, localism, cosmopolitanism, and consumer ethnocentrism. Research data were analysis by structure equation model. The result of the research indicated that consumers were showing no differences between local and foreign banks. Furthermore, in this research, the evaluation of past experience was including four dimensions: travels, expatriate stays, cross-cultural training, and social status seeking. The result indicated that there is no difference between local and foreign banks consumer in expatriate stays, cross cultural training, and social status seeking. Travels were the only factor which influences consumers' choice in choosing local and foreign banks. However, it may due the need to use financial service while in other country. Insights derived from this study will provide bank managers and advertising executives with the building blocks for understanding consumers' choice criteria of banks in Taiwan.