The purpose of this chapter is to focus and review again on the previous research which had done in this topic. With this chapter in the project, it can help the reader to get a clear picture or to have a better understand of this study. In this chapter, it consist of the statement and the result of prior researches which examine what affect the selection key criteria of a stock broking company. From the previous research, it is found that five independent variables of the selection key criteria of stock broking companies are affected by:

2.1 Selection Key Criteria of Stock Broking Companies

Selection key criteria can be define as how the individual consider the concept or a set of combination concepts in order to retrieve an answer or decisions which will be satisfied by the user (John, W and Sons, 1991). Usually an individual will assigned it based on the situation and seek for the situation which is more suitable for them. Beside that’s, selection decision will be normally made when individual looking for the thing matched with his preferences. (Bretz, Ash & Dreher, 1989; Turban & Keon,1993;Cable & Judge, 1994).Other than that, the individual would like to choose the preferences which would be more suitable for the individual personality (Bowen et al., 1991). On the other hands, stock broking companies services refer to type of service which provided by broker to play the role of buying and selling of a stock (Chan et al., 1991). According to Jamal and Nasel (2002), most of the customers have a higher expectation of the service quality. Therefore when there is a high expectation from the customer, the will form a gap of expectation (Mehrdad Alipour and Jalalsadeghisharif, 2010). Because of the expectation, it cause most of the customer need to make their selection due to certain factor. As a conclusion, in this research the selection key criteria of the stock broking companies will be tested with the demographic variable, branches and location, online trading services, purpose and type of investment and the last will be the services.

2.2.1 Demographic

In the investment field, there are a lot of investor or can be known as the customer of the stock broking company. Most of the investor demographic backgrounds can be distinguish to make a comparison of the differences investor behaviors (Quester et al, 2007; Siles et al., 1994). Since there are a demographic factors, investor background can be divided into few categories where it is age, income, education, culture or nationality of a particular person (Au et al., 2001; Quester et al, 2007). According to (Mittal, 2001; Kamakura, 2001) the characteristics of a particular person can be contributes to a variety type of customer or investor due to the tolerance levels and the repurchase decisions or the use of services intention and behaviour.

2.2.2. Income

Income would be the main factor of selecting a stock broking company. Customer who tends to be lower income would like to switch banks compare with the higher income customer (Colgate, 2001; Hedge, 2001). When the people who enter the white-collar groups, most of them had a higher incomes will be the one who switch to other banks and select other banks (Li,2008; China Daily,2007; Duthie, 2005) .The reason of this thing happen might cause by the cost or better services of other banks. The latest research show that income level of an investor or customer tend to spend in different level, the business quantity or how frequent the trading of the share and the number of workers were found in order for a investor to choose the branch (Hong Jae Weon,2010; Hong Won Eui,2010; Kwak Yoon Sik, 2010).

2.2.3 Age

According to the Oxford English dictionary age can be defined as the person length of time that he or she has lived or something that has existed .The researcher of Colgate and Hedge (2001) had found that the younger generation of investor and customer who like to switch banks and it is one of the largest groups. It might be the main thing how the people would affecting the selection of stock broking company. More recent research according to the researcher of Clemes et al.(2007), he had proven that most of the younger customer or the investor were the majority group of switching the banks or the investment banks. With the hypothesis of Michael D.Clemes, Christoper Gan and Dongmei Zhang (2010), they had strengthens the point of previous researchers. They able to obtain the result of positive relationship between the younger age and the customer switching banks because of the services and the older age were negative relationships.

2.2.4 Education

Oxford English Dictionary had stated that education was the teaching or training of people. Education can be one of the factors of affecting the selection stock broking company.Colgate and Hegde (2001) had mention that investor or customer who tend to be less-educated would be the customer who switch from one to another compare with the customers who more highly educated. There is a research which had done in US had proven that most of the people who highly educated would had a positively influenced of the usage of online banking (Kolodinsky et al, 2004). With this statements, the researchers had found that the online banking will be one of the main selection key criteria and will normally selected by the people in stock broking companies. Most of the people tends to be more high educated and it has cause the people who switch the investment banks more often (Li, 2008; China Daily, 2007; Duthie, 2005). It is becaus