Factors Affecting Customers Brand Loyalty: An Empirical Study in Ethiopian Private Banking Industry
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Date
2024-10
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Addis Ababa University
Abstract
The success of a business heavily depends on its ability to attract customers to its brands and retain their loyalty. In the modern marketing landscape, brand loyalty is crucial as it correlates strongly with higher sales, premium pricing opportunities, and customer retention. The Ethiopian private banking industry is becoming more competitive and challenging due to government regulations, government-sponsored rivalry actions, and increased private banks. Competition becomes stiff in local deposits and foreign exchange mobilization, leading to increased consumer switching and decreased loyalty. Therefore, the aim of the study was, to identify and investigate the main factors that affect brand loyalty of bank customers in Ethiopian private banking industry. Qualitative method of research design aligned with descriptive data analysis method was used. 369 valid questionnaires have been used in this research. For analysis the data Statistical Package for Social science (SPSS) was used. The results of the data are presented in the form of table and figures. This paper and the previous literature show a significant relationship between dependent and independent variables and on that basis, some of hypotheses were accepted and some of the hypothesis were rejected. The independent variable customer satisfaction, emotional connection and value proposition, perceived quality, and brand image was found supported as factors that affect brand loyalty while the independent variables brand awareness, and brand trust (trust) are not supported variables due to their level of significance from being factors that affect brand loyalty. Finally, recommendations have been forwarded depending the results and findings of the research.
Key words: brand loyalty, trust, customer satisfaction, perceived quality