Assessment of bank selection criteria: the case of selected commercial bank customers in Addis Ababa

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It is important to understand bank selection criteria upon which customers choose between providers of financial services in order to shape their services delivery and to build a robust growth strategy that focuses on products and services valued the most by customers and motivate them to deal with their bank. This study focuses on assessing customer bank selection factors at the selected commercial banks in Addis Ababa as a major objective of the paper. In order to answer the research questions and to achieve the research specific objectives the researcher has been used quantitative methodology by using responses given by the respondents employed in the analysis. The primary research data is collected from the total of 369 respondents and analyzed based on Likert five point scales on nine factors including 32 attributes to determine the criteria of selecting banks by the customer. A non-probability convenience sampling was used and the collected data analyzed based on descriptive statistical tools like frequency, mean value, and percentage to analyze demographic data and relative importance indices is applied to rank the relative important of each factor on the table. The findings of the relative importance indices indicate among top ten factors three factors are identified as the top most important factors in bank selection decision by most respondents are price, accessibility and availability of resource, whereas promotion, provided information and innovative process and product are considered as the least important factors by the customers when they make a bank selection decision. The result of this suggested that the banking industry needs more focus on customers to access loan and forex facility with reasonable interest rate and the service is better to be convenience to the customers. From the findings the researcher would like to recommend that banks better to focused segmentation business strategy, familiarize their customers with the borrowing products, emphasize more on increasing the service of foreign exchange, high service quality and more investment on the e-banking service which helps to maintain the competitive position on the current banking industry.


A Thesis Submitted To The School Of Graduate Studies Of Aau In Partial Fulfillment Of The Requirements For The Degree Of Master Of Business Administration (Mba)


Bank selection criteria, Customer, Selection factor