Bank Selection Decision on Multiple Bank User
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Date
2016-03
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Addis Ababa University
Abstract
This paper presents an empirical study of selection criteria employed by multiple bank users.
The study chose to sample a specific consumer segment in Addis Ababa, namely business
person and employees. The purpose of this study is to examine the significance of bank
selection criteria on multiple bank users and how customers rank the factors based on their
importance level to patronize multiple banks and banking services. Both quantitative and
qualitative methodology, incorporating 193 respondents is employed in the analysis. A non-
probability convenience sampling was used due to the unavailability of sampling frame of
bank customers’ or infinite population and data was factor analyzed to reduce the number of
total variables in to manageable way. Findings show that Branch location and Availability of
ATM are influential and significantly more important in prompting choice of multiple banks.
This finding indicates that bank customers’ place great emphasis on the attribute of saving
time and many customers place great emphasis on their banks offering locational
convenience. Proximity and Service provision are also significantly more important in
prompting multiple banks. Therefore; such factors should be considered seriously by the
commercial banks in designing their marketing strategies by expanding their branches
and ATM availability with convenient location and providing good customers services to
customers. Banks also have to work on the above areas to understand the needs of the client
and have to implement strategies to satisfy the needs in order to retain their existing clients
and attract new clients. It is interesting to know that influential marketing campaign is
significantly less that customers did not choose the second or above banks depending on
influential marketing campaign rather they select based on other criteria. The implications of
the findings were discussed and opportunities for future research were provided.
Keywords: Multiple banks selection criteria, multiple bank users, banking services, business
person and employees
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Keywords
Multiple banks selection criteria; multiple bank users; banking services; business person and employees.