Customers Bank Selection Criteria in the Case of Selected Private Commercial Banks in Addis Ababa
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Date
2013-10
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Addis Ababa University
Abstract
Commercial banks need to identify the criteria on which potential customers determine their
bank selection decision in order to plan an appropriate marketing strategy for keeping
present customers and attracting new ones. Consequently, the identification of factors deemed
important to potential bank customers is a crucial step towards winning the battle. Therefore
this study is particularly intended to examine basic motivational factors of customer’s bank
selection criteria of private commercial banks in Addis Ababa and how customers rank the
factors based on their importance level to patronize banks and banking services. It also
intended to present an analysis of demographic nature of the customer in the relative
importance of choice criteria in respect of selecting a bank and to elicit the opinion of bank
customers on any extra services needed to be offered by banks. In this study the researcher
used both quantitative as well as qualitative analysis. The Data required for this study
collected from two sources; these are primary and secondary sources. The primary data is
collected through structured questionnaires. The secondary data are from any published as
well as unpublished sources. The sampling method used to select customers was a systematic
random sampling. The sample size of the study was 120 customers. The data collected
through questionnaire were analyzed by using SPSS and apply a factor analysis identify the
major factors affecting customers bank selection criteria. In addition an independent T test
and one way ANOVA is used to test if there is a selection factor difference exists between the
demographic natures of the customers. The findings revealed that the chief factors
determining customers’ bank selection are: “Convenience” “Reliability” and “Service
provision” for the entire customers. On the reverse, the least three important factors of bank
selection for customers are “Product Assortment” “Reputation” and “Recommendation from
family and friends”. In addition this study also revealed that there is a significant difference
between the demographic characteristic of respondents and their bank selection process.
Keywords: Bank Selection Criteria, Customers, Banks, Banking Service
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Keywords
Bank Selection Criteria, Customers, Banks, Banking Service