Bank Selection Decision: Factors Influencing the Choice of Banking Services
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Date
2011-06
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Addis Ababa University
Abstract
To plan a suitable marketing strategy to keep existing customers and for attracting new
customers, commercial banks need to identify the criteria on which customers determine their
bank selection decision. Hence, the purpose of this study is to examine the significance of
bank selection criteria 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 gender
differences 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. Both
quantitative and qualitative methodology, using responses given by 201 customers in Addis
Ababa city from different occupation (students, employees and businessmen), is employed in
the analysis. A non-probability convenience sampling was used and data was factor analyzed
to reduce the number of total variables in to manageable way.
Finding from this study reveal that the most two important bank selection criteria for
customers are “convenience” and “service provision” for the entire customers while it is
“bank’s image” as the second most important factor for male customers. On the other hand,
the least two important factors of bank selection for customers are “financial benefits/
technology”, “reputation” and “promotion strategy” whereas “attractiveness” for female
customers. Given this findings, it is recommended that hierarchical information integration
may be a potentially useful method for bank managers to study complex decision making
problems such as bank choice.
Keywords: Bank Selection Criteria, Customers, Banks, Banking Service
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Keywords
Bank selection briteria, Customers, Banks;, Banking Service