Determinants of Customers’ Bank Selection Decision in Addis Ababa City
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Date
2023-05-08
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A.A.U
Abstract
The overall purpose of this paper was to identify the key factors in a customer's bank selection decision in Addis Ababa. This study used a mixed research approach (qualitative and quantitative) and a mixed research design (explanatory and descriptive) and used both primary and secondary data. Primary data were collected from customers through self-administered questionnaires from 384 of his randomly selected customers using a method that combined convenience and simple random sampling techniques. The collected data were then analyzed using statistical tools (SPSS version 25), and both descriptive and inferential statistics were used for data analysis. Descriptive statistics include percentages, means, and frequencies and standard deviation. Inferential statistics such as Pearson's correlation coefficient (r) and some linear regressions are used by researchers to determine whether there is a relationship between independent and dependent variables (a customer's bank choice decision). Therefore, the survey results show that customers' bank selection decisions are positively and strongly correlated with financial, technology, quality of service, and advertising factors, but not with social relations, convenience, and reputation factors indicated that it did not. Based on the result of the study the researcher has recommended that the board, manager and employees of the bank should have to give highest priority to those four core variable such as finance, technology, service quality, and promotion related factor while giving banking service to the customer because those factors are significantly affect customers bank selection decision. Finally, the study also recommended that all concerned organ of the bank should identify and understand not only changing, but also pulling and pushing factors for customer to select the bank they use for getting service.
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customer bank selection decision, service quality, convenience, technology, social, financial, reputation and promotion related.