Effect of Banking Innovation on Customer Retention: The Case of Commercial Bank of Ethiopia
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Date
2020-06
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Addis Ababa University
Abstract
The purpose of this study is to examine the effect of banking innovation on customer retention in the case of Commercial Bank of Ethiopia. A quantitative method was chosen in this research. 397 respondents who use at least one of banking innovation in the selected branches in Addis Ababa are taken as a population. The SPSS window was used to process the primary data collected through questionnaire. This study observes the relationship between perceived usefulness, perceived ease of use, perceived risk, compatibility and relative advantage to customer retention in Commercial Bank of Ethiopia. Multiple regression analysis was employed to test the hypotheses. The major findings of the study are: perceived usefulness and relative advantage has a positive and significant effect on customer retention in Commercial Bank of Ethiopia while Perceived risk has negative and significant effect on customer retention. The study recommends CBE to work on usefulness, relative advantage and minimizing risk of innovations. This study is important to branch managers and staffs of Strategy and Innovation Department in Commercial Bank of Ethiopia and other researchers who focus on banking innovations demonstrated as perceived usefulness, perceived ease of use, perceived risk, compatibility and relative advantage which are among the five variables having effect on customer retention
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perceived usefulness, perceived ease of use, perceived risk