The Effect of Brand Innovation Adoption on Customer Retention: The Case of Zemen Bank
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Date
2023-07
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Addis Ababa University
Abstract
This study was carried out with the aim of examining the effect of brand innovation adoption on the customer retention of Zemen Bank. The concept of brand innovation adoption has been an issue that academics and practitioners have been interested in, researching, and discussing recently. Zemen bank is very concerned about innovations, and it is known that the bank was a pioneer in introducing new innovations in the banking system. The recent innovation observed on this bank is an ATM used for depositing and a new internet-banking feature called Z cash. So in order to know how these innovations affect the customer retention this study was done. Besides this research can be used as a source of information for researchers who are interested in this topic. In line with this, not many researches were done regarding this study in Ethiopia. After a comprehensive assessment of the literature, questionnaires were distributed with a sample size of 369 Zemen bank customers in order to gather the primary data. The quantitative research approach was merged with an explanatory research strategy while analyzing the data. The sampling method used to collect sample was convenience sampling. Then the data was descriptively analyzed using a multivariate linear regression model. Depending on the analysis, results show that the unstandardized coefficient B had a value of 0.138, 0.119, 0.240, 0.239 and 0.203 for the variables perceived ease of use, trial ability, observability, compatibility and relative advantage respectively. It emphasizes that among the five variables observability affects customer retention greatly. So Zemen bank should give more emphasis should be given to improve observability. overall, all the variables that are perceived easy to use, observability, trial ability, compatibility, and relative advantage are all positively related with customer retention being significant as well. Therefore, it is advised that the bank continuously develop each brand innovation adoption variables to increase customer retention at Zemen Bank
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Perceived ease of use