Determinants of Credit Customers Loyalty (The Case of Commercial Bank of Ethiopia)
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Date
2015-09
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Addis Ababa University
Abstract
Analyzing the determinant factors that contribute for customers to remain loyal at CBE helps
the bank executives to identify and define the appropriate marketing strategies that are
needed to retain the existing customers’. The basic objective of this study was to analyze the
determinants of credit customers’ choice of banks by taking CBE as a case and thereby
identify the factors that make customer’s remain loyal to CBE. The study was conducted on
176 sample credit customers from CBE and the necessary data was gathered through self
administered questionnaire for credit customers and interviews made for CRMs. A multiple
regression model together with a factor analysis is employed in order to investigate the level,
sign and magnitude of the effect. A non-probability convenience sampling was used and data
was analyzed using factor and ANOVA analysis techniques too. The empirical findings of the
study reveal that customer’s satisfaction, brand image and quality services are found to be
significantly and positively affect customer’s loyalty to the CBE. The factor analysis result
also shows that business customers has statistical significance linkage with financial
advantage, credit service provision, location & convenience and accessibility, technology
aided services, image and reputation and promotion strategies are the major reasons for
customers’ choice of banks and has some managerial implications which are expected to
have an impact on the marketing efforts of banks. Hence the management of the CBE should
pay attention to these factors while designing strategies in credit areas.
Key words: Determinant factors, Loyal Customers, Credit Customer, Financial
Advantage, Bank selection
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Keywords
Determinant factors, Loyal Customers, Credit Customer, Financial Advantage, Bank selection