The banking industry and other financial institutions are competing among each other hence need to strategize on how to retain as many customers as possible. The commercial banks studied were Equity, Kenya commercial and Barclay's banks operating in Meru Town. The study had the following objectives; To determine the extent to which quality service influences customer retention in commercial banks in Meru Town. To examine the extent to which communication influences customer retention in commercial banks operating in Meru Town. To establish the extent to which trust influences customer retention in commercial banks operating in Meru Town. The study would benefit the financial institutions, bank managers, bank employees, bank customers and future researchers. Literature review was discussed under theoretical framework: Commitment-trust theory, social exchange theory and relationship marketing theory. Empirical literature; customer retention in banking, quality service and customer retention in banking, Communication and customer retention in banking, trust and customer retention in banking was also discussed. The study used descriptive research design. Stratified, systematic and simple random sampling methods were used. The population for the bank customers was 18,500 while for the bank employees was 36. The sample size for the bank customers was 182 and 18 for bank employees. The closed-ended questionnaires were used as the research instruments. Piloting was done to determine the validity and reliability of the instruments. Descriptive statistics, T-test statistics and logistic regression model were used to analyze the data. The variable of quality service was found to be significant at .001 level of significance indicating that it positively influenced customer retention. The variable of communication was found to be significant at .001 level of significance indicating that communication was important in influencing customer retention. The variable of trust was found to be significant at .001 level of significance indicating that it was important in influencing customer retention. The study concluded quality service was a determinant of customer retention in banking. The level of quality service was high and customers were offered quality services. The study recommended that the bank managers to ensure that they have consistent in-service training of their bank employees so as to offer their customers quality services. The study concluded that customer retention in the banking sector was determined by communication effectiveness between the bank customers and bank employees. The bank utilized ICT in transmitting information to their customers. The study recommended that, the banks to upgrade their technology so as to serve their customers effectively and the banks to be responsive of customer's complaints, provide timely and prompt information to their customers. The study concluded trust was a determinant of customer retention banking. The study recommended the improvement of trust levels between the ba...
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