Determinants of Bank Selection Choices and Customer Loyalty the Case of Ethiopian Banking Sector

Lelissa, Tesfaye Boru; Metasebiya, Lelissa Boru

doi:10.2139/ssrn.2967327

Cited by 11 publications

(7 citation statements)

References 19 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This results contrary to both Saary and Medve (2017) and Rahaman, Murad, and Asaduzzaman (2015) that the reputation as the major factor that influences customers to choose the bank. Moreover, Lelissa (2018) found four critical factors that determine choice of economic banks like speed of services is among the simplest within the banking industry, the extent of the adequate branch network, appropriate location of branches and simple to urge forex resources within the bank. In the similar arena, Kochukalam (2018) found that the 24 hour availability of ATMs, speed and quality of services, online banking facility, convenient ATM locations, effective and efficient customer service are significantly relevant in selecting the bank.…”

Section: Discussionmentioning

confidence: 99%

Factors influencing bank selection decision in Nepal

Wagle

2022

Patan Prospective J.

View full text Add to dashboard Cite

Banking services play an important role in the operation of a corporate institution by enabling the safe flow of money from one party to another, trade financial deals, risk mitigation, cash flow management services, and even offering security services to improve relationships between banking institutions, clients, and partners. However, unhealthy competition between them it makes confusion to select the right one. This study aims to identify the factors influencing bank selection decision by using a set of dependent (bank selection decision) and independent variables (service convenience, bank charges, bank reputation and employee behavior). This study is based on 200 respondent of banks customers using simple random sampling method. The descriptive and causal-comparative research design was employed. Both descriptive and inferential statistical tools have been used. The results revealed that service convenience and bank charges have a significant positive association with the bank selection decision. The bank reputation has a negative and employee behavior has a positive but both have insignificant impact on bank selection decision. The finding of this study is valuable to the probing customers, concerned bankers, academicians and government authorities and future researcher, which help them to more concern towards their customers in future.

show abstract

Section: Discussionmentioning

confidence: 99%

Factors influencing bank selection decision in Nepal

Wagle

2022

Patan Prospective J.

View full text Add to dashboard Cite

show abstract

“…On the other hand, Bartlett's test of Sphericity was employed to check the validity of the dataset for factor analysis (Bhatt & Jain, 2020), and the significance level of less than 0.0001 obtained from Bartlett's test confirms the suitability of the factor model (Tsadik, 2013). A study conducted by Lelissa and Lelissa (2017) was achieved by employing Principal Components Analysis which was used to determine the number of factors to be retained and Taneja and Kaushik (2009) used for extracting factors. The eigen value rule, known as Kaiser's criterion, guides the selection of factors with eigen values greater than 1.0 for subsequent analysis.…”

Section: Utilization Of Exploratory Factor Analysismentioning

confidence: 99%

Factors Influencing Customers’ Preferences on Banking Services in the City of Mati, Davao Oriental

2024

IJFMR

View full text Add to dashboard Cite

This research investigates the factors that influence customers’ preferences in banking services in the City of Mati. A survey was conducted among 400 bank customers within the City of Mati that involved interviews with bank customers to explore how customers choose their banks. Respondent’s views were presented and examined with test of reliability, descriptive statistics, and Exploratory Factor Analysis (EFA). Finding from the study revealed that Facilities, Services, and Values which includes good working order, the bank has a debit card facility, bank has speedy service, strong commitment to meeting customers' needs, interior decor of the bank , prompt response to bank statement queries, promptness of service, sustained trust on delivery, and maintenance of sound relationship, and Price which includes adequate numbers of tellers, low interest rate of loans, bank provide good interest rate, low service charges, influential marketing campaign, higher returns on saving, and individualized the attention to customers were the most significant factors influences on customers preference on banking services; and in contrast, Fundamental which includes adequate numbers of tellers, low interest rate of loans, bank provide good interest rate, low service charges, influential marketing campaign, higher returns on savings, individualized the attention to customers identified as least significant factor in this study, however, it still holds importance for banking services. Results of this study contribute to the existing literature on customers’ preferences on the banking services and offer practical insights for local customers and bankers, Government, academe, and business sectors seeking to enhance their competitive advantage.

show abstract

“…The huge investment made in bank marketing and other customer service campaigns will yield the desired benefits if it is assisted by proper research findings on what the customers need from their banks. Prior research conducted on the topic of bank selection in Ethiopia indicated that the speed and quality of service delivery, the number and location of networked branches, the availability of better automated teller machine (ATM) services (Tessema, 2016), foreign exchange services (Lelissa and Lelissa, 2017), technological factors, convenience (Shewmolo and Getnet, 2020; Tesfaye et al , 2019), long operating hours and security (Tehulu and Wondmagegn, 2014) are significant determinants of bank choice by customers.…”

Section: Introductionmentioning

confidence: 99%

Factors determining bank selection by micro- and small-sized enterprises: evidence from Ethiopia

Zelie

2023

IJBM

View full text Add to dashboard Cite

PurposeThis study aimed to explore the importance of various factors considered in the bank selection decisions of micro- and small-sized enterprises (MSEs) in Ethiopia.Design/methodology/approachThe study used a structured questionnaire to collect data from 300 MSEs selected through a convenience sampling technique. Descriptive statistics, exploratory factor analysis and linear regression analysis methods are used to identify the most important factors determining bank selection by MSEs.FindingsThe results of exploratory factor analysis revealed that the availability of credit at a reasonable interest rate, lower service charges and the availability of better automated teller machine (ATM) services are the priorities of MSEs in their bank selection decisions. In addition, the results of regression analysis indicated that price competitiveness is the most important factor determining bank selection decisions of MSEs.Research limitations/implicationsThis study has two major limitations: first, due to resource constraints, the samples included in this study were taken only from the capital city of the country, Addis Ababa. As customer preferences are likely to vary from region to region, future studies could be carried out by including samples from other cities and rural areas of the country. Second, the study relied on a single data collection instrument. The use of additional data collection instruments, such as interviews and focus group discussions, could provide additional insights into the topic.Practical implicationsCommercial banks need to devise a flexible lending policy and set affordable interest rates and collateral requirements to meet the credit needs of MSEs. MSEs, on the other hand, need to improve their bankability by improving their operating and financial reporting practices. Further research can be conducted by covering other cities and the rural parts of the country.Originality/valueThe topic of bank selection has not been explored with a specific reference to MSEs in Ethiopia. The present study addressed this gap by investigating the factors influencing bank selection decisions of MSEs.

show abstract

Determinants of Bank Selection Choices and Customer Loyalty the Case of Ethiopian Banking Sector

Cited by 11 publications

References 19 publications

Factors influencing bank selection decision in Nepal

Factors influencing bank selection decision in Nepal

Factors Influencing Customers’ Preferences on Banking Services in the City of Mati, Davao Oriental

Factors determining bank selection by micro- and small-sized enterprises: evidence from Ethiopia

Contact Info

Product

Resources

About