Abstract:
The study features to identify the key factors affecting on customer in Ethiopia particularly in
Jimma town bank selection decision . Data were collected using self-administered questionnaires
to a sample of 288 of Banks customers. Their responses rate (85%) 245valid on the importance
of 6 different selection criteria were rated and analyzed. Mean analysis and exploratory factor
analysis is applied to rank the most important determinants of bank selection. The collected data
were analyzed through SPSS version (20). The descriptive and inferential statistical tools such
as mean, percentage, ANOVA, correlation and multiple linear regressions were used to analyze
collected data. The regression model summary shows that the all independent variables explain
68.7% variability on bank selection decision. The findings revealed that; service quality factors,
bank approach factors, convenience factors and bank pricing factors, have a significant and
positive effect on bank selection decision while bank image and reputation and bank personal
factors have insignificant effect on bank selection decision. As customers place more concentrate
on factors like service quality, bank approach, convenience, and bank price, such factors
healthier to be. Considered seriously by banks in their marketing strategies which help them to
attract new as well as retain the existing customers
