Abstract:
The main idea of the study was to identify the determinants of customer’s choice of bank:
in Addis Ababa. The study applied explanatory research design to identify and explain
the determinant factors that influence customer’s choice. Both quantitative and
qualitative research approaches were used. To collect data, questionnaire in the form of
Likert scale, and open ended questionnaire were conducted. A total of 394 questionnaires
were distributed to respondents who are selected via systematic sampling techinique and
384 of them were returned back. To generate the output of the study the statistical
software for social science version 20.0 were used. The finding of the study revealed that
financial factors found the strongest factor that affect customer’s decision followed by
service quality. Convenience/security were found the third influential factor followed by
reputation factors/bank's image. Lastly technological factor and marketing and
promotional factors were play a modest role influencing customers decision. Regarding
inferential analysis there were significant correlations existed between bank selection
decision and independent variables. Specifically there were strong bank selection
decision with service quality, financial factors and convenient and security factors. Due
to these the linear combination of the independent variable was significantly related to
the dependent variable, R=.867a adjusted R square=.786, F=32.6 (p=0.000). Lastly the
researcher recommends Based on the findings of the study, the following
recommendations are suggested. Mangers of the bank should consider financial interest
of the customer, convenience of banks service to customer and service quality issues
seriously
