Abstract:
The main objective of this study is to examine the determinant of customer’ s bank selection decision in the
Commercial Bank of Ethiopia Jimma Town. It also intended to define the comparative importance of each
factor in customers’ bank selection decision. The study employed as a quantitative research design to
identify the determinants of customers’ bank selection decision and relied on primary sources of data. The
target population of the study focused on customers of Commercial Bank of Ethiopia in Jimma town. A nonprobability sampling technique of convenience sampling (availability sampling) used in this study. Taking 14
branches of commercial banks in Jimma town, data collected from 158 customers that are available at branch
office during data collection from all branches. The data for the study collected through structured
questionnaires administered to the selected customers. The collected data analyzed using the Statistical
Package for the Social Sciences (SPSS V.20). Descriptive Statistics was used to describe respondents
demographic backgrounds, banking behavior of respondents and to rank the major determinants of bank
selection decision while Exploratory factor analysis used for data reduction and finding an optimum grouping
and number of common factors persuading a set of measures from 32 items included in the survey. The one
sample t-test confirmed the importance of all factors in customers’ bank selection decision at p< 0.10.The
result of this study shows that, the determinants of customers bank selection decision in the Commercial Bank
of Ethiopia Jimma town are; bank image & reputation, service quality factors, convenience factors,
technological factors, promotional factors, financial factors as well as social factors. This study also tries to
find out the factors that customers consider essential in selecting their choice of banking services in
Commercial Bank of Ethiopia Jimma town. The result revealed being a government owned bank; experience
/establishment time of the bank; trust in the Bank for security of funds and confidence and Goodwill of bank
among customers considered as very much important. Furthermore, Social Factor and Financial Factors
had positive and significant relationship with customer bank selection decision while Technological
Factor, Promotional Factors and service quality factors had positive and insignificant relationship with
customer bank selection decision.
