Factors affecting customers ‘bank selection decision: In case of commercial Banks in Jimma Town of Oromia Regional State, Ethiopia

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