The factors affecting customers bank selection decision: the case of selected private commercial bank

Abstract

Globally, competition in the banking industry has become fierce, and banks are adopting various marketing strategies to determine the consumer and his perception of their offerings. The purpose of this study is to analyze the major factors of a bank selection by a customer and how customers influenced by the factors based on their importance level to patronize in banks of Ethiopia, jimma. The study features an empirical analysis on criteria employed by graduating customer of selected bank towards their bank selection decision. A total of 100 customer participated as a sample for the research. Primary sources of survey data were used collected through self-administered questionnaires using a non-probability convenience sampling technique. Data was analyzed using descriptive statistics, inferential processed by Statistical Package for Social Science (SPSS) version 20. The result showed that the convenience location, Technology, Bank Image, political, promotion and product and service quality are found to be a significant factor for customer’s bank selection decision. On the other hand, the regression model revealed that political factor has insignificant effect on bank selection decision. The paper recommends for Bank management to be aware that, factors influencing bank selection decision differ from one segment to another. The study also recommends banks to consider convenience location, quality of product and service, social media advertising, and functional ATMs and offer electronic banking services.