Customers Bank Selection Criteria In The Case Of Selected Private Commercial Banks In Addis Ababa

Commercial banks need to identify the criteria on which potential customers determine theirrnbank selection decision in order to plan an appropriate marketing strategy for keepingrnpresent customers and attracting new ones. Consequently, the identification of factors deemedrnimportant to potential bank customers is a crucial step towards winning the battle. Thereforernthis study is particularly intended to examine basic motivational factors of customer’s bankrnselection criteria of private commercial banks in Addis Ababa and how customers rank thernfactors based on their importance level to patronize banks and banking services. It alsornintended to present an analysis of demographic nature of the customer in the relativernimportance of choice criteria in respect of selecting a bank and to elicit the opinion of bankrncustomers on any extra services needed to be offered by banks. In this study the researcherrnused both quantitative as well as qualitative analysis. The Data required for this studyrncollected from two sources; these are primary and secondary sources. The primary data isrncollected through structured questionnaires. The secondary data are from any published asrnwell as unpublished sources. The sampling method used to select customers was a systematicrnrandom sampling. The sample size of the study was 120 customers. The data collectedrnthrough questionnaire were analyzed by using SPSS and apply a factor analysis identify thernmajor factors affecting customers bank selection criteria. In addition an independent T testrnand one way ANOVA is used to test if there is a selection factor difference exists between therndemographic natures of the customers. The findings revealed that the chief factorsrndetermining customers’ bank selection are: “Convenience” “Reliability” and “Servicernprovision” for the entire customers. On the reverse, the least three important factors of bankrnselection for customers are “Product Assortment” “Reputation” and “Recommendation fromrnfamily and friends”. In addition this study also revealed that there is a significant differencernbetween the demographic characteristic of respondents and their bank selection process.rnKeywords: Bank Selection Criteria, Customers, Banks, Banking Service

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