Determinants Of Credit Customers Loyalty (the Case Of Commercial Bank Of Ethiopia)

Analyzing the determinant factors that contribute for customers to remain loyal at CBE helpsrnthe bank executives to identify and define the appropriate marketing strategies that arernneeded to retain the existing customers’. The basic objective of this study was to analyze therndeterminants of credit customers’ choice of banks by taking CBE as a case and therebyrnidentify the factors that make customer’s remain loyal to CBE. The study was conducted onrn176 sample credit customers from CBE and the necessary data was gathered through selfrnadministered questionnaire for credit customers and interviews made for CRMs. A multiplernregression model together with a factor analysis is employed in order to investigate the level,rnsign and magnitude of the effect. A non-probability convenience sampling was used and datarnwas analyzed using factor and ANOVA analysis techniques too. The empirical findings of thernstudy reveal that customer’s satisfaction, brand image and quality services are found to bernsignificantly and positively affect customer’s loyalty to the CBE. The factor analysis resultrnalso shows that business customers has statistical significance linkage with financialrnadvantage, credit service provision, location & convenience and accessibility, technologyrnaided services, image and reputation and promotion strategies are the major reasons forrncustomers’ choice of banks and has some managerial implications which are expected tornhave an impact on the marketing efforts of banks. Hence the management of the CBE shouldrnpay attention to these factors while designing strategies in credit areas.rnKey words: Determinant factors, Loyal Customers, Credit Customer, FinancialrnAdvantage, Bank selection

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