Analysis Of The Relationship Between Customers Bank Selection Factors Satisfaction And Loyalty In The Case Of Selected Banks In Ethiopia

This paper deals with the analysis of customers’ bank selection factors, customer satisfactionrnand loyalty. The purpose of the study was to find out the impact of customers’ bank selectionrnfactor on customers’ satisfaction and loyalty. Accordingly, five factors were proposed thernfactors identified were: Product Variety, Service Quality, Reputation, Physical Appearance andrnAccessibility. The research models were composed of five independent v ariables and tworndependent variable. Namely; Product Variety, Service Quality, Reputation, PhysicalrnAppearance, Accessibility and Customer Satisfaction & Loyalty respectively.rnTo this end, a structured 5-point Likert scale questionnaire-based survey is employed to collectrndata. For the customers of eight commercial banks found in Addis Ababa 400 questionnairesrnwere distributed and 326 (81.5 %) were returned back for analysis. The relationship and impactrnof the factors was analyzed using Pearson correlation and multiples regression. Descriptivernstatistics and sample t-test also conducted in the research through the aid of Statistical Packagernfor Social Science version 20.0 software.rnThe results show that, Service Quality, Reputation, Physical Appearance and Accessibilityrnpositively influence Customers’ Satisfaction at significant level. The other dependent variablernCustomer Loyalty is significantly influenced by the factors Product Variety, Service Quality,rnReputation and Accessibility. The leading factor that most contribute for both customers’rnsatisfaction and loyalty of bank customers is Reputation. And also according to the researchrnfindings, Product Variety could not influence customers’ satisfaction significantly. For CustomerrnLoyalty the factor Physical Appearance could not influence significantly. The researcherrnconclude that except product variety for customers’ satisfaction and physical appearance forrncustomers’ loyalty all variables described above positively influence customers’ satisfaction andrnloyalty at a significant level.rnConsequently, the researcher recommend for the management of the banks to focus on the abovernstatistically significant factors in order to satisfy their customers’ as well to make them loyal

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