Factors Affecting Customers Brand Loyalty An Empirical Study In Ethiopian Private Banking Industry

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Customer loyalty is one of the most important issues organizations face today. Consideringrnhighly competitive, complex and dynamic environment of the banking industry together withrnslight differences which exist in financial products and services, brands become a keyrndifferentiator to enable the bank to gain a competitive advantage in the industry. Accordingly, itrnhas become increasingly important for the banks to identify the factors that keep their customersrnbrand loyal to them. Therefore, the present study focuses to comprehensively identify andrnmeasure the most important determinants of the brand loyalty in Ethiopian private bankingrnindustry. To meet the purpose of the study, Explanatory, cross sectional, quantitative surveyrnmethod is used. The population in this research consist only individuals who have experiencernusing banking services in any one of the private banks.. Considering the large population ofrnbank service users, a stratified random sampling method is used to collect data in view of timernand cost constraints and a sample size of 384 is selected from the defined target populationrnaccordingly. The data collection process is done using self-administered questionnaire filled byrncustomers and it has taken place in different branch premises of the selected banks. A five -pagernstandardized survey questionnaire was employed. Descriptive analysis, factor analysis,rnreliability analysis and correlation analysis are used for purpose of analyzing the data. Findingrnof factor analysis revealed that all the identified influences as true influences of brand loyaltyrnand most of the statements selected for each influence were indeed valid. The correlation studyrnshowed that there is a positive relationship between all of the variables considered under thernstudy. The percentages of responses for each question along with their respective mean valuernconfirm that influences culture, switching cost and relationship Propones are less importantrnfactors and they have week influence on Brand loyalty of banking customers whereas PerceivedrnValue, Customer Satisfaction, Brand Trust, Repeat Purchase and Involvement are the mostrnimportant factors and has a strong influence on Brand loyalty of banking customers. Given thernfindings, it is recommended that management should focus their managerial actions on the morernimportant brand loyalty influences first, once these render the best results, managerial input canrnfocus on those influences of lower importance.

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Factors Affecting Customers Brand Loyalty An Empirical Study In Ethiopian Private Banking Industry

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