Factors Influencing Customers’ Bank Selection Decision In Kirkos Sub City, Addis Ababa, Ethiopia

Abstract

The study focuses on factors influencing customers‟ bank selection decision in Kirkos sub city, Addis Ababa, Ethiopia. Customers bank selection decisions are the determinant issues which customers perceived as important in their choice of a bank develop and improve the existing product or service that is favored by the customers to retain and attract a new customer. It also gives the bank managers insight of factors that are important to consider in their marketing strategies. 400 residents of Kirkos sub city participated as a sample for the research. The primary data were collected through self administered Questionnaire. Data was analyzed using statistical package for Social science (SPSS) version 20. The finding reveals the chief factors influencing customer bank selection decision are: types of business, service charge, availability of service, service quality, Physical presence, E- banking, Accessibility and staff management, innovation, religious and owners‟ ethnic background. On reverse reputation, promotion, financial performance of bank, and income level of customer are the least factors influencing customers‟ bank selection decision. According to this finding, it is recommended that Service charge, availability of variety of service, E- banking, Physical presence, Accessibility of service and staff situations, innovation, religious, and owners‟ ethnic group are must managed in strategic plan of all banks in Ethiopia.