Abstract:
This study made its focus on identifying the key factors affecting on customers of banking
industry to choose one bank over the other, and it is conducted in Addis Ababa on ten selected
banks operating around Mercato Area. Data were collected using self-administered
questionnaires to a sample of 384 of the selected Banks customers. The response rate of
respondent was good (97.4%) which is valid on importance of seven selection criteria. Mean
analysis was applied to rank the most important determinants of bank selection, and the
collected data were analyzed through SPSS version (20) through descriptive and inferential
statistical tools such as mean, percentage, ANOVA, correlation and multiple linear regressions
were used to analyze collected data. The result regression model of the study shows that the all independent variables explain 67% variability on bank selection decision. The findings revealed
that; service quality and availability factors, corporate citizenship of banks factors, technology
and digital banking factors, promotion factors, financial performance factors, and image and
reputation factors have a significant and positive effect on bank selection decision and in short
all independent variables included in this study were sufficiently explained the dependent
variable implying that the management of banks should give especial emphasis to the quality
they offer to their customers, the skillfulness of their staff ,make their technology and digital
banking channels timely and efficient ,and by the same level they should give focus at working on
community based activities through public relations.
