Determinants of Customer Bank Selection: The Case of Ambo City

Abstract

The central objective of this study was to examine determinants of customers’ bank Selection decisions in the case of Ambo City. Through a non-probability convenience sampling technique selected 400 samples from total Target population. In this study mixed approach is used. This study also used both descriptive and explanatory research designs. Primary and secondary data were consumed to conduct this Study. This employs a cross-sectional survey design and mainly conducted based on data Collected from questionnaires and interviews. Nine factors, including 18 attributes on a five point Likert scale were used to measure the customer bank choice. The data was analyzed by using descriptive statistics and inferential statistics. Descriptive statistics involve the help of frequencies and mean. Inferential statistics are important for predicting or estimating the values of one variable with the help of the value of another variable, concerning the different levels of each independent variable and design to show the relationship between the variables. Data was analyzed using descriptive statistics, regressions processed by SPSS version 21.0. With the help of Statistical Packages for Social Scientists (SPSS v.21), data was analyzed by using descriptive and Inferential statistics. Multiple linear regressions was used as a model. The findings indicated that ATM service, number of Branches, E-banking, safety of funds, provision of customer-based service, providing of loan, and interest. While service charges and initial deposit are insignificant factors of customers’ Bank selection decisions. The recommendation for this study was that the banks should focus on increasing the numbers of branch and ATM machines. Additionally raise customer awareness of safety of funds, E-banking, as well as improve the interest, enhance skill and knowledge of Staff relation with loan provision, the provision of more customer-based service.