“The Case of Determinants Customer’s Preference Decision Of Bank: The Case of Commercial Bank of Ethiopia Ambo Branch"

Abstract

Commercial Bank Ethiopia higher competition between banking sectors enforces these businesses to increase the level of customer satisfaction. The purpose of this research is to determine the factors affecting the preferences of customers’ decision bank to issue credit. Description and explanatory design otherwise quantitative and qualitative research approach employed. Using the Cochran formula, 384 people has been selected as samples 190. Primary and seconder source of data used. The data collection tool used open and close questionnaire filled by customers of Commercial Bank Ethiopia and interviews were made with the management person. The Pearson correlation used to see the relationship between the variables and multiple linear regression analysis was also carried out to determine the effect of the independent variables on dependent variable. The multiple linear Regression analysis results showed that the seven independent variables namely service quality, technology and image and strategy had association significance. The results indicate that financial factor have the highest priority among the factors affecting the preferences of customers decision bank. In addition, the technology factors, behavioral and altitude factors, physical factors, quality service and security are placed after financial facilities, respectively. According to the allowance of the criteria of customer preferences decision bank to issue credit and major determinant of customer preference of decision bank in case commercial Bank of Ambo branch.