The factors that influence the choice of banks by customers – A case study of Makola community
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Date
2011
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Abstract
Initial customer attraction has become essential in the Ghanaian banking industry as a result of the keen competition now prevailing in the sector giving rise to high customer defection. Bank Managers are thus in a fix as to exactly what to focus on in their bid to attract customers. Consequently, the identification of factors deemed important to potential bank customers is a crucial step towards winning the battle. This research therefore set out to investigate the factors that are considered important to potential customers when they are choosing a bank. Data was obtained from business and other working people in the Makola area via a questionnaire using simple random sampling. A structured questionnaire containing 20 bank choice factors was designed and administered to 196 respondents to measure factors deemed most important out of which 188 responded. Data was analyzed using Microsoft Excel 2007. Closeness of bank branch to workplace or residence, friendliness of the personnel and ATM were chosen as the most important factors in choice decisions. Respondents selected aadvertising and transactional cost as having the least influence on people who place high value on time. Similarly, it was revealed that customers show high preference for some banks as against others based on banks unique characteristics. The research recommend that banks’ management pay attention to factors that have significant effect on the choice of banks; such as the nearness of bank branches relative to customers’ place of work or residence, friendliness of personnel, efficiency of service delivery and reputation.
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A Thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of Commonwealth Executive Masters in Business Administration,