Bank Customers Loyalty:A Case Study of Birhan International Bank (BIB), Ambo Branch, West Shoa Zone, Oromia Regional State, Ethiopia

Abstract

During the past decade, the financial service industry has undergone drastic change and intense competition in Ethiopia. In increasingly competitive markets, being able to build customer loyalty is seen as the key factor in winning market share and developing a sustainable competitive advantage. It should be imperative to apply the modern innovative marketing strategy to the banking industry in Ethiopia that focuses on keeping and improving current customers rather than acquiring new customers. The objective of this study was to identify factors that influence customer loyalty in banking industry of Ethiopia. In order to achieve the aim of this study the researcher applied both descriptive and explanatory research design. The researcher selected BIB based on special cases that was most of customers complain the bank and 332 questionnaires were distributed to respondents but only 274 retuned and used for analyze data. The data gathered from respondent analysis was done using the SPSS software program. The main finding of study shows that commitment, customer satisfaction and trust have positive and a significant influence in determining customer loyalty. Therefore, managements in banking industry specifically in BIB should focus on the determinants of customer loyalty.

Keywords: Customer loyalty, Perceived quality, Customer Satisfaction, Switching cost, Trust &Commitment.

DOI: 10.7176/EJBM/12-35-04

Publication date: December 31^st 2020