DETERMINANTS OF CUSTOMERS’ BANK SELECTION DECISION: A CASE OF GONDAR TOWN OF ETHIOPIA
Abstract
The study used descriptive statistics and multinomial logistic regression model (MLRM) to measure the level of relationship between the dependent variables of each of the five commercial banks selection decision and the determinant factors. Results of the multinomial regression model for the total sample indicated that gender, age of respondents, levels of education, types of employment, friendly / pleasing manners of staffs, ATM service provision, numbers of counter windows, speed, service quality, external appearance, sitting arrangement total asset of banks, safety of funds, secure felling, numbers of branches and proximity of the bank to home/workplace were the significant factors on customers' bank selection decision. Factors that have highly significant effect on customers' choice of banks should also be given more attention to be preferable in the competitive banking industry. The five banks with 156 sampled customers might not represent to generalize about the all thirteen banks operating in the town. Therefore, it could arrive at a better result if one conducts the study by taking all banks with large sample sizes including Money transfer customers in different areas.
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