| dc.description.abstract |
The general objective of this study is to examine the determinants of customer retention in
Ethiopian commercial banks in the case of Bahir Dar branches with a view of the local banking
industry market context. To attain this objective five factors namely quality customer service,
trust, customer satisfaction, switching cost, and customer relationship were considered as
predictors for the analysis of the study based on the review of related literature. Explanatory
research design and quantitative approach were employed to analyze data. The hypotheses
were tested on a sample of 366 out of 384 respondents of commercial banks customers giving a
valid response of 95.3%. The data collection process was done using a self- administered
questionnaire filled out by customers and it has taken place in different branch premises of the
selected banks. The statistical package for social science (SPPS) V.26 .was used to analyze the
data collected. Reliability analysis, correlation, and regression analyses were used to analyze
the data. Based on adjusted R2 of the study independent predictors explain 67.9% of the
variation in customer retention. Besides all independent variables (quality customer service,
customer satisfaction, customer relationship, Trust, and switching cost have a significant
correlation with the dependent variable “customer retention. The results of regression analysis
also showed that all predictors have a significant influence on customer retention. In this case,
trust, customer satisfaction, and switching costs were the major predictor of customer retention
than the other two independent variables. Given these findings, recommendations were
forwarded to the management of banks to focus and have in-depth insights on predictors of
customer retention to develop and implement the appropriate policies and procedures to
enhance the retention of their existing customers. |
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