The factors influencing customers choice of banking services in Tanzania.
No Thumbnail Available
Date
2015
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Mzumbe university
Abstract
This study presents the most important factors influencing customers in respect of selecting a bank by customer in Tanga City council in Tanga Tanzania. In particular, it finds those criteria, which have become significantly important in motivating the choice. There are more than five banks in Tanga which offer different services to the people of Tanga. These banks have and continue to rely on the attrition of customers from other existing banks and also sourcing for new ones in the market. This calls for a need to improve customer retention techniques by establishing the factors that influence a consumer choice of bank in the banks to avoid the existing customers from switching to competition. Both quantitative and qualitative methods were used in this study, responses given by 200 customers in Tanga City from different occupation (students, other employees, bank staffs and businessmen), was employed in the analysis. A non probability convenience sampling was used and data was factor analyzed to reduce the total variables in to manageable way. The Questionnaire was piloted so as to improve its validity. The collected data was coded and analyzed by the aid of Statistical Package for Social Scientists and Microsoft excels computer software and presented in tables and a narrative summary. From the findings, consumer choice of a bank is very highly affected by economic factors. The amount of income of an individual determines the amount he or she has to save in a bank. Age and lifecycle stage, role and status and social class have a high effect on consumer choice of a bank. Easy account opening procedures, operating balance of an account and the ATM efficiency/technology also has high effects on consumer choice of a bank. Culture, sub culture, and groups influences consumer choice of a bank with a low effect. Personality, lifestyle and family have a very low effect on consumer choice of a bank.
Description
A dissertation submitted to Mzumbe University as a partial fulfillment of the requirement for the award of Master Degree of Business Administration(MBA-CM) Mzumbe University.
Keywords
Banking behaviour, Customer choice, ATM technology
Citation
APA