FACTORS AFFECTING CUSTOMER BRAND LOYALITY IN WOLKITE PRIVATE BANKING SECTOR

Abstract

Customer loyalty is one of the most important issues organizations face today. Considering highly competitive, complex and dynamic environment of the banking industry together with slight differences which exist in financial products and services, brands become a key differentiator to enable the bank to gain a competitive advantage in the industry. Accordingly, it has become increasingly important for the banks to identify the factors that keep their customers brand loyal to them. Therefore, the present study focuses to comprehensively identify and measure the most important determinants of the brand loyalty in wolkite private banking industry. To meet the purpose of the study, statically descriptive, quantitative survey method is used. The population in this research consist only individuals who have experience using banking services in any one of the wolkite private banks. Considering the large population of bank service users, a simple random sampling method is used to collect data in view of time and cost constraints and a sample size of 99 is selected from the defined target population accordingly. The data collection process is done using self-administered questionnaire filled by customers and it has taken place in different branch premises of the selected banks. A three page standardized survey questionnaire was employed. Descriptive analysis, are used for purpose of analyzing the data. Finding of factor analysis revealed that all the identified influences as true influences of brand loyalty and most of the statements selected for each influence were indeed valid. The study showed that there is a positive relationship between almost all of the variables considered under the study. The percentages of responses for each question confirm that effect of culture, switching cost and relationship Propones are less important factors and they have week influence on Brand loyalty of banking customers whereas Perceived Value, Repeat Purchase Involvement are important factors and has a strong influence on Brand loyalty of banking customers but brand trust and customer satisfaction are the key factors. Given the findings, it is recommended that management should focus their managerial actions on the more important brand loyalty influences first, once these render the best results, managerial input can focus on those influences of lower importance.