THE EFFECT OF MARKETING MIX ELEMENTS ON CUSTOMER SATISFACTION: A COMPARATIVE STUDY ON SELECTED COMMERCIAL BANKS IN GURAGE ZONE

Abstract

The function of bank marketing mix is to act more as an "enabler" than as a provider of services. The objective of the study was to determine the effect of marketing mix elements on customer satisfaction: a comparative study on selected commercial banks in Gurage zone. The survey, which comprised a sample of 311 respondents, provided the information for the study through questionnaire. Comparative study of the service marketing tactics (7Ps) used by 3 private sector banks and 1 public sector banks in Gurage zone, Ethiopia. Moreover, both primary and secondary data were used in this method of descriptive analytical based approach study. The correlation analysis shows that there is positive and significant relationship between the marketing mix and customer satisfaction. The regression's findings showed that the R square value 0.707, this demonstrates that 70.7% of the variance in customer satisfaction can be attributed to the marketing mix. Descriptive statistics of marketing mix elements, customer satisfaction levels, reliability tests, correlation analysis, and regression results, with a focus on comparative insights. The descriptive result of the study indicates Awash Bank led in customer satisfaction due to strong People and Process performance. CBE lagged due to high service charges and slow processes. NIB struggled with loan accessibility and complaint resolution. BoA performed moderately but faced technology-related complaints. The study recommended the need for the Bank to continue to improve on these significant strategies as well as improving on other strategies that could attract, meet and exceed customer expectations such as enhancing transaction process flow, loan accessibility and providing the latest technological innovations to ensure error free transactions.