FACTORS INFLUENCING CUSTOMER SATISFACTION AND BANK CHOICE OF ST. MARY’S UNIVERSITY GRADUATE STUDENTS

Abstract

Customers’ satisfaction and bank selection dynamics had been given considerable attention by researchers. A lot of studies related to customers’ satisfaction and bank selection decisions have been conducted in the West. A few studies related bank selection decision or criteria of the general population have been conducted in Ethiopia. No known research has been conducted about university or graduate students’ bank choice criteria in our country. This study seeks to fill this gap. Understand critical factors that affect the bank selection decision and satisfaction of graduate students. Therefore, the general objective of this study is to determine factor influencing customer satisfaction and bank choice of graduate students. This research used both descriptive and explanatory designs. The population in this study is 2000 graduate students of St. Mary’s University. The study used convenient sampling technique and the sample size was 340 graduate students. The research employed primary data and collected through self-administered closed-ended questionnaires. The Information collected from students were analyzed quantitatively through percentage, weighted mean, correlation and regression techniques using SPSS version 20. In order to determine those factors which influence customers’ satisfaction and bank choice as well as their level of impact, eight factors (quality service, bank appearance, influence, promotion, cost and benefit, bank staff, bank technology and convenience/accessibility) are taken in to consideration. In this regard the R square value depicts that 55.1% of the variation on the dependent variable could be explained by the eight regressors. On the other hand from the above stated eight variables five of them (quality service, bank technology, bank appearance, promotion, and convenience/accessibility) are found to be significant. And the rest 3 variable (cost and benefit, bank staff and influences) are found insignificant to take as determined factor of customers’ satisfaction at 5% level of significance. Based on the mean score ranking, Convenience/Accessibility is the most important factor, followed by Bank Staff (mean Service Quality, Banking Technology, Cost and Benefit, Bank Appearances, Promotional Activity. However, Influences of others are the least important factor in selecting bank and bank services by graduate students of St. Mary’s University.