THE DETERMINANTS OF CUSTOMER SATISFACTION AND RETENTION IN COMMERCIAL BANK OF ETHIOPIA: ADDIS ABABA BRANCHES

Abstract

This research aimed at finding out the determinant of customer satisfaction and retention in Commercial Bank of Ethiopia. The primary data was collected by a means of questionnaire. A total of 384 questionnaires were administered to customers of CBE in ten branches and 349 questionnaires were returned and usable for a comprehensive empirical analysis. Both descriptive and inferential statistics have been used to find mean score, to test hypothesis, to investigate research problem, objective and questions. The study had found variables that can determine customer satisfaction and retention in commercial bank of Ethiopia. Three variables are regressed with the dependent variable, i.e. Customer satisfaction; these variables include Service Quality, Price and Image and Reputation. Multiple Regressions test was used to test the effect of service quality, corporate image and price on customer Satisfaction and customer retention. In addition to that, Hierarchical Regression Model test was used to test the mediating effect of customer satisfaction on the relationship between service quality, corporate image, and price towards customer retention. The results depicted that there was significant positive relationship in between service quality and customer satisfaction and customer retention. However, the other determinants of customer satisfaction that are price and image and reputation have positive association with customer satisfaction and reputation