| dc.description.abstract | Customer choice of bank is an important element of banking strategy in today's increasingly competitive environment. Bank management must identify and improve upon factors that can increase customer retention. There are factors that influence customer choice of banks as customer still shift from one bank to another and since these factors are several and varied, there is need to investigate the factors influencing consumer choice of commercial banks in Nakuru Municipality. Nakuru municipality currently has an establishment of over twenty four banks; 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.
The research relied on the case of Kenya Commercial Bank in Nakuru municipality. This branch was chosen based on the fact that it has been in existence in Nakuru market for a period of over twenty years and now has a large customer base. The objectives of the study were; how cultural, social, personal, and bank product factors assist in determination of consumers' choice of a commercial bank. In order to collect the required data the population of the study comprised of 396 respondents on whom questionnaires were administered. Systematic random sampling was employed where by each of the tenth customer on the queue was given a questionnaire to complete and return.
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 A TM efficiency/technology also has high effects on consumer choice of a bank. Culture, sub culture, and group's 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. Customer service, availability of loan and convenience also affect consumers' choice. The study recommends the bank embraces customers of 17 years and below and also adopt marketing policy to take care of competition. | en_US |
