| dc.description.abstract | This study was conducted with the objective of finding out the factors that determine
brand loyalty to commercial banks and also to rank these factors in order of their
importance. The focus of the study was the Westlands area of Nairobi.
To achieve the above objective, a sample of 154 customers was used and questionnaires
were administered to the respondents. The questionnaire had structured Likert scale
questions. Data collected was analysed using percentages, means and standard
deviations. Ranking was also done. Factor analysis was done to reduce the variables and
determine interrelationships.
Analysis of the data indicated that there were many factors that customers considered
important in their decision of where to bank. After carrying out factor analysis on the
variables, nine factors emerged and the variables that customers considered important
were fitted into these nine factors.
When ranking was done, prompt service emerged as the most important factor.
Employees‟ willingness to help, location of the bank, operating hours, and availability of
ATM outlets, were other factors ranked very highly. From these factors, one can argue
that customers want to be served fast and at convenient locations. They also want to deal
with employees who appreciate them and treat them with courtesy.
The study recommends that banks need to understand their customers in terms of age,
level of education, level of income and marital status in order to know what the different
categories of customers want and hence give it to them.
It is also recommended that banks should try to improve most of the factors that were
brought out by the customers as important in their decisions. It is important that the banks
maintain competitive bank charges. As such, it becomes necessary for the banks to
manage their costs well. The banks should also ensure that the employee- related factors
such as training, being courteous, ready to help should not be left behind. This is because
customers need to be treated well and served fast in order for them to remain loyal.
Lastly, it is recommended that banks keep researching in order to keep themselves
abreast with the dynamics of banking and customer loyalty. This is because it is always
much cheaper to serve loyal customers than to attract new ones. It is therefore
recommended that commercial banks try to take into consideration all the factors that will
turn their customers into loyal ones.
The small size of the sample (154) could have limited confidence in the results and this
might limit generalizations to other situations, although this depends on how the sample
was drawn. Another limitation would arise in that the study was on the commercial
banks in Westlands area of Nairobi. The banking behavior of people in Westlands may
differ from that of other people in other parts of Nairobi and also in rural areas. As such,
the results may not be generalized.
The study relied on convenience sampling, as far as respondents were concerned. This
may have an effect on the results. | en_US |
