Factors affecting consumer brand loyalty among tier one and tier two Commercial Banks In Kenya
Banking industry is exponentially growing in Kenya due to investment and savings needs that Kenyans have. Creating brand loyalty to ensure constant flow of customers is very important. Banking industry is complex and requires understanding of customer needs and meeting them at all times. This study therefore examined factors affecting brand loyalty among tier one and tier two commercial banks in Kenya. The objective of the study was to determine the factors affecting loyalty among customer loyalty among tier one and tier two commercial banks in Kenya. The study adopted a cross sectional descriptive research design. A census was done. Data was collected through questionnaires which were filled by the customers of the banks. The data collected was analyzed using SPSS and was presented using Tables. The findings of the study revealed that location of the bank, availability of mobile and internet banking, availability of ATM services and ability to meet and solve customer queries affected customer loyalty to a great extent. It was further revealed that customers have expectations before joining their desired bank and once these expectations are met by their banks, they continue banking using the same bank due to the sense of satisfaction obtained. The study showed that minimum opening and operating balances in accounts, availability of various products that suited customer needs were key issues that influenced customer loyalty. This study concluded that reasonable bank charges and interest rate, well trained and knowledgeable employees, friendly employees, availability of mobile and online banking facilities, availability of various products that suited customer needs, enough lighting and ventilation in the banking hall, long opening hours, customer service by employees, minimum opening and operating balances in accounts and ability to meet and solve customer queries affect loyalty of bank customers to a great extent. The study recommended that banks should incorporate mobile banking, make ATM services available to everyone and open branches all over the country so as to prevent losing their customers to other banks. Commercial banks ought to open branches countrywide so as to be able to attend to their customers wherever they are and acquire loyalty from the customers. They also ought to introduce quality mobile banking services so as to make banking easy for their customers. ATM services should be readily provided to the customers to enhance convenience and easy access at all times. The adoption of reasonable bank charges and interest rates will translate to more customers joining banks and subsequent retention in those banks. This study also recommends that banks ought to employ well trained and knowledgeable employees so as to serve customer needs professionally.