Determinants of Customers’ Bank Selection Decision in the Mfantsiman Municipality of Ghana

Godfred Bugyei

doi:10.7176/ejbm/12-28-03

Abstract

The prominence of financial institutions in the development of an economy is well established. In Ghana various reforms in the financial sector have made the Ghanaian banking industry an intensely competitive proposition. This study, investigated the determinants of customers’ bank selection decision in the Mfantseman Municipality in Ghana. A descriptive cross-sectional survey research design was employed for the study. Data was acquired using self-administered questionnaires from bank customers. Multinomial logistic regression statistical method was used to analyse the data. The findings disclosed a significant relationship between customers’ choice of bank and advertising, branding, distance to bank location and types of electronic product offered by banks. It was recommended that banks should embark on aggressive advertising campaign on the benefits of their products and services, improve upon their brand image and financial stability. Banks should also come out with more electronic products that are relevant to the changing needs of potential customers. Keywords: Selection Decision, Branding, Advertising, Location, Electronic Products, Banks DOI: 10.7176/EJBM/12-28-03 Publication date: October 31 st 2020

Highlights

Worldwide, communities and states have realised that baking is one of the pillars on which a nation’s development spins around
The study focused on four main variables: advertising, branding, location of banks and innovative electronic products offered by banks – and how they influence respondents’ bank selection decision
It can be concluded that branding, advertising, distance and electronic products had strong relationship with customers’ bank selection decision

Summary

Introduction

Communities and states have realised that baking is one of the pillars on which a nation’s development spins around. The increased competition resulting from decades of deregulation of the financial service sector meant that banks are faced with the task of differentiating their organizations and products as a means of attracting customers. Develin and Mckenchie (2008) assert that in the marketing of financial institutions, corporate branding is essential It is, crucial to understand how the brand is perceived by consumers and the impact it has on them (Kotler & Keller, 2009). Keller (2009) points out that advertising contributes more in the form of brand equity only when, besides brand recall, it produces favourable brand image and brand attitude It is, key for commercial banks to understand the determinants of customers’ bank selection decision so as to reduce the constraints of wealth maximization by the bank (Bramorski, Madan & Matwon, 2002)

Methods

Results

Conclusion