FACTORS INFLUENCING CUSTOMERS’ BRAND LOYALTY IN ETHIOPIA’S BANKING INDUSTRY

Abstract

The study was carried out on the factors influencing customers’ brand loyalty. The study was aimed at evaluating customers’ brand loyalty status and identifying its determinants. To realize this objective explanatory research design was used with the support of descriptive and multiple regression analytical techniques. From the customers of the bank, 290 were selected using purposive sampling technique. Questionnaires were administered to collect the primary data. Findings of the study indicate that loyalty status of the customers is fragmented in to hard-core loyalty, split loyalty, shift loyalty and switching loyalty statuses with more inclination on the first and second category of loyalty statuses. It also reflects that distribution, promotion, reputation, satisfaction, and tangible benefits are the predictors of customers’ brand loyalty. Bank management should stick on these determinants of loyalty with the emphasis on the most significant predictors, i.e., distribution and promotion.
Keywords: Customers’brand loyalty, bank, determinants of loyalty, distribution, promotion