FACTORS AFFECTING CUSTOMER LOYALTY: THE CASE OF COMMERCIAL BANK OF ETHIOPIA

Abstract

The primary goal of this study is to examine the factors that influence customer loyalty at the Commercial Bank of Ethiopia. To achieve this aim, both descriptive and explanatory survey designs were implemented. The study focused on customers of commercial banks in Addis Ababa, and the sample size was 384 respondents. Probability sampling, specifically stratified sampling, was employed. Data collection was carried out through surveys utilizing questionnaires. The validity of the research instruments was confirmed by the advisor and external experts, while the reliability was measured at 0.901 using Cronbach’s alpha. The data obtained from the questionnaires were analyzed quantitatively through descriptive and inferential statistics, with regression analysis and correlation conducted by SPSS version 20. The key findings of the investigation indicate that commitment, customer satisfaction, brand image, and customer service are factors affecting customer loyalty at the Commercial Bank of Ethiopia. Furthermore, the study found a statistically significant and positive relationship customer satisfaction, commitment, brand image, and customer service, and customer loyalty at the bank. The study recommends that the Commercial Bank of Ethiopia provide timely services, promote honest communication, ensure service safety, adhere to quality standards, offer personalized services, and follow up on service delivery.