Factors in Choice of Retail Bank in Kenya
CRITICAL FACTORS CONSIDERED BY THE SMALL AND MEDIUM-SIZED ENTERPRISES IN THE CHOICE OF A SUITABLE RETAIL BANK
: A CASE STUDY OF NAIROBI REGION, KENYA.
By
MWANIKI DANIEL KAMAKIA
D53/0L/14070/05
A RESEARCH PROPOSAL SUBMITTED TO
KENYATTA UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF MASTERS OF BUSINESS ADMINISTRATION
2008
ABSTRACT
Retailing is traditionally defined in terms of the retailers’ place in the distribution of tangible products. However, the retail function may be more widely defined where the retailer concerned is involved not only in the provision of product distribution services but also in the management and provision of financial services. Retailers are rediscovering the impact financial services may have on organizational success. That is, they are increasingly recognizing the direct contribution that financial services may make to profit margins and the indirect benefits which may accrue through increased customer loyalty.
This paper attempts to analyze the factors that affect the choice of customers of a suitable retail bank. The study involves a survey of 1000 bank customers using questionnaire as the research instrument, augmented with informal interviews of the customers and also makes thorough use of the information available on the internet. In the study, the authors have tried to identify various factors and also analyzed as to which of these factors exert the greatest, moderate and relatively lower influence as choice criteria. It is an attempt to study the consumer behavior with respect to the people’s choice of retail banks. Efforts are made to dwell deep in the psychology by talking to the customers surveyed, wherever possible. The 15 different factors that could be identified, approximately in the order of their importance, are (1) Safety of Deposits, (2) Size and Strength, (3) Accuracy, (4) General Service Quality, (5) Speed of Delivery, (6) Proximity, (7) Security of
: A CASE STUDY OF NAIROBI REGION, KENYA.
By
MWANIKI DANIEL KAMAKIA
D53/0L/14070/05
A RESEARCH PROPOSAL SUBMITTED TO
KENYATTA UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF MASTERS OF BUSINESS ADMINISTRATION
2008
ABSTRACT
Retailing is traditionally defined in terms of the retailers’ place in the distribution of tangible products. However, the retail function may be more widely defined where the retailer concerned is involved not only in the provision of product distribution services but also in the management and provision of financial services. Retailers are rediscovering the impact financial services may have on organizational success. That is, they are increasingly recognizing the direct contribution that financial services may make to profit margins and the indirect benefits which may accrue through increased customer loyalty.
This paper attempts to analyze the factors that affect the choice of customers of a suitable retail bank. The study involves a survey of 1000 bank customers using questionnaire as the research instrument, augmented with informal interviews of the customers and also makes thorough use of the information available on the internet. In the study, the authors have tried to identify various factors and also analyzed as to which of these factors exert the greatest, moderate and relatively lower influence as choice criteria. It is an attempt to study the consumer behavior with respect to the people’s choice of retail banks. Efforts are made to dwell deep in the psychology by talking to the customers surveyed, wherever possible. The 15 different factors that could be identified, approximately in the order of their importance, are (1) Safety of Deposits, (2) Size and Strength, (3) Accuracy, (4) General Service Quality, (5) Speed of Delivery, (6) Proximity, (7) Security of
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