Factors influencing customers’ choice of bank in the Cape Coast metropolis

Abstract

Deregulation and various reforms in Ghana’s financial sector have made the Ghanaian banking industry an intensely competitive proposition. Due to such competitive environment, it has become crucial not just to attract every potential customer but also to develop strategies aimed at maintaining the existing customers. This study, therefore, sought to explore the factors that influence customers’ choice of bank in the Cape Coast Metropolis in Ghana. A descriptive cross-sectional survey research design was adopted for this study. Multi-stage sampling technique was employed. Data was obtained using self-administered questionnaires from 410 customers of five banks in the Cape Coast Metropolis. Multinomial logistic regression was used to examine the relationship between demographic characteristics, advertising, branding, distance to bank location, innovative products and customers’ choice of bank. The results revealed a significant relationship between customers’ choice of bank and the variables of interest including educational level, occupation, advertising, branding, distance to bank location and innovative products offered by banks. Therefore, the study recommends that, banks operating in the Cape Coast Metropolis should improve upon their brand image and reputation. Bank branches should be sited at areas such as business and market centers which have the propensity to attract potential and maintain existing customers. Banks should develop products that serve the needs of the average Ghanaian and also embark on intensive advertising campaign about the benefits of their current products and services to the general populace