FACTORS DRIVING CUSTOMER RETENTION IN ETHIOPIAN COMMERCIAL BANKING: EMPIRICAL INVESTIGATION OF COMMERCIAL BANK IN ETHIOPIA
DOI:
https://doi.org/10.29121/shodhkosh.v7.i12s.2026.8379Keywords:
Customer Retention, Service Delivery Quality, Consumer Satisfaction, EthiopiaAbstract [English]
This empirical investigation analyzes factors influencing customer retention behaviors within Ethiopian commercial banking specifically examining Commercial Bank of Ethiopia (CBE) operations. Employing quantitative methodology, we collected data from 385 CBE account holders distributed across five major Addis Ababa branch locations through structured survey instruments. Our analytical approach utilizes structural equation modeling combined with multiple regression techniques to assess interconnections among service delivery quality, consumer satisfaction, organizational trust, value perception and customer retention behaviors. Analysis reveals service delivery quality substantially influences consumer satisfaction (β=0.542, p<0.001) subsequently affecting retention behaviors (β=0.487, p<0.001). Organizational trust demonstrates the most pronounced direct retention impact (β=0.523, p<0.001) followed by value perception (β=0.368, p<0.001). Findings emphasize dependability, responsiveness and empathy as crucial service delivery elements shaping customer retention in Ethiopian banking contexts. This research addresses existing knowledge gaps concerning retention dynamics within emerging African financial markets and delivers practical recommendations for banking executives seeking to strengthen customer maintenance strategies.
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Copyright (c) 2026 Daniel Teshome Alemayehu, Dr. Arvinder Singh Chawla, Dr. Vijayendra Srivastava
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