Effects of Socio-Cultural Factors on Consumer Choice of Commercial Banks: A Case of Kenya Commercial Bank in Nakuru Town
Journal of Finance and Accounting
Volume 3, Issue 1, January 2015, Pages: 1-9
Received: Feb. 4, 2015; Accepted: Feb. 13, 2015; Published: Feb. 25, 2015
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Authors
David Kipngetich Chepkangor, DepartmentofEducationandExternalStudies,UniversityofNairobi,Nairobi,Kenya
Elias Kimutai Rotich, DepartmentofEducationandExternalStudies,UniversityofNairobi,Nairobi,Kenya
Quinter Omware, DepartmentofEducationandExternalStudies,UniversityofNairobi,Nairobi,Kenya
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Abstract
Customer choice of bank is an important element of banking strategy in today’s increasingly competitive environment. Bank management must identify and improve upon factors that can increase customer retention. There are factors that influence customer choice of banks as customer still shift from one bank to another and since these factors are several and varied. Examples of such factors are the socio-cultural factors. This study aims to investigate the influence of socio-cultural factors on consumer choice of commercial banks in Nakuru Municipality. Nakuru municipality currently has an establishment of over twenty four banks; these banks have and continue to rely on the attrition of customers from other existing banks and also sourcing for new ones in the market. The research relied on the case of Kenya Commercial Bank in Nakuru municipality. This branch was chosen based on the fact that it has been in existence in Nakuru market for a period of over twenty years and now has a large customer base. In order to collect the required data the population of the study comprised of 396 respondents on whom questionnaires were administered. Systematic random sampling was employed where by each of the tenth customer on the queue was given a questionnaire to complete and return. The Questionnaire was piloted so as to improve its validity. The collected data was coded and analyzed by the aid of Statistical Package for Social Scientists and Microsoft excels computer software and presented in tables and a narrative summary. From the findings, consumer choice of a bank is affected by socio-cultural factors. Culture, sub culture, and group’s influence consumer choice of a bank with a low effect. Personality, lifestyle and family have a very low effect on consumer choice of a bank. Customer service, availability of loan and convenience also affect consumers’ choice. The study recommends that socio-cultural be considered in making decisions concerned with attraction and retention of customers.
Keywords
Socio-Cultural Factors, Consumer Choice of Commercial Banks, Non-Governmental Organizations, Nakuru Town
To cite this article
David Kipngetich Chepkangor, Elias Kimutai Rotich, Quinter Omware, Effects of Socio-Cultural Factors on Consumer Choice of Commercial Banks: A Case of Kenya Commercial Bank in Nakuru Town, Journal of Finance and Accounting. Vol. 3, No. 1, 2015, pp. 1-9. doi: 10.11648/j.jfa.20150301.11
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