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Understanding customer Decision-Making in retail banking: Insights from a selected retail bank in South Africa

Author

Listed:
  • Anos Chitamba

    (Faculty of Management Sciences, Durban University of Technology, Durban, KwaZulu Natal, South Africa)

Abstract

In the ever-changing realm of retail banking, it is essential for banks to grasp the elements that affect customer decisions to stay ahead in the competition. This study delves into customer preferences when selecting a bank, focusing specifically on Absa Bank in South Africa. By utilizing a case study approach, the research delves into the factors that influence customer behavior in the retail banking industry. Referencing the consumer decision model, the study investigates various stages such as problem recognition, information search, evaluation of options, purchase decision, and post-purchase assessment. Factors such as security, convenience, assurance, accessibility, and responsiveness are pinpointed as crucial aspects in bank selection. The study employs quantitative research techniques, conducting surveys with Absa Bank customers to dissect their preferences. Findings suggest that transaction fees, corporate image, bank coverage, and size play a significant role in influencing customer decisions. The study emphasizes the importance of addressing these customer-identified factors to deter customer attrition. Recommendations include conducting regular surveys to keep abreast of changing customer preferences and maintaining a competitive edge. The research offered valuable insights that can guide strategic decision-making and marketing efforts in the retail banking sector. Key Words:Consumer Decision Making, Retail Bank, Choice Factors, Absa Bank

Suggested Citation

  • Anos Chitamba, 2024. "Understanding customer Decision-Making in retail banking: Insights from a selected retail bank in South Africa," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 13(7), pages 261-268, October.
    • Handle: RePEc:rbs:ijbrss:v:13:y:2024:i:7:p:261-268
    DOI: 10.20525/ijrbs.v13i7.3604
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    References listed on IDEAS

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    1. Ahmed, Shakeel & Bangassa, Kenbata & Akbar, Saeed, 2020. "A study on trust restoration efforts in the UK retail banking industry," The British Accounting Review, Elsevier, vol. 52(1).
    2. Kang, Hyo Jeong & Shin, Jung-hye & Ponto, Kevin, 2020. "How 3D Virtual Reality Stores Can Shape Consumer Purchase Decisions: The Roles of Informativeness and Playfulness," Journal of Interactive Marketing, Elsevier, vol. 49(C), pages 70-85.
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