Factors influencing customers’ choice of banks in Tanzania

This study was done to assess factors influencing customers’ choice of banks in Tanzania. It was as cross sectional study which used a structured questionnaire for data collection. Data from 92 respondents was analyzed using confirmatory factor analysis, discriminant analysis and multiple regressions. Findings show that customers were influenced by the following factors in their order of importance, the financial stability and the size of the bank, loan aspects, technology and security, service availability, coverage, and marketing/promotion. Moreover results show that there is a relationship between age, gender and choice of the banks as perceived by the bank customers. The study concludes that that various strategies will influence customers’ choice differently. Banks need to consider the most important factors which could drive customers and attract or/ and retain them. They have to consider their stability, loan aspects and technology and security as prime strategy to retain and attract customers. Furthermore the marketing/promotion strategies are consequential given the former are well addressed. Lastly most of the factors influencing customers choice are undifferentiated among customers’ attributes save for gender and age of the customers.