E3 Journal of Business Management and Economics

E3 Journal of Business Management and Economics Vol. 2 (2) pp. 070-074, August 2011; © E3 Journals; ISSN 2141-7482

An evaluation of customer retention based on gender and age during critical cash crisis of 2008. A case study of commercial banks in Bindura

Abstract

The ability to retain customers in the face of stiff competition guarantees the success of a bank. In this study the authors sought to evaluate customer retention using the customer retention determinants: customer satisfaction, switching costs and future usage in the commercial banks from the customers’ point of view during the cash shortage period of 2008 in Bindura. A structured questionnaire was used for data collection with a sample size of 120 customers. The commercial banks used in the study were Agribank, Barclays and Standard Chartered. From each bank 40 respondents were interviewed. Judgemental sampling was used in selecting the respondents. The study found that majority of male and older customers were satisfied and they also regarded banks as having higher switching costs and for these reasons were less likely to change banks. The study recommends that banks should improve on communication, machines reliability and customer care. It also recommends that banks should improve customer satisfaction and switching costs amongst female and younger clientele.

Keywords: Keywords: Cash shortage; Commercial banks; Customer satisfaction; Switching costs