CUSTOMER CHOICE

Abstract

The South African banking landscape has been characterized by changes since the late 1990’s. Within this environment this priority banking arena has also become highly competitive and this is driven by a limited n umber of available priority banking clients. The ability to innovate is seen as a highly competitive advantage by all the role-players within this sector. The purpose of this study was to investigate factors that customers felt were important in determining their choice of priority bank. The study focused on the existing clients of priority banks and investigated the factors that would have an effect on retaining them as clients of their current priority bank. A qualitative research methodology was empl oyed and made use of in-depth interviews as this allowed a more flexible approach to interviewing and also enabled the ability to probe a greater range of information in the interview process. The general consensus amongst those interviewed felt that cust omer service, characterized by personal interaction was deemed to be important as a means to retain priority banking clients by their institutions. In order to ensure that these institutions also provided flexibility to their clients, increased usability of their selfservice channels was deemed to be important. Advertising and sponsorship were acknowledged as harnessing the image of the brand and ensuring it remains dominant within clients’ mind space but it was evident that they had minimal influence to leveraging off as a source of competitive advantage