Browsing by Author "Essandoh, Joseph Ernest"

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    Uncovering the invisible drivers of satisfied customers’ defection -a case study of First Allied Savings and Loans Limited
    (KNUST, 2011-08) Essandoh, Joseph Ernest
    The establishment of branches of banks of Nigerian origin saw a number of customers hitherto seen as satisfied and loyal customers of existing banks, defecting to the new banks. One of such institutions which suffered from these defections was First Allied Savings and Loans Limited. The question then arose as to what would propel a satisfied customer of a well established bank to defect to the banks of Nigerian origin. The purpose of the study was therefore to uncover the invisible drivers of satisfied customers’ defection in First Allied Savings and Loans Limited. Questionnaire and Focus group discussions were adopted as the method of data collection. Out of the population of 123, systematic sampling technique was used to select 80 for questionnaire administration. Purposive sampling technique was then used to select 21 customers for focus group discussions. The findings were that, the customers who defected to the banks of Nigerian origin were indeed satisfied. Some of the reasons given for their defection related to curiosity, insatiable desires to access loans, adventure, speculation, deception on the part of the new banks and lack of knowledge about the new banks. It was revealed that, when approached with respect and requested to come back, defected customers would oblige. It was further revealed that, defected customers carried no feeling of guilt. The study concluded that, satisfied customers of a bank can defect to a new one for many reasons. The study thus recommended among others that, information acquired through First Allied’s market intelligence in respect of its competitors be repackaged and presented to its customers in a way that would put First Allied in a better light before its customers. First Allied is to treat all its defectors with respect and pursue them till they come back.