The development of a scale measuring consumers' selection of retail banks in Ghana

Ghana, one of the fastest growing liberalized developing economies in Africa, has, in recent years, established a nationwide rural bank system and has witnessed an increase in the entry of foreign retail banks. Although there are increased activities and interest about bank offerings and bank-customer relationships in Ghana (Dadzie, Akaah, and Dunson, 1989), to date, researchers have overlooked the factors underpinning consumers' selection criteria of retail banks in Ghana (Owusu-Frimpong, 1999). This exploratory research complements extant studies on retail bank selection by developing a scale providing insights into consumers' selection of retail banks in Ghana. The results identify three key factors, namely, "competence," "recommendation by parents," and "free banking/no bank charges" that are important in the decisions and selection of retail banks. The reliability and validity of the scale were assessed using exploratory and confirmatory factor analyses. Conclusions, managerial implications, limitations, and future research directions are discussed.