Abstract:
The emergence of new processes and technologies, in most financial institutions have made them to understand each customer better than ever before and are choosing with whom to do business and how to manage customers’ behaviors and attitudes. The purpose of the study was to establish the effects of technology adoption on customer loyalty in commercial banks. The study objectives were to determine effects of reliability on customer loyalty, to assess the effects of responsiveness on customer loyalty and to evaluate effects of accessibility on customer loyalty within banks in Uasin Gishu County. The study was guided by Systems Theory, Diffusion of Innovation theory and theory of reasoned action (TRA). The study adopted descriptive survey design and targeted 8635 customers, 27 branch managers, 54 head of departments. A sample size of 449 respondents was used. It comprised of; 368 customers determined using Krejcie and Morgan (1970) table, 27 branch managers and 54 head of departments’ purposively selected. Data was collected using questionnaires.. The study used the expert opinion method to measure the validity of the research instruments. Test re-test method was used to test the reliability. A cronbach alpha of 0.964 was obtained which confirmed the reliability of the research instruments. The data collected was analyzed using Statistical Package for Social Science (SPSS 21.0). The data was edited, organized, analyzed and interpreted using descriptive statistics (percentages, mean and standard deviation) and inferential statistics. The inferential statistics Analysis of Variance (ANOVA) was used to test the significance of the regression model. Further multiple linear regression models was used to determine the change in dependent variable explained by the effect of independent variables of the study, this gave a R2 value of 0.770 The study thus indicated that 77.0% variance of the dependent variables are explained by the effect of independent variables. Data was presented in form of tables and chats. The findings of the study indicated that all the three predictor variables (reliability, responsiveness and accessibility) showed there was statistical significant effect on the dependent variable (customer loyalty). The study recommended that, commercial banks should ensure that the elements of technology adoption such as; reliability, responsiveness and accessibility are put in place for customer loyalty to be achieved. It is further recommended that a similar study be conducted to find out how other factors affect customer loyalty in commercial banks and also duplicate the topic in other regions in the country. Finally, the study will be of benefit to the policy makers, community and academicians.
