ABSTRACT
This research study was focused on consumer protection in the service industry in Abia State study of United Bank for Africa (UBA) was sampled to know, among other banks, how consumer protection policy could adjust to the ongoing issues on consumer protection in UBA. The method of data collection for this research was through the collection of primary data by using questionnaire and oral interview in which some members of the staff of the bank were interviewed. The major analytical tools used in this study include the ANOVA, Spearsman Rank Correlation and Difference of Means were been used in testing the hypotheses formulated for this study. Also secondary method of data collection through reviewing written books, publications and magazines was used. Based on the findings made in the course of the study, it was recommended among other things, that Government attention should be drawn to the need for the full implementation of consumer protection laws and prompt prosecution of offenders to serve as deterrent to others because a well-functioning consumer protection regime provides effective safeguards for retail service consumers while empowering consumers to exercise their legal rights and fulfill their legal obligations.
TABLE
OF CONTENTS
Title page i
Declaration ii
Certification iii
Dedication iv
Acknowledgements v
List of Tables vi
Table of Contents vii
Abstract x
CHAPTER
ONE
INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objectives of the Study
1.4 Research
Questions
1.5 Research
Hypotheses
1.6 Justification of the Study
1.7 Scope
of the Study
1.8 Limitation
of the Study
1.8 Definition of Terms
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Theoretical Framework
2.1.1 Consumer Rights Theory
2.1.2 Consumer Law Theory
2.2 Conceptual Framework
2.2.1 Consumer Protection
2.2.2 The Role of the Consumer
2.2.3 Consumer Protection in Less Developed
Countries
2.2.4 Assessment
of the Banking Sector
2.2.5 Legal Foundation for Recognizing,
Implementing,
Overseeing and Enforcing
Consumer Protection
2.2.6 Code
of Conduct for Banks
2.2.7
Information on Customers
2.2.8 Advertising and Sales Materials
2.2.9 Notification
of Changes in Interest Rates and
Non-interest Charges
2.2.10 Bankruptcy
of Individuals
2.3 Brief
History of United Bank for Africa (UBA)
2.4 Empirical
Framework
2.4.1 Factors
that Encourage and Discourage Consumerism
2.4.2 Consumerism
Activities in Nigeria
2.4.3 Government
Activities in Consumer Protection
2.4.4 Agencies
in Consumer Protection in the Banking Industries
2.5 Summary of Literature
CHAPTER THREE
RESEARCH METHODOLOGY
3.1. Research Design
3.2. Area of Study
3.3. Method of Data
Collection
3.4. Population of the Study
3.5 Sample and Sampling Techniques
3.6 Instrument
of Data Collection
3.6.1 Validity and Reliability
3.6.2 Administrative
3.7 Method of Data Analysis
3.8. Model Specification
CHAPTER FOUR
4.1 Data Presentation and
Analysis
4.2 Test of Hypotheses
4.3 Findings and
Discussion
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION
AND RECOMMENDATIONS
5.1 Summary
of the Findings
5.2 Limitations
of the Study
5.3 Areas
of Further Research Interest
5.4 Conclusion
5.5 Recommendations
REFERENCES
APPENDIX
LIST OF TABLES
Table 4.1: Questionnaire Distribution and Retrieval
Table 4.2: Consumer Protection and Policies Adjustment
Table 4.3: Consumer Protection and Policies
Adjustments-Components of rs
Table 4.4: Adjustment of Policies for Consumers’ Right
Table 4.5: Computation of F-ratio
Table 4.6: Summary of ANOVA
Table 4.7: Impact (effect) of Constraints to
the Adoption of
Consumer Protection Policies in
Quality of
Service and Level of Consumer
Satisfaction
Table 4.8: Values for the Determination t
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Good
business relationships between commercial banks and the public are crucial for
the development of any country’s banking system. Needed are mutual trust and
confidence between banks and their consumers. A well-functioning consumer protection regime provides effective
safeguards for retail service consumers while empowering consumers to exercise
their legal rights and fulfill their legal obligations Brinkman (2004).
Financial
crisis highlights the importance of financial consumer protection for the long-term
stability of the global financial system. It is important to note that rapid
increases in the use of financial services have pointed to the need for
strengthened financial regulation and consumer education to protect and
empower consumers Eze (2012). In the
absence of strong financial consumer protection, the growth-enhancing benefits
of expanded finance may be lost or severely undermined. With so many
commercial banks offering the same products (services) to consumers,
competition has grown fiercely in the banking sector and the use of tools like
advertising, price (interest) adjustments, promotions and the like to sway
consumers and maintain competitive is on the increase.
Any
individual who purchases a product or service, for personal use and not
manufacturing or resale purposes is regarded as a consumer. A consumer is
someone who can make a decision of whether or not to purchase an item or engage
the services of a service provider, and someone who can be influenced by
marketing and advertisements. Any time someone purchases a shirt, car, or goes
to a bank, enrolls in a school, or purchases a plane ticket the person is making
that decision as a consumer. Web Finance Inc., (2012).
The
existence of many businesses is to having identified a specific need of a group
of people; meet this need in the most compelling way such that a specified
target market will be willing to exchange value equal to their perception of
the value that has been created for them.
Smith
(1909) is of the opinion that consumption is the sole end and purpose of all
production activities, and the interest of the producer ought to be attended
to, only so far as it may be necessary for promoting that of the consumer.
Nigerians
are unable to enjoy these rights and this has made consumers more vulnerable to
manufacturers and service providers, and the exploited consumers do not know
how to seek redress also worthy of note is the fact that the protection
agencies put in place do not function effectively because of issues such as
poor funding. Banguu-Ekellah, (2010).
Studies
done show that the legal and policy framework for consumer protection in
Nigeria is inadequate and largely underdeveloped, consisting mainly of
legislative provisions scattered in various pieces of legislation and
regulations Banguu-Ekellah, (2010).
There is
also no national policy on consumer protection to provide guidance for
consumers and the business community or a coordinated institutional framework
for policing consumer protection in Nigeria. Dowouna-Hammond, Atuguba, &
Nabila, (2006).
The gaps
identified in the legal and policy framework on consumer protection in Nigeria
include:
a. The absence of a comprehensive national
policy on consumer protection.
b. The absence of a coordinated
institutional framework for policing consumer protection.
1.2 Statement of the Problem
It is an
undeniable fact that in African countries like Nigeria, the development of
consumerism based on the desire to achieve the protection of consumer rights is
still far behind what is obtainable in Western countries. A perusal of the
print media through newspapers publishing news items on consumer grievances,
every week, draw our attention to the grievances by harassed and dissatisfied
consumers regarding annoyance and negligence caused to them as a result of
inadequate and insufficient services and unfair trade practices in the banking
sectors, but it is not so in other countries, consumers are well protected
especially in the banking sectors.
In many
cases consumers are not aware of their rights and as a result of this, many are
not aware that it is possible to seek redress and compensation for financial or
physical damages due to product (or service) failure.
In Nigeria for example, the banking sector is
experiencing great danger of consumer dissatisfaction. The consequence of this
is refusal to use banking services which has greater consequence on economic
development. Based on this work that studies consumer protection in the service
industry with selected banks as thrust.
1.3 Objectives of the Study
The board objective of the study is to examine consumer protection in
the service industry in Nigeria.
The
specific objectives include:
1. to
investigate how consumer protection policy has been adjusted to the ongoing
issues on consumer protection in UBA.
2. to determine the level of adoption of
policies that ensures that consumers have the rights to be
informed regarding the price, quality and quantity of financial services in
their exchange relationship.
3. to determine the constraints of the adoption of consumer
protection policies that affect the quality of services and level of consumer
satisfaction.
1.4 Research
Questions
The
following questions were considered on the study:
1. to what
extent do the Bank policies adjust to the ongoing issues on consumer protection
in UBA?.
2. to what extent do the level of adoption
of policies ensure consumers rights regarding the price, quality and
quantity of financial services in their exchange relationship?.
3. to what extent do the constraints to the adoption of consumer
protection policies affect the quality of services and level of consumer
satisfaction.
1.5 Research
Hypotheses
In this
course of study, the following working hypothesis were proposed and to help
guide this work.
Ho1: the Bank policies are not adjusted
significantly to the ongoing issues on consumer protection in UBA.
Ho2: the level
of adoption of consumer protection policies does not significantly ensure
consumers rights regarding the price, quality and quantity of financial
services in their exchange relationship.
Ho3: the
constraints to the adoption of consumer protection policies do not
significantly affect the quality of services and level of consumer
satisfaction.
1.6 Justification of the Study
The fact that this research work is surveying issues concerning consumer
protection in the service industry with United Banks for Africa (UBA) as focus,
the study will provide an understanding on where UBA stands today on the issue
of consumer protection from both the legal perspective and the consumer
perspective, it will provide new insight into this area of public concern and
also provide information on the way forward for creating a society more aware
of its consumer rights, and to contribute to new policy initiatives on consumer
protection in UBA, and it will provide data for the development of consumer
awareness programs.
1.7 Scope of the Study
This
research study is conducted in one of today’s most rapidly growing and
competitive Bank but is limited to United Bank for Africa (UBA) in Nigeria
using Abia State as the sample population of study. This study would be
identified as source of information which all the consumers can rely on.
1.8 Limitation of the Study
This
study covers the branch of United Bank for Africa (UBA). It covers the banks
department where the area of study is being focus.
Since the
consumer protection movement is still in its infancy in Nigeria the number of
research studies is very limited and the researcher developed the study mainly
on her investigations and interviews with the persons concerned.
The limitation to the exercise
includes time that is used to exploit information from different branches e.g
money that can be used to obtain viable information. Infrastructure proves to
be a hindrance, security that does not allows free entrance to the branches,
inability of the management to release viable information proves.
1.8 Definition of Terms
The
following terms are definition of the study below:
v Consumer: This is a person
who buy’s things or uses services that are offered for sale by producer.
v Protection: The state of being
kept from harm, loss etc.
v Service: An event in which
an entity takes the responsibility that something desirable happens on the
behalf of another entity.
v Commercial Bank: A type of bank specializing in checking accounts and
short-term loans.
v Consumer Protection: Is a
group of laws and organizations designed to ensure the rights of consumers as
well as fair trade, competition and accurate information in the market place.
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