CUSTOMER SATISFACTION AND ITS IMPLICATION ON BANKS PERFORMANCE IN NIGERIA

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Product Category: Projects

Product Code: 00001623

No of Pages: 76

No of Chapters: 5

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Abstract

Satisfaction is the customer’s evaluation of a product or service in terms of whether that product or serve has met their needs and expectations. Happy and satisfied customers behave in a positive manner. However, almost every Nigerian banks encounters similar problems in meeting customer’s expectation of services and customer satisfaction. It is against this backdrop that this study tries to evaluate customer’s satisfaction and its implication on banks performance in Nigeria. The study uses a primary source of data collection i.e. questionnaire structured by respondents and validity by two experts. Basically, this study adopts both the descriptive and explanatory survey design methods. Result from the study shows that customer appreciates electronic banking services but still not satisfied with the quality and efficiency of the services. This is expressed in the number of times customers physically visit the banks and length of time spent before such services are reviewed. The study concludes by suggesting that banks should improve their service delivery to justify the benefits of electronic banking products and services, by this, customer’s interest would be aroused.    

 

TABLE OF CONTENTS

Title Page                                                                  i

Certification                                                              ii

Dedication                                                                 iii                                     

Acknowledgements                                                    iv

Abstract                                                                    v

Table of contents                                                       vi

Chapter One: Introduction                                       1

1.1       Background to the Study                                           1

1.2       Statement of Problems                                               3

1.3       Research Questions                                                   3

1.4       Objectives of the Study                                               4     

1.5       Statement of Hypothesis(es)                                        5     

1.6       Significance of the Study                                            5

1.7       Scope of the Study                                                     6     

1.8       Limitations of the Study                                             6     

1.9       Definition of Terms                                                    7

 

Chapter Two: Review of Related Literature             9

2.1       Introduction                                                              9

2.2   Defining Customer Satisfaction                                   22

2.3   Customer Loyalty                                                      16

2.4   Customer Loyalty in the Banking Sector                      19

2.5       Satisfaction as Antecedent of Customer Loyalty           26

2.6       Influence of Customer Satisfaction on Destination

Loyalty                                                                      30

2.7       Characteristics of Services                                          31

2.8       Competition and Availability of Buy Options                34

 

 

Chapter Three: Research Method and Design            37

3.1       Introduction                                                              37   

3.2       Research Design                                                        38   

3.3       Description of Population of the Study                 38   

3.4       Sample Size                                                               38   

3.5       Sampling Techniques                                                 39   

3.6       Sources of Data Collection                                          39   

3.7       Method of Data Presentation                                      37   

3.8       Method of Data Analysis                                             41   

 

Chapter Four: Data Presentation, Analysis and Interpretation                                                          44

4.1   Introduction                                                              44   

4.2   Data Presentation                                                      45   

4.3   Data Analysis                                                            49   

4.4   Hypothesis Testing                                                     53   

 

Chapter Five: Summary of Findings, Conclusion and Recommendations                                                 56

5.1   Introduction                                                              56   

5.2   Summary of Findings                                                57   

5.3   Conclusion                                                                58   

5.4   Recommendations                                                     59   

References                                                                 61

Appendix I                                                                 65

Appendix II                                                                66                             

 

 

 


CHAPTER ONE

INTRODUCTION

1.1   Background to the Study

It is believed that the goal of every organization is to meet the needs and the requirements of its stakeholders. Meeting the needs and the requirements of the stakeholders will not only ensure the survival of the organization but also allow it to flourish. Customers are presumed to be one of the most important stakeholders in any organization because without them, organizations are not likely to succeed. Hence, marketers emphasize on research in the area of consumer behaviour and particularly behavioural intention. Knowledge of consumer behaviour will go along way in ensuring effective marketing policies towards the interest of customers which will eventually facilitates positive customer attitude towards the organizations. More especially, since customer behavioural intention is a strong indication of his actual behaviour

As a result of financial sector liberalization in Nigeria in the 1980s, the banking sector experienced a boom. Low entry requirements by the regulatory authority and the high premiums that could be earned through foreign exchange business led to the quick entry by new players into the lucrative banking industry. Between the period of 1985 and 1993 the number of licensed banks rose astronomically from
41 to 120 (Central Bank of Nigeria, 1995). And this led to the increase of the sector’s contribution to GDP and employment. Given that banks are important constituents of the sector, it can therefore be argued that banks in Nigeria contribute significant percentage of the country’s GDP in the recent past. (Adeoye, 2007). For instance, the sectoral reconstitution of service industry to the growth of GDP for 2004, 2005, 2006, 2007 and 2008 were 8.8, 8.0, 9.2, 9.9 and 10.5 respectively (CBN, 2009) The importance of the Nigerian banking sector does not limited to Nigeria alone but also spill over to most. This significant contribution of the services industry and specifically banking sector in Nigeria really warrant investigation in order to enhance the sector’s continuous growth which will eventually result in the better performance of the economy It is however noted that one of the ways through which banks can meet the expectations of their customers who are the back-bone of the banks’ business is via the understanding of the customers’ behaviour.

1.2   Statement of Problem

Over the years in developing economy like Nigeria banks are faced with the problem of distress lack of public confidence, inability of banks to meet up with customers satisfaction in terms of granting of credit facilities spending an average time in the bank halls for transactions, inadequate capital base, etc. the researcher is of the view to carryout an investigation into these remote causes of banks inability to meet up with customers needs and requirements and how this had affected the banks performance over the years, after this investigation the result from this study should be able to proffer to solutions to banks inability to satisfy their customers in Nigeria, hence how to impress its performance through total quality management.

1.3   Research Questions

i.      To what extent does quality of service in the bank affects its performance?

ii.     What is the relationship between customer’s level of loyalty and performance?

iii.    How does customer’s satisfaction and impacts on bank performance?

1.4   Objectives of the Study

i.      To ascertain the extent of relationship between service quality and bank performance

ii.     To examine if there is a positive relationship between customer’s level of loyalty and performance.

iii.    To find out how quality customer satisfaction affects bank performance

 

 

 

 

 

1.5   Research Hypotheses

In order to achieve the stated objectives of this study, the following hypotheses are formulated:

Hypothesis One

HI:    There is a positive relationship between service quality and bank performance

HO:   There is no positive relationship between service quality and bank performance

Hypothesis Two

HI:    There is a positive relationship between customer level of loyalty and bank performance

HO:   There is no positive relationship between customer level of loyalty and bank performance.

Hypothesis Three

HI:    There is a positive relationship between customer satisfaction bank performances.

HO:   There is no positive relationship between customer satisfaction bank performances.

1.6   Significance of the Study

This research work will attempt to examine the performance of bank in Nigeria. The significance of this study is to examine the extent to which bank performance has geared up the growth of the Nigeria economy through loan and advances for investment.

Hence, the research is interested in the effect of the customer’s satisfaction and dissatisfaction, characteristics of service, assessment and measurement of customer’s satisfaction in bank for more clarity of the study.

1.7   Scope of the Study

This study covers customer’s satisfaction in bank performance. A sample of sixty (60) was taken from the total population of the study. This study was conduct amongst staffs of a selected bank in Benin City to know how customer’s satisfaction has implication on bank performance for a period between 2010 – 2013.

1.8   Limitation of the Study

In carrying out research work, a number of constraints have militated against this research work. Every human endeavour is said to be limited by some factor and this research work is not on exceptional to the rule. There was low response rate. There was difficulty in obtaining information from respondent as they often referred to height schedule and fatigue in fitting the questionnaire. This being that the researcher cannot administer the questionnaire to other respondent form other part of the country.

1.9      Definition of Terms

Organization: This is a social unit of people that is structured and managed to meet a need or to pursue collective goals.

Stakeholders: These are persons or group or organization that has interest or concern in an organization.

Customer’s Satisfaction: A business term, is a measure of how products and services supplied by a company meet or surpass customer.

Brand Loyalty: When consumers become committed to your brand and make repeat purchases over time.

Profitability: This is the primary goal of all business ventures. Without profitability, the business will not survive in the long run. It is measured with income and expenses.

Competition: The existence within a market for some good or service of a sufficient number of buyers and sellers such that no single market participant has enough influence to determine the going price of the good or service.

Defensive Strategy: A management approach designed to reduce the risk of loss.

Service Quality: An assessment of how well a delivered service conforms to the clients expectations.

Reliability: The ability of a system or component to perform its required functions under stated conditions for a specified period of time.

Empathy: This is the capacity to recognize emotions that are being experienced by another sentiment or fictional being.


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