ABSTRACT
The study investigated Customer Service as a Determinant to Customer Satisfaction of any Selected Commercial Bank. The statement of problem of this study states that Nigeria Banks have fallen short of the expectations of their customers in recent time. Thus, customers have experienced challenges ranging from delay, non-availability of staff at service points, unprofessional conduct or rudeness by the staff of the bank, poor standard of records or improper information etc. (personal observation). Customers are the major products of every bank and the way these products are managed determine the effectiveness and efficiency of the banks and ultimately their performance. The major objectives of the study evaluate the relationship between effective customer service delivery and customers’ retention. To examine the relationship between effective customer service delivery and bank operation performances. Lastly. To ascertain relationship between effective customer service management and customer’s loyalty. To achieve the objectives of the study, Statistical Package for Social Sciences (SPSS) research design was adopted. The researcher adopted primary data in getting the required information. In testing the hypothesis Pearson’s product Moment Correlation was used. The findings shows that there is a significant relationship between effective customer service delivery and customers’ retention. Secondly there is a significant relationship between effective customer service delivery and bank operation performances. Lastly, there is a significant relationship between effective customer service management and customer’s loyalty. The researcher therefore recommends that Financial institutions especially banks should value and rate the services rendered to customers.
TABLE OF CONTENTS
Title
page i
Declaration ii
Certification
iii
Dedication
iv
Acknowledgments v
Table
of Contents vi
List
of Tables x
Abstract
xii
CHAPTER ONE:
INTRODUCTION
1.0. Background to the study 1
1.2 Statement of the problem 3
1.3 Objectives of the study 4
1.4 Research Questions 4
1.5 Research Hypotheses 5
1.6 Significance of the study 5
1.7 Scope of the study 6
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Conceptual Framework 7
2.1.1. Customer Service 7
2.1.2 The customer perceived service quality 10
2.1.3 Good Customer Service 11
2.1.4 Superior Customer Service 11
2.1.5 Customer Satisfaction 14
2.1.7 Positive Aspects 14
2.1.8 Negative Aspect 15
2.1.9 Meeting Customer Service Standards 16
2.1.10. Exceeding customer expectation 16
2.1.11. Involvement of Customer 18
2.1.12. Customer Loyalty 19
2.1.13 the difference between Loyalty and
Retention 20
2.1.14. Effect of Customer Satisfaction on Customer Loyalty and
Retention 21
2.1.15 Barriers to customer satisfaction 23
2.2 Theoretical Framework 23
2.2.1 The
modern customer service theory 23
2.2.2
Comparatively, the traditional theory 24
2.3
Empirical Framework 25
2.4 Summary of Gaps 27
CHAPTER
THREE: RESEARCH METHODOLOGY
3.1 Research Design 29
3.2 Population of the study 29
3.3 Study Area 29
3.4 Sample size and sample Techniques 30
3.5 Sources of data and data collection
Method 32
3.6 Reliability and Validity of instrument 32
3.7 Model specification 33
3.8 Data Analysis Technique 34
CHAPTER
FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Discussion of Findings 35
4.2 Test of Hypotheses 54
4.3 Discussion of Findings 57
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of Findings 59
5.2
Conclusion 59
5.3 Recommendations 60
References
Appendices
LIST
OF TABLES
TABLE
4.1 Distribution
of respondents according to institution 35
4.2 Distribution
of respondents according to department 36
4.3 Distribution
of respondents according to year of experience 36
4.4 Distribution
of respondents according to level of position 37
4.5 Distribution
of respondents according to highest qualification 37
4.6 Distribution
of respondents according to gender 38
4.7 The applications
of good and effective customer relationship management assist in the
understanding of your customers 39
4.8 Crm practice
solved your business problems or make you understand your customers and improve
your overall business performance. 40
4.9 Crm is an
essential tool used by financial institutions in business performance perspective. 41
4.10 The data
collected by the crm applications are used to design new products or set a new
business strategy by your bank. 42
4.11 The
satisfaction derived from the use of crm application/technique acts as an
impulsive in maintaining good customer relationship 43
4.12 Banks
operational performance is dependent on good and effective customer
relationship management. 44
4.13 The
complains laid by customers are properly treated by banks 45
4.14 Customers
are impressed with the quality of relationship existing between them and their
banks as a result of the quality services rendered by their banks 46
4.15 Often at
times, customers are motivated towards patronizing financial institution as a
result good customer relationship management. 47
4.16 Banks often
give preferential treatment when dealing with their customers 48
4.17 Poor
service rendition and non-maintenance of customer relationship deters customers
in turning to other banks 49
4.18
Availability and use of atm has increased customer satisfaction and loyalty 50
4.19 Frequent
availability of alternate channels such as internet banking and mobile banking
has deduces customer loyalty 51
4.20 Reductions
in cost on transaction (cot) promulgate customer’s loyalty 52
4.21 Interest
given to customers as an incentive induces customer’s loyalty 53
CHAPTER ONE
INTRODUCTION
1.0. Background to the study
Today, customers have more power in deciding
their bank of choice. Consequently, keeping existing customers, as well as
attracting new ones, is a critical concern for banks. Customer satisfaction is
an important variable in evaluation and control of customer service rendition.
Poor customer satisfaction will lead to a decline in customer’s loyalty, and
given the extended offerings from the competitors, customers can easily switch
banks. Banks need to leverage effectively on their customer relationships and
make better use of customer information across the institution. Vinay Tiwari,
(2012).
Thus, customer
satisfaction is a measure of how products and services supplied by a company
meet or surpass customer expectation. In a competitive marketplace where a
business competes for customers, customer satisfaction is seen as a key
differentiator and increasingly has become a key element of business strategy
(Anyanwu, 2017). Customer satisfaction is an asset that should be monitored and
managed just like any physical asset. The relationship between customer service
and customer satisfaction is a vital one.
In a competitive
market place, understanding customer needs become crucial, therefore companies
and banks in this case, have moved from product-centric to customer-centric
positions. Customer satisfaction is influenced by the type of service provided.
Satisfaction is a challenge particularly in the bank based service as customers
can easily switch from one bank to another of a better service. Therefore, it
becomes paramount for customers satisfaction to be consider important while
delivering services to them (customer)
Okafor (2016) opines
that customer service is the provision of service to customers before, during
and after a purchase. Everyone in the organization is providing one or all of
these- perhaps they recognize which ones perhaps not. Kurtenbach (2011)
explains that those who are successful in customer service rank their customers
experience as the top priority.
Ettore (2001) is of
the view that, concentrating on current customer’s information can and should
be obtained to better understand their view of the service provided.
The quality of
service provided determines the level of satisfaction of the customer even
though what is seen as quality by one customer may not necessarily be quality
to another.
Considering the high
costs of acquiring new customers and apparently, high customers turn-over of
many banking services. It is very important to find out what causes customer
satisfaction. (Siadat, 2008, cited Van Rie, Lijander and Jurriens 2001).
High levels of
customer satisfaction bring several positive aspects to a company; it is
believed that customer satisfaction has a positive relationship with economic
profit (Anderson, Fornell, and Lehmann, 2014). Moreover, it will lower
customer’s price sensitivity (Fornell, 2012), and contribute to the creation of
loyal customers, which in turn implies a stable future cash-flow (Matzler et al., 2016).
Any organization that
has satisfied customers is bound to increase customer base and hence
profitability. Satisfied customers may sell your organization either
consciously or unconsciously.
It is therefore
important that service industries provide quality service to customers so as to
satisfy them, make them loyal and retain them at the end.
Greenberg, (2001) states that, banking sector
is a customer-oriented service where the customer is the key focus. Research is
needed in such sector to understand customers’ need and attitude so as to build
a long term relationship with them. The effective relationship between
customers and banks depends on the understanding of the different needs of
customers at different stages. The ability of banks to understand and respond
towards the customers’ needs make the customers feel like a valuable individual
rather than just part of a large number of customers.
1.2 Statement of the problem
Nigeria Banks have fallen short of the
expectations of their customers in recent time. Thus, customers have
experienced challenges ranging from delay, non-availability of staff at service
points, unprofessional conduct or rudeness by the staff of the bank, poor
standard of records or improper information etc. (personal observation).
Ogunnaike and Ogbari, (2008) note that
customer service in our banking industry can be mistaken to mean customer delay
and frustration. According to the authors almost every Nigerian bank encounters
similar problem in meeting customers’ expectation of services and customer
satisfaction. The issue of money transfer in banks is one major problem that
customers of certain banks have been made to experience. In most cases, the
customer hardly receives the payment of the money transferred in his account
immediately.
Also, the long queues and huge crowds in the
banking halls can be highly devastating and discouraging most times, especially
when the weekend is near. Most times, this long queues are as a result of the
breakdown of the computers used by these cashiers, sometimes it occurs as a
result of the cashier pushing duty to one another, as to who is to attend to
the customer or not. Customers are the major products of every bank and the way
these products are managed determine the effectiveness and efficiency of the
banks and ultimately their performance.
1.3 Objectives of the study
The main objective of this work is to examine
customer service as a determinant of customer satisfactions in the banking
sector. The Specific objectives include the following:
i.
evaluate the relationship between effective customer service delivery
and customers’ retention.
ii.
examine the relationship between effective customer service delivery and
bank operation performances.
iii.
ascertain relationship between effective customer service management and
customer’s loyalty
1.4 Research Questions
i.
What is the relationship between effective customer service delivery and
customers’ retention?
ii.
What is the relationship between effective customer service delivery and
bank operation performances?
iii.
What is the relationship between effective customer service management
and customer’s loyalty?
1.6 Research Hypotheses
H01: there is no significant
relationship between effective customer service delivery and customers’
retention.
H02: there is no significant
relationship between effective customer service delivery and bank operation
performances.
H03: there is no significant
relationship between effective customer service management and customer’s
loyalty.
1.6 Significance of the study
Financial Institutions: Banks has customer service as one of its
products, hence the need to find out whether they really are providing that
service and what ways they can improve so as to have competitive advantage over
rivals in the market.
Academic
Environment: this work will serve as a consulting literature for scholars
and researchers who wish to inquire into customer service and its importance in
customer satisfaction.
Bank Customers: the work will enlighten customer on the need
to know their rights and demand for best service as at when due. Thus, through
this work, customers will stand a chance to compare and contrast the activities
of banks with respect to effective service delivery.
Business Policy Makers: Making informed decisions when it comes to
quality customer service to satisfy the customers will become effective and
importance through the consultation of this research. It will serve as an eye
opener in enlightening business policy making on the need to put customers into
consideration in every policy made in the bank.
1.7 Scope of the study
The study comprises workers and customers of
access bank, Eco bank and First Bank, No 5, Azikiwe road, Port Harcourt, rivers
state. Due to competition in recent times in the banking sector, the study
covers employees of the bank who are always in contact with the customers and
the difficulties they face in delivering their service as well as the customers
experiences with the employees of the bank.
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