ABSTRACT
This study investigates the impact of
service quality on customer satisfaction within the Nigerian banking industry,
focusing on Fidelity Bank PLC. The primary objective is to assess the quality
of service delivery, with specific aims including the examination of queue
dynamics in bank halls, the effectiveness of automated teller machines (ATMs),
the influence of bank charges on customer patronage, and overall customer
satisfaction levels. Employing a historical and descriptive approach alongside
survey methodology, data was collected from a population of 13,000 selected
customers of Fidelity Bank PLC, Bank Road Umuahia. A sample size of 388 was
determined using Taro Yamane’s formula.
Data analysis involved the use of tables,
percentages, and the Chi-square statistical method to test hypotheses. The
findings revealed that Fidelity Bank customers primarily consist of private
institution employees and public servants. Additionally, customers experience
bank charges, which positively influence their patronage. Moreover, there is a
observed decrease in queues within banking halls, indicating improved service
responsiveness. The study also highlighted the effectiveness and reliability of
ATMs at Fidelity Bank PLC, contributing to overall customer satisfaction with
service delivery.
In conclusion, the study affirms that
service responsiveness, effective ATMs, and positive bank charges enhance
customer satisfaction at Fidelity Bank PLC. Recommendations include the
maintenance of quality service delivery to foster continued customer trust,
understanding and meeting customer needs, and further research into customer
relationship and satisfaction within the contemporary banking sector to address
challenges and improve customer experiences.
TABLE OF CONTENTS
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 Hypothesis
1.6 Significance of the Study
1.7
Scope and Limitations of the Study
1.8
Profile of Fidelity Bank Plc
1.8.1
Fidelity Portfolio
1.8.2
Fidelity Services
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1
Conceptual Framework
2.2
The Concept of Services
2.3 Features
of Services
2.4 Service Quality
2.5 Customer
Behavior
2.6
Customer Satisfaction
2.7
Excellent Customer Services
2.8
Customers Loyalty and the Mediational
Model
2.9
Measurement Models
2.9.1
Servqual Model
2.9.2
Servperf Model
CHAPTER THREE
RESEARCH METHODOLOGY
3.0
Introduction
3.1
Research Design
3.2
Area of the Study
3.3
Population of the Study
3.4 Sampling
Procedure and Techniques
3.5
Sources of Data Collection
3.6
Instruments for Data Collection
3.7
Method of Data Presentation and
Analysis
CHAPTER
FOUR
DATA
PRESENTATION AND ANALYSIS
4.0 Introduction
4.1 Presentation
of Data
CHAPTER
FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND
RECOMMENDATIONS
5.1
Summary
of Findings
5.2
Conclusions
5.3 Recommendations
Bibliography
Questionnaire
CHAPTER
ONE
INTRODUCTION
1.1
Background
of the Study
Over a century ago, the American marketing
association (AMA), an international professional association in marketing
discipline tries to standardize marketing as “the performance of business activities
that direct the flow of goods and services from one producer to consumers or
users. Boone and Kurtz (1989), marketing has been defined as an organizational
functions and set of professions for creating, communicating and delivery of
value to customers in ways that benefit the organization and the stakeholders.
Kotler (2003), define marketing as a managerial process which consist of the
analysis of planning, implementation and control of programs design to create,
build and maintain mutual beneficial exchange and relationship with target
market for the purpose achieving organizational objectives.
Duane (2005) quoting UK chattered
institute of marketing averred that marketing is the management process
responsible for identifying, anticipating and satisfying consumer’s requirement
profitably. In brief, marketing can be described as human activities that are
directed to satisfying needs and wants through exchange process.
Services can be seen as any activities
that one person can offer another that is essentially intangible and does not
result in ownership of anything. A service can be describe as the deed
performed by one party for another when provided with a service, the customer
cannot return it. Rather, a service is experience used or consumed immediately.
From the definition above, it can be seen that services are essentially
intangible in nature and does not result in ownership of anything. Therefore,
bank service can be said to mean those activities, benefits, or offerings which
banks performs or renders to their numerous customers and which satisfies their
needs and wants.
Nwosu (1996), those banking services are
purely intangible in nature that is, they cannot be seen, touch or smelt but
felt by a customer. In the sense that the experiences obtained by such
customers especially satisfied ones lingers for a long time in their memory.
The difference is that he cannot see services he obtained. A satisfied customer
makes repeat purchase and he tells others about his good experience with the service.
For better understanding and clarity, some banking service include internet
banking, ATM services/locator, institutional banking, western union money
transfer, local money transform asset management, private services ,
stakeholders, provision of loan facilities, customer trustees, capital
infrastructure, online services, mobile services, security management,
principal investment and network of supports etc. Marketing has an important
role to play in the case of banks. Banking as a service oriented must adapt to
the changing environments and requirements of the economy which it serves and
this can be done through effective marketing services.
Traditionally, the marketing of banking
services in Nigeria has been seen as “arm chair banking” where officers simply
stay glued to their chair waiting for business to come to them. The need for
marketing in the banking industry was not recognized because, for a very long
time banking was in a seller’s market while most customers had the impression
that they were privileged to enjoy the services of a bank. Fidelity Bank Plc,
like any other banks before now has hardly offered expected customers services
to her numerous customers. In view of this, it became necessary to access the
quality of service delivery of the bank to her customers.
1.2
Statement of the Problem
The quality of services delivery forms the
backbone for better results in the banking industry. This is articulated in the
HSBC report of 2000 which is stated that today’s banking situation demands continues
innovation in order to meet the yearnings and aspirations of the ever demanding
customers. Hence banks need to roll out new products and services quickly and
effectively, using the latest cutting edge technology, Augustus (1996). One of
the benefits banks derive from quality service delivery is improved efficiency
and effectiveness in their operations. Furthermore, these will undoubtly impact
significantly on banks overall performance. On the other hand, the customers
stand to enjoy the benefit of quick service delivery, reduced frequency of
going to bank physically and reduced cash handling which will give rise to
higher volume of turnover.
However, these developments in Nigerian
banking system seem not to have achieved their aims. Queues are still seen in
the banking halls, the Automated Teller Machine (ATM) not functioning
effectively, bank customers still handle too much cash and hardly do people
talk about electronic banking product that are made available by banks. There are still unnecessary bank
charges to customers and the staff relationship with customers is still not
encouraging. These questions therefore raise the fundamental effectiveness of
these services: hence the need for the study which is on accessing the quality
of service delivery in FIDELITY BANK PLC.
1.3
Objectives of the Study
The major objective of this study is
assessing the quality of service delivery on customer satisfaction in Nigerian
banking industry while the specific objective includes the following;
i-
To examine if queues are
at the increase or decrease in Fidelity Bank halls.
ii-
To identify and examine
the effectiveness of the automated teller machine (ATM) at FIDELTY BANK PLC.
iii-
The effect of Fidelity
Bank charges on customer’s patronage.
iv-
To ascertain whether
customers are satisfied with the services rendered at Fidelity Bank Plc.
1.4
Research Questions
Specifically the study will sought answers
to the following research questions;
i-
Are queues at an increase
or decrease at fidelity bank halls?
ii-
How effective are
automated teller machine (ATM) at Fidelity Bank Plc?
iii-
What are the effects of
Fidelity Bank charges on customer’s patronage?
iv-
How satisfied are the customers
with the service rendered at Fidelity Bank Plc?
1.5
Research Hypothesis
The
following hypothesis are formulated for this study
H0: There is no significant
decrease on the queues at Fidelity Bank Plc halls.
Ho: Automated teller machine
(ATM) at Fidelity Bank Plc does not function effectively.
Ho: Fidelity Banks charge does
not have positive effect on customer’s patronage.
1.6
Significance of the Study
This study is very timely, especially now
that all hands are on deck to enhance the effectiveness and efficiency of
services delivery on customer satisfaction in Nigerian banks that will give
banks its competitive advantage and have an influence on customer’s patronage
or retention. Therefore, the bankers and customers are considered when
accessing the quality of service delivery.
The funding of this work will afford banks
the opportunity of revaluating the perceptions of service delivery towards
positive response and direction.
The study will as well avail banks the
privilege to have an insight of the benefits posed by each of the different
services rendered as most of them seem not to understand that.
This study will also help the banks, most
especially those at the management level to ensure effective marketing
strategies which will go a long way in helping the company to attain its
objectives and its profitability margin. It will also help the bank to know the
necessary investment project and diversification of their services unto
ensuring quality services delivery to the general public. The research study
assists customers in reacting positively to the services rendered by banks.
Finally, this research project will be an
indispensable source of secondary data for those carrying out research on the
same or related topic.
1.7
Scope and Limitations of the Study
Different banks have different approaches
and strategies towards achieving their corporate or set goals thereby rendering
quality service to customers. This study was set on accessing the quality of service
delivery on customer satisfaction with emphasis on Fidelity Bank Plc located at
bank Road Umuahia Abia state.
But given the limited time and available
resource, it is unrealistic to contemplate on exposition on the entire bank and
their various services portfolio. The research has been narrowed to Fidelity
Bank Plc, Umuahia. The result maybe generalized to other Bank in Nigeria.
One major limitation of this study is the
lukewarm attitude of the respondents in assisting the researcher with some
vital information. The reason for this may be as a result of letting out some
important information to non-members of the organization that maybe considered
as a “spy”.
Also the time factor places another
limitation on the study because the researcher has to submit the research
project to the department within the stipulated time.
1.8
Profile of Fidelity Bank Plc
Fidelity Bank Plc began operation in 1988
as Fidelity Union Merchant Bank Limited. By 1990, it has distinguished itself
as the fastest growing merchant bank in the country. However, to leverage the
emerging opportunities in the commercial and consumer end of financial services
in Nigeria, in 1999 it converted to commercial banking and changed its name to
Fidelity Bank Plc. It became a universal bank in February 2001, with a license
to offer the entire spectrum of commercial, consumer, corporate and investment
banking services.
In 2011, the bank was ranked the 7th
most capitalized bank in Nigeria, the 25th most capitalized bank on
the African continent and the 567th most capitalized bank in the
world. As of December 2013, Fidelity Bank Plc was a large financial services
provider here in Nigeria with total assets estimated at over US$6.318 billion
(NGN: 1+ trillion), and shareholders’ equity in excess of US$1 billion (NGN:
158 billion). At that time, the bank served 2.3 million customers at about 220
branches nationally.
Fidelity Bank is today ranked amongst the
top ten (10) in the Nigerian banking industry, with presence in the major
cities and commercial centers of Nigeria. Over the years, the bank has been
reputed for integrity and professionalism. It is also respected for the quality
and stability of its management. Fidelity staffs are also respected in the
Nigerian banking industry for the quality of training they receive on the job, as
well as good business schools both in Nigeria and overseas. The management is
particular about the quality of people that join the system. To qualify as
member of Team Fidelity, a candidate is expected to possess three vital
statistics, with the acronym TAC:
-
Talent (an innate mental
aptitude),
-
Ambition (a desire to
succeed) and
-
Character (a total
quality of integrity which will guide that talent and ambition to productive
ends).
The management is focused on building and maintaining
a virile and well respected brand that carter to the need of its growing
corporate, commercial and consumer banking clientele. For this purpose, the
bank is leveraging its pedigree in investment banking.
Fidelity Bank also enjoys the respect and
partnership of a network of off-shore institutions with which it has
correspondent banking, continuation lines, credit and other relationships.
These include; ANZ London, Afri-Ex-im bank, Cairo, Egypt, ABSA South Africa,
Commerce Bank, Frankfurt, Citibank, N.A. London and New York, FBN Bank, UK Ltd,
SCB London, HSBC, US EX-im Bank, USAID, etc.
1.8.1
Fidelity Portfolio
Fidelity Bank Plc has the following
products in its portfolio;
Current Account,
Savings Account,
Fidelity Consumer Finance,
Fidelity Cards,
Fidelity Small Business Account,
Fidelity Exchange Rate,
Fidelity tithe, etc.
1.8.2
Fidelity Services
The following are the services that
Fidelity Bank Plc offers to their numerous clienteles;
-
Manage SME
-
Fidelity corporate
planning
-
Fidelity channels
-
Fidelity Private Banking
-
Fidelity Diaspora Banking
-
Fidelity Internet Banking
-
Fidelity Agric-Nigeria
Project
-
Fidelity Trade Services
and Products
-
Fidelity ATM
-
Fidelity Instant Recharge
-
Fidelity Treasury
Management
-
Fidelity Money Transfer
Services.
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