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This study focused on service quality dimensions and customer satisfaction of banking service delivery in Anambra state. Consumers all over the world have become more quality conscious; hence there has been an increased customer demand for higher quality services. The main objective of this study is to assess service quality dimensions and customer satisfaction of banking service delivery in Anambra state using selected Commercial Banks in Anambra as a study area. The study reviewd relevant conceptual, theoretical and empirical literatures. This research work is anchored on SERVIQUAL model. The study adopted survey research design. The population of this study is two thousand, six hundred and thirty-three (2633) which consists of customer of fifteen selected commercial banks in Anambra state. Five hundred and seventeen (517) customers constituting the sample size using Borg and Gall formula of 2002. The data generated were analyzed using descriptive statistics, correlation analysis an




      Background To The Study

Managers in diverse industries have long been interested in the link between consumer perception as regards to the product or service quality and the decision to patronize hence the performance or profitability of the organization. Researchers, such as, Adeyeye (2013), Johnston, Spinks and Manning (2010) have analyzed consumer behaviour in sectors such as airlines, banking, petroleum, personal computers and other consumer products, focusing on customer perception on service quality and product delivery and their effect on market share, cash flow, profits and stockholder returns. Johnston et al. (2010) observed that though customers’ perception of an organization affected their purchase decisions, the effect of customers’ perception and sales level of companies was insignificant. The study further observed that perception of a customer towards an organization is an antecedent to customer satisfaction which is expected to have a significant influence on organizational value and continued performance. Caha (2012) states that service quality in banks has a strong influence of customer satisfaction and positive attitude that the customers of that banks have towards the banks. This positive attitude towards the banks, its staff and its competence, influences its success in the society. Improvement of competence of bank staff in relation to value received and quality of services received in the banks are all factors that are considered by customers to gauge their satisfaction with the banks. Caha (2012) observed that the objective measure of service quality may be different from customer perception which makes customer perception to be the right indicator overriding objective measures. Every service organization therefore should use customer perception as its measure to establish the quality level it provides in the market.

Adeyeye (2010) cited that perception of customers towards the quality of service by an organization has a significant relationship with performance of the organization. This study in Nigeria had findings which indicated that customer trusting the organization, bonding between employees and customers perceiving the organization as caring all had significant influence on performance of the organization.

Chi and Gursoy (2009) established that customers that have positive perception of a hospital can influence their satisfaction. This has a positive effect on financial performance of the hospitality establishment. Customers who perceive employees of an organization to be competent and likable are more likely to be satisfied with products or services from that organization. Other major considerations by customers include considerations on prices charged; innovations by the company, facilities that are applied by the facility in develop products or services and the way that the organization deals with complaints and compliments. These variables ultimately determine whether customers will be satisfied or not and eventually influence the company’s performance. Mokaya, Kanyagia and Wagoki (2012) revealed that perception by customers in regard to fairness of pricing, quality of service and reliability was a major factor in determining performance of airline firms in Nigeria. Perceived value by customers as established by Auka (2012) is an important factor in creating sustainable competitive advantage by firms.

Banks play an important and active role in the financial and economic development of a country. An effective banking system greatly influences the growth of a country in various sectors of the economy. Practitioners in the banking industry face a large number of complex challenges in the global marketplace. It is crucial for banks to better understand changing customer needs and adopt the latest information technology system in order to compete more effectively with global organizations (Malhotra & Mukherjee, 2004). However, globalization has altered customer behaviour in regards to banking services, and the operating environment for banking industry has become more dynamic and competitive. The emergent of new forms of banking services such as automated teller machines, internet banking, and phone banking as well as the maturing financial market and global competition accelerate the need for bankers to explore the importance of customer satisfaction and customer loyalty. The practice of excellent service quality integrated with consumer products is a powerful generator to cater to customers’ needs and engage with them. Considering that many banks offer undifferentiated products in a rival marketplace, banks are paying more attention to service quality in order to gain a competitive advantage. Banks that master service quality can gain a competitive edge in terms of higher revenue, customer loyalty and customer retention (Kumar et al., 2010).

In modern competitive environment, the pursuit of service quality is considered to be an essential strategy. Marketers are often faced with the challenge of examining their service quality from customers’ point of view. To achieve this, they use market research to determine customers’ expectations and then use information obtained there from to develop their service quality dimension in order to meet or exceed their customers’ expectations. Many service organizations in Nigeria have responded to the strategic and financial impact of quality by treating it as a valuable tool for building and maintaining competitive advantage. Companies that have goods and services perceived as being of high quality, typically experience high customer patronage and loyalty; such that satisfied customers often help to  attract new customers through word of mouth communications and positive referrals. Thus, it is apparent that, in the long term, the most important factor affecting business performance is the quality of goods and services offered by the organization, relative to its competitors. Many companies therefore, try to deliver a service with superior and differentiated quality. From the foregoing, it is believed that perceived service quality effectiveness tends to play an important role in high skill and technology-involving industry like banking service.

The banking sector in Nigeria has gone through different phases. The pre-consolidation phase and post consolidation phase. Economic liberalization and rapid technological advancement has contributed to the increasing integration in the financial sector. Banks operating in Nigeria is consequently put into a lot of pressures due to increase in competition, which was as a result of the emergence of post consolidation era, characterized by aggressive and proactive marketing and the need for banks to retain their customers. In addition, the banking sector is large enough to capture and represent almost all the critical features of customer-perceived service quality and the critical dimensions of Total Quality Service (TQS) that the management may have to encounter in order to manage a service organization effectively.  Delivering customer satisfaction is also imperative because today’s bank employees are better educated and more aware than in the past.

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