| Title : | Impact of service quality dimensions on customer satisfaction and customer loyalty in Nepalese commercial banks | | Material Type: | printed text | | Authors: | Sujan Kandel, Author | | Publication Date: | 2017 | | Pagination: | 121p. | | Size: | GRP/Thesis | | Accompanying material: | 9/B | | Languages : | English | | Descriptors: | Customer satisfaction
Service quality
| | Class number: | 658.812 | | Abstract: | The banking industry is facing an ever-increasing level of competition around the world the dynamics of the business change. Banks have realized that service quality is a very important factor for their success as service quality is a strategy that can help them build long-lasting relationships with their customers and increase their profits through efficient management systems and the application of customer focused strategies. Recently, almost every sectors of the financial services industry are trying to use service quality to achieve a variety of outcomes to enhance customer base. Service quality is comprehensive strategy with business and marketing that the technology and business activity is related to the customer. Service quality is the critical issues in customer satisfaction and customer loyalty for financial institution. Service quality also improves management of customer satisfaction and loyalty.
The main objective of the study is to analyze the relationship between service quality, customers’ satisfaction and customers’ loyalty in commercial bank in Nepal. Other objectives are to analyze the perception of customers on the level of service quality dimensions (reliability, responsiveness, assurance, tangibility, empathy and technology) of the Nepalese commercial banks, to examine the relationship of reliability, responsiveness, assurance, tangibility, empathy and technology on customer satisfaction and customer loyalty, to determine the impact of selected service quality dimensions on customer satisfaction and loyalty, to find out the most important factor affecting customer satisfaction and loyalty in Nepalese commercial banks.
This study is based on primary source of data, which were gathered from 21 Nepalese commercial banks. The data obtained from the questionnaires survey are analyzed through SPSS. The instruments are descriptive statistics and inferential statistics. To analyze the reliability and validity of the data, Cronbach’s alpha (α) is used. Frequencies, percent, mean, correlation and test of significance are used in this study to measure the determinants of customer satisfaction and customer loyalty. This study has employed descriptive research design and casual comparative research design to deal with issues associated with the service quality of Nepalese commercial bank. In order to achieve the objectives questionnaire was made and distributed to different customer of Nepalese commercial banks. The questions were asked in the form of yes/no, multiple choice, ranking, five point likert scale questions. All together 200 questions were distributed and out of which 175 questionnaire were collected. The likert scale questions of different variables on service quality were measured in 5-point likert scale.
The study reveals thatthe independent variables are positively correlated with dependent variables i.e. customer satisfaction and customer loyalty. There is positive correlation coefficient between customer satisfaction and all the independent variables i.e. tangibility, reliability, responsiveness, assurance, technology and empathy. Empathy is highly correlated with customer satisfaction and reliability is least among the variables. The correlation coefficient between customer loyalty and all the independent variables are positively correlated. Among the independent variables, responsiveness is highly correlated and tangibility is the least correlated. The beta coefficient is positive and significant at 1 percent level of significance for tangibility, reliability, responsiveness, assurance, technology and empathy which indicates that higher the involvement of tangibility, reliability, responsiveness, assurance, technology and empathy, higher would be the customer satisfaction. The beta coefficient is positive in all the model, which indicates that higher the involvement of tangibility, reliability, responsiveness, assurance, technology and empathy, higher would be the customer loyalty. Reliability, tangibility and technology are significant at 1 percent level of significance. Beta coefficient for responsiveness, assurance and empathy are significant at 1 percent and also 5 percent level of significance.
The major conclusion of this study is all the variables of the service quality has a positive impact on customer satisfaction and customer loyalty in Nepalese commercial bank. The entire variables are significant with customer satisfaction and customer loyalty. The study also concludes that service quality is responsible for creating customer satisfaction and loyal customers. Service quality of the banks plays a prominent role in determination of customer’s satisfaction. The study found that the reliability service and technology service are the two major factors affecting the service quality in Nepalese commercial banks. The bank image and overall quality services are considered as the two major factors affecting the customer satisfaction in Nepalese commercial banks. Favorable location and trust are considered as the two major factors affecting the customer loyalty in Nepalese commercial banks. The study found that reputation and profitability are considered as the two major factorsaffecting the service quality, customer satisfaction and customer loyalty in Nepalese commercial banks.
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Impact of service quality dimensions on customer satisfaction and customer loyalty in Nepalese commercial banks [printed text] / Sujan Kandel, Author . - 2017 . - 121p. ; GRP/Thesis + 9/B. Languages : English | Descriptors: | Customer satisfaction
Service quality
| | Class number: | 658.812 | | Abstract: | The banking industry is facing an ever-increasing level of competition around the world the dynamics of the business change. Banks have realized that service quality is a very important factor for their success as service quality is a strategy that can help them build long-lasting relationships with their customers and increase their profits through efficient management systems and the application of customer focused strategies. Recently, almost every sectors of the financial services industry are trying to use service quality to achieve a variety of outcomes to enhance customer base. Service quality is comprehensive strategy with business and marketing that the technology and business activity is related to the customer. Service quality is the critical issues in customer satisfaction and customer loyalty for financial institution. Service quality also improves management of customer satisfaction and loyalty.
The main objective of the study is to analyze the relationship between service quality, customers’ satisfaction and customers’ loyalty in commercial bank in Nepal. Other objectives are to analyze the perception of customers on the level of service quality dimensions (reliability, responsiveness, assurance, tangibility, empathy and technology) of the Nepalese commercial banks, to examine the relationship of reliability, responsiveness, assurance, tangibility, empathy and technology on customer satisfaction and customer loyalty, to determine the impact of selected service quality dimensions on customer satisfaction and loyalty, to find out the most important factor affecting customer satisfaction and loyalty in Nepalese commercial banks.
This study is based on primary source of data, which were gathered from 21 Nepalese commercial banks. The data obtained from the questionnaires survey are analyzed through SPSS. The instruments are descriptive statistics and inferential statistics. To analyze the reliability and validity of the data, Cronbach’s alpha (α) is used. Frequencies, percent, mean, correlation and test of significance are used in this study to measure the determinants of customer satisfaction and customer loyalty. This study has employed descriptive research design and casual comparative research design to deal with issues associated with the service quality of Nepalese commercial bank. In order to achieve the objectives questionnaire was made and distributed to different customer of Nepalese commercial banks. The questions were asked in the form of yes/no, multiple choice, ranking, five point likert scale questions. All together 200 questions were distributed and out of which 175 questionnaire were collected. The likert scale questions of different variables on service quality were measured in 5-point likert scale.
The study reveals thatthe independent variables are positively correlated with dependent variables i.e. customer satisfaction and customer loyalty. There is positive correlation coefficient between customer satisfaction and all the independent variables i.e. tangibility, reliability, responsiveness, assurance, technology and empathy. Empathy is highly correlated with customer satisfaction and reliability is least among the variables. The correlation coefficient between customer loyalty and all the independent variables are positively correlated. Among the independent variables, responsiveness is highly correlated and tangibility is the least correlated. The beta coefficient is positive and significant at 1 percent level of significance for tangibility, reliability, responsiveness, assurance, technology and empathy which indicates that higher the involvement of tangibility, reliability, responsiveness, assurance, technology and empathy, higher would be the customer satisfaction. The beta coefficient is positive in all the model, which indicates that higher the involvement of tangibility, reliability, responsiveness, assurance, technology and empathy, higher would be the customer loyalty. Reliability, tangibility and technology are significant at 1 percent level of significance. Beta coefficient for responsiveness, assurance and empathy are significant at 1 percent and also 5 percent level of significance.
The major conclusion of this study is all the variables of the service quality has a positive impact on customer satisfaction and customer loyalty in Nepalese commercial bank. The entire variables are significant with customer satisfaction and customer loyalty. The study also concludes that service quality is responsible for creating customer satisfaction and loyal customers. Service quality of the banks plays a prominent role in determination of customer’s satisfaction. The study found that the reliability service and technology service are the two major factors affecting the service quality in Nepalese commercial banks. The bank image and overall quality services are considered as the two major factors affecting the customer satisfaction in Nepalese commercial banks. Favorable location and trust are considered as the two major factors affecting the customer loyalty in Nepalese commercial banks. The study found that reputation and profitability are considered as the two major factorsaffecting the service quality, customer satisfaction and customer loyalty in Nepalese commercial banks.
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