Title : | Impact of service quality on customer satisfaction and customer loyalty in Nepalese Bank | Material Type: | printed text | Authors: | Pavitra Thapa, Author | Publication Date: | 2016 | Pagination: | 87p. | Size: | GRP/Thesis | Accompanying material: | 7/B | Languages : | English | Descriptors: | Customer satisfaction
| Class number: | 658.812 | Abstract: | Customer satisfaction is defined as a customer’s overall evaluation of the performance of an offering to date. Customer satisfaction is considered as the emotional response to the experiences associated with the quality of products, services, timeliness, efficiency, ease of access, environment, other facilities including the behavior and attitude of the service providers in comparison to the customer’s expectations . Bank plays an intermediate role to individual and business corporations, for their economic and social well being through accepting small savings and mobilizing them into productive sectors. It cultivates strong financial product which ultimately helps in economic development of the country (Hafeez & Muhammad, 2012). Banks provide various services to fulfill the demand of customers like saving accounts, loan facilities, remittance facilities etc. The banking industry is adopting new strategies to overcome these new faces of delivering services to customers and move ahead for better service delivery and bank performance (Ali & Zhou, 2005).Customer satisfaction in the banking industry plays a vital role to create a healthy business status. In banking industry customers are more directly linked with the banks’ personnel for any kind of services or products. Therefore, banks should always focus on training its front desk staffs to provide quality service knowing their expectations and wants (Rogers, Meehan, & Scott, 2006). Service quality is particularly essential in the banking services context because it provides high level of customer satisfaction, and hence it becomes a key to competitive advantage.
The major purpose of the study is to analyze the relationship of service quality with customers' satisfaction and customer's loyalty in Nepalese banking sectors. The specific objectives of this study are (a) To determine the factors affecting service quality in Nepalese banking sectors (b) to examine the relationship between service quality and customer satisfaction (c) to identify the impact of service quality on customers satisfaction and customers loyalty in the Nepalese banking sectors (d) to analyze the impact of tangibility in customer satisfaction in Nepalese banking sectors.
The study is based on the primary data. 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. To achieve the purpose of the study, structured questionnaire was prepared. Out of 280 questionnaires, only 230 numbers of customers’ response were received. Subjects were asked to assess their perceptions of various items representing customer satisfaction and customer loyalty towards service quality of Nepalese commercial banks.
The study reveals that all the service quality variables (reliability, responsiveness, empathy, assurance, and tangibles) and customer satisfaction are positively related. It means an increase in service quality variables will lead to an increase in customer satisfaction. The beta coefficients for technology and assurance are positive with customer satisfaction. It reveals that more the use of new advance technology by banks, higher would be the customer satisfaction. Similarly, the beta coefficients for reliability, responsiveness, and tangibility are positive with customer loyalty. It reveals that more reliable, responsive and tangible the banks in delivery services, higher would be the customer loyalty. The study also concludes that reliability is ranked in first position on the basis of calculated mean value. Similarly, security, responsiveness, empathy, assurance, and tangibles are ranked second, third, fourth, fifth, and sixth position respectively as far as factors affecting customer satisfaction is concerned. Service quality is essential aspects that satisfy customers. Most of the customers were satisfied with the bank’s security and tangibility.
The major conclusion of the study is that service quality of the banks play a prominent role in determination of customer's satisfaction. Assurance is the important influencing factor and important aspect of customer satisfaction. Service quality highly supports the Nepalese banks for the competition. Responsiveness is the important aspects for the customer loyalty.
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Impact of service quality on customer satisfaction and customer loyalty in Nepalese Bank [printed text] / Pavitra Thapa, Author . - 2016 . - 87p. ; GRP/Thesis + 7/B. Languages : English Descriptors: | Customer satisfaction
| Class number: | 658.812 | Abstract: | Customer satisfaction is defined as a customer’s overall evaluation of the performance of an offering to date. Customer satisfaction is considered as the emotional response to the experiences associated with the quality of products, services, timeliness, efficiency, ease of access, environment, other facilities including the behavior and attitude of the service providers in comparison to the customer’s expectations . Bank plays an intermediate role to individual and business corporations, for their economic and social well being through accepting small savings and mobilizing them into productive sectors. It cultivates strong financial product which ultimately helps in economic development of the country (Hafeez & Muhammad, 2012). Banks provide various services to fulfill the demand of customers like saving accounts, loan facilities, remittance facilities etc. The banking industry is adopting new strategies to overcome these new faces of delivering services to customers and move ahead for better service delivery and bank performance (Ali & Zhou, 2005).Customer satisfaction in the banking industry plays a vital role to create a healthy business status. In banking industry customers are more directly linked with the banks’ personnel for any kind of services or products. Therefore, banks should always focus on training its front desk staffs to provide quality service knowing their expectations and wants (Rogers, Meehan, & Scott, 2006). Service quality is particularly essential in the banking services context because it provides high level of customer satisfaction, and hence it becomes a key to competitive advantage.
The major purpose of the study is to analyze the relationship of service quality with customers' satisfaction and customer's loyalty in Nepalese banking sectors. The specific objectives of this study are (a) To determine the factors affecting service quality in Nepalese banking sectors (b) to examine the relationship between service quality and customer satisfaction (c) to identify the impact of service quality on customers satisfaction and customers loyalty in the Nepalese banking sectors (d) to analyze the impact of tangibility in customer satisfaction in Nepalese banking sectors.
The study is based on the primary data. 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. To achieve the purpose of the study, structured questionnaire was prepared. Out of 280 questionnaires, only 230 numbers of customers’ response were received. Subjects were asked to assess their perceptions of various items representing customer satisfaction and customer loyalty towards service quality of Nepalese commercial banks.
The study reveals that all the service quality variables (reliability, responsiveness, empathy, assurance, and tangibles) and customer satisfaction are positively related. It means an increase in service quality variables will lead to an increase in customer satisfaction. The beta coefficients for technology and assurance are positive with customer satisfaction. It reveals that more the use of new advance technology by banks, higher would be the customer satisfaction. Similarly, the beta coefficients for reliability, responsiveness, and tangibility are positive with customer loyalty. It reveals that more reliable, responsive and tangible the banks in delivery services, higher would be the customer loyalty. The study also concludes that reliability is ranked in first position on the basis of calculated mean value. Similarly, security, responsiveness, empathy, assurance, and tangibles are ranked second, third, fourth, fifth, and sixth position respectively as far as factors affecting customer satisfaction is concerned. Service quality is essential aspects that satisfy customers. Most of the customers were satisfied with the bank’s security and tangibility.
The major conclusion of the study is that service quality of the banks play a prominent role in determination of customer's satisfaction. Assurance is the important influencing factor and important aspect of customer satisfaction. Service quality highly supports the Nepalese banks for the competition. Responsiveness is the important aspects for the customer loyalty.
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