Impact Of Customer Satisfaction In Banking

CHAPTER ONE INTRODUCTION

1.1 Background to the Study

Meeting customers need has become an essential part of organizational objectives especially in the service industry. Customers’ satisfaction is a function of quality and reliable products and services and Nigerian banks are constantly faced with the problem of meeting customers’ expectations of quality service and at what level satisfaction is achieved in customers. Customer service is concerned with establishing, enhancing and maintaining relationships between business entities and customers in order to achieve the objectives of the organization. Customers’ satisfaction is a function of customers’ service. Customer satisfaction in banking is the most important way to keep customers

While the specific research questions were as follows:

i. To what extent does Tangibility affect Customers Satisfaction in Deposit Money Banks? ii. How does Reliability affect Customer Satisfaction in Deposit Money Banks? iii. What is the effect of Responsiveness on Customers Satisfaction in Deposit Money Banks?

iv. How will Assurance affect Customers Satisfaction in Deposit Money Banks?

v. To what degree does Empathy affect Customers Satisfaction in Deposit Money Banks? vi. What is the extent of effect of Service Quality on Customers’ Satisfaction in Deposit Money Banks?

1.4 Aim and Objectives of the Study

The aim of this study is to establish the effect of service quality on customers’ satisfaction in Nigerian deposit money banks. Identifying the dimensions of service quality, the specific objectives are to:

i. Determine the effect of tangibility on customers’ satisfaction in deposit money banks. ii. Establish the effect of reliability on customers’ satisfaction in deposit money banks. iii. Evaluate the effect of responsiveness on customers’ satisfaction in deposit money

The study will give deeper insights to what is needed in order for deposit money banks to further improve customers’ satisfaction and, thus, allow for improvement in bank services to attract and keep their customers coming back. This study will be of importance to researchers and academia by adding to scanty literature on service quality and customers satisfaction in Nigeria. The outcome of this study will also act as local reference on for future research.

1.7 SCOPE

This study is intended to cover all the deposit money banks (DMBs) grouped into international, regional and national banks in Nigeria after the period of consolidation, but only 20 deposit money banks would be finally covered with the exception of Providus Bank which has been in operations for less than a financial year. The area of study would be Lagos State. The reason for choosing Lagos as the study area is because all the headquarters of the deposit money banks are located in Lagos.

1.7 Operational Definition of