DOES QUALITY OF BANK SERVICES LEAD TO CUSTOMER SATISFACTION IN THE NIGERIAN BANKING SECTOR?
DOI:
https://doi.org/10.51406/jhssca.v13i1.1929Keywords:
bank services, service quality, customer satisfaction, deposit money banksAbstract
This study examined a critical question from customers’ perspective: Does quality of bank services lead to customer satisfaction in the Nigerian banking sector? The study is conducted using questionnaire survey administered in Nigeria using customers of some selected banks as sample. The paper uses primary data collected through scientifically developed questionnaires, which were administered on 174 bank customers selected on a convenient basis. The results, based on factor and regression analysis, identified four factors that impact customers’ assessment of the quality of banking services including responsiveness, reliability, tangibility and empathy respectively. The implication of the finding is to enhance the understanding of bank managers and other relevant stakeholders of customers’ perception of the quality of banking services and consequently reveal the path to developing strategies for improving their satisfaction. The study therefore, recommends that the Nigerian banks should make products and services available that best suits the peculiarity of each category of customers and improve the confidence Nigerians have in the banking sector.
References
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Arasli, H., Mehtap-Smadi, S., Turan Katircioglu, S. 2005. Customer Service Quality in the Greek Cypriot Banking Industry. Managing Service Quality: An International Journal, 15(1): 41-56.
Badara, M.S., Mat, N.K., Mujtaba, A. M., Al-Refai, A. N., Badara, A. M., Abubakar, F. M. 2013. Direct Effect of Service Quality Dimension on Customer Satisfaction and Customer Loyalty in Nigerian Islamic Bank, Management, 3(1):6-11
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Bolton, R. N., Drew, J. H. 1991. A Multistage Model of Customer’s Assessments of Service Quality and Value. Journal of Consumer Research, 17(4):375-384.
Boulding, W., Kalra, A., Staelin, R. & Zeithami, V. A. 1993. A Dynamic Process Model of Service Qua;ity: From Expectations to Behavioral Intentions. Journal of Marketing Research, 30(1): 7-27
Buzzell, R. D., Gale, B. T. 1987. The Profit Impact of Market Strategy (PIMS) Principles. New York: The Free Press
Canbas Serpil, Cabuk, Altan, Kilic, Suleyman Bilgin 2005. Prediction of Commercial Bank Failure via Multivariate Statistical Analysis of Financial Structures: The Turkish Case, European Journal of Operational Research, 166:528–46.
Carlzon, J. 1987. Putting the Customer First: The Key to Service Strategy In: Lovelock (1991) Service Marketing: Test, Cases and Reading. UK: Prentice International Edition.
Chen, J., Chen, C. N., Chen, K. S. 2001. The Integrated Evaluation Model for Administration Quality based on Service Time. Managing Service Quality. 11(5):342-349
Cheserek, L.K., Kimwolo, A.K., Cherop, F. 2015. Effect of Quality Financial Services on Customer Satisfaction by Commercial Banks in Kenya. International Journal of Humanities and Social Sciences, 5(7): 102-112
Crosby, P. B., Free, Q. I. 1979. The Art of Making Quality Certain. New York: New American Library, 17.
Douglas, L., Connor, R. 2003. Attitudes to Service Quality – The Expectation Gap. Nutrition and Food Science, 33(4):165-172.
Fields, Z. 2007. Discovering Statistics using SPSS, Second Edition, London: Sage
Fields, Z., Bisschoff, C. A. 2014. Comparative Analysis of Two Conceptual Frameworks to Measure Creativity at a University. Problems and Perspectives in Management, 12(3): 46-58
Gronroos C. 1983. Strategic Management and Marketing in the Service Sector. Marketing Service Institute. Boston. MA.
Gronroos C. 1993. From Scientific Management to Service Management. International Journal of Service Industry Management, 5(1): 5-20
Gupta, S., McLaughlin, E., Gomez, M. 2007. Guest Satisfaction and Restaurant Performance. Cornell Hotel and Restaurant Administration Quarterly, 48(3): 284-298.
Hafiz, B., Shaari, J. A. N. 2013. Confirmatory Factor Analysis (CFA) of First Order Factor Measurement Model-ICT Empowerment in Nigeria. International Journal of Business Management and Administration, 2(5):81-88.
Hamzah , N., Ishak, N. M., & Nor, N. I. M. 2015. Customer satisfactions on Islamic banking system. Journal of Economics, Business and Management, 3(1), 140-144.
Hossain, M., Leo, S. 2009. Customer Perception on Service Quality in Retail Banking in Middle East: The Case of Qatar. International Journal of Islamic and Middle Eastern Finance and Management, 2(4): 338-350.
Jayaraman, M., Shankar. C., Hor W. 2010. Service Quality Delivery and its Impact on Customer Satisfaction in Banking Sector in Malaysia. International Journal of Innovation, Management and Technology, 1(4): 398-404.
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Mittal, V., Kamakura, W. A. 2001. Satisfaction, Repurchase Intent and Repurchase Bahavior: Investigating Moderating Effect of Customer Characteristics, Journal of Marketing Research, 38(1):131-142
Mohammad, A. A. S., Alhamadani, S.Y.M. 2011. Service Quality Perspectives and Customer Satisfaction in Commercial Banks Working in Jordan. Middle Eastern Finance and Economics, 14(1):60-72.
Newman, K., Cowling, A. 1996. Service Quality in Retail Banking: The Experience of Two British Clearing Banks. International Journal of Bank Marketing, 14(6):3-11.
Ngobeni N. Z., Nzimakwe I., Adeyeye, P. O., Munapo E. 2015 Management of Government Properties in Mpulanga Province, South Africa: A Service Quality Perspective, Environmental Economics, 6(3): 51-58
Parasuraman, A., Zeithaml, V. A. & Berry, L. L. (1985). A Conceptual Model of Service Quality and its Implication for Future Research (SERVQUAL), Journal of Marketing, 49(Fall):41-50
Parasuraman, A., Berry, L. L., Zeithaml, V. A. 1988. A Multiple Items Scale for Measuring Consumer Perception on Future Research. Journal of Retailing, 64(Spring): 12-37
Parasuraman, A., Berry, L. L., Zeithaml, V. A. 1991. Understanding Customer Expectations of Service. Sloan Management Review, 32(3): 39-48.
Parasuraman, A., Zeithaml, V. A., Berry, L. L. 1985. A Conceptual Model of Service Qulaity and its Implication for Future Research (SERVQUAL), Journal of Marketing, 49 (Fall):41-50.
Reichheld, F. F., Sasser, J. W. 1990. Zero Defections: Quality Comes to Services. Harvard Business Review, 68(5):105-111.
Robinson, S. (1999). Measuring Service Quality: Current Thinking and Future Requirements. Marketing Intelligence and Planning, 17:21-32.
Rust, R. T., Zahorik, A. J. 1993. Customer Satisfaction, Customer Retention, and Market Share. Journal of retailing, 69(2): 193-215.
Saghier, N. E., Nathan, D. 2013. Service Quality Dimensions and Customers’ Satisfactions of Banks in Egypt. Proceedings of 20th International Business Research Conference, April, pp. 4-5.
Sakhaei, S. F., Afshari, A. J., Esmaili, E. 2014. The Impact of Service Quality on Customer Satisfaction in Internet Banking. Journal of Mathematics and Computer Science, 9:33-40.
Quyet, V. T., Vinh, N. Q., Chang, T. 2015. Service Quality Effects on Customer Satisfaction in Banking Industry. International Journal of u-and e-Service, Science and Technology, 8(8): 199-206.
Wang, Y., Lo, H. P., Yang, Y. 2004. An Integrated Framework for Service Quality, Customer Value, Satisfaction: Evidence from China's Telecommunication Industry. Information Systems Frontiers, 6(4): 325-340.
Zahorik, A. J., Rust, R. T. 1992. Modeling the Impact of Service Quality on Profitability: A Review. Advances in Services Marketing and Management, 1(1): 247-276.
Adeyeye, P. O., Oloyede, J. A. 2014. Forecasting Bank Failure in Nigeria: An Application of Enhanced Discriminant Model. International Journal of Finance & Accounting, 3(2):37-48
Aigbedo, H., Parasuramen, R. 2004. Importance of Performance Analysis for Improving Quality of Campus Food Service. International Journal of Quality and Reliability Management, 21: 342-349.
Arasli, H., Mehtap-Smadi, S., Turan Katircioglu, S. 2005. Customer Service Quality in the Greek Cypriot Banking Industry. Managing Service Quality: An International Journal, 15(1): 41-56.
Badara, M.S., Mat, N.K., Mujtaba, A. M., Al-Refai, A. N., Badara, A. M., Abubakar, F. M. 2013. Direct Effect of Service Quality Dimension on Customer Satisfaction and Customer Loyalty in Nigerian Islamic Bank, Management, 3(1):6-11
Bateson, J.E.G. 1985. Perceived Control and the Service Encounter: Managing Employee/Customer Interaction in Service Businesses. Lexington, Mass: Lexington Books.
Bolton, R. N., Drew, J. H. 1991. A Multistage Model of Customer’s Assessments of Service Quality and Value. Journal of Consumer Research, 17(4):375-384.
Boulding, W., Kalra, A., Staelin, R. & Zeithami, V. A. 1993. A Dynamic Process Model of Service Qua;ity: From Expectations to Behavioral Intentions. Journal of Marketing Research, 30(1): 7-27
Buzzell, R. D., Gale, B. T. 1987. The Profit Impact of Market Strategy (PIMS) Principles. New York: The Free Press
Canbas Serpil, Cabuk, Altan, Kilic, Suleyman Bilgin 2005. Prediction of Commercial Bank Failure via Multivariate Statistical Analysis of Financial Structures: The Turkish Case, European Journal of Operational Research, 166:528–46.
Carlzon, J. 1987. Putting the Customer First: The Key to Service Strategy In: Lovelock (1991) Service Marketing: Test, Cases and Reading. UK: Prentice International Edition.
Chen, J., Chen, C. N., Chen, K. S. 2001. The Integrated Evaluation Model for Administration Quality based on Service Time. Managing Service Quality. 11(5):342-349
Cheserek, L.K., Kimwolo, A.K., Cherop, F. 2015. Effect of Quality Financial Services on Customer Satisfaction by Commercial Banks in Kenya. International Journal of Humanities and Social Sciences, 5(7): 102-112
Crosby, P. B., Free, Q. I. 1979. The Art of Making Quality Certain. New York: New American Library, 17.
Douglas, L., Connor, R. 2003. Attitudes to Service Quality – The Expectation Gap. Nutrition and Food Science, 33(4):165-172.
Fields, Z. 2007. Discovering Statistics using SPSS, Second Edition, London: Sage
Fields, Z., Bisschoff, C. A. 2014. Comparative Analysis of Two Conceptual Frameworks to Measure Creativity at a University. Problems and Perspectives in Management, 12(3): 46-58
Gronroos C. 1983. Strategic Management and Marketing in the Service Sector. Marketing Service Institute. Boston. MA.
Gronroos C. 1993. From Scientific Management to Service Management. International Journal of Service Industry Management, 5(1): 5-20
Gupta, S., McLaughlin, E., Gomez, M. 2007. Guest Satisfaction and Restaurant Performance. Cornell Hotel and Restaurant Administration Quarterly, 48(3): 284-298.
Hafiz, B., Shaari, J. A. N. 2013. Confirmatory Factor Analysis (CFA) of First Order Factor Measurement Model-ICT Empowerment in Nigeria. International Journal of Business Management and Administration, 2(5):81-88.
Hamzah , N., Ishak, N. M., & Nor, N. I. M. 2015. Customer satisfactions on Islamic banking system. Journal of Economics, Business and Management, 3(1), 140-144.
Hossain, M., Leo, S. 2009. Customer Perception on Service Quality in Retail Banking in Middle East: The Case of Qatar. International Journal of Islamic and Middle Eastern Finance and Management, 2(4): 338-350.
Jayaraman, M., Shankar. C., Hor W. 2010. Service Quality Delivery and its Impact on Customer Satisfaction in Banking Sector in Malaysia. International Journal of Innovation, Management and Technology, 1(4): 398-404.
Karim, A. R., Chowdhury, T. 2014. Customer Satisfaction on Service Quality in Private Commercial Banking Sector in Bangladesh. British Journal of Marketing Studies, 2(2):1-11.
Kotler, P., Armstrong, G. 2012 Principles of Marketing (13th ed.), London: Pearson Education.
Mittal, V., Kamakura, W. A. 2001. Satisfaction, Repurchase Intent and Repurchase Bahavior: Investigating Moderating Effect of Customer Characteristics, Journal of Marketing Research, 38(1):131-142
Mohammad, A. A. S., Alhamadani, S.Y.M. 2011. Service Quality Perspectives and Customer Satisfaction in Commercial Banks Working in Jordan. Middle Eastern Finance and Economics, 14(1):60-72.
Newman, K., Cowling, A. 1996. Service Quality in Retail Banking: The Experience of Two British Clearing Banks. International Journal of Bank Marketing, 14(6):3-11.
Ngobeni N. Z., Nzimakwe I., Adeyeye, P. O., Munapo E. 2015 Management of Government Properties in Mpulanga Province, South Africa: A Service Quality Perspective, Environmental Economics, 6(3): 51-58
Parasuraman, A., Zeithaml, V. A. & Berry, L. L. (1985). A Conceptual Model of Service Quality and its Implication for Future Research (SERVQUAL), Journal of Marketing, 49(Fall):41-50
Parasuraman, A., Berry, L. L., Zeithaml, V. A. 1988. A Multiple Items Scale for Measuring Consumer Perception on Future Research. Journal of Retailing, 64(Spring): 12-37
Parasuraman, A., Berry, L. L., Zeithaml, V. A. 1991. Understanding Customer Expectations of Service. Sloan Management Review, 32(3): 39-48.
Parasuraman, A., Zeithaml, V. A., Berry, L. L. 1985. A Conceptual Model of Service Qulaity and its Implication for Future Research (SERVQUAL), Journal of Marketing, 49 (Fall):41-50.
Reichheld, F. F., Sasser, J. W. 1990. Zero Defections: Quality Comes to Services. Harvard Business Review, 68(5):105-111.
Robinson, S. (1999). Measuring Service Quality: Current Thinking and Future Requirements. Marketing Intelligence and Planning, 17:21-32.
Rust, R. T., Zahorik, A. J. 1993. Customer Satisfaction, Customer Retention, and Market Share. Journal of retailing, 69(2): 193-215.
Saghier, N. E., Nathan, D. 2013. Service Quality Dimensions and Customers’ Satisfactions of Banks in Egypt. Proceedings of 20th International Business Research Conference, April, pp. 4-5.
Sakhaei, S. F., Afshari, A. J., Esmaili, E. 2014. The Impact of Service Quality on Customer Satisfaction in Internet Banking. Journal of Mathematics and Computer Science, 9:33-40.
Quyet, V. T., Vinh, N. Q., Chang, T. 2015. Service Quality Effects on Customer Satisfaction in Banking Industry. International Journal of u-and e-Service, Science and Technology, 8(8): 199-206.
Wang, Y., Lo, H. P., Yang, Y. 2004. An Integrated Framework for Service Quality, Customer Value, Satisfaction: Evidence from China's Telecommunication Industry. Information Systems Frontiers, 6(4): 325-340.
Zahorik, A. J., Rust, R. T. 1992. Modeling the Impact of Service Quality on Profitability: A Review. Advances in Services Marketing and Management, 1(1): 247-276.
