Customer Satisfaction in Bank
Essay by sanjv • May 29, 2016 • Term Paper • 1,816 Words (8 Pages) • 1,453 Views
Introduction
Background
Today the most emerging industry in Nepal is banking industry. The pace and prospect of banking industry is very high. This industry has now incorporated the highest numbers of customer in the nation. Having considered banks are the backbone of the country it is equally sensitive in response to customer’s preference. The life and reputation of the bank rest in the hands of customers. Customers’ satisfaction is the lifeblood to the banking industry. As bank loses its image in the eyes of the public its demise is probably be certain. No institution can help the bank with its tainted reputation back to life. With the rise of stiff competition among banks it has been very difficult to retain the customers. Customers move to the banks which offer more facilities and services and more satisfaction their needs. So it is necessary to identify the element that dissatisfies the customers and get them satisfied.
Customers’ satisfaction is the measure of how products or services supplied by a company meets or exceed the customers’ expectation. Here we have attempted to measure the customer satisfaction in relation to how customers perceive the service quality offered by the banks in Nepal.
Objective of the Study
The primary objective of the study is to gain an insight into the customer satisfaction in the Nepalese banking industry. However, the specific objectives are as follows:
To present the frequency table in respect of gender, age, bank and district
To study the mean and standard deviation
To study correlation analysis of different variables with service quality
To study regression analysis of service quality
To study graphical presentation of the data obtained and draw inferences from that data
To study chi-square test analysis
Data and Methodology
In order to examine the customer perception regarding the banks services, the survey was conducted during the month of Kartik 2071 and the data collected were primary by administering the structured questionnaire. The responses were collected via printed form of questionnaire by visiting different locations. They are kirtipur, Baneshwar, Newroad and Chabahil. A total of 20 questionnaires were distributed and collected to different individuals. The descriptive research methodology is applied here in order to drill and assess customers’ opinion regarding their perception towards banks’ service quality which is termed as customer’s satisfaction in banks.
Theoretical Framework
The variable of primary interest in this study is the dependent variable of service quality. Four independent variables are used in an attempt to explain the variance in customer satisfaction. These five variables are: Age, CSD/teller service, Telephone response, Education level. The framework is presented in figure 4.1 below.
Figure 4.1: Schematic Diagram of the Theoretical Framework
[pic 1]
Independent Variables Dependent Variables
Statement of Hypothesis
Hypothesis 1
Ho: there is no relationship between CSD/teller service and service quality
H1: there is positive correlation between CSD/teller service and service quality
Hypothesis 2
Ho: there is no relationship between telephone service and service quality
H1: there is positive correlation between telephone service and service quality
Hypothesis 3
Ho: there is no relationship between education level and service quality
H1: there is positive correlation between education level and service quality
Hypothesis 4
Ho: there is no relationship between age and service quality
H1: there is positive correlation between age and service quality
Presentation and Analysis of Data
Gender
The table 1.1 presents the number of male and female respondents along with their frequencies taken under the study. As per this table there are 14 male and 6 female respondents.
Table1.1 Respondents Gender | |
| Frequency |
Male | 14 |
Female | 6 |
Total | 20 |
Age
The table 2.1 shows the frequency of the age of the respondents in the form of inclusive continuous series where 11-25 years of age category have 11 members, 26-40 have 8 members, and above 56 have 1 member.
Table 2.1 Respondents Age | |
| Frequency |
11 - 25 | 11 |
26 - 40 | 8 |
56+ | 1 |
Total | 20 |
Banks
The table 3.1 presented below shows the bank’s name in which respondents’ have maintained their accounts. As per the table Everest bank has highest number of customer i.e. 8 followed by RBB i.e. 4 and NIBL i.e. 2.
The table 4.1 shows the permanent district of the respondents where the maximum number of respondents belongs to Kathmandu districts followed by Darchula, Achham and Kanchanpur i.e. 5, 2, 2 and 2 respectively.
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In order to calculate table 5.1 we first calculated the total of points each customer assign to the service offered by the teller of the bank. Then we defined criteria as, if a customer has scored up to 10 points as satisfied customer, 11 to 15 points as neutral and above 15 as dissatisfied customers with the teller service of the bank. Here we find 5 customers as satisfied, 14 customers as neutral and 1 as dissatisfied. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Means and Standard Deviation
The table 6.1 shows the Means and Standard Deviation of male and female respondents in relation to their response to how satisfied they are in terms of service provided by their bank in which they have maintained their account. According to the table the mean response of male respondent on how satisfied they are with their bank is 2.21 whereas the female average is 2 which shows that male respondents are more dissatisfied than female respondents as their average score is high. Similarly the standard deviation of male respondents is 80.2% and female respondents have 63.2 % which shows there is much variation in male respondent in contrast to female.
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