SERVICE OUTLET EXPANSION AND CUSTOMERS SATISFACTION OF SELECTED DMBS IN CALABAR METROPOLIS

Abstract

Successful customer retention consists of more than just giving the customer what they expect. Electronic service delivery channels have become a means through which banks achieve their objectives of business renewal and providing effective and efficient services. The main objective of this study is to examine service outlet expansion and customers satisfaction of selected DMBs in Calabar metropolis. The study made use of a sample of 200 employees from some selected banks in Calabar Metropolis in Cross River State, Nigeria. Cross sectional survey research design method was adopted, and the statistical tools used comprised simple percentage and Chi-square analysis. Findings showed that point of sales service exhibited the relatively highest positive effect on customer retention. It was also revealed that online banking service, point of sales service and mobile banking has significant relationships with customer retention.

TABLE OF CONTENT

Title page

Approval page

Dedication

Acknowledgment

Abstract

Table of content

CHAPETR ONE

1.0   INTRODUCTION 

1.1        Background of the study

1.2        Statement of problem

1.3        Objective of the study

1.4        Research Hypotheses

1.5        Significance of the study

1.6        Scope and limitation of the study

1.7       Definition of terms

1.8       Organization of the study

CHAPETR TWO

2.0   LITERATURE REVIEW

CHAPETR THREE

3.0        Research methodology

3.1    sources of data collection

3.3        Population of the study

3.4        Sampling and sampling distribution

3.5        Validation of research instrument

3.6        Method of data analysis

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS AND INTERPRETATION

4.1 Introductions

4.2 Data analysis

CHAPTER FIVE

5.1 Introduction

5.2 Summary

5.3 Conclusion

5.4 Recommendation

Appendix

CHAPTER ONE

INTRODUCTION

• Background of the study

Successful customer retention consists of more than just giving the customer what they expect. Electronic service delivery channels have become a means through which banks achieve their objectives of business renewal and providing effective and efficient services. The main objective of this study is to examine the effect of electronic service delivery channels on customer retention in the Nigerian banking industry. The study made use of a sample of 200 employees from some selected banks in Calabar Metropolis in Cross River State, Nigeria. A survey research design method was adopted, and the statistical tools used comprised simple percentage, and Chi-square statistics. In the banking industry, success and sustainability depends on various factors such as accountability, quality service and changes in technology (Hossan, 2012). The highest profit making firms are not necessarily the most powerful ones. Consequently, this is because profit is just one achievement of a firm (Karim, 2014). Therefore banks should keep in mind not to focus on shareholders alone but also the customers and the quality of service they offer them. Customers’ satisfaction will affect the overall performance of the banks in the long run. Todays’ economy is about maintaining old customers and attracting new customers to thrive in the market (Ramzi, 2010). According to Hossan (2012) customer satisfaction is a key factor in positioning a firm’s performance. This can be measured in different ways. One of the ways of measuring the customers’ satisfaction is by understanding benefits and costs relationship of the customers’ expectations. This can depend on their past experiences. Another way is through the life cycle of the relationship of the customer (Ojo, 2010). In the past, quality was seen as a measurable aspect for tangible products only. This was due to inferiority of the service sector in the economy. Due to the increasing importance of service sector in the economy, the measurement of service quality began to be of interest to individuals in this field (Ghost & Gnanadhas, 2011). Quality of service is not only a vital factor of customer satisfaction in manufacturing industries but also in service firms today that are developing (Karim & Chowdhury, 2014). Research indicates that customer satisfaction plays a very important role in customer loyalty and retention although it does not ensure repeat purchase (Mohsan et al., 2011). Firms in the service sector need to strive through service quality. One of the major factors which influence the customer satisfaction is the quality of service (Timothy, 2012). Measurement of service quality enables firms to compare before and after changes, identify the quality-related problems, and establishing clear standards for service delivery. High service quality will improve customer satisfaction, give a firm an edge in the market share, and attract profit (Hossan, 2012). Conceptualization and measurement of service quality began in the marketing literature in 1980s. Parasuraman et al., (1994) explained quality as a gap between what customers feel to be offered and what is provided. In his model, he measured the gap between expected and perception of service among the customers (Ghost & Gnanadhas, 2011). Some businesses may measure two or three of the dimensions depending on the nature of their business (Taiwo et al., 2012). It is easier to measure product quality as compared to service quality. This is because service quality is made up of unique characteristics (Messay, 2012). According to the Central Bank of Nigeria (2012) banking industry remains sound and is still growing. The financial sector is developing rapidly compared to the rest of the economy

A Financial institution or bank can be defined as an institution, which accepts deposit grant loans and makes payment. Customer loyalty refers to customer behavior that indicates a desire to improve the relationship with the company, customer willingness to purchase again from the company have preferences for the company or recommending the companies to other could indicate the customer desire to remain in a relationship with the company. Customer relationship management recognizes the long run value of a potential and current customer. The main objective of any financial institution is to maximize profit and to do this they must have a large pool of reliable customers who can stay with the institution, for the near future. To maintain these customers and make them loyal to the institution there must be a bond that keeps them together. This bond is in the form of contract and moral justice. Any relationship between the bank and customer must be a good one to enhance mutual benefits to flow to the parties involved. The benefit must not be on equal amount but the two parties must be satisfied. A customer is the heartbeat of a bank and other businesses. From financial perspective, customers own a bank and they must be there for it to continue for a near future. Banks are competing intensely in a highly competitive environment to offer quality oriented services according to customers’ expectations. Many researchers to better understand and serve the community at large are studying various important parts of a banking sector like operations, service quality, employee satisfaction, customer satisfaction, financing products, efficiency, and financial performance. The high quality relationship with customers is the main influence of a successful service provider “which determines customer satisfaction and loyalty”. Organizational outcome such as performance superiority is primarily influence by the service quality increasing sales profit, market share progressing customer relations, improving corporate image and promote customer loyalty. So service quality and customer satisfaction are related to customer loyalty through repurchase intentions. Banks must convey quality service to ensure success and survival in today’s competitive banking. It is logical that a satisfied customer will become at the end a repeat purchaser and a loyal buyer for many causes.

• STATEMENT OF THE PROBLEM

With globalization and increasing competition, many organisations are putting effort into sustaining and retaining a reliable customer base by delivering service quality and customer satisfaction since these two concepts are central for service organisations. Financial institutions are also attempting to increase their customer satisfaction and loyalty through improved service quality. Besides, they suggest that increasing customer retention can have a substantial impact on profits. Consequently, they are changing the way they conduct business and adopt new strategies with regard to customers’ needs and wants by introducing new financial services. It is in view of the above that the researcher intends to investigate the efficacy of service outlet expansion and customer satisfaction in selected deposit money banks in Calabar metropolis.

• OBJECTIVE OF THE STUDY

The main objective of this study is to examine service outlet expansion and customer satisfaction on selected deposit money banks; but to aid the completion of the study, the researcher intend to achieve the following specific objective;

1. To examine the benefit of service outlet expansion on customers satisfaction in selected deposit money banks
2. To examine the effect of service outlet expansion on profitability of commercial banks

• To examine the relationship between service outlet expansion and customer satisfaction among deposit money banks in Calabar metropolis

1. To ascertain the effect of service outlet expansion on customers retention in the banking outlet
   • RESEARCH HYPOTHESES

H₀: there is no significant relationship between service outlet expansion and customer satisfaction among deposit money banks in Calabar metropolis

H₁: there is a significant relationship between service outlet expansion and customer satisfaction among deposit money banks in Calabar metropolis

H₀: service outlet expansion does not have any significant effect on the profitability of commercial banks

H₂: service outlet expansion does have a significant effect on the profitability of commercial banks

• SIGNIFICANCE OF THE STUDY

It is believed that at the completion of the study, the findings will be of great importance to bank management as the study will Serve as guidelines for the formulation of policies on the quality of banks’ services, the study will also assist banks to know the perceptions of customers in terms of sex, age, education, occupation and geographical location

The study will also add up to the store of knowledge on customer satisfaction in the banking industry in general, finally the study will be of importance to researchers who intend to embark on a study in a similar topic as the study will serve as a reference point to further studies.

• SCOPE AND LIMITATION OF THE STUDY

The scope of the study covers service outlet expansion and customers satisfaction of selected deposit money banks in Calabar metropolis; but in the cause of the study there were some factors that limited the scope of the study;

Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

Inadequate Materials: Scarcity of material is also another hindrance. The researcher finds it difficult to long hands in several required material which could contribute immensely to the success of this research work.

Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

• OPERATIONAL DEFINITION OF TERMS

Service

Service sector, the traditional tertiary sector of the economy, including: Customer service, provision of assistance to customers or clients. Domestic service, employment in a residence

Service outlet

A business that operates as a retail outlet will typically buy goods directly from manufacturers or wholesale suppliers at a volume discount and will then mark them up in price for sale to end consumers.

Satisfaction

Contentment is a mental or emotional state of satisfaction maybe drawn from being at ease in one’s situation, body and mind.

Deposit money banks

Deposit money banks are resident depository corporations and quasi-corporations which have any liabilities in the form of deposits payable on demand, transferable by cheque or otherwise usable for making payments.

1.8 ORGANIZATION OF THE STUDY

This research work is presented in five (5) chapters in accordance with the standard presentation of research work.

Chapter one contains the introduction which include; background of the study, statement of the problem, aim and objectives of study, research questions, significance of study, scope of study and overview of the study. Chapter two deals with review of related literature. Chapter three dwelt on research methodology which include; brief description of the study area, research design, sources of data, population of the study, sample size and sampling technique, instrument of data collection, validity of instrument, reliability of instrument and method of data presentation and analysis. Chapter four consists of data presentation and analysis while chapter five is the summary of findings, recommendations and conclusion.

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