SERVICE QUALITY DELIVERY AND ITS IMPACT ON CUSTOMER SATISFACTION: A STUDY OF BANKS IN BENIN CITY, EDO STATE, NIGERIA
Abstract
In today’s ‘new normal’ in which competition is at an unpredictable speed like light, service quality and customer satisfaction are critical concepts that any service provider needs to remain competitive and sustain growth. Quality service delivery and customer satisfaction are the sword and shield of competition needed to fortify an organization to be better than the best. Therefore, this study examined the relationship between service quality and customer satisfaction in banking sector in Benin City, Edo State. The study adopted the SERVQUAL model as the main framework for analyzing service quality. Multiple regression analysis with the aid of statistical package for social science (SPSS) vision 21 was used to examine the relationships between service quality variables and customer satisfaction. The sample size of four hundred and twenty (420) was selected from the population of study through convenience sampling technique. A structured questionnaire was used to collect the needed information from the sampled respondents. Out of the 420 sample, only 292 usable questionnaires were retrieved. The results of the study showed that all service quality variables were good predictors of customer satisfaction. Customer’s positive perception is an index with exponential effects on the profitability and brand’s acceptance value proposition. To drive this strategic core value, this study provide an insight into how business and individual performance indicators can utilize the performance management tools, processes, procedure and people to close service gaps with the aim to unlock the hearts, minds and purses of customers through superior service/product that can exponentially optimize productivity and profitability. The study recommends among others that management should get rid of bureaucracy. Quality should be seen as a way of life and all blockades should be removed to ensure a holistic approach in the manner intangible service is delivered.
Keywords
Full Text:
PDFReferences
Agyapong, G.K. Q. (2011). The effect of service quality on customer satisfaction in the utility industry: A case of vodafone (Ghana). International Journal of Business and Management, 6(5), 203-210.
Anderson, E.W., Fornell, C., & Lehmann, D.R. (1994). Customer satisfaction, market share, and profitability: findings from Sweden. Journal of Marketing, 58,53-66.
Andreassen, T.W. (2000). Antecedants to satisfaction with service recovery. European Journal of Marketing,34 (1/2), 156-175.
Armstrong, G., & Kotler, P. (1996). Principles of marketing. India: Prentice hall.
Asubonteng, P., McCleary, K.J., & Swan, J.E. (1996). SERVQUAL revisited: A critical review of service quality. Journal of Services Marketing, 10(6), 62-81.
Azeez, O. (2013). Service delivery and the Nigerian public service. Being a paper presented at capacity building workshop for senior management staff of the federal airports authority of Nigeria (FAAN), Nigerian Airspace Management Agency (NAMA) and Nigerian Civil Aviation, at Ota, Ogun State.
Azeez, O. (2015). Driving service quality through performance management. Human Resource Management Journal, 7(2), 12-30.
Bahia, K., & Mantel, J. (2000). A reliable and valid management scale for perceived service quality of banks. International Journal of Marketing, 18(2), 84-91.
Barsky, J. (1995). World-class customer satisfaction. Burr Ridge: Irwin Professional.
Belas, J., & Gabcova, L. (2014). Reasons for satisfaction and dissatisfaction of bank customers: study from Slovakia and the Czech Republic. International Journal of Entrepreneurial Knowledge, 2(1), 4-13.
Bharwana, T.K., Bashir, M., & Mohsin, M. (2013). Impact of service quality on customers’ satisfaction: A study from service sector especially private colleges of Faisalabad, Punjab, Pakistan. International Journal of Scientific and Research Publication,3(5), 1-7.
Brunner, T.A., Stocklin, M., & Opwis, K. (2008). Satisfaction image and loyalty: New versus experienced customers. European Journal of Marketing, 42(10), 1095-1105.
Burtre, F., & Lawrence, A. (2015). Customer retention management processes: A qualitative study. European Journal of Marketing, 4(1/3), 83-99.
Cameran, M., Moizer, P., & Pettinicchio, A. (2010) service quality in professional service. Service Industries Journal, 30(3), 421-435.
Caruana, M. (2002). Service loyalty: The effects of service quality and the mediating role of customer satisfaction. European Journal of Marketing, 36, 811-828.
Chang, K. (2000). The impact of perceived physical environments on customers’ satisfaction and return intentions. Journal of Professional Service Marketing, 21(2), 75-85.
Chavan, J., & Ahmad, F. (2013). Factors affecting customer satisfaction in Retail Banking: An empirical study. International Journal of Business and Management Invention, 2(1), 55-62.
Cronbach, L.J. (1951). Coefficient alpha and the internal structure of tests. Psychometrika, 16(3), 297-334.
Davidow, W.H., & Uttal, B. (1989). Service companies: Focus or falter. Harvard Business Review, July-August, 77-85.
Day, R. (1977). Customer satisfaction, dissatisfaction, and complaining behaviour, in R. Day (Ed.), Symposium proceedings, 20-22 April, school of Business, University of Indiana.
Donabedian, A. (1982). Explorations in quality assessment and monitoring: The definition of quality and approaches to its assessment. Michigan: Health Administration Press.
Drucker, P. (1988). The coming of the new organization. Harvard Business Review, January-February, 45-53.
Ekinci, Y. (2003). An investigation of the determinants of customer satisfaction. Tourism Analysis, 8(2), 193-196.
Felix, R. (2017). Service quality and customer satisfaction in selected banks in Rwanda. Journal of Business & Financial Affairs, 6(1), 1-11.
Fornel, C. (1992). A national customer satisfaction barometer: The Swedish experience. Journal of Marketing, 56,6-21.
Gefan, G. (2002). Customer loyalty in e-commerce. Journal of Information Systems, 3, 27-51.
George, J. M., & Jones, G.R. (1991). Towards an understanding of customer service quality. Journal of Managerial Issues,3, 220-238.
Gilbert, G. R. (2006). A cross-industry comparison of customer satisfaction. United Kingdom: Glasgow University Press.
Gronroos, C. (1984). A service quality model and its marketing implications. Journal of the Academy of Marketing Service, 24, 36-44.
Ideh, D., & Aghogban, B. (2018). Advance human resource management 2. Lagos: Chartered Institute of Personnel management of Nigeria.
Irfan, S.M., Ijaz, A., & Farooq, M.M. (2012). Patient satisfaction and service quality of public hospitals in Pakistan: An empirical assessment. Middle-East Journal of Scientific Research, 12(6), 870-877.
Jegede, C.T., & OPpatola, M.O. (2015). Service delivery strategies in the informal sector: Lessons to be leant. Human Resource Management Journal, 7(2), 58-75.
Johnston, R. (1995). The determinants of service quality: satisfiers and dissatisfied. International Journal of Service Industry Management , 6, 53-71.
Juran, J.M. (1988). Juran’s quality control handbook. New York: McGraw-Hill.
Kang, G., & James, J. (2004). Service quality dimensions: An examination of Gronroos’s service quality model. Managing Service Quality, 14, 266-277.
Khan, K., & Afsheen, A. (2012). Determinants of customer satisfaction in telecom industry. Journal of Basic and Applied Scientific Research, 2(12), 12833-12840.
Kumasey, A.S. (2014). Service quality and customer satisfaction: Empirical evidence from the Ghanaian public service. European Journal of Business and Management, 6(6), 172-181.
Luk, T.K., & Layton, R. (2002). Perception gaps in customer expectations: managers versus service providers and customers. Service Industries Journal, 22(2), 109-128.
Malik, E., & Ghaffor, M., (2012). Impact of brand image, service quality and price on customer satisfaction in Pakistan telecommunication sector. International Journal of Business and Social Science, 3(2), 1-23.
Min, H., & Min, H.S. (1997). Benchmarking the quality of hotel services: Managerial perspectives. International Journal of Quality & Reliability Management, 14(6), 582-597.
Minh, N.V., & Huu, N. (2016). The relationship between service quality, customer satisfaction and customer loyalty: An investigation in Vietnamese retail banking sector. Journal of Competitiveness, 8(2), 103-116.
Mitchell, J. (2003) Hug your customers. New York: Hyperion Publishers
Mittal, B., Walfried, M., & Lassar, L. (1998). Why do customers switch? The dynamics of satisfaction versus loyalty. Journal of Services Marketing, 12 (3), 177-194.
Munusamy, J., Chelliah, S., & Mun, H.W. (2010). Service quality delivery and its impact on customer satisfaction in the banking sector in Malaysia. International Journal of Innovation, Management and Technology, 1(4), 398-404.
Ndubisi, N.O., Chan, K.w., & Chukwunonso, N.C. (2004). Evaluating the relation marketing strategies and customer loyalty. International Logistics congress proceeding, 11, 1-28.
Ojo, O. (2010). The relationship between service quality and customer satisfaction in the telecommunication industry: Evidence from Nigeria. Broad Research in Accounting, Negotiation and Distribution, 1(1), 88-98.
Oliver, R.L. (1980). A cognitive model of the antecedants and consequences of satisfaction decision. Journal of Marketing Research, 17,28-34.
Oliver, R.L. (1993). Cognitive, affective, and attribute bases of the satisfaction response. Journal of Customer Research, 20,418-430.
Oliver, R.L. (1997). Satisfaction a behavioural perspective on the customer. New York: McGraw-Hill.
Oliver, R.L. (1999). Whence customer loyalty? Journal of Marketing, 63, 33-43.
Olorunniwo, F., Hsu, M.K., & Udo, G.J. (2006). Service quality, customer satisfaction and behavioural intentions in the service factory. Journal of Service marketing, 20(1), 59-72.
Osunde, C. (2014). A study on customer relationship management practices in selected commercial banks with reference to Nigeria. Journal of Entrepren Organization Management, 3(2), 1-17.
Owolabi, S.A. (2010). Repositioning for quality services delivery in tertiary institutions: The role of Accounts. African Research Review, 4(2), 335-354.
Oyeniyi, O., Abiodun, A.J. (2008). Customer service in the retention of mobile phone users in Nigeria. African Journal of Business Management, 2(2), 26-31.
Pan, Y., Sheng, S., & Xie, F.T. (2012). Antecedents of customer loyalty: An empirical synthesis and re-examination. Journal of retailing and consumer services, 19(1), 150-158.
Parasuraman, A. Zeithaml, V., & Berry, L.L. (1985). A conceptual model of service quality and its implications for future research. Journal of Marketing, 49,41-50.
Parasuraman, A. Zeithaml, V., & Berry, L.L. (1990). Delivering quality service: Balancing customer perceptions and expectations. New York: The free press.
Parasuraman, A., Zeithaml, V., & Berry, L.L. (1988). SERVQUAL: A multiple item scale for measuring customer perceptions of service quality. Journal of Retailing, 64(1), 12-40.
Peng, L.S., & Moghavvemi, S. (2015). The dimension of satisfaction, trust, and loyalty: A case of Malaysian Banks. Asian Journal of Business and Accounting, 8(2), 16-31.
Rahaman, M. M., Abdullah, M., & Rahman, A. (2011). Measuring service quality using SERVQUAL model: A study of private commercial banks in Bangladesh. Bangladesh Business Management Dynamics, 1(1), 1-11.
Rao, P.S., & Sahu, P.C. (2013). Impact of service quality on customer satisfaction in hotel industry. IOSR Journal of Humanities and Social Science, 18(5), 39-44.
Reicheld, F.F., & Sasser, W.E. (1990). Zero defections comes to services. Harvard Business Review, September-October, 105-111.
Rust, R.T., & Oliver, R.L. (1994). Service quality: New Directions. Theory and Practice, 2, 41-68.
Sabir, R. I., Ghafoor, O., Hafeez, I, Akhtar, N., & Rehman, S.U. (2014). Factors affecting customer satisfaction in restaurants industry in Pakistan. International Review Management and Business Research, 3(2), 869-876.
Sabir, R.I., Irfan, M., Akhtar, N., Pervez, M.A., & Rehman, A. U. (2014). Customer satisfaction in the restaurant industry: Examining the model in local industry perspective. Journal of Asian Business Strategy, 4(1), 18-31.
Sachdev, S.B., & Verma, H.V. (2004). Relative importance of service quality. Journal of Service Research, 4(1), 93-116.
Spreng, R.A., & Mackoy, R.D. (1996). An empirical examination of a model of perceived service quality and satisfaction. Journal of Retailing, 72, 201-214.
Stan, V., Caemmerer, B., Cattan-Jallet, R. (2013). Customer loyalty development: The role of switching costs. Journal of Applied Business Research, 29(5), 1541-1554.
Takeuchi, H.A.J.A. (1983). Quality is more than making a good product. Harvard Business Review, 61, 139-145.
Wang, C., & Wang, Z. (2006). Impact of internet on service quality in the banking sector. Unpublished master thesis, Lulea University.
Wang, Y., Lo, H.P., & Yang, Y.H. (2004). An integrated framework for service quality, customer value, satisfaction: evidence from China’s telecommunication industry. Information System Frontiers, 6(4), 325-340.
Yee, R.Y., Yeung, A.C., & Cheng, F.T.C. (2010). An empirical study of employee loyalty, service quality an firm performance in the service industry. International Journal of Production Economics, 124(1), 109-120.
Yi, Y. (1990). A critical review of customer satisfaction. Chicago: American Marketing Association
DOI: https://doi.org/10.17509/ijdb.v2i1.45776
Refbacks
- There are currently no refbacks.
Copyright (c) 2022 Universitas Pendidikan Indonesia
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Author: Indonesian Journal of Digital Business is published by Universitas Pendidikan Indonesia (UPI)
View My Stats