Understanding The Relationships between Service Quality, Customer Satisfaction and Loyalty: An Investigation of Ghana’s Retail Banking Sector (Published)
This study set out to examine the interrelationships between service quality, customer satisfaction, and customer loyalty for the Ghana banking industry. The paper also evaluates the effects of the individual dimensions of service quality on overall service quality. Primary research data were collected using questionnaires administered face-to-face, via systematic random sampling approach. Confirmatory Factor Analyses (CFA) was then used to test the hypotheses and address the research objectives as well. The results showed that the three variables were positively interrelated, albeit with different p-values for significance. The five dimensions of service quality, tangibility, reliability, responsiveness, assurance and empathy, each affects overall service quality positively and significantly). The effects of service quality on customer satisfaction was direct, positive but insignificant. In the same manner, customer satisfaction positively but insignificantly impacts customer loyalty. Service quality was seen to positively and significantly affect customer loyalty in this study. The findings therefore serve as a good guide for banks to work at improving service quality, which will in turn positively influence satisfaction and loyalty.
Despite significant technological innovation in retail banking services delivery, the number of Nigerian bank branches has grown steadily over time. This paper assesses the implications of these developments by examining the contribution of the branches to banks performance. The study uses the whole banks in Nigeria during the period 1981 and 2013 using a pooled data analysis on ordinary least square(OLS).The variables used include the total number of banks branches in rural and urban area and those domiciled abroad regarded as foreign branches. It also considered the total number of banks at each period and year of study while the growth in Total Asset is proxied as the dependent variable. Our findings showed that there is a positive relationship between the growths of the branches in the rural, urban and foreign centres which implies that there is need to open more branches if the banks wants the Asset to grow. We find no systematic relationship between number of banks and Asset growth perhaps because banking organizations optimize the size of their branch network operations as part of an overall strategy involving both branch-based and non-branch-based activities. The study suggested that branching activities should be a major work and decision of the banks so as to bring more customers to the bank who will now use the various electronic platforms for service installed by the banks.
Customer satisfaction is a continuous process that management must engage in. This study analysed customer satisfaction using 7Ps marketing mix elements to retail bank customers in North east Nigeria. Objectives include examining product, price, place, promotion people, process and physical evidence as drivers of retail bank customer satisfaction. Seven hypotheses were formulated to address the objectives. Data were collected from a sample size of 405 respondents comprising of academic and senior non-academic staff in universities and polytechnics in North east region of Nigeria through questionnaire administration. The study used correlation and regression analysis. The results found that product, process and physical evidence were significantly related to customer satisfaction while price, promotion, place and people are not significantly related. It was also found that process is the most influential driver while price is the least influential. Finally, the study recommends that management should improve the marketing mix elements by applying the right mix to attract and retain customers.