They further state that customer satisfaction in the banking sector can be characterized within three contexts. Commercial banking sector is very important for the economic development of the country. Hereby, the researchers conclude that there is a dearth of literature in emerging service quality and customer satisfaction in banking sector that can be used as a trigger to examine diversified attributes of service quality and customer satisfaction, especially in the banking sector context. Effect of service quality on customer satisfaction evidence. Customer satisfaction is one of the most important factors in business. This results in increased competition among banks in the industry as each bank tries to capture a greater market share. Therefore, building customer relationship is a backbone for all organizations in general, and companies in service industries in particular. Pdf bank customers satisfaction, customers loyalty and. The impact of electronic banking on customers satisfaction. Determinants of customer satisfaction of banking industry in.
Basically, the customer satisfaction depends on positive relationship between customers and employees in the banking sector. Because of the rapid changes in technology, perception of consumer, services. The authors also state that customer satisfaction in banks refers to the valenced state of mind, concerning the bank, and evoked by the customers experiences with the bank throughout time. D department of marketing, the federal polytechnic, adoekiti, ekitistate, nigeria abstract. To institute this, three research questions have been formulated namely. Therefore experts say that customer satisfaction should be the fundamental principle of all the. Pdf customer satisfaction trends in banking industry a.
Researches and academician are continuously doing research on this topic. And how consumer trust influence customer loyalty to a bank. Mar 27, 2018 customer satisfaction is the largest competitive advantage for banks. Before initiating on impact of internet banking on customer satisfaction and business performance. The influence of atm service quality on customer satisfaction in the banking sector of nigeria akpan, sunday john ph. Servqual model is used to analyse the perception of. The banking industry in india has undergone sea change post independence. Analysis of customer satisfaction with the islamic banking sector. Customer satisfaction and ebanking one main objective of this research is to understand to what extent the quality of electronic services offered by banks would affect the satisfaction of the customer in the lebanese banking sector. Customer satisfaction westbrook and oliver 1991 define customer satisfaction as a mental state which results from customers comparison of expectations prior to a purchase with performance after a purchase.
The customer value, customer satisfaction, service quality resulting the customer loyalty is the main aspect which the retail banking industry should concentrate. Influence of digital banking on customer satisfaction. This study aimed to examine the impact of ebanking service quality on customer satisfaction in the lebanese banking sector. Identification of factors that affect customer satisfaction is the main objective of the research.
Impact of service quality on customer satisfaction and customer loyalty 332 privatization of banking sector in pakistan during the past few decades has resulted in higher customer expectations. Therefore, service quality and efficiency in the banking industry has increased tremendously worldwide in the world due to the integration of information technology into banking operation. Customer satisfaction on reliability and responsiveness of. Therefore, this study contributes to the literature by studying this phenomenon in the banking sector of a. A lot of research on service quality and its association with customer satisfaction have been conducted in developed countries. The research is relevant to customer satisfaction, atm banking, atm features, and atm service quality. Therefore, customer satisfaction must be translated into a number of measurable parameters directly linked to peoples job in other words factors that people can understand and influence deschamps and nayak, 1995.
Objective of the study was to study the factors affecting customer satisfaction in banking sector of pakistan and to find the relationship between service quality, customer satisfaction and customer loyalty. The author conducted a literature search on banking services of sbi interviewing of its 150. Impact of electronic banking on customer satisfaction. Customer satisfaction e banking, service quality and. Pdf service quality delivery and its impact on customer. Banking is a customer oriented service industry and customer satisfaction has. How does service quality influence customer loyalty to a bank. The present study seeks to investigate the extent to which the electronic banking concept has impacted on customer satisfaction in commercial banks. Due to continues growth of technology, increasing customer base, evolution of alternate banking channels, has changed the way of banking services.
Ukcsi banks and building societies sector report january 2020. Pdf study of customer satisfaction in the banking sector. Customer satisfaction of a bank is a measure how services supplied by a bank meet a customer s expectation. The study investigates the influence of atm service quality on customer satisfaction in the banking sector of nigeria.
Considering the importance of sst in retail banking industry and the practical issues as well as some theoretical gaps in providing efficient and effective banking services of high quality, this paper aims to examine the determinants for service quality for customer satisfaction, in particular, reliability and responsiveness of the atms services. Service quality delivery and its impact on customer satisfaction in the banking sector in malaysia. As every business models attach top priorities to customer satisfaction, and hence crm approach has become very popular in banking. The aim of this paper is to present an original customer satisfaction survey conducted in the. Now a day customer satisfaction and customer retention are the most important challenges faced by most of banking. Empirical results reveal that cutomer satisfaction in the banking sector depends on good and firm relations, building trust between customers and bank emloyees for the case of north cyprus. Customer satisfaction in the kenyan banking industry. Now customers demand better quality services from financial institutions. Pdf a study on customers satisfaction towards banking. The impact of ebanking service quality on customer. Customer satisfaction is positively influenced by perceived value. The importance of customer satisfaction in the banking industry.
This is the reason why banks listen to customer requirements and complains. Crm is a tool which is used for understanding the customers and giving customers satisfactory feeling. The relationship between service quality, customer. Now a days banking haschanged because banking services are no more based on brick and mortar structure. Factors influencing customer satisfaction with atm banking.
A study on customer satisfaction towards public and private sector banking 289 to know in which service quality dimension the bank is performing well and in which dimension it needs improvement. Fair service charge has positive effect on customer satisfaction in banking services. Service quality and customer satisfaction in the banking. Pdf customer satisfaction in the banking industry in. This study purposed to investigate the influence of digital banking on customer satisfaction case of national bank of kenya bungoma county.
Analysis of customer satisfaction with the islamic banking. Impact of service quality on customer satisfaction and. Hence for this study following objectives have been formed. Descriptive statistics was adopted in analyzing the data from the respondents. Service quality and customer satisfaction in selected. A study on customer satisfaction towards public and. Measuring customer satisfaction with service quality using.
The aim of the study is to evaluate the determinants of customer satisfaction on higher service quality in north cyprus banking sector. The relationship between service quality, customer satisfaction and customer loyalty. The paper concludes that e banking has a positive impact on the quality of service in the nigerian banking sector, but not on customer satisfaction. Cronin and taylor 1992, said that the purchase intention of the customers in the retail banking industry depend on the customer satisfaction. Customer satisfaction is one of the most important factors in determining the feasibility of a banking operation. The results revealed that there is a significant relationship between quality of service and customer satisfaction. The purpose of this research article is to evaluate the customers satisfaction towards the banking services rendered by the sbi in kanyakumari district. Customer satisfaction in the banking industry in ghana. Bank customers satisfaction, customers loyalty and additional purchases of banking products and services. In this study a comparative research design has been chosen to explicate the determinants of customer satisfaction. The efficiency of a banking sector depends upon how best it can deliver services to its target customers. This study aims to identify service quality dimensions, which can be used to measure customer satisfaction, and evaluate the effect of service quality dimensions tangibles, responsiveness, empathy, assurance, reliability, access.
Financial services rendered to the community stimulate economic opportunities. This chapter summarises the important dimensions that directly or. In general the economy of north cyprus depends on the service sector that includes education and tourism, and according to a recent study on customer satisfaction and loyalty in banking sector in. Importance of customer satisfaction in banking industry. A comparative study of conventional and islamic banks in pakistan, journal of islamic marketing, vol. To know the various important service quality dimension in banking industry. Majidkaboli, saeed fathi, marjanajiji,2011 has done their research on customer satisfaction of the banking customer in isfahan city. It is particularly true for the services firms where increased level of customer satisfaction results in profit maximization.
A study on customer satisfaction towards public and private. With everyone offering nearly the same products and services without much room to compete on price, the experience customers have with their banks is what gives one bank a competitive advantage over another. An investigation in vietnamese retail banking sector ngo vu minh, nguyen huan huu abstract this study develops and empirically tests the interrelationships between service quality, customer satisfaction, and customer loyalty in a retail banking context. The service quality dimensions that affect customer. Results also suggest positive word of mouth plays a major role in customer satisfaction. Impact of customer satisfaction on customer loyalty and. The extent of satisfaction depends on extent of perceived value and higher level of perceived value lead to higher level of customer satisfaction kuo et al. In pakistani banking industry, customers have put the criteria of customer satisfaction towards service quality provided by their banks. Every rationale customer compares the cost and benefit of any product or service. Research design of the study is quantitative and surveys research method has been used in it. However the customer s satisfaction from banks plays the great role to the development of the community. It has boosted the competition among various commercial banks.
The growth of the banking sector is vital for a countrys economic development as it provides most of the financing sources for businesses. The bank should highlight the reputation of customer satisfaction and take further actions in order to enhance the quality of service. Factors affecting customer satisfaction in banking sector of. Customer satisfaction is very crucial aspect for banking industry also a very wide area to be studied. When it comes to commercial banks, customer satisfaction level differentiates one bank from another, thus measuring customer satisfaction is exceedingly important. The research method will help in examining the various factors those results in satisfaction in retail banking.
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