MAKERERE UNIVERSITY

COLLEGE OF BUSINESS AND MANAGEMENT

SCIENCE
QUALITY SERVICES AND CUSTOMER SATISFACTION
CASE STUDY: STANBIC BANK JINJA BRANCH
BY
NANZIRI BETTY
07/U/135/E!T
ARESEARCH RE"ORT SUBMITTED TO MAKERERE UNIVERSITY IN
"ARTIAL FULFILLMENT FOR THE A#ARD OF BACHELOR OF
COMMERCE DEGREE OF MAKERERE UNIVERSITY
JULY$ %011
1
DEDICATION
This piece of work is dedicated to my beloved parents MR &MRS Ssebulime for love, sacrifice,
guidance patience and all the services that inspired my academic endeavors
i
A""ROVAL
This is to certify, that this research report is titled uality services and customer satisfaction has
been submitted for e!amination with my approved as university supervisor
Signed""""""""""# $ate"""""""""""""#
MS %&'T(R&) #*# +),,-
&SU"ERVISOR'
ii
DECLARATION
& hereby +an.iri *etty declare that this research report is original work and has not been
published in any other university before
Signed """""""""# $ate""""""""""""""#
+an.iri *etty
/01-112344156T
iii
ACKNO#LEDGEMENT
& thank the almighty for the dearly life throughout all these years# & continuously pray for the
guidance and protection with wisdom inclusive by his words#
&n a special way, & cannot forget to recogni.e Madam +akku #*# %ictoria my supervisor in
various areas, 7r#%ester and company appreciatively, with 8ennifer and company for their
academic support and encouragement#
iv
TABLE OF CONTENTS
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)',+(;:5$<5M5+T##############################################################################################################iv
T)*:5 (7 '(+T5+TS#################################################################################################################v
:&ST (7 7&<-R5S######################################################################################################################viii
:&ST (7 T)*:5S########################################################################################################################viii
)*STR)'T#####################################################################################################################################!
'=)9T5R (+5##############################################################################################################################1
1#/ &ntroduction################################################################################################################################1
1#1 *ackground################################################################################################################################1
1#> 9roblem statement######################################################################################################################>
1#2 9urpose of the study###################################################################################################################>
1#? (b@ectives #################################################################################################################################>
1#3 Research uestion######################################################################################################################2
1#A Scope of the study #####################################################################################################################2
1#0 Significance of the study############################################################################################################2
'=)9T5R T;(#############################################################################################################################3
:&T5R)T-R5 R5%&5;################################################################################################################3
>#/ &ntroduction################################################################################################################################3
>#1 Buality service###########################################################################################################################3
>#> &mportance of Buality services##################################################################################################0
>#2 $eterminants of service uality ################################################################################################0
>#2#1 Responsiveness#######################################################################################################################0
v
>#2#> Reliability1 'onsistence of service delivery###########################################################################C
>#2#2 Tangibles of services###############################################################################################################C
>#2#? 'ompetence#############################################################################################################################C
>#2#3 'ommunication#######################################################################################################################4
>#2#A 'redibility###############################################################################################################################4
>#2#0 )ccess ####################################################################################################################################4
>#2#4 =uman elements of service uality#######################################################################################1/
>#? 'ustomer satisfaction###############################################################################################################1/
>#3 $eterminants of customer satisfaction#####################################################################################11
>#A Buality service and customer satisfaction################################################################################1>
>#0 )bout the case study################################################################################################################1>
'hapter Three#################################################################################################################################1?
Methodology##################################################################################################################################1?
2#/ &ntroduction##############################################################################################################################1?
2#1 Research design#######################################################################################################################1?
2#> Study 9opulation######################################################################################################################1?
2#2 Sampling techniues and procedures#######################################################################################1?
2#? Sample si.e##############################################################################################################################1?
2#3 $ata collection, &nstruments and $ata source##########################################################################1?
2#3#1 Source of data#######################################################################################################################13
2#3#> &nstruments############################################################################################################################13
2#A $ata processing and )nalysis##################################################################################################13
2#A#1 $ata )nalysis########################################################################################################################13
2#0 :imitations###############################################################################################################################13
'=)9T5R 7(-R##########################################################################################################################1A
vi
9R5S5+T)T&(+, )+):DS&S )+$ $&S'-SS&(+ (7 7&+$&+<S########################################1A
?#/ &ntroduction##############################################################################################################################1A
?#1 The 'hapter is represented according to the ob@ectives of the study as stated belowE############1A
?#> <eneral information#################################################################################################################1A
?#2 7actors influencing uality services in retail banking#############################################################>/
?#2#1 5valuate the level of uality services####################################################################################>C
?#?# $oes Stanbic bank satisfy your needs and e!pectations#########################################################>4
?#3# 5!amine the relationship between uality services and customer satisfaction in Stanbic *ank
########################################################################################################################################################21
?#A#1 The respondents were asked to identify the ways they communicate with their customers#22
'=)9T5R 7&%5###########################################################################################################################23
S-MM)RD, '(+':-S&(+S )+$ R5'(MM5+$)T&(+S#################################################23
3#/ &ntroduction##############################################################################################################################23
3#1 S-MM)RD (7 M)8(R 7&+$&+<#######################################################################################23
3#1#1 7inding on the factors influencing uality services##############################################################23
3#1#> 7inding on features and levels of customer satisfaction#######################################################23
3#1#2 7indings about the relationship between uality services and customer satisfaction###########23
3#> 'onclusion###############################################################################################################################23
3#2 Recommendations####################################################################################################################2A
3#? )reas for further study#############################################################################################################2A
R575R5+'5S##############################################################################################################################20
)ppendi! &F Buestionnaire###########################################################################################################24
vii
LIST OF FIGURES
7igure 1F 'onceptual framework####################################################################################################2
LIST OF TABLES
Table 1F <ender#############################################################################################################################1A
Table > F )ge distribution of the respondents###############################################################################10
Table 2F 5ducation level of the respondents#################################################################################1C
Table ?F (ccupation of the respondents########################################################################################1C
Table 3F =ow long have you been a customer of Stanbic *ankG#################################################14
Table A F ;hat type of account do you hold with Stanbic *ank##################################################14
Table 0 F Response on Reliability ################################################################################################>/
Table C F Response on Responsiveness ########################################################################################>/
Table 4 F Response on )ccessibility #############################################################################################>>
Table 1/ F Responses on 'ompetence ########################################################################################>2
Table 11 F Response on 'ommunication #####################################################################################>2
Table 1> F Response on 'redibility ###############################################################################################>?
Table 12 F Response on Tangibles ################################################################################################>?
Table 1?F Response on 'ourtesy ###################################################################################################>3
Table 13 F Responses on 5mpathy###############################################################################################>3
Table 1AF Response on Security####################################################################################################>0
Table 10 F 5valuate the levels of uality offered by Stanbic *ank###############################################>C
Table 1C F The respondent were asked whether Stanbic *ank satisfy their need and e!pectation
########################################################################################################################################################>4
?#?#1 Table 14 F 7eatures of customer satisfaction#########################################################################2/
Table >/ F Relationship between uality services and customer satisfaction###############################21
Table >1 F The respondents were asked the number of customer complaints handled in a day## #2>
viii
Table >> F =ow long do you take to respond to your customers who present complaints on )TM
break downG###################################################################################################################################22
i!
ABSTRACT
The research study was about the uality of service and customer satisfaction in stanbic bank
where the definitions of both the independent and the dependent variables were discussed# The
purpose of the study was to analy.e whether uality services are provided in Stanbic *ank and
how it has influenced customer satisfaction# The ob@ectives of the study were to find out the
factors influencing uality services in Stanbic *ank, to determine the features and the level of
customer satisfaction, to e!amine the relationship between uality services and customer
satisfaction in Stanbic *ank#
) combination of both descriptive and uantitative research design was used and to a lesser
e!tent ualitative research design was used# The targeted study population was A/ and 3>
respondents were chosen using both purposive and simple random sampling# Self administered
uestionnaires were used to collect data and analy.ed using freuency tables and S9SS
9ackages# The findings indicated that there are factors that influence uality services in Stanbic
*ank# The factors indeed determine customer satisfaction in that poor uality service result in to
dissatisfaction# The findings further revealed that there is a positive relationship between uality
service and customer satisfaction#
The study gave a recommendation that the bank need to pay much attention on customer
complaints and pay attention to factors that are negative in a bid to improve on customer
satisfaction# The bank need to improve on technology and communication between the
management and customer to improve uality services so as to satisfy their customers
!
CHA"TER ONE
1(0 I)*+,-./*0,)
This chapter contains the background of the study, statement of the problem, purpose of the
study, ob@ectives, and research uestions, scope of the study and the significance of the study#
1(1 B1/23+,.)-
&n an era of mature and intense competitive pressure, many firms are focusing their efforts on
maintaining a loyal customer base# This is particularly true in the financial service sector where
deregulation has created an environment that allows customer considerable choice in satisfying
their financial needs# &n response, many retail banks are directing their strategies towards
increasing customer satisfaction and loyalty through improved service uality H:evesue and Mc
$ougall, 144AI# )ccording to ;inder and 8udd H144AI, Buality is the ongoing process of
building and sustaining relationships by assessing, anticipating and fulfilling stated and implied
needs# )# Muhlemann et al H144>I, defines uality as fitness for use and conformance to the
reuirements# Buality is nothing more or less the perception of customer has of you, your
products and service# &t is meeting customer reuirements a lower cost with built in preventive
saction in the processes on employee1management, involvement, ensuring the best products to
the customer1end user with @ust in time delivery#
Buality service is defined as a level of service, compared to that of competitors that is high
enough in the eyes of customer that enables one to gain an unnaturally large market share, en@oy
a higher profit margin than the competitors &,arl, >//?I# )ccording to 9arasuraman et alH14C3'
the dimension of uality service includeE tangible, reliability, responsiveness, competence,
credibility, empathy and communication#
'ustomer satisfaction is a business term, is a measure of how products and services applied by a
company meet or surpass customer e!pectation
1
( 'ustomer satisfaction can be found through
market analysis, satisfied customers usually leads to more sales, customer loyalty, retention and
this leads to profitability&=allowell,144AI, the dimensions of customer satisfaction includeE
capability, usability, performance, reliability, install ability, maintainability and documentation#
1
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7*
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1
Stanbic *ank -ganda limited HS*-I is -gandaJbased commercial bank# &t offers banking and
other financial services and products to individual customers, small and medium enterprises, as
well as corporate organi.ations# The *ankKs portfolio includes transaction accounts, saving and
investment accounts, foreign e!change, e!ecutive banking# The bank also offers investment and
wealth solutions# The bank is the largest commercial bank in the country by assets, with
estimated asset valuation of -S L 441 million, accounting for appro!imately >2M of the total
bank assets in -ganda as of 8une >/1/
>
# ) wide integrated uality programs and practices have
been used by S*- :td to manage and maintain service uality and these areE acuisition and
emergence of new products like )TM, loan schemes, visa card, e!ecutive banking, money gram,
internet banking and it has also opened other branches for easier banking, recruitment of
ualified professional staff etc#
1(% "+,;<48 7*1*484)*
Service uality being a vital component for both initial and ongoing development of customer
satisfaction# )s Stanbic *ank strives to satisfy its customers, it has put in place easier banking
services by introducing internet banking, electronic banking, )TMs and so on, promoting
accuracy, fle!ibility,# $espite all the above, the apparent decline in customer satisfaction in S*-
being observed by the increasing number of customer complaints as evidenced in sustainability
and black economic empowerment report >//3(The number of complaints in >//? were H11,1C2I
and H>0,>A/I in >//3 may be as a result of poor uality services like high bank charges, break
down of )TM machine, lack of empathy and un reliability offered by the bank
1(3 ".+6,74 ,9 *:4 7*.-=
The purpose of the study is to analy.e whether uality services are provided in stanbic bank and
how it has influence customer satisfaction#
1(> O;?4/*0@47
To find out the factors influencing uality services in Stanbic *ank
To determine the features and level of customer satisfaction in Stanbic *ank
To e!amine the relationship between uality services and customer satisfaction in Stanbic *ank
>
&4)(502064-01(,+3/5020/7*1);0/ ;1)2 U31)-1$%1
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1(5 R4741+/: A.47*0,)
;hat are the factor influencing uality services in Stanbic *ankG
;hat are the features and the level of customer satisfaction in Stanbic *ankG
;hat is the relationship between uality services and customer satisfaction in Stanbic *ankG
1(B S/,64 ,9 *:4 7*.-=
G4,3+16:0/1< 7/,64
The study was carried out in Stanbic *ank 8in@a branch
S.;?4/* 7/,64
The study concentrated on uality service and customer satisfaction for Stanbic *ank 8in@a
branch#
T084 7/,64
The study range between >//?J >/1/ a period of si! years
1(7 S03)090/1)/4 ,9 *:4 7*.-=
The study will improve on the researcherKs academic knowledge and skill in the research field#
The study will provide up to date information for practitioners and students in the retail banking
industry for further research
Stanbic *ank -ganda in particular will also be a direct beneficiary in streamlining its as regards
to customer satisfaction, retention and identifying the uality service gap
The study will benefit the researcher in the partial fulfillment of the reuirements for the award
of a degree of *achelor of commerce of Makerere -niversity
F03.+4 1: C,)/46*.1< 9+1845,+2
&ndependent variables $ependent variables
2
Reliability1
'onsistence of service
delivery
Responsiveness
)ccessibility
5mpathy
Tangible of service
=uman elements of
service uality
7rom the above diagram, the factors influence uality services HdeterminantsI include customerKs
perception, consistence in service delivery, responsiveness, accessibility, communication, human
elements of service uality, and tangibles of service, etc and determinants of customer
satisfaction include location, loyalty, usability, performance etc
?
Buality of
Service
'ustomer satisfaction
:oyalty
9erformance
:ocation
-sability
CHA"TER T#O
LITERATURE REVIE#
%(0 I)*+,-./*0,)
This chapter contains various views presented by different scholars in relation to uality
service and customer satisfaction#
%(1 Q.1<0*= 74+@0/4
;inder and 8udd H144AI, defines uality as the ongoing process of building and sustaining
relationship by assessing, anticipating and fulfilling stated and implied needs#
Buality is the totality of features and characteristics of a product1 services that bears on its ability
to satisfy stated or implied needs H(kella, >//?I# *alunywa H1443I, stated uality as an attribute
of a product1 service, that is a grade of a particular product or service thus talk of poor and good
uality# These two definitions emphasi.e uality being inherent in a product1 service# Service is
any activity that one party can offer to another that is essentially intangible and does not result
into ownership H,olter,1444I#7our main features characteri.ed service namelyE intangibility,
perishability, heterogeneity and inseparability unlike products H9ayne,1444/# )ccording to
=ei.er and Render H1444I, services are those economic activities that typically produce an
intangible product as education, government, insurance, entertainment, transportation, real
estate and medical repair#
Buality service is defined as a level of service, compared to that of competitors that is high
enough in the eyes of a customer, that enables one to gain an unnaturally large market share and
en@oy a higher profit margin than competitors,H,arl,>//?I#)ccording to =awcroft H1441I,
anticipating and satisfying the needs and e!pectations of a customers#
5ugene H>///I describes uality service as a global evaluation of a firmKs service delivery
system#
)ccording to $ale H144?I, service uality issues have been of academic and practitioner interest
to markets resulting from the increasing importance of the service sector in the economy# This
3
covers industries like tourism and health care where the focus of the business activity is on
NservicesK rather than product# The production and consumption of many services are
simultaneous in that the service process integrates both customer and sellers# Therefore, the
service process is important to service uality responsibility for marketing of uality services lies
with operations, marketing, human resources and other management together with an
organi.ation
$ale adds that customer services and service uality are new, a focus for any corporate or
marketing strategy and high level of services are typically seen as a mean for an organi.ation to
achieve a competitive advantage# )n organi.ation need to focus its attention on products,
services and their production#
=utchins H144/I 9ortrays uality as the perceived level of performance by the customer in a
product or services# = e states Nuality is a measure of the achievement of customer satisfaction#K
;hereas 9eter H144?I describe components of uality service as the degree to which attributes
of the service desired by the users are identified and incorporated in the service and the
degree to which the desired level of attributes are perceived by the users to be achieved#
(akland H1440I contends that, the business environment today is characteri.ed by changing
customer e!pectations, technological and product advances, legislation and political
development, economic and competitive conditions which contribute to an increasing emphasis
on uality service provision for all organi.ations in both services and manufacturing# Buality
assurance with in an organi.ation provides confidence to the management of the organi.ation
and customer# =e asserts that organi.ations need to control uality in order to avoid
unsatisfactory performance# &t is contended by ;isner et al H1443I that uality service is a
mechanism to achieve preJeminence in the market place and the battle for market shares and
becomes a factor in strategic planning# ) company like bank needs more awareness of
alternatives offer in relation to uality services1 products and conseuently their e!pectation of
service and uality raised#
A
%(% I86,+*1)/4 ,9 Q.1<0*= 74+@0/47
*anking industry is a demand driven industry, which constitute an important part of the service
industry# Retail banks therefore have to redefine their corporate image to that emphasi.es service
uality since it provides many advantages to a company such as allowing the company to
differentiate itself from its competitors by increasing sales and market shares, providing
opportunities for cross selling, improving customer relations thus enhancing the corporate
image, reliability, responsiveness, credibility and communication results in the satisfaction and
retention of customers and employee, thus reducing turnover rateH:ewis,1441,+ewman >//1I
%(3 D4*4+80)1)*7 ,9 74+@0/4 A.1<0*=
'lassification of service uality has been addressed by a number of scholars# :ehtinen H14C>I,
identified three H2I dimensions of physical uality, corporate uality and interactive uality,
while <ranoos H14CCI identified five key determinants of uality service asE professionalism and
skills, reputation and credibility, behavior and attributes, accessibility and fle!ibility, and
reliability and trust worthiness# &n their revised version, 9erasuraman et al H14C3I identified the
following determinantsE reliability, responsiveness, accessibility, competence, credibility,
courtesy, communication, security, the other determinants include customer perception,
consistence of service delivery, human elements of service uality, tangibles of service#
9hysical uality relates to tangible aspects of services
&nteractive uality involves the interactive nature of service and refers to twoJ way flow that
occurs between the customer and service provider or his1her representative, including both
automated and animated interaction#
'orporate uality refers to the image attributed to a service provider by its current and potential
customers as well as other
%(3(1 R476,)70@4)477
&s the willingness to provide help and prompt service to customer H9arasuraman et al, 1444I#
Responsiveness concerns the willingness or readiness of employees to provide a service in such a
away asE mailing a transaction slip immediately, speed on mortgage conformation, updating
accounts promptly H7rancis, 144AI# Responsiveness has been shown to an important factor
0
)ukiran H144?I, suggest that efforts to increase speed of processing information and a
customer is likely to a positive effect on customer satisfaction in retail banking# *alunywa,
H1443I emphasi.es that when a customer has a need, meet it, be easy accessible available to
customer#
%(3(% R4<01;0<0*=/ C,)707*4)/4 ,9 74+@0/4 -4<0@4+=
Referred to the processes, procedures and systems that would make service delivery a seamless
e!perience HSarashchandar et al, >//>I# &t highlighted whether the service delivery process wads
standardi.ed, streamlined and simplified, so customers could receive the service without any
problem# The structured aspects of service delivery processes have not ever been adeuately
studied HSarashchandar et al, >//>I# &n literature there were few marketing scholars who have
tried to focus on the importance of the structural content of service delivery in service uality
evaluation H $auaher and Mattson, 144CI#T his structural content of the service delivery process
is considered important in service uality evaluation H $auaher and Mattson,144CI#
%(3(3 T1)30;<47 ,9 74+@0/47
They are one of few dimensions that have been consistently used by different researchers H*ahia
and +antel, >///I# =owever tangibles refer to physical facets of service facility euipment,
machinery signage, communication material H*ahia and +antel, 9arasuraman et al, 14C3I#&t
included the physical evidence of service e!cept the personal appearance of staff which was
included in human element dimension, employees and customers are usually influenced by the
tangible facets of service in physiological, psychological, emotional and cognitive ways H *itner,
144>I# The intangible aspects of the staff customer interface have a considerable influence both
negative and positive in the service uality H8ohnston, 1443I# Tangibles are associated with the
impact on the customerKs inferences about what service should be like and therefore will
influence the evaluation of service uality H9arasuraman et al, 1442I# 'ustomerKs perception of
tangibles was generally considered important in the case of the banks than others#
%(3(> C,864*4)/4
This was defined by 7rancis H144AI as the possession of the reuired skill and knowledge
performs a service# &t involves research capacity, knowledge and skills of operational support
staff# 'ompetence is the skill, e!pertise and professionalism with which the services are
C
e!ecuted# )ccording to Robert H1440I, competence includes the carrying out of correct
procedures, correct e!ecution of customer instruction, degree of product and service knowledge
e!hibited by contact staff, rendering of sound advice and the general ability to do a good @ob#
%(3(5 C,88.)0/1*0,)
Robert H1440I described communication as the ability a service to communicate with a customer
in the away he1 she will understand# &t includes the clarity, completeness, and accuracy of both
verbal and written information to customer and the ability to listen and understand the customer#
)ccording to +tayi, H1444I, 'ommunication means keeping customer informed in the language
they can understand and listen to them# &t may mean the company going that e!tra mile to ad@ust
its language for different customers, availability of inuiries desk, informing of account changes,
and clarity of staff answers and ease of understanding letters are great consideration to effective
communication H<alloway, 144?I# &n -ganda retail banking, banks like Stanbic bank, *ank of
)frica, 'entenary and $7'- installed )TMs with :uganda instructionE they all have front desks
for inuiries and issue bank statement at end of the month to update customers about their
monthly transaction#
%(3(B C+4-0;0<0*=
'redibility involves trustworthiness, believability and honesty# &tKs about having the customers
best interests at heart, contributing to credibility is a company name, reputation and privacy
discussions H7rancis 144AI# *alunywa H1443I highlights that credibility mean trust, assurance,
integrity and security# Say what you mean and mean what say# This is more important in retail
banking, an instruction that handles the payment system keeps customerKs money#
%(3(7 A//477
)ccess is to do with approachability and ease to contact, it may mean the service is easily
accessible by telephoneE waiting time to receive service is not e!cessive and convenient hours of
operation and convenient location of service facility H7rancis 144AI# )ccording to <alloway
H144?I, getting right person on phone, appearance of branch, ease of getting to branch, ueues at
cash machines and staff available to help are issued to look out for# Robert H1440I considers
accessibility to be approachability to the service location, including the ease of find oneKs way
around the service environment and clarity of route# &n the case of contact staff with means both
4
the staff and customer ratio and amount of time each staff member has available to spend with
each customer for service goods, accessibility includes both uality and range to product like
account types available to the customer#
%(3(C Customer perception of quality#
&n )ustralia, the importance of customerKs view has grown in since the deregulation of the
banking sector in early 14C/S H$e *rouwer, 1444I, since each customer perception preference
has had increasingly greater impact on the bank success HSaraschandar, Re@endran and
)nantharaman, >//>I# Today customers are more educated than ever before# They e!pect more
value for money and want a good service and are willing to pay for it#H,im and ;einer, 144AI
The level of courtesy and assistance reuired by the bank customer as increased dramatically as
customers have up graded their service standardsH Davas et al, 1410I# &t is important for banks to
differentiates themselves on the basis of c customer service in order to effectively compete in the
modern competitive banking environment H)le!adris $emitriadis
%(3( H.81) 4<484)*7 ,9 74+@0/4 A.1<0*=
Referred to all aspects of the staff 1 customer interaction in service delivery the importance of the
human element informing customerKs perception of service uality has been identified by
marketing scholars H8abnouns and )lJTamini,>//2, Davas et al 1440I#5mployees have an
important effect on customer service because customers are educated than ever before
HMovawad and ;einer 144AI 7urther frontline employees play a vital role in representing the
firm interaction with outside parties and influencing the recognition, attitude and evaluation
formed by customers HSchneider and *owen 144AI thus frontline employees were considered to
be a main driver of customer satisfaction and favorable success perception# 7inally four out of
five service uality dimensions were about human elements, reliability, empathy and assurance
HSarashchandar et al, >//>I and murkata, >//>I
%(> C.7*,84+ 71*0791/*0,)
)ccording tom the international @ournal service industry management H144?I, it is e!plained that
customer satisfaction is managing customer relationship and profits# That is a dynamic
relationship uality or link between service uality and customer satisfaction# 5ugene suggest
1/
that customer satisfaction is a cognitive reaction which emerges as a response to a single or
prolonged service encounters# it is the customerKs sub@ective satisfaction @udgment resulting from
observations of attribute performance regarding a product or service H(liver and $esurbo 1442I ,
These definitions spell out that customer satisfaction is not based on a single factor but a
multiplicity of factors appreciate t in the creation of satisfaction# The greatest difficulties 4in the
provision of customer satisfaction varies from customer to customer# Specification of service
uality is based on the e!pectations of a particular customer# 5ugene H>///I, argues that uality
improvements that are not based on customer needs will not lead to improved customer
satisfaction leads to loyalty and retention# ;inners in todayKs retail banking must therefore track
their customersK needs, e!pectation and perceived company performance# Mc 'onnell H144/I
contends that customer dissatisfaction leads to loss of market share, reduced sales and lower
profit margin#
%(5 D4*4+80)1)*7 ,9 /.7*,84+ 71*0791/*0,)
Togo through the transformation, :Ovesue H144AI, identified the drivers of customer satisfaction
in retail banking to be performance, loyalty, location, skilled employees and competitive interest
to deliver these benefits on an ongoing basic to its e!isting clientele will impact on customer
satisfaction##
:ocationF understanding location are the customer benefits of convenience and accessibility
which are enabling factors that make it easy for the customers to do business with the bank#
9erformanceF performance yields clean and convincing directions for designing service offerings
staff development programmers and customer complaint management systems H:evesue and
<ordon, 144AI# $oing it right the first time and ensuring successful problem recovery results in
to reliability, competitive and shows that employees are willing and ready to provide a service#
:oyaltyF 5ugene et alE H>///I suggest that loyalty is a deeply held commitment to rebuy or
repatronise a preferred product or service consistently in the future despite situational influences#
)ccording to *loemer H144CI intangible attributes such as reliability, competence, credibility and
efficiency place a ma@or role in building and maintaining loyalty thus a great intent to repurchase
and likelihood of recommending the bank to others#
11
%(B Q.1<0*= 74+@0/4 1)- /.7*,84+ 71*0791/*0,)
)ccording to *ilal H144AI, uality assurance in organi.ation provides confidence to the
management of the organi.ation and customer# =e argues that the organi.ation needs to control
uality in order to avoid unsatisfactory performance that leads to customer turnover# =owever,
;esner et al#, H1443I contends that the customer is the key driver for change and acknowledging
his satisfaction is of importance to business access# 7actors which lead to customer turnover like
actual price charged, changing address, ineffectiveness and poor communication among others,
should be considered in proper alignment to produce uality services#
9oon H1442I contends that there is need for loyalty for customers, uality labor and ensure
services are consistently good# ,eeping customers satisfied and happen through uality will keep
them coming back rather than leaving# ;hereas Medilk H144>I argues that the customer assesses
uality by his or her perceptions of the way in which services or facilities are provided# Thus
means that uality concerns visitor e!pectation of services and what is received and delivered# )
bad customer service e!perience is used as an e!ample of common customer service error hence
customer turnover#
;esner et al# H1443I, contends that the successful organi.ations are the ones that deliver the
higher standards within the limits of what the customer can afford# Buality does not need to be
e!pensive but it has to reflect high value for money so as to satisfy the customers# Buality
service is measured through customerKs comments repeat new business and complaints# Mc
'onnell H144/I adds that customers need to feel comfortable and rela! on the surrounding# They
need differentiated products and services that give them e!perience they cannot get anywhere#
)ttention should be put on customer complaints so as to retain the e!isting customers and attract
new ones#
%(7 A;,.* *:4 /174 7*.-=
Stanbic *ank -ganda limited HS*-I is one of the commercial bank in -ganda# &t offers banking
and other financial services and products to individual customers, small and medium enterprises,
as well as corporate organi.ations
1>
Stanbic bank emerged out of privati.ation program that was instituted by the -gandan
government in the last >/ years# (riginally called -ganda commercial bank, stanbic bank plays
roles such as mobili.ing savings, funds transfer, offering consultancy services, providing a
payment mechanism to mention last a few#
)s of 7ebruary >/1/, stanbic bank being the largest institution in -ganda has a branch network
of si!ty seven HA0I branches in central, eastern, northern and western parts of the country# &ts
branch network is the largest of all commercial banks in -ganda# &t offers banking and other
financial product and services to individual customers, small and medium enterprises as well as
corporate organi.ations# The bankKs portfolio include v transactional account, saving and
investment accounts, foreign e!change, e!ecutive banking as well as electronic banking# :ike
)TMs, personal banking, corporate banking Hstanbic bank e!hibition catalogue >//2I#
This shows that stanbic bank had tried to adopt its offering to changing needs of its customers,
however, there continues to be some increasing complaints from bank customers indicating a
possible insufficient of service uality#
12
C:16*4+ T:+44
M4*:,-,<,3=
3(0 I)*+,-./*0,)
This chapter covers the method that was used in the study# &t includes research design,
population, sampling si.e, data collection, methods and instruments, data process and analysis#
3(1 R4741+/: -4703)
The study used both descriptive and uantitative research designs# $escriptive method was used
to describe the characteristics1 dimensions of the research variables# Buantitative method was
used to collect data from a given number of respondents# To a lesser e!tent ualitative r method
was also used in order to get opinions from different respondents# The study was also crossJ
sectional in nature because the researcher gathered data once over a period of days in order to
answer the research uestions#
3(% S*.-= ",6.<1*0,)
The sample population was includeE top management, lower level employees as well as clients1
customers totaling A/
3(3 S186<0)3 *4/:)0A.47 1)- 6+,/4-.+47
9urposive and simple random sampling method was used during the study# Management was
used purposely selected because of their knowledge or information regarding the area of the
study# ) simple random sampling techniue was used to select the customers so that they also
provide specific views on the uality they need and their e!pectations of Stanbic *ank -ganda#
3(> S186<4 70D4
) sample of 3> customers was considered out A/ studies#
3(5 D1*1 /,<<4/*0,)$ I)7*+.84)*7 1)- D1*1 7,.+/4
$ata was collected from both primary and secondary sources#
1?
3(5(1 S,.+/4 ,9 -1*1
The main source of primary data was through selfJ administered uestionnaire, interviews and
observations#
Secondary data was obtained from already e!isting literature that is from te!tbooks, @ournals,
brochures, and internet and bank reports#
3(5(% I)7*+.84)*7
Buestionnaires were designed for the staff and customers# 'losed ended uestions will be used#
)lready e!isting literature that is from te!tbooks, @ournal will be used#
3(B D1*1 6+,/4770)3 1)- A)1<=707
$ata was coded, scrutini.ed, edited manually by the researcher to check for accuracy and
completeness#
3(B(1 D1*1 A)1<=707
$ata was presented and analy.ed using tables, percentages, freuencies and S9SS packages#
3(7 L080*1*0,)7
1# The costs of carrying our research were so high#
># (btaining the administered uestionnaires on time was a problem# This is evident in that
out of A/ uestionnaires distributed, 32 were returned#
2# Respondents delayed to fill uestionnaires claiming to be busy more so the staff of the
*ank#
?# &dentifying and contacting the bank customers were a problem as they are not located at
one place#
13
CHA"TER FOUR
"RESENTATION$ ANALYSIS AND DISCUSSION OF FINDINGS
>(0 I)*+,-./*0,)
This 'hapter presents the findings of the study with the aim of providing answers to research
uestion, interpretations of each the findings#
The analysis is based on freuencies and percentages#
>(1 T:4 C:16*4+ 07 +46+474)*4- 1//,+-0)3 *, *:4 ,;?4/*0@47 ,9 *:4 7*.-= 17 7*1*4- ;4<,5E
To find out the factors influencing uality services in Stanbic *ank#
To determine the features and level of customers satisfaction in Stanbic *ank#
To e!amine the relationship between uality services and customer satisfaction in Stanbic *ank#
>(% G4)4+1< 0)9,+81*0,)
9resent the finding about the factors that influence uality services in Stanbic *ank present the
finding about the levels of uality services in Stanbic *ank#
9resent the finding about the features and level of customer satisfaction in Stanbic *ank#
9resent the finding about the relationship between uality service and customer satisfactions in
Stanbic *ank#
(f the A/ targeted uestionnaires 32 was returned, ?4 were client and ? staff at Stanbic *ank#
This presents a response rate of CC#22M and was deemed adeuate for the purpose of this study#
T1;<4 1: G4)-4+
F+4A.4)/= &9' "4+/4)*134 &F'
Male >A ?4#1
7emale >0 3/#4
T,*1< 53 100
Source: Primary Data
1A
7rom table above, ?4#1M of the respondents were male and 3/#4M of the respondents were
female#
This show both male and female prefers Stanbic *ankKs services# The research finding shows
that there is a relative gender balance#
T1;<4 % : A34 -07*+0;.*0,) ,9 *:4 +476,)-4)*7
A34 F+4A.4)/= &9' "4+/4)*134 &F'
13J>3 0 12#>1
>3J?/ 2A A0#4>
?/J3/ 4 1A#4C
3/ above 1 1#C4
T,*1< 53 100
Source: Primary Data
The table above shows that 1#C4M respondents were aged 3/ years and above which implies that
these respondents were retired and unemployed# The research finding also shows that A0#4M of
the respondents were aged >3J?/ years# This shows that most of the respondents were mature,
independent and productive therefore were eligible to operate transactions in Stanbic *ank#
10
T1;<4 3: E-./1*0,) <4@4< ,9 *:4 +476,)-4)*7
F+4A.4)/= &9' "4+/4)*134 &F'
(K level 1 1#4
)K level 3 4#?
$iploma 1/ 1C#4
-niversity 23 AA#/2
9ost graduation > 2#00
T,*1< 53 100
Source: Primary Data
Table 2 shows that AA#/2M of the respondents are -niversity graduates# This research finding
shows that all the respondents are educated and knowledgeable# Therefore they can read and
understand the uestionnaire# This means that they were in position to self administer the
uestionnaires# )nd this greatly reduced the problem of ignorant respondents and language
barrier and valuable information with regards to uality service was obtained#
T1;<4 >: O//.61*0,) ,9 *:4 +476,)-4)*7
F+4A.4)/= &9' "4+/4)*134 &F'
Self employed A 11#2>
5mployed 2? A?#13
Retired 1 1#C4
Student 1> >>#A?
T,*1< 53 100
Source: Primary Data
Table ? above shows that A?#13M of the respondents are employed, >>#A? are students and 11#2>
are self employed# This means that most of the respondents are income earners who have bank
accounts#
1C
T1;<4 5: H,5 <,)3 :1@4 =,. ;44) 1 /.7*,84+ ,9 S*1);0/ B1)2G
Y41+7 F+4A.4)/= &9' "4+/4)*134 &F'
1J3 20 A4#C1
AJ1/ 4 1A#4C
11 and above 0 12#>1
T,*1< 53 100
Source: Primary Data
)ccording to the table above, A4#C1M of the respondents have been the bankKs customers
between 1J3 years, 1A#4CM were between AJ1/ years while 12#>1M have been customers for over
? years and above# The A4#C1M also indicates the recent increased banking activities in the last 3
years# This implies that the uality of the banking services at stanbic bank is e!cellent hence
leading to customer retention#
T1;<4 B : #:1* *=64 ,9 1//,.)* -, =,. :,<- 50*: S*1);0/ B1)2
T=64 ,9 1//,.)* F+4A.4)/= &9' "4+/4)*134 &F'
Savings 2> A/#2C
'urrent 1A 2/#14
7i!ed 2 3#AA
'urrent & savings > 2#00
T,*1< 53 100
Source: Primary Data
7rom table A above, A/#2CM of the most of respondent hold saving account only and 2/#14,
current account, 3#AAM hold fi!ed account while 2#00M hold both current and savings account#
The A/#2CM savings accounts indicate that the holders freuently visit the bank to transact thus
understand the service uality# The low number of fi!ed accounts can be associated to restricted
period of time to access money where customer cannot freuently access their money for daily
consumption#
14
>(3 F1/*,+7 0)9<.4)/0)3 A.1<0*= 74+@0/47 0) +4*10< ;1)20)3
T1;<4 7 : R476,)74 ,) R4<01;0<0*=
R476,)74 F+4A.4)/= &9' "4+/4)*134 &F'
Strongly agree 1C 2A#0?
)gree >4 34#1C
$isagree > ?#/C
Strongly disagree / /
T,*1< > 100
Source: Primary Data
The table above shows the response about reliability as one of the factor that influences uality
services where by 2A#0?M /f the respondents strongly agree, 34#1CM agree, ?#/CM disagree#
7rom the research finding it is shown that ma@ority of the respondents agreed that
reliability1consistence and dependability greatly improved the uality of services offered to
customer in Stanbic *ank#
This indicates that services delivered in *ank are standardi.ed, simplified and consistent, so
customers could receive the service without any problem as it was revealed by Saraschandar et al
H>//>I#
T1;<4 C : R476,)74 ,) R476,)70@4)477
R476,)74 F+4A.4)/= &9' "4+/4)*134 &F'
Strongly agree 4 1C#20
)gree 2C 00#33
$isagree > ?#/C
Strongly disagree / /
T,*1< > 100
Source: Primary Data
>/
7rom the table above, 1C#20M of the respondents strongly agree that responsiveness was one of
factors that influence uality services, 00#33M agree, ?#/C disagree# 7rom the above research
finding it is shown that ma@ority of the respondents agreed that reacting in the positive way,
willingness and readiness of the employees to provide service to their customers has greatly
improved service uality in the *ank# This implies that *ank has tried to increase the speed of
processing information and available to customer# =ence responsiveness being one of
contributing factors towards uality services in the bank leading to e!cellent customer
satisfaction#
>1
T1;<4 : R476,)74 ,) A//4770;0<0*=
R476,)74 F+4A.4)/= &9' "4+/4)*134 &F'
Strongly agree >4 34#1C
)gree 1C 2A#0?
$isagree > ?#/C
Strongly disagree / /
T,*1< > 100
Source: Primary Data
The table above shows the response about accessibility as one of the factors affecting uality
services where by 34#1CM of the respondents strongly agree , 2A#0?M and ?#/CM disagree from
the research finding it is shown that the ma@ority of the respondents strongly agreed that
approachability and ease of contact with customer hence improving uality services in the *ank#
The big number of respondents H34#1CMI means that the bank services are accessible by getting
right people on the phone, convenient location of service facility, waiting time to received
service is not e!cessive and convenient hours of operation as it was revealed by 7rancis H144AI#
>>
T1;<4 10 : R476,)747 ,) C,864*4)/4
R476,)74 F+4A.4)/= &9' "4+/4)*134 &F'
Strongly agree 1? >C#30
)gree >C 30#1?
$isagree A 1>#>3
Strongly disagree 1 >#/?
T,*1< > 100
Source: Primary Data
7rom the above table, >C#30M respondents strongly agree that competence determine the uality
services provided in the *ank, 30#1?M agree and 1>#>3M disagree# The research finding it is
shown that ma@ority of the respondents agreed that possession of reuired skill and knowledge to
perform the services# This implies that the *ank possess a high degree of product and knowledge
e!hibited by contact staffE correct e!ecution of customer instruction as it was revealed by Robert
H1440I#
T1;<4 11 : R476,)74 ,) C,88.)0/1*0,)
R476,)74 F+4A.4)/= &9' "4+/4)*134 &F'
Strongly agree 1/ >/#C2
)gree >C 3C#22
$isagree C 1A#A0
Strongly disagree > ?#10
T,*1< > 100
Source: Primary Data
The table above shows responses about communication as one of the factors affecting uality
services where by >/#C2M strongly agree, 3C#22M agree, 1A#A0M disagree and ?#10M strongly
disagree# 7rom the researchers point of view it is shown that the ma@ority of respondents agreed
that keeping customers informed in the language they understand can greatly influence uality
services as revealed by +tayi H1444I which indicate that Stanbic *ank has got good
>2
communication skills, however 1A#A0M and ?#10M of respondent disagree, this is because of
modes of communication like brochure and television which cannot be accessed by some
customers#
T1;<4 1% : R476,)74 ,) C+4-0;0<0*=
R476,)74 F+4A.4)/= &9' "4+/4)*134 &F'
Strongly agree 31#>3 31#/>
)gree 1? >C#30
$isagree 0 1?#>4
Strongly disagree 2 A#1>
T,*1< > 100
Source: Primary Data
The table above shows the responses about credibility as one of the factors affecting uality
services where by 31#/>M of the respondents strongly agree, 1?#>4M disagree that A#1>M
strongly disagree# 7rom the research finding it is shown that the ma@ority of the respondents
strongly agreed that trust worthiness and having customerKs best interest at heart and can greatly
improve uality services in the *ank# The big number of respondents H31#/>MI indicates that the
bankKs staff has tried to be honest and having customerKs interest at heart as revealed by 7rancis
H144A' that credibility itKs about having customers interest at heart, contributing to companyKs
name, reputation and privacy discussion#
T1;<4 13 : R476,)74 ,) T1)30;<47
R476,)74 F+4A.4)/= &9' "4+/4)*134 &F'
Strongly agree 14 ?/#?2
)gree 1A 2?#/?
$isagree C 10#/>
Strongly disagree ? C,31
T,*1< > 100
>?
Source: Primary Data
The table above shows the response about tangibles where by ?/#?CM strongly agree, 2?#/?M
agree, 10#/>M disagree and C#31M strongly disagree# This implies that *ank considered
consumerKs perception of tangible as revealed by 9arasuraman et al H1442' this tangibles are
associated with impact on customerKs inferences about what services should be like and there
will influence the evaluation service uality# =ence being one of the contributing factors towards
uality services in the bank leading to e!cellent to customer satisfaction#
T1;<4 1>: R476,)74 ,) C,.+*47=
R476,)74 F+4A.4)/= &9' "4+/4)*134 &F'
Strongly agree >/ ?1#A0
)gree 1? >4#10
$isagree 1/ >/#C2
Strongly disagree ? C#22
T,*1< > 100
Source: Primary Data
The table above shows response about courtesy where by ?1#A0M of the respondents strongly
agree, >4#10 agree, >/#C2M disagree and C#22M strongly disagree# The research finding shows
that the ma@ority of the respondents strongly agreed that consideration and friendliness to with
customers can greatly influence the uality services in the *ank# This implies that bank
emphasi.es being polite, respect and create friendliness to their customer# =ence courtesy being
one of the contributing factors towards uality services in the bank leading to e!cellent customer
satisfaction#
T1;<4 15 : R476,)747 ,) E861*:=(
R476,)74 F+4A.4)/= &9' "4+/4)*134 &F'
Strongly agree >? ?C#4C
)gree 12 >A#32
>3
$isagree 3 1/#>/
Strongly disagree 0 1?#>4
T,*1< > 100
Source: Primary Data
7rom the table above, ?C#4CM of the respondents strongly agree, >A#32M agree, 1/#>/M disagree
and 1?#>4M strongly disagree# The research finding shows that the ma@ority of the respondent
strongly agreed that empathy can greatly improve the uality services in Stanbic *ank and this
indicates that the *ank provides care and undivided attention to customers which is a good
indicator of uality services as revealed by 9arasuraman et al H14C3I#=ence contributing towards
service uality in the bank leading to customer satisfaction#
>A
T1;<4 1B: R476,)74 ,) S4/.+0*=(
R476,)74 F+4A.4)/= &9' "4+/4)*134 &F'
Strongly agree >4 34#1C
)gree 1C 2A#0?
$isagree > ?#/C
Strongly disagree / /
T,*1< > 100
Source: Primary Data
The table above shows the response about security as one of the factors affecting uality services
where by 34#1CM of the respondents strongly agree, 2A#0?M agree, ?#/CM and ?#/CM strongly
disagree# 7rom the research finds it is shown that the ma@ority of the respondents strongly
agreed that security can greatly improves uality services in Stanbic *ank# This implies that
there is physical safety and financial security as further cited by 9arasuraman et al H14C3I# This
gives customers confidence that there assets are in good hands HsecureI hence leading to
e!cellent customer satisfaction#
>0
>(3(1 E@1<.1*4 *:4 <4@4< ,9 A.1<0*= 74+@0/47
T1;<4 17 : E@1<.1*4 *:4 <4@4<7 ,9 A.1<0*= ,994+4- ;= S*1);0/ B1)2
V4+= G,,- G,,- N,* 7.+4 ",,+
V4+= 6,,+
T,*1<
Service uality F F F F F F F F F F F F
Reliability C 1A#22 23 01#?2 3 1/#>/ 1 >#/? / / ?4 1//
Responsiveness 3 1/#>/ A 1>#>? 0 1?#2/ >C 30#1? 2 A#1> ?4 1//
'ompetence 14 2C#0C 1C 2A#1? A 1>#>? A >#>? / / ?4 1//
)ccessibility 1> >?#3/ >4 34#1C ? C#1A ? C#1A / / ?4 1//
'ommunication 12 >A#32 >3 31#/> 3 1/#>/ 3 1/#>/ 1 >#/? ?4 1//
'redibility A 1>#2/ 2? A4#24 3 1/#>/ ? C#1A / / ?4 1//
Tangibles A 1>#>3 1> >?#?4
>2
?A#4? A 1>#>3 > ?#1 ?4 1//
Security 1A 2>#A3 >2 ?A#4?
A
1>#>3 2 A#1> 1 >#/? ?4 1//
'ourtesy 0 1?#>4 A 1>#>3
0
1?#>4 >A 32#/A 2 A#1> ?4 1//
5mpathy A 1>#>3 12 >A#32
C
1A#22 1A 2>#A3 A
1>#>3
?4 1//
Source: Primary data
The table above indicates that the level of service uality is still poor in regard to responsiveness
30#1?M, courtesy H32#/AMI and 5mpathy 2>#A3M# &n case of responsiveness bank is failing to
perform its duty of reacting in positive way, willingness and readiness of employees to provide
services to their customers#
;ith 2>#A3M of the respondents, shows that the bank does not offer specific customers
reuirements and individuali.ed attention#
This indicated that the bank does not provide care to their individual customers and they still lack
some politeness, consideration and friendliness or personal contact with their customers#
7rom the above table, ?A#4?M of the respondents are not sure of tangibility of the bank since
services are intangibleE there is a need for the bank to make their services tangible through
>C
physical facilities and attending to the complaints of their customers, this will enable the bank to
improve on their service uality hence leading to e!cellent customer satisfaction in the bank#
>(>( D,47 S*1);0/ ;1)2 71*079= =,.+ )44-7 1)- 4H64/*1*0,)7
T1;<4 1C : T:4 +476,)-4)* 54+4 1724- 5:4*:4+ S*1);0/ B1)2 71*079= *:40+ )44- 1)-
4H64/*1*0,)
R476,)74 F+4A.4)/= &9' "4+/4)*134 &F'
Des 2? A4#24
+o 13 2/#A1
T,*1< > 100
Source: Primary data
7rom the above table, A4#24M of the respondent said yes and 2/#1AM said no# This indicates that
Stanbic *ank relatively satisfy its customerKs needs and e!pectations# The big number of
respondents HA4#24MI shows that the bank always offers uality services# This hence enables it to
satisfy its customerKs needs and e!pectations#
>4
>(>(1 T1;<4 1 : F41*.+47 ,9 /.7*,84+ 71*0791/*0,)
V4+= 8./:
M./:
S,84 :,5
8./:
L0**<4
V4+= <0**<4
T,*1<
7eatures F F F F F F F F F F F F
:ocation >0 33#1/ 1> >?#?4 0 1?#>4 2 A#1> / // ?4 1//
Skilled employee 1/ >/#?/ 1A 2>#AA
1C
2A#1? 3 1/#>/ / ?#/C ?4 1//
:oyalty ? C#1A >/ ?/#C>
1C
2A#1? 3 C#1A > >#/? ?4 1//
9erformance >/ ?/#C> 4 1C#20
13
2/#1A ? C#1A 1 >#/? ?4 1//
'ompletive
interest rate
C 1A#2? 1/ >/#?/
A
1C#20 A 1>#>3
13 2/#A1
?4 1//
Retention 1/ >/#?/ 1A 2>#A3
1A
2>#A3 > ?#/C
3 1/#>/
?4 1//
Source: Primary data
7rom the research findings above all features contribute to the customer satisfaction however the
level of satisfaction varies# The table above indicates that the level of customer satisfaction is
very much in regard to location H33#1/MI, performance H?/#C>I however it is very little in regard
to competitive interest rate H2/#A1I and retention H1/#>/MI# Therefore there is a need for the bank
to improve on the weak features in order to satisfy their customers and improve on their service
uality#
2/
>(5( EH180)4 *:4 +4<1*0,)7:06 ;4*544) A.1<0*= 74+@0/47 1)- /.7*,84+ 71*0791/*0,) 0) S*1);0/
B1)2
T1;<4 %0 : R4<1*0,)7:06 ;4*544) A.1<0*= 74+@0/47 1)- /.7*,84+ 71*0791/*0,)

Source: Primary data
7rom the table above, it is visibly e!pressed that there is a strong relationship between uality
service and customer satisfactionHrP/#4CCQQ, 9 P /#/1IE this indicates that there is a positive
relationship between uality services and customer satisfaction which also implies that as the
uality services attributes are suitably chosen and practiced, customers will notably become
satisfied# =ence maintaining high uality services in Stanbic bank will have e!cellent customer
satisfaction where as low uality services will lead to a decline in customer satisfaction which
also may result to loss of customers#
21
Correlations
1 .988 **
. .000
49 49
.988 ** 1
.000 .
49 49
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
QUAL!" S#$%C#
CUS!&'#$
SA!S(AC!&N
QUAL!"
S#$%C#
CUS!&'#$
SA!S(AC!
&N
Correlation is signi)i*ant at t+e 0.01 le,el (2-tailed). **.
>(B(: O) 1@4+134$ :,5 81)= /.7*,84+ /,86<10)*7 -, =,. :1)-<4 1 -1=G
T1;<4 %1 : T:4 +476,)-4)*7 54+4 1724- *:4 ).8;4+ ,9 /.7*,84+ /,86<10)*7 :1)-<4- 0) 1
-1=
Response Frequency (F) Percentage (%)
/#1/ 2 02
1/J2/ 1 >3
2/J3/ / /
So and above / /
Total ? 1//
Source: Primary data
7rom the table above, 03M of the respondents handle between / to 1/ customer complaints a
day# 7rom the research finding about this indicates that employees to the *ank does not give
adeuate attention to customer complaints hence living some of the customers unsatisfied#
=owever from the research finding, it has been pointed out that respondents take less than 2/
minutes to respond to the customers who presents their complaints on )TM break down as
shown below#
2>
T1;<4 %% : H,5 <,)3 -, =,. *124 *, +476,)- *, =,.+ /.7*,84+7 5:, 6+474)* /,86<10)*7 ,)
ATM ;+412 -,5)G
Response Frequency (F) Percentage (%)
:ess than 2/ minutes ? 1//
1 R >? hours / /
> R 3 days / /
3 days and above / /
T,*1< > 100
Source: Primary data
>(B(1 T:4 +476,)-4)*7 54+4 1724- *, 0-4)*09= *:4 51=7 *:4= /,88.)0/1*4 50*: *:40+
/.7*,84+7.
The respondents were asked to identify the ways they communicate with their customers# The
research finding show that ma@ority of respondents communicate with their customer though
brochures, sponsoring events, conversation with the customer# This implies that communication
has greatly influenced services offered by the bank and hence customer satisfaction#
CONCLUSION
7rom the research findings, the research ob@ectives were achieved by identifying the
determinants of service uality as reliability, accessibility, credibility responsiveness tangibles,
security empathy and also satisfaction features were identified as location, performance, loyalty,
competitive interest rates and skilled employees#
The research was to establish that there is a clear relationship between uality services and
customer satisfaction#
These two variables should work hand in hand to ensure success and survival of Stanbic *ank#
22
The researcher concluded that uality service is an important factor when one is to retain
customers# The decline in the customer satisfaction in Stanbic *ank is due to a decline in uality
services provided#
2?
CHA"TER FIVE
SUMMARY$ CONCLUSIONS AND RECOMMENDATIONS
5(0 I)*+,-./*0,)
This 'hapter covers the summary of the ma@or findings, the conclusion, recommendations and
areas of further research#
5(1 SUMMARY OF MAJOR FINDING
5(1(1 7inding on the factors influencing uality services
The findings indicated that accessibility and security were the ma@or factors that influence
uality services in Stanbic *ank however there are other factors like credibility, communication,
courtesy, responsiveness and competence#
5(1(% 7inding on features and levels of customer satisfaction
The findings indicated that location was customer satisfaction however there are also other
features like performance, skilled employee and retention#
The study also showed that the level of customer satisfaction has declined due to poor uality
service as the main factor#
5(1(3 7indings about the relationship between uality services and customer satisfaction#
7indings indicated that there is a strong relationship between the variables, represented by
9earson correlation coefficient 4C#C/M# Therefore poor uality services lead to a decline in a
number customer in Stanbic *ank#
5(% C,)/<.70,)
7rom the above research findings, the researcher deduced the following conclusionE
7rom the customerKs point of view, the ma@or determinants of uality services in Stanbic *ank
accessibility and security however there are other determinants like reliability, responsiveness,
credibility, tangibles, courtesy and empathy# )nd customer satisfaction features were identified
as loyalty, performance, skilled employee, retention and location being the ma@or features#
23
The research purpose was to analy.e whether uality services are provided in Stanbic *ank and
how it has influenced customerKs satisfaction#
The research also established that there is a clear relationship between uality services and
customer satisfaction#
These two variables should work hand in hand to ensure success and survival of Stanbic *ank#
The researcher concluded that uality service is an important factor when one is to retain
customers# The decline in the customer satisfaction in Stanbic *ank is due to a decline in uality
services provided#
5(3 R4/,884)-1*0,)7
&n relation to the finding, the researcher came up with following recommendations#
There should be improved communication between the management and customers in order to
improve on the uality service so as to satisfy their customersK needs#
The management needs to improve uality services so as to satisfy customerKs needs# The bank
needs to pay much attention on the customer complaints in order satisfy the customersK
e!pectation#
There is a need for the bank to make their services tangible through physical facilities in order to
improve on uality services so as to satisfy their customer needs#
The bank should pay attention to those features that contribute to customer satisfaction such as
loyalty, retention, competitive interest rates which are rated very little1weak#
The bank should also pay attention to those factors1components rated as poor and very poor#
5(> A+417 9,+ 9.+*:4+ 7*.-=
The following are some of the suggested areas for further research#
=ow service uality influence customer loyalty in retail banking#
=ow uality services influence customer satisfaction in retail *anks in general#
Since the researcher only considered Stanbic R 8in@a *ranch, there is need for further
research on other branches in other parts of the country#
2A
REFERENCES
*ilali H144AI quality assurance which in an organization provides confidence to the management
of the organization and the customer
*ulunywa ;aiswa H1443I, Uganda institute of bank marketing, vol 1> +o A pp 1/J1C#
*usiness review, 'ambridge H>//CI vol +o> $ecember issue >/
$ale <#* H>///I # Management quality >
nd
5dition published in prentice hall, :ondon 5urope
5ugene, S and 8amie, : H>///I, an eamination of relationship between service quality!
customer satisfaction and store loyalty# "nternational #ournal of $etail and Distribution
management vol >C +o >
7rancis *uteele H144AI, S5R%B-:, review! critique! research agenda% 5uropean @ournal of
marketing# %ol 2 +o1
<alloway, R H144?I, &uality in retail banking# &nternational @ournal of service industry
management vol 3 +o ?
=allowell# H144A'% (he relationship of customer satisfaction! customer loyalty and profitability#
&nternational @ournal of service industry management# %ol 0, issue ?
=ei.er, 8 and Render, * H1444I, )peration management, 3
th
edition# 9rentice =all, -pper saddle
river, + 8
=owcroft H1441I, customer satisfaction in $etail *anking Service industries #ournal
=utchins,, $ H144/I in pursuit of quality print and publishers in +ondon
,otler 9hillips H1444I, Marketing management%11
th
edition
:evesue,T and Mc $ougall,<# H144AI, Determinants of customer satisfaction in retail banking%
"nternational ,ournal of *ank Marketing% %ol 1? no 0
+tayi H1444I, Problem solving and Decision making approach and practical marketing
management%
20
(akland #8S# H1440I -ases in total quality management long man sing pole publishers, :ondon#
(kella 'harles (doki H>//?I, (he Uganda *anker September issue vol 1>
9arasuraman, ), Seithamal, %# ) and *erry :# :# H14C3I, . conceptual model of service quality
and implications for future research% 8ournal of Marketing, %ol ?4
9arasuraman# ), Seithamal, %#) and *erry :#: H1444'! Perceived service quality as a customer
based performance measure%
9ayne )drian H1444I, /ssence of service marketing, 9rentice =allJ &ndia#
9eter, 8 and Medliks H144AI introduction to hospitality operations, 'assell publishing company
limited#
Robert 8 H1440I identifying the critical determinants of service quality in retail and Distribution
management %ol >C +o >
Sustainability and *lack 5conomic 5mpowerment report H>//3Stanbic bank e!hibition
catalogue H>//2I
;esner 8;, 8M# =itt and $' Trimble H1443I winning quality with quality! applying quality
principles in product development by )T and T#
&nternet sources
Hen# ;ikipedia#org1wiki1stanbic bank -ganda H>1#march#>/11I
Hen# ;ikipedia#org1wiki1customer satisfaction H>1#march#>/11I
2C
A664)-0H I: Q.47*0,))10+4
$ear respondent
& am a student of Makerere -niversity conducting research as partial reuirement for the award
of *achelor of commerce# Dou are kindly reuested to volunteer in filling this form# Dour
cooperation will be highly appreciated and the replies will be held as confidential and for
academic purposes# Thank you# 9lease tick appropriately#
1 Se!
a# 7emale
b# Male
># 5ducation level attained
a# -niversity graduate c# $iploma
b# )K level d# (K level
)ny other specifyJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJ
2# )ge of respondent
a# 13J >3 c# >3 R ?/
b# ?/J 3/ d# 3/ and above
?# (ccupation
Self employed 5mployed Retired Student
3# 7or how long have you been a customer of stanbic bankG
a# 1J 3 yrs 11 yrs and above
24
b# AJ 1/ yrs
A# ;hich type of account do you hold with stanbic bankG
a# Savings c# fi!ed
b# 'urrent
0# There are components of service uality in retail banking, which determine the level of
satisfaction
Service uality Strongly
agree
)gree $isagree Strongly
disagree
1# Reliability
># Responsiveness
2# )ccessibility
?# 'ompetence
3# 'ommunication
A# 'redibility
0# Tangibles
C# 'ourtesy
4# 5mpathy
1/# 'ustomers perception
?/
C# 5valuate the level of uality services offered by stanbic bank
Service uality %ery
good
<ood +ot
sure
poor %ery
poor
1# ReliabilityE involves consistence of
performance and dependability
>#ResponsivenessE willing or readiness of
employees to provide service
2# )ccessibilityE approachability and ease of
contact
?# 'ompetenceE possession of reuired skills and
knowledge to perform the service
3# 'ommunicationE keeping customers
information in language they can understand
A# 'redibilityE involves trust worthiness, honesty,
believability i#e having customers best interest
at heart
0# TangiblesE includes physical evidence of the
service
C# SecurityE the freedom from danger, risk or
doubt ie physical safety and financial security
4#'ourtseyE politeness, respect# 'onsideration,
and friendliness
1/# 5mpathyE involves providing care and
undivided attention to customer
4# $oes stanbic bank satisfy your needs and e!pectationG
a# Des b# +o
1/# ;hich of the following features to contribute to your satisfactionG
7eatures %ery
much
Much Some how
much
:ittle %ery
little
1# :ocation
?1
># Skilled employee
2# :oyalty
?# 9erformance
3# 'ompetitive interest
rate
A# Retention
11# 5!amine the relationship between uality service and customer satisfaction in stanbic bank
Relationship Strongly
agree
)gree +ot
sure
$isagree Strongly
disagree
7actors like communication, accessibility
and location have enabled customers to
do business with the bank#
)ttention is put on the customer
complaints so as to retain the e!isting
customers and attract new ones
'ustomers assess uality by their
perceptions of the way in which services
are provided
'onsistent uality services provided by
the bank have led to customer loyalty
Buality controls are put in place in order
to avoid unsatisfactory performance that
lead to customer turnover
Buality provided by the bank need not to
be e!pensive but to reflect high value so
as satisfy the customers#
1># 9lease identify the method used in stanbic bank to find out whether your customers are
satisfied
?>
a# Suggestion bo!
b# $irect interview with the customers
c# &ssue evaluation forms to be filled by customers
d# )dminister uestionnaires
e# )ny other method HspecifyI JJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJ
12# &f customers are not satisfied please tick the reason why are not satisfied
a# :ack of resources
b# :ack of knowledge to satisfy customers
c# There is no morale to satisfy them
d# &t is not necessary to satisfy them
e# )ny other reason HspecifyI JJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJ
1?# (n average, how many customer complaints do you handle in a dayG
a# / R 1/ b# 1/ R 2/
c# 2/ R 3/ d# 3/ and above
13# =ow long do you take to respond to your customers who present complaints on )TM break
downG
a# :ess than 2/ minutes c# > R 3 days
b# 1 R >? hrs d# 3 days and above
1A# =ow do you communicate to your customer about the various services offered by stanbic
bankG
a# -se of radio and television
b# Through news paper
c# Through brochure and pamphlets1 leaflets
d# Through seminars
&f through any other public relation activities HspecifyI JJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJ
?2
10# ;hich advice do you give to the management in order to improve on the uality
services1products so as to satisfy their customersG
'arry out research to find out reason why
a# &mprove on the management style
b# &mprove on technology
c# &mprove on communication between the management and customers
d# &f any other Hplease specifyI JJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJ
??