Customer Satisfaction in Retail Banks- Empirical Study

International Journal of Social Science Tomorrow Vol. 1 No. 6
ISSN: 2277-6168 August|2012 www.ijsst.com Page | 1
Customer Satisfaction of Retail Banking Service: A Study of Selected Private Banks in Ghana
Augustine Addo, Department of Entrepreneurship and Finance
Kofi Kwarteng, School of Business
Abstract
In retail banking, quality of service plays a vital role in the context of sustained business survival and growth. The relationship between a bank and its customers must be a permanent and lasting one, which needs to be maintained with good quality services. An attempt has been made to ascertain the level of satisfaction of customers with regards to banking services in Kumasi metropolis in Ghana. This study assesses customer satisfaction of service quality and determines whether services provided by the selected private banks are acceptable to Ghanaian customers based on various levels of customer opinion regarding service quality. The methodology is based on primary data collected through a well-structured questionnaire administered on a sample size of 140respondents randomly selected from Ghanaian private banks. In order to assess the customer satisfaction in relation to the quality of service, five attributes were used to create a better understanding of the relationship between the attributes and customer satisfaction, by focusing on the retail banking industry in Ghana. The study respondents are accounts holders of the selected banks in Ghana.
The collected data has been analyzed with the help of tools like descriptive statistics, correlation and factor Analysis. The results show that responsiveness, assurance, empathy, tangibles and reliability among others are factors that affect customer satisfaction. The findings again indicates that customers „recognize highest satisfaction in the responsiveness area and lowest in the tangibles area. Thus management should direct resources to the areas that satisfy customer most. Though current results shows that the most important dimensions are responsiveness and assurance, other quality dimensions may come to the fore later, hence continual determination of important customer requirements is necessary. The study also finds that the higher

the level of customer satisfaction, the higher the levels of customer loyalty. Bank management must identify and improve upon factors that can limit customer attrition by increasing the factors that might increase customer satisfaction.
Keywords: Customer Satisfaction, Service, Retail Banking Industry.
1. Introduction
In the face of slowing down banking industry, growth and new competition, today‟s retail banks are under tremendous pressure to grow. With formidable competition from financial and non-financial bank and the relaxation of the restrictions of universal banking law, has provided equal market opportunities for banks in Ghana and maintained fair competition as all types of banking can be conducted under a single corporate banking entity (Bank of Ghana, 2004;http://www.bog.gov.gh).This deregulation in the financial service industry has increased competition due to the entrance of new global players including new banks, fund management companies, brokerage services, and insurance firms and this show the competitive scopes of several banking products in Ghana (Bank of Ghana, 2006). In the light of all these developments in Ghana‟s banking industry, it has become necessary to ask what role customer satisfaction plays in this new banking model in satisfying, attracting and retaining customers(Jamali, 2007). Banks throughout the country are constantly seeking unique ways of differentiating their offering. The willingness and the ability of managers in banks to respond to changes in the service economy would determine whether their own organization survive and prosper.
A large number of banks are having trouble meeting performance expectations because they are unable to differentiate their businesses, reach customers likely to respond to new sales opportunities. Banks that define and implement solutions to these challenges are those that will successfully compete and thrive into the future as 40 percent of customers switch bank because of poor service (Leeds, 1992).Bank products are easy to duplicate and when banks provide nearly identical services, they can only distinguish themselves on the basis of quality service. Banking operations are customer oriented service industry and therefore the customer is the focus and customer satisfaction is the differentiating factor. The ability of banks to offer customers access to several markets and superior services for different classes of financial instruments has become a valuable competitive edge (Fornell 1992). Customer satisfaction plays a key role in successful business strategy but what is not clear is how satisfaction should be managed (Jamal, 2004).
Unless the impact of customer satisfaction on the services of the bank is examined managers have little basis for allocation of resources on factors that affect customer satisfaction. The banks are interested in retaining existing customers while targeting new customers. Therefore measuring customer satisfaction provides indication on how successful the organization is at providing products and services to the market place as customer today, look out for value for money. Titko and Lace (2010) states that the competitive power and survival of a bank lies in the degree of customer satisfaction and therefore banks should pay attention to customer satisfaction (Kattack and Rehman, 2010). Since banks sell undifferentiated products, the only effective tool they can survive in the market place is the quality of service (Stafford, 1996) as banks that will offer high quality service will have competitive edge and will benefit from large market share, increase profits and customer retention (Bowen and Hedges, 1993). The cost of delivering poor quality service includes the costs associated with redoing the service, compensating for poor service, loss of customers, and negative word of mouth (Bitner et al. 1994). The cost of retaining existing customers is significantly lower than the cost of acquiring new customers.
Since customers normally perform business with multiple financial institutions, it is crucial that a bank competes for a customer‟s share of money to gain a share of a customer‟s product portfolio in order to enhance and maintain the firm‟s long-term profitability. Accordingly, managers in the financial service industry should strive to be customer-centric organization where the emphasis will be on seeking key drivers of customer satisfaction. The financial institutions that will grow and prosper in this competitive environment are the ones that succeed in building a base of loyal customers and are able to differentiate themselves through superior service quality (Morgan 2003). Satisfied customers yield greater profits and they tend to be less price sensitive, more willing to buy additional products, and less influenced by competitors (Hansemark and Albinsson, 2004). Again, the reputation of the banks is enhanced, new customers are captured and financial performance is increased as the banks render high quality service (Zeithaml et al 1996). New customers are brought to the bank through the word of mouth and thus reduce the cost of marketing (Yeung et.al, 2002) and glue the relationship between the bank and its customers (Sureshchaudar et. al., 2003). Owusu–Frimpong (1999) contends that approachable attitude of bank workers gives customers a positive image about the bank and the services provided. Also the physical environment regarding the infrastructure, the design and the atmosphere as well as duration of service (short waiting time) are taken into account by customers in assessing the quality of services of banks. The purpose of this study is guided by the following set of questions: “what are the main factors that motivate customers to deal with a particular bank” and to what extent are these customers satisfied with their

banks. Which satisfaction parameters impact on customer satisfaction? Which of these factors are important? Which are the weak and the strong points of the bank? Which satisfaction dimensions should be improved and how this improvement can be achieved? Therefore the study examines the degree of customer satisfaction of the services of the selected banks and what makes the customers prefer to do banking with them. The customer satisfaction survey is focused on the assessment of the critical satisfaction dimensions and the determination of the dimensions that present strong and weak points of the banks, since if satisfaction criteria are not well managed, customers might leave their banks, no matter how hard bankers try to retain them. Customer satisfaction measurement helps to promote an increased focus on customer outcomes and stimulate improvements in the work processes used within the organization.
2. Methodology
The study seeks to evaluate the customer satisfaction level and the quality of service of the selected private banks in Ghana by looking at five quality dimensions of the banks. The banks, Standard Chartered Bank, Barclays Bank Ghana limited, CAL Bank, SSB Bank and Eco bank were purposively selected because of their strategic importance in the development of the economy of Ghana and also are among the oldest and largest banks in Ghana (Ghana Banking Survey, 2004). The whole study is carried out using SERVQUAL on the basis of the five dimensions namely, assurance, reliability, responsiveness, tangibles and empathy (Parasuraman et.al, 1988). The population of the study was Kumasi Metropolis in Ashanti Region, Ghana. The city was purposively selected because indigenes constitute the majority of the population and also it is the second capital of Ghana and a metropolitan. The sample for the study is 140 respondents that were randomly surveyed and all the respondents of the study are account holders of the respective banks. The collected data was coded, summarize and analyzed using descriptive statistics, correlation and the factor Analysis keeping in view the objective of the study. The study postulates a relationship between criteria of quality of service which comprise of assurance, reliability, responsiveness, tangibles and empathy. All these criteria of independent variables are related to the dependent variable customer satisfaction. The questionnaire was designed to measure 21 customers‟ requirements and overall satisfaction. The overall customer satisfactions in relation to elements of service quality were grouped into five sections assurance, reliability, responsiveness, tangibles and empathy. In relation to the above, independent variables are identified on a general basis though there are several others that affect the customer satisfaction level but only five are considered for this study. For the purpose of this study dimension available in almost all the banks are chosen.
The questionnaire gathered information on customers‟ satisfaction of their banks and the reasons they remain with their banks. The questionnaire was designed on the basis of the study of the following researchers (Berry et al., 1985; Parasuraman et al., 1985; Zeithaml and Bitner, 1996 and Stafford, 1996).Based on the multi dimensional satisfaction construct and literature on the subject, a list of quality attributes was compiled and the respondents were asked to give their opinion of the level of service quality on a five point Likert type scale ranging 1 = "strongly disagree," 3 = "neither disagree nor agree," to 5 = “strongly agree." The 21 criteria for questioning were selected based on review of service quality and customer care literature. In order to have grounds for comparison the customers were also asked to rank their overall satisfaction with the banks. The demographic profiles of the respondent were obtained. A research framework has been developed to find out the relationship between customer satisfaction and service quality attributes in the banking sector of Ghana to identify customers‟ satisfaction of services provided by the banks. Respondents were asked to indicate the level of satisfaction or dissatisfaction which was derived from each of the five dimension of service quality. The questionnaire was split into demographics and customer satisfaction. Answers to these questions provide a good picture of respondent‟s background. The Customer satisfaction questions covered service quality facets such as: bank location, bank environment, employee appearance, materials, equipment and tools delivery of promised services, prompt service, respond to queries, willing to assist, personal attention from employees, operating hours, customers interest at heart, product range and attitude of employees among others. The data entry has been done for final analysis at the point of 140 completely filled questionnaires. Apart from the use of descriptive statistics, the study employed Correlation and Factor Analysis because of their suitability and applicability in assessing the customer satisfaction by comparing correlation of the quality dimensions to the correlation of the overall customer satisfaction and determine which dimension affects customer satisfaction. The model implicitly stated as: Customer Satisfaction (C.S) = f (Reliability, Empathy, Assurance, Responsiveness and Tangibles).In order to discuss the impacts of the five dimension of quality service on customer satisfaction, the research hypotheses are as follows:
H1: The overall service quality has a significant positive impact on customer satisfaction
H2: Tangibles of service has significant impact on customer satisfaction in the banking sector of Ghana
H3: Assurances of service has significant impact on customer satisfaction in the banking sector of Ghana
H4: Responsiveness of service has significant impact on customer satisfaction in the banking sector of Ghana

H5: Empathy of service has significant impact on customer satisfaction in the banking sector of Ghana
H6: Reliability of service has significant impact on customer satisfaction in the banking sector of Ghana
3. Literature Review
The banking industry is highly competitive, as banks are competing among each other and also with non-banks and other financial institutions (Kayak and Kucukemiroglu, 1992; Hull, 2002). Banks provide nearly identical services and they can only distinguish themselves on the basis of price and quality of service (Stafford, 1992). Service quality in banking implies consistently anticipating and satisfying the needs and expectations of customers (Howcrof et. al.,2002). The service quality in banks leads to higher profits, credibility, and market share, lowering cost and improving productivity (Raddon 1987; Buzzell and Gale, 1987; Parasuraman and Berry, 1991; Heskett et. al., 1990; Adrian 1995; Bateson, 1995; Berryet.al., 1989; Garvin 1983; Kotler, 2003).Turban et al (2001) state that customer service is a series of activities designed to enhance the level of customer satisfaction a feeling that a product or service has met their expectation. Satisfied generally seem to be positive assessment of service contentment, happiness, relief, achieving aims, and happy with outcome and the fact that they did not encounter any stress.
Therefore, customer satisfaction is potentially an effective tool that banks can use to gain a strategic advantage and survive in today‟s ever-increasing banking competitive environment and the essence of success (Siddiqi, 2010). One strategic focus that banks can implement to remain competitive would be to retain as many customers as possible. It is more economical to keep customers than to acquire new ones. The costs of acquiring customers to supplant those who have been lost are high as the expense of acquiring customers is incurred only in the beginning stages of the commercial relationship (Reichheld and Kenny, 1990). In addition, longer-term customers buy more and, if satisfied, may generate positive word-of-mouth promotion for the company (File and Prince, 1992).Long-term customers also take less of the company‟s time and are less sensitive to price changes (Healy, 1999). These findings highlight the opportunity for management to acquire referral business that is inexpensive to obtain. It is believed that reducing customer defections by as little as five percent can double the profits (Healy, 1999). Satisfaction with a bank's products and services plays a role in generating loyalty. In today‟s world of intense competition, a firm‟s ability to deliver high quality service that result in satisfied customers is the key to a sustainable competitive advantage (Shemwell et al. 1998). As large numbers of banks are opening up and the people are becoming more aware and conscious of quality, keen competition has emerged in the banking industry, so to retain customers banks have to provide better services to customers as service quality is an indicator of customer satisfaction (Parasuraman et.al., 1998; Spreng and Mackoy, 1996; Jamal and Nasser, 2002; Arasli et.al., 2005a, b; Othman and Owen, 2002). Cronin et. al., (2000) and Wong and Sohal (2003) suggested that service quality demonstrate that a positive relationship with a number of behavioural intentions. Athanassopoulos et. al., (2001) find that customer satisfaction has direct effect on the behavioural responses of customers. Rust and Williams (1994) stated that the customer satisfaction leads to the greater intent to purchase. Bontis et.al, (2007), also find causal construct between customer satisfaction and customer loyalty. Sudin et.al (1994) finds that the provision of fast and efficient services, speed of transaction and the reputation and image of a bank is the most important criteria in the selection of banks by customers.
Muffato and Panizzolo (1995) state that customer satisfaction is considered to be one of the most important competitive factors for the future, and it is the best indicator of a firm‟s profitability. Again, customer satisfaction drives firms to improve their reputation and image, reduce customer turnover, and to increase attention to customer needs and create barriers to switching, and improve business relationships with their customers. Parasuraman et al. (1985) suggested that services are intangible since they are performances and experiences. Services are heterogeneous, as their performance often varies from producer to producer, customer to customer, and day to day and production and consumption of services are inseparable. Quality in services often occurs during service delivery, which is the interaction between a customer and a service provider. As a result, quality of service is more difficult for customers to evaluate. Customers evaluate service quality on the outcome of the service and also on the process of service delivery, and from how well a service provider actually performs, given their expectations of service performance.The key factors influencing customers‟ selection of a bank include the range of services (Abratt and Russell, 1999). Therefore service excellence, meeting client needs, and providing innovative products are essential to succeed in the banking industry. Leeds (1992) acknowledged that approximately 40 percent of customers switched banks because of what they considered to be poor service. Customer satisfaction has for many years been perceived as key in determining why customers leave or stay with an organization. Managers need to know how to keep their customers, even if they appear to be satisfied as unsatisfied customers may choose to defect, because they do expect to receive better service elsewhere (Reichheld, 1996) .
Keeping customers is dependent on a number of other factors and these include a wider range of product choices, greater convenience, better prices, and enhanced income (Storbacka et al., 1994). Fornell (1992), notes

that although customer satisfaction and quality appear to be important for all firms, satisfaction is more important for loyalty in industries such as banks, insurance, mail order, and automobiles. Ioanna (2002) claim that product differentiation is impossible in a competitive environment like the banking industry as banks everywhere are delivering the same products, the only differentiator is quality service so bank management must differentiate their firm from competitors through service quality as service quality is an imperative element impacting on customers‟ satisfaction level in the banking industry. In banking, quality is a multi-variable concept and the banks need to understand the nature of their consumers‟ reasons for staying and must not assume that it is a positive, conscious choice (Colgate et al., 1996). Parasuraman et al., (1985) indicates that service quality consists of eleven dimensions namely: reliability, competence, responsiveness, access, courtesy, communication, credibility, security, appearance of the facility, attitude and behavior of staff, decor and atmosphere, business hours, interest rate, waiting time competence, tangibles, and understanding of customer which was pruned to five (Parasuraman et. al., 1988; Berry et al., 1985 and Zeithaml & Bitner 1996,Manrai, L.A., Manrai, A.K., 2007) and these are tangibles, reliability, responsiveness, assurance and empathy (see Table 1).
Quality service is gaining more importance in banking industry (Munusamy et al, 2010). Hollowell, (1996) suggest that there is strong theoretical underpinning among customer satisfaction, customer loyalty and profitability. Levesque & McDougall (1996) pointed out that customer satisfaction and retention are critical for retail banks. Bloemer et al. (1998) explore how image, perceived service quality and satisfaction determine loyalty in a retail bank. Armstrong and Seng (2000) analyze the determinants of customer satisfaction in the banking industry. If customers perceive that they are obtaining additional benefits from their relationship with establishment employees, their satisfaction level with the service provider will increase (Beatty et al., 1996). For present investigation five quality dimensions have been constructed as the study examines the constructs that impact on consumers‟ decision to stay with or leave their current banks in Ghana. In addition, the study explores whether there is any association between quality service and customer satisfaction.
4. Presentation of Findings
The questionnaire was designed to seek information about the respondents, age, gender, education, and their occupation. Analysis of the 140 respondents in Table 2 shows that 65.71% of the respondents are male and 34.29% are female. The detailed breakdown of the customer‟s background has been given in Table 2.The demographic data shows that 60.71% of the respondents are between 18 and 30 years old, 25.71% between 31 and 40 years old, 9.29% between 41 and 50 years old and 2.86% are between51 and 60and 1.43% are older than 61 years, Table 2. The large number of young customers is consistent with the banks recent effort to attract and retain customers from the young segment. From Table 2 the educational background of respondents are, Postgraduates (10%), Bachelors (30%), Diplomas (42.86%), Trade qualification (3.57%), Senior and Junior high school (7.86%) and Elementary (5.71%). Among the 140 respondents, the highest numbers of the respondents are salaried workers (24.29%) and 10% are running their own business. Chief Executives, students, housewives, other service providers and retired represents 4.29%, 48.57%, 3.57% ,8.57% and retired 0.71% respectively. On the question, would you be loyal to your bank if you are satisfied with its services 89.29% said yes whilst 6% said they want to explore and 4.71% said they are indifferent (Beckett et.al.,)
A correlation coefficient is a statistical tool used to summaries the relationship between two variables with a single number that falls between -1.00 and +1.00 (Welkowitz et al., 2006). Morgan et al. (2004) stated that: -1.0 indicates perfect negative correlation, 0.0 indicate no correlation, and + 1.00 shows perfect positive correlation. The Pearson correlation analysis obtained from the five intervals scaled variables is shown in Table 4. The sample size (n) is 140 and the significant level is 0.01 (p≤0.001). Hypothesis H2: Tangibles, In the Table 3, it can be seen that the correlation (r) of tangibles is 0.422 and the significant level is 0.01. It can be seen from Table 4 that the p-value is 0.000, which is less than 0.01. Therefore, we accept the null hypothesis, and concluded that there is moderate but positive (r = 0.422) relationship between tangibles and customer satisfaction in the conventional banking sector of Ghana. The study of Lai (2004) also found that tangibility is positively related to customer satisfaction. From Table 4, hypothesis H3: Assurance is the second strongest predictor of customer satisfaction (Leeds, 1992). The result indicates that the correlation (r) of responsiveness is 0. 612 and p-value is 0.000, which is less than 0.01. Therefore, the null hypothesis is accepted and concluded that there is strong positive correlation between assurance and customer satisfaction in the retail banking sector of Ghana. Mengi (2009) also pointed out that responsiveness is positively related to customer satisfaction.
In the case of hypothesis H4,it is clear from Table 4, that responsiveness is the strongest predictor of customer satisfaction is responsiveness. The result indicates that the correlation (r) of responsiveness is 0. 738 and p-value is 0.000, which is less than 0.01. Therefore, the null hypothesis is accepted and concluded that there is strong positive correlation between responsiveness and customer satisfaction in the conventional banking sector of Ghana. Mengi (2009) also pointed out that responsiveness is positively related to customer satisfaction. With

regard to hypothesis H5: Empathy, Table 4, shows that the correlation (r) for empathy is 0.435 and p-value is 0.000. Hence, the null hypothesis is accepted and it can be concluded that empathy is positively (moderate) related to customer satisfaction in the conventional banking sector of Ghana. Ladhari (2009) also found that empathy is positively related to customer satisfaction. For hypothesis, H6: Reliability, The Table 4 shows that the correlation (r) is 0.506 for reliability and the p-value is 0.000, which is less than the significant level 0.01. Hence, the null hypothesis is accepted and concluded that there is large positive correlation between reliability and customer satisfaction in the conventional banking sector of Ghana. Zim et al. (2010) stated that reliability is one of the significant factors of customer satisfaction.
5. Discussion of Findings
This research attempted to enhance our understanding in the area of the relationship between customer satisfaction and service quality in retail banking in Ghana. Table 3 describes the ranges, means and standard deviations of quality constructs. Almost all the mean are similar. High standard deviation indicates that data is wide spread and shows that customer gave a variety of opinion, whereas, low standard deviation means that the respondents expressed close opinions. The hypotheses test confirms that all service quality dimensions (Reliability, Responsiveness, Empathy, Tangibles and Assurance) are positively related with customer satisfaction. Responsiveness shows the highest positive correlation (r = 0.738),with satisfaction, Assurance showing the second strongest positive correlation (r = 0.612) and reliability shows the third highly positive correlation (r = 0.506) with customer satisfaction. Tangibles reveals the least but positive correlation (r = 0.422) with customer satisfaction. A moderate but positive relationship between customer satisfaction and empathy, (r = 0.435) was established in the hypotheses test. This study shows that responsiveness and customer satisfaction are highly positively correlated. The study shows there is a positive relation between reliability and customer satisfaction. Data shows that customers are satisfied with customer support services, hospitality services and handling of customer‟s grievances. Consequently, customers are confident that their banks are fulfilling the promised terms and conditions which will enhance their expectations. Again, the study indicates moderate but positive relationship between empathy and customer satisfaction. This means that customers of banks are somehow satisfied with banking hours, personal attention given to them by bank staff, and information provided to customers.The hypotheses test of this study establishes that there is positive correlation between tangibles and customer satisfaction. Analysis of data shows that customers are satisfied with infrastructure facilities, modern equipment, staff‟s appearance, and interior decoration of banks.
6. Conclusion
As the conducted survey points out, there are some of the problems that surface in the effort of evaluating customers‟ satisfaction hence customer satisfaction vary according to the nature of service. The highest customer satisfaction is revealed in the responsiveness area such as bank staff‟s tell customers‟ exact time of service will be performed, prompt service, bank staff‟s willingness to help customers, bank staff‟s respond to queries of customers, friendly attitude of staff, followed by the reliability area such as customer guidance, customer supportability to deliver promised service, banks insist on error free records, keen in solving problems, perform services exactly the first time, customer support services, hospitality services and handling of customer‟s grievances. Representative, satisfactions are in the assurance and tangibles area, such as infrastructure facilities, interior decoration, banks staff‟s behavior instills confidence and inspire trust, staff‟s are courteous, staffs are knowledgeable, customers feel safe in dealing with the banks followed by empathy area such as banks business timing, individual attention, caring, bank location and return on investment. Due to the wide variation of the responses, the selected private banks need to consider the weak areas in order to meet customer requirements. Hence, to be successful in banking sector, banks must provide service to their customer that at least meets or better, if exceeds their expectations. Managers of the banks should take appropriate decision to improve the quality of services in Ghana banking sector. To achieve higher levels of service quality, the bank managers should redesign their strategies about customer satisfaction with respect to service quality by identifying and improving upon factors that can improved upon customer satisfaction. The quality dimension assessed by the customer satisfaction questionnaire is important to customers and therefore it is beneficial for managers to understand which of these quality dimensions is highly linked with overall customer satisfaction to enable management direct resources to these areas. The benefits of customer satisfaction surveys represent a clearer picture of the customers and also an overview of the areas the banks needs to improve. In this manner the banks has the chance to accede to a higher customer satisfaction level and maintain a strong relationship with its customers and prevent customers from defecting to other banks.
Augustine Addo,
Head of Department,
Entrepreneurship and Finance,
Kumasi Polytechnic,
Kumasi, Ghana
Kofi Kwarteng,
Dean,
Business School,
Takoradi Polytechnic,
Takoradi,Ghana

References
 Aborampah, A., M., (2010). Customer Satisfaction in the Banking Industry: A Comparative Study of Ghana and Spain, PhD Thesis
 Abratt, R., and Russel, J. (1999) Relationship Marketing in Private Banking South Africa. The International Journal of Bank Marketing, 17(1), 5.
 Armstrong, R.W., and Seng, T.B., (2000). Corporate –Customer satisfaction in the banking industry of Singapore. International Journal of Bank Marketing, 18 (3), 97-111
 Arasli, H., Katircioglu, S.T., and Mehtap-Smadi, S., (2005). Customer Service Quality in the Greek Cypriot Banking Industry Managing Service Quality 15(1), 41-45.
 Arasli, H., Mehtap-Smadi, S., andKatircioglu, S.T., (2005). A comparison of Service Quality in the Banking Industry some evidence from Turkish and Greek-speaking areas in Cyprus, International Journal of Bank Marketing 23(7), 508-526
 Asubonteng P. McKlery, K.J. and Swan J. (1996). SERVQUAL Revisited: A critical Review of Service Quality, Journal of Service Marketing, 10(6), 62-81
 Athanassopoulous, A. Gounaris, S. and Stathakopoulous, V., (2001). Behavioural Responses to customer Satisfaction: An Empirical study, European Journal of Marketing 35(5/6), 687-707.
 Bank of Ghana (2004). Cost of Banking in Ghana: An Empirical Assessment and Implications, Policy Brief.
 Bank of Ghana (2006), Major Payment Systems in Ghana, Policy Brief.
 Bank of Ghana (2010), Register of Licensed Banks in Ghana as at June 2009.
 Becket, A., Hewer, P. and Howcroft B., (2000). An Exposition on Consumer Behaviour in the Financial Services Industry. The International Journal of Bank Marketing,18(1),15.
 Berry, L.L., Parasuraman, A., & Zeithaml, V.A. (1985). Quality counts in services, too. Business Horizons, May-June, 44-55. http://dx.doi.org/10.1016/0007-6813(85)90008-4
 Bloemer, J., De Ruyter, K., & Peeters, P. (1998). Investigating drivers of bank loyalty: the complex relationship between image, service quality and satisfaction. International Journal of Bank Marketing, 16(7), 276-86. http://dx.doi.org/10.1108/02652329810245984
 Bowen, J.W., & Hedges, R.B. (1993). Increase service quality in retail banking. Journal of Retail Banking, 15,21-28.
 Colgate, M., Stewart, K and Kinsella, R., (1996). Customer defection: A study of the student Market in Ireland. The International Journal of Bank Marketing, 14(3),23
 Cronin, J.J., and Taylor S.A.,(1992). Measuring Service Quality: A Re-Examination and Extension, Journal of Marketing56(3), 55-68
 David C, Christopher G, Hua Hwa.,Au Y, Esther C., (2006). Customer Satisfaction: A study of Bank Customer Retention in New Zealand, Discussion Paper, 109, March 2006
 File, K.M., & Prince, R.A. (1992). Positive word of mouth: Customer satisfaction and buyer behavior.International Journal of Banking Marketing, 10(1), 25-29. http://dx.doi.org/10.1108/02652329210007867
 Fornell, Claes. (1992). A National Customer Satisfaction Barometer: The Swedish Experience. Journal of Marketing, 56 (1), 6-21. http://dx.doi.org/10.2307/1252129
 Gale, B.T., and Wood, R. C., (1994). Managing Customer value: Creating Quality and Services that Customers Can See. The Free Press.
 Hansemark, O. C. & Albinsson, M. (2004). Customer satisfaction and retention: the experiences of individual employees. Managing Service Quality, 14(1): pp. 40-57.
 Healey, T.J., (1999). Why You Should Retain Your Customers. America‟s Community banker, 8(9), September, 22-26.
 Howcroft, B. Hamilton, R. Hewer, P., (2002). “ Consumer attitude and the usage and adoption of home-based banking in the United Kingdom”, International Journal of Bank Marketing,20(3), 111-121
 Hull, L., (2002). Foreign Own Banks: Implications for New Zealand‟s Financial Stability. Discussion Paper Series, DP2002/5.
 http://en.wikipedia.org/wiki/Ghana
 http://www.bog.gov.gh
 Ioanna, P.D., (2002). The Role of Employee Development in Customer Relations: The Case of UK Retail Banks. Corporate Communications, 7(1), 62-77.
 Jamal, A., & Naser, K. (2002). Customer satisfaction and retail banking: an assessment of some of the key antecedents of customer satisfaction in retail banking. International Journal of Bank Marketing, 20(4), 146-60.http://dx.doi.org/10.1108/02652320210432936
 Jamali, D., (2007). A study of Customer Satisfaction in the context of Public Private Partnership, International Journal of Quality and Reliability Management, 24(4) 370-85
 Kaynak, E., Kucukemiroglu, O., (1992). Bank and Product Selection: Hong Kong. The International Journal of Bank Marketing, 10(1), 3-17.
 Khattack, N.A., and Rehman, K.U., (2010). Customer Satisfaction and Awareness of Islamic Banking System, African Journal Business Management, 4(5) 662-671.
 Kotler, P., (2003). Marketing Management, 11th ed., New Jersey, Pearson Education.
 Lai, T.L. (2004). Service Quality and perceived value‟s impact on satisfaction, Intention and usage of short message service (SMS). Information Systems Frontiers: Special Issue: Industrial Information Systems Frontiers, 6(4), 353-368.
 Leeds B., (1992). „Mystery Shopping Offers‟ clues to Quality Service, Bank Marketing, 24(11), November, 24-27
 Levesque, T., & McDougall, G.H.G. (1996). Determinants of customer satisfaction in retail banking,International Journal of Bank Marketing, 14 (7), 12-20. http://dx.doi.org/10.1108/02652329610151340
 Manrai, L.A., Manrai, A.K. (2007), „A field study of customers‟ switching behavior for bank services”, Journal of Retailing and Consumer Services, vol. 14, Issue 3, pp. 208-215
 Mengi, P. (2009). Customer Satisfaction with Service Quality: an empirical study of Public and Private sector banks. IUP Journal of Management Research, 8(9), 7-17.
 Morgan, G., Leech, N., Gloeckner, G., & Barrett, K. (2004). SPSS for Introductory Statistics. (2nd Ed.). New Jersey: Lawrence Erlbaum Associates, Inc.
 Muffatto, M. & Panizzolo, R. (1995). A process based view for customer satisfaction. International Journal of Quality & Reliability Management, 12(9): pp. 154-169.
 Othman, A. and Owen, L., (2001). “Adopting and measuring customer service quality in Islamic banks: a case study in Kuwait Finance House”, International Journal of Islamic Financial Services, 3(1)
 Owusu-Frimpong (1999). Patronage Behaviour of Ghanaian Bank Customers, International Journal Bank Marketing 17(1),335-341
 Parasuraman, A., (1997). Reflections on Gaining Competitive Advantage through Customer Value. Journal of Academy of Marketing Science, 25(2), 154-161.

 Parasuraman, A., Zeithaml, V.A., & Berry, L.L. (1985). A conceptual model of service quality and implications for future research. Journal of Marketing, 49 (4), 41-50. http://dx.doi.org/10.2307/1251430
 Parasuraman, A., Zeithaml, V.A., & Berry, L.L. (1988). SERVQUAL- a multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12-40.
 Reichheld, Frederick. (1996). The Loyalty Effect. Cambridge, MA: Harvard Business School Press.
 Reichheld, F.F and Kenny, D., (1990). The Hidden Advantages of Customer Retention. Journal of Retail Banking, 7(4), 19-23.
 Reichheld, F.F and Sasser, W. E., (1990). Zero Defections: quality comes to Services. Harvard Business Review, September- October, 105-111.
 Rust, R., and Zahorik, A., (1993). Customer Satisfaction, Customer Retention and Market Share. Journal of Retailing, 69(2), 193-215.
 Salman, K., Babak, M., Muzaffar, A., Shabbir, H., (2011). Customer Satisfaction with Service Quality in Conventional Banking in Pakistan: The Case of Faisalabad, International Journal of Marketing Studies,3(4), 165-174.
 Siddiqi, K.O. (2010). Interrelations between service quality attributes, customer satisfaction and customer loyalty in the retail banking sector in Bangladesh. International Trade & Academic Research Conference (ITARC), (pp.1-26). London.
 Spreng, R.A., Mackenzie, S.B., & Olshavsky, R.W. (1996). A re-examination of the determinants of consumer satisfaction. Journal of Marketing, 19(4), 491.
 Stafford, M.R. (1996). Demographic discriminators of service quality in the banking industry. The Journal of Services Marketing, 10(4), 6-22. http://dx.doi.org/10.1108/08876049610124554
 Storbacka, K., Strandvik, R., and Gronroos, C., (1994). Managing Customer Relationship for Profit; The Dynamics of Relationship Quality. International Journal of Service Industry Management, 5(5), 21-38.
 Sudin, H. Norafifah, A, Planisek K., (1994). “bank patronage factors of muslim and non-muslim customers”, Int. J. Bank Mark. 12(4): 32-40.
 Shemwell, D. J., Yavas, U. & Bilgin, Z. (1998). Customer-service provider relationships: an empirical test of a model of service quality, satisfaction and relationship-oriented outcomes. International Journal of Service Industry Management, 9(2): pp. 155-168.
 Sureshchandar, G. S., Rajendarn, C. & Anantharaman, R. N. (2002). The relationship between service quality and customer satisfaction–a factor specific approach. Journal of Services Marketing, 16(4): pp. 363-379.
 Titko, J. and Lace, N., (2010). Customer Satisfaction and Loyalty in Latvian Retail Banking, Economics and Management, 15, 1031- 1038.
 Wong A. and Sohal, A., (2003). “Service Quality and Customer Loyalty perspectives on two levels of retail relationship”, Journal of Services Marketing, 17(5), 495-513.
 Welkowitz, J., Cohen, B.H., & Ewen, R.B. (2006). Introductory statistics for the Behavioral Sciences. (6th ed.). New Jersey: John Wiley & Sons, Inc.
 Yeung, M., Ging, L., and Ennew C., (2002). Customer Satisfaction and profitability: a Reappraisal of Nature of Relationship, Journal of Targeting, Measurement and Analysis for Marketing, 11(1), 24-33
 Zeithaml, V.A., and Bitner, M.J. (1996). Services Marketing. New York, McGraw-Hill.
Table 1: Dimensions of service quality
Dimensions Description
Tangibles Physical facilities, equipment and tools, employee appearance,
written materials
Responsiveness Bank staff‟s tell customers‟ exact time of service will be performed,
Banks give customers prompt service, Bank staff‟s willingness to
help customers, bank staff‟s respond to queries of customers
Reliability Ability to deliver promised service, banks insist on error free records,
Keen in solving grievances; perform services exactly the first time, customer support services, hospitality services.
Assurance banks staff‟s behavior instills confidence and inspire trust, staff‟s are
courteous, staffs are knowledgeable, customers feel safe in dealing with
the banks.
Empathy banks give individual customers attention, location is convenient to
customers, banks has customers at heart, staff‟s understand customers‟
specific needs.
Table 2: Socio-Economic Characteristics of Respondents in Kumasi (2012)
Age (in yrs.) Frequency Percentage
18-30 85 60.71
31-40 36 25.71
41-50 13 9.29
51-60 4 2.86
61+ 2 1.43
Total 140 100.00
Gender
Male 92 65.71
Female 48 34.29
Total 140 100.00
Education level
Postgraduate 14 10.00
Bachelor Degree 42 30.00
Diploma 60 42.86
Trade qualification 5 3.57
Senior/Junior High School 11 7.86
Elementary 8 5.71
Total 140 100.00

Occupation
Executive Manager 6 4.29
Clerk or similar 12 8.57
Housewife 5 3.57
Student 68 48.57
Retired 1 0.71
Self-employed 14 10.00
Salaried 34 24.29
Total 140 100.00
Source: Field Survey, 2012.
Table 3: Descriptive statistics Sample size Minimum Maximum Mean standard deviation
Overall Customer satisfaction 140 1 5 3.67 0.74
Assurance 140 1 4 3.70 0.87
Tangibles, 140 1 4 3.55 1.05
Reliability, 140 1 5 4.05 0.69
Responsiveness, 140 1 4 3.65 0.75
Empathy 140 1 4 3.70 0.92
Valid n (List-wise) 140
Table 4: Correlation
Customer n Assurance TangiblesReliability Responsiveness Empathy
Dimensions Satisfaction
Customer
Satisfaction 1.000 140 *0.612 *0.422 *0.506 *0.738 *0.435
Assurance *0.612 140 1.000 *0.075 *0.381 *0.736 *0.277
Tangibles *0.422 140 * 0.075 1.000 *0.033 *0.215 *0.688
Reliability *0.506 140 *0.381 *0.033 1.000 *0.609 *0.025
Responsiveness *0.738 140 *0.736 *0.215 *0.609 1.000 *0.191
Empathy *0.435 140 *0.277 *0.688 * 0.025 *0.191 1.000
*correlation is significant at the 0.01 level (2-tailed), p≤0.001.
Table 5: Summary of the Null Hypotheses
Null Hypotheses Description Results
H2 Thereis positive relation between tangibles
And customer satisfaction in retail banking in Supported
Ghana.
H3 There is positive relation between reliability
And customer satisfaction in retail banking in supported
Ghana.
H4 There is positive relation between responsiveness
Ghana.
H5 There is positive relation between Empathy
and customer satisfaction in retail banking in supported Ghana.
H6 There is positive relation between Assurance
Ghana.

Customer Satisfaction in Retail Banks- Empirical Study

More Related Content

What's hot (19)

Viewers also liked (17)

Similar to Customer Satisfaction in Retail Banks- Empirical Study (20)

Recently uploaded (20)

Customer Satisfaction in Retail Banks- Empirical Study