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 $5$&')T&(+##################################################################################################################################i )99R(%):####################################################################################################################################ii $5':)R)T&(+############################################################################################################################iii )',+(;:5$<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 $ougall, 144AI# )ccording to ;inder and 8udd H144AI, Buality is the ongoing process of building and sustaining relationships by assessing, anticipating and fulfilling stated and implied needs# )# Muhlemann et al H144>I, defines uality as fitness for use and conformance to the reuirements# Buality is nothing more or less the perception of customer has of you, your products and service# &t is meeting customer reuirements a lower cost with built in preventive saction in the processes on employee1management, involvement, ensuring the best products to the customer1end user with @ust in time delivery# Buality service is defined as a level of service, compared to that of competitors that is high enough in the eyes of customer that enables one to gain an unnaturally large market share, en@oy a higher profit margin than the competitors &,arl, >//?I# )ccording to 9arasuraman et alH14C3' the dimension of uality service includeE tangible, reliability, responsiveness, competence, credibility, empathy and communication# 'ustomer satisfaction is a business term, is a measure of how products and services applied by a company meet or surpass customer e!pectation 1 ( 'ustomer satisfaction can be found through market analysis, satisfied customers usually leads to more sales, customer loyalty, retention and this leads to profitability&=allowell,144AI, the dimensions of customer satisfaction includeE capability, usability, performance, reliability, install ability, maintainability and documentation# 1 &4)(502064-01(,+3/5020//.7*,84+ 71*0791/*0,)$%1 7* 81+/: %011' 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 7* 81+/: %011' > 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 ??