AN ASSESMENT ON THE LEVEL OF CUSTOMER

RETENTION OF AMERICAN EXPRESS CREDIT CARD OF

THE NATIONS TRUST BANK

By
Prasanga A.W.R.P.S

An Integrated Research Project submitted to the Sri Lanka Institute of Marketing in partial
fulfilment of the requirements for the Postgraduate Diploma in Marketing

Supervisor: Mr. Nalin Munasinghe

Sri Lanka Institute of Marketing

Colombo
June, 2016

Research Proposal Evaluation IRP

Marking Scheme
Student Name

Prasanga AWRPS

Registration Number

0000017969

Criteria

Allocated
Marks

Awarded
Marks

The background of the problem

10

The significance/rationale of the exploration of the problem

10

The objective/s of the report

15

Brief Literature Review

10

Methodology of perspective
5

5.1

Conceptual framework

15

5.2

Operationalisation

10

The approach to data collection

Delimitations of the study

The Time Plan

References (Harvard Reference System)

10

Adherence to stipulated format

Total

10

100

Special Remarks:

Signature of Examiner

AN ASSESMENT ON THE LEVEL OF CUSTOMER

RETENTION OF AMERICAN EXPRESS CREDIT CARD OF
THE NATIONS TRUST BANK

By

Prasanga A.W.R.P.S
0000017969

This is to certify that I have examined and supervised the above integrated research project
and have found that it is complete and satisfactory in all respects and that all revisions
required by the evaluation/examination committee have been made.

(Mr. Nalin Munasinghe)

(Signature of supervisor & date)

Head of Education - SLIM

Sri Lanka Institute of Marketing
June, 2016

TABLE OF CONTENT
1. Background of the company.......8
2. Background of the problem....9
2.1 Problem statement......11
3. The significance of the exploration of the problem.... 12
4. The objective of the research... 14
5. Brief literature review......16
5.1. Customer Retention...16
5.1.1 Relationship marketing and customer loyalty.........17
5.1.2. Relationship Marketing and Customer Satisfaction.......17
5.1.3. Relationship Marketing and Customer Trust ....18
5.1.4 Customer Satisfaction, Customer Trust and Customer Loyalty.18
5.1.5 Customer loyalty influences customer retention.........19
6. Methodology perspective.20
6.1. Operationalization.21
7. The approach to data collection....22
7.1. Quantitative design22
7.2. Primary data......22
7.3. Secondary data..22
7.4. Sampling design22
7.4.1. Research population...22
7.4.2. Sampling techniques..23
7.4.3. Sampling size.....23
7.5. Research instruments.23
7.6. Method of data analysis.....24
8. Data presentation and Analysis25
8.1. Surveyed respondents25
8.2. Demographic analysis of respondents.......25
8.2.1. Gender analysis..25
6

8.2.2. Age analysis...25

8.2.3. Income analysis..26
8.2.4. Experience analysis....26
8.2.5. Card type analysis......27
9. Conclusion and Recommendations..30
9.1. Conclusion.30
9.1.1. Demographic characteristics..30
9.1.2. Analysis of Independent and dependent variables.30
9.2. Recommendations.....31

10. Delimitations of the study..... 25

11. References..... 26

LIST OF FIGURES
1. Customer satisfaction index rating . 10
2. Credit card usage limit.12
3. Gender analysis25
4. Age analysis.25
5. Income analysis26
6. Experience analysis..26
7. Card type analysis27

LIST OF TABLES
1. Hypothesis testing .. 15
2. Methodology framework. 20
3. Operationalization customer retention.....21
4. Gender analysis25
5. Age analysis.25
6. Income analysis26
7. Experience analysis..26
8. Card type analysis27

1. BACKGROUND OF THE COMPANY

Nations Trust Bank PLC is one of Sri Lankas fastest growing licensed commercial banks,
offering a multitude of solutions across Sri Lankas consumer, SME, corporate and
institutional markets. A relatively new entrant to the countrys licensed commercial banking
industry, the Banks innovative perspectives on customer convenience has enabled it to
rapidly capture market share through a superior value proposition to customers. With an asset
base of Rs. 176.3 Bn and a deposit portfolio of Rs. 129.1Bn as at end-December 2015. Bank
have grown at an average of 19% over the past few years, outperforming industry expansion.
With network of 92 branches, 131 ATMs and 54 leasing centers spread across 22 districts
enables bank to serve over 500,000 customers and has provided them a strong platform to
capture growth opportunities.
In 2003, Nations Trust Bank became a sole issuer & acquirer of one of the world's most
prestigious credit cards, American Express Cards. Since then, Nations Trust Bank has
issued a diverse type of American Express Cards to satisfy customer requirements
With an active user base exceeding 183,000, Nations Trust Bank is the largest local issuer
of credit cards in the country and is also the largest merchant network operator. During the
year bank fortified their market position in this segment with the issue over 60,000 new
cards, a growth of 14% for the year compared to the previous year.

2. BACKGROUND OF THE PROBLEM

Nations Trust Bank PLC has come into the card business in 2003 and currently it is
considered as the market leader and the highest credit card issuer in local context among the
11 competitive financial companies. As there are many competitive financial companies to
NTB it is important to keep the position further as it is.
But the recent statistics of the company is showing that there is a consecutive drop of
customer retention while the number of cards issuing of the bank is been increasing 14%
prior to year 2014.
To frame it out and prove the above statement clearly researcher has presented the data of
most profitable customers to bank also only primary card customers has taken out from the
set of data due to relativity of target audience.
The following charts represent statistics of new entrants and exits of professionals segment
by taking a strata of charted accountants and IESL engineers issued under the promo of
professionals.

CUSTOMERS

2260; 26%

Charted
Accountants
IESL Engineers

6290; 74%

10

Source: internal annual portfolio report of NTB plc (primary card holders)

CHARTED ACCOUNTANTS
600
400
200
0

2013

2014

2015

New Customers
Discontinued Customers

CHARTED ACCOUNTANTS
600
400
200
0

2013

2014

2015

New Customers
Discontinued Customers

Source: internal
annual portfolio report of NTB plc (primary card holders)

Source: internal annual portfolio report of NTB plc (primary card holders)
Figure No. 1

So to keep the position and dominate the market share, it is important to track the customer
feedbacks and take appropriate actions to develop business. Be the best one is not the hardest
part, but keeping the position as it is, the hardest. Customer retention is a series of activities
and/or strategies aimed at keeping customers from defecting to their competitors.
This research study is mainly focused to find out the factors which are affecting to the
decline of customer retention level of Amex Card of Nations Trust Bank. The satisfaction
11

of the customer is directly affected to the Customer Loyalty and it leads to customer retention
in the period of the service economy, improving the service quality has always been
considered as one of the effective ways to improve customer satisfaction.

2.1 Problem statement

The yearly decreasing trend of the customer retention of American express card led this
study which will assess the factors affecting the decline of customer retention to increase the
revenue which will loss from the bank to acquire new customers
The banks main interest is on the bank premier card product centurion platinum which
is the most profitable product from card categories. Along with the 2015 portfolio statistics
from total card sales, 3% represent the charted and IESL professionals and from centurion
platinum card holders, 24% represents charted and IESL professionals.
It is obvious that customers are important to every business and customer retention is a
main objective of every organization. The research will be focused to find out factors led to
the decline of retention for cards. With the conclusion of the research the bank will be able
grasp the reasons to the problem and take necessary steps to avoid the same. This will
increase the revenue of the bank as well as it will grab new customers to Nations trust bank.

12

3. The significance of the exploration of the problem

This research paper is important to several parties in different ways.
Importance of research to the industry
It is obvious that customers are important for the business and their satisfaction is a priority
to management of the organization. Customer satisfaction has been a subject of great interest
to organizations and researchers alike. In recent years, organizations are obliged to render
more services in addition to their offers. The quality of customer service has become an
aspect of customer satisfaction. It has been proven by some researchers that service quality
relates to customer satisfaction, and also uses service quality dimensions to evaluate service
quality.
A lot of financial companies think pumping more and more customers into their company
will sustain their position in the market. But according to the model of churn it is important to
keep a low rate of customers who discontinue a service during a specified time period divided
by the average total number of customers. Churn rate tells you how quickly your customers
are leaving.
Customer satisfaction, loyalty and retention can be achieved through consistently
delivered level of customer service that exceeds and still anticipates the customer's
expectations for worth and also Customer retention is significant to most companies as the
cost of acquiring a fresh client is faraway superior than the cost of maintaining a bond with
an existing client."
(Ro King - 2005)
This research paper worth to the industry to understand those are major factors to retain
existing customers while increasing the market share. And this is a practical relevance to
managers in similar firms.
Importance of research to the company
The Sri Lankan credit card market consists of 11 card issuers and Just five years ago,
there were 824,309 card users in the country, with a total outstanding debt of Rs. 29.99
billion. A pretty low penetration compared to global standards, particularly in comparison to
the advanced economies, economist Deshal de Mel told Roar.

13

Fig No.2- Credit card usage limit

(www.roar.lk/2016/01/creditcard)

Going by Central Bank of Sri Lanka data, however, there is an observable upward trend. As
of September 2015, there are 1,115,299 active credit cards in use. Of these, 31,289 are
accepted only locally, while 1,084,010 (over 97%) are accepted globally.
As well as, professional customer segments demand better quality service from banks; it
has bested the competition among various credit card issuers particularly those private
sectors. Therefore, this study found outs will helpful to find out factors caused to the decline
of retention of product and ways to maintain it without dropping of existing customers.

Importance of research to the researcher

After the research work the researcher should be able to identify key factors to create the
loyal customers and retain through customer service in the credit card industry. And it will be
important for newcomers to the industry as well as to the top management in the industry to
identify the facts important to maintain higher customer retention ratio. And through this
study researcher will get recognition from employer and researcher will equipped with new
subject knowledge

14

4. The Objectives of the research

This study will be undertaken an assessment of level of customer retention of American
express card of the Nations Trust bank.
To explorer and understand the importance of customer retention
To identify customer expectation with regards to a credit card facility
Evaluate reasons impact on the drop of customer retention
To propose long term recommendation to increase customer retention
Also it will focus on the relationship of four independent variables of customer satisfaction,
customer, trust, customer loyalty, and relational marketing tactics with the identified
dependent variable.
Hypothesis
H1

Relationship marketing influences customer loyalty

Relationship marketing not influences customer loyalty

H2

Relational marketing tactics influences customer satisfaction

Relational marketing tactics not influences customer satisfaction

H3

Relationship marketing tactics affect customer trust

Relationship marketing tactics not affect customer trust

H4

Customer satisfaction influences customer loyalty

Customer satisfaction not influences customer loyalty

H5

Customer trust affect customer loyalty

Customer satisfaction not influences customer loyalty

H6

Customer loyalty influences customer retention

Customer loyalty not influences customer retention

15

The researcher should focus the following model of hypothesis testing:

H2

RELATIONAL
MARKETING
TACTICS

H3

CUSTOMER
SATISFACTION

H1

CUSTOMER
TRUST

H4

CUSTOMER
LOYALTY

H5

Table No. 1

Relationship Marketing and Customer Loyalty: Do Customer Satisfaction and Customer Trust Really Serve as
Intervening Variables? Mohamad Rizan1, Ari Warokka2 and Dewi Listyawati

16

5. Brief Literature Review

This is presents the overview of current literature in the frame of the presented research
problem. Each of the bodies of literature is discussed which is focus on the specific nature of
the relevant literatures that relates to this study.
A literature review is a step by step process that involves the identification of published
and unpublished work from secondary data sources on the topic interest, the evaluation of
this work in relation to the problem and the documentation of this work (Sekaran and Bougie
2010). Therefore, in this study, each independent variables and a dependent variable will be
reviewed on previous studies that are related to this topic.

5.1. Customer retention

Customer retention is a series of activities and/or strategies aimed at keeping customers
from defecting to competitors and also Customer Retention marketing is the kind of approach
that is tactically-driven and is based on customer conduct or attitude.
Services are a continues process of on-going interactions between customers and service
providers comprising a number of intangible activities provided as premium solutions to the
problems of customers and including the physical and financial resources and any other
useful elements of the system involved in providing these services (Gronroos, 2004).
Customer satisfaction, loyalty and retention can be achieved through consistently delivered
level of customer service that exceeds and still anticipates the customer's expectations for
worth.
Relationship management is superfluous if customers defect as there is no longer a
relationship to deal with. In order to retain clients, merchants should keep them pleased.
When clients are pleased, they stay loyal longer, purchase more, talk kindly about the
corporation and its products, and cost a smaller amount to service because the transactions
become more regular (Kotler, 2000).
Keeping customers content is cost effective, as it costs more money to draw a customer
away from the competition than to maintain an existing one (Kotler, 2000).
Acquiring fresh clients can charge five times more than the costs caught up in pleasing and
retaining existing clients (Reichheld, 1996a).
A content purchaser tends to tell at least three other individuals regarding their shopping
experience while a discontented purchaser tends to complain to at least nine other individuals.
17

Content shoppers also tend to become loyal clients (Sheth, Mitral, & Newman, 1999).
Through the following research framework the researcher has discussed how the factors of
hypothesis testing affects to the customer retention.
A brief explanation of these dimensions is given below.
5.1.1. Relationship marketing and customer loyalty
The basic philosophies of relationship marketing are based on the assumption that
company-customer interactions and strategies can earn and keep the loyalty of customers
(Berry, 1995).
Relationship marketing refers "to all marketing activities aimed at forming, increasing, and
maintaining winning relational contacts". The management of customer relationships is
precious for the company (Morgan &Hunt, 1994; Webster, 1992).
Relationship marketing is targeted at improving long run profitability by deemphasizing
captivating fresh clients and emphasizing customer retention through efficient management
of customer relationships (Christopher, Payne, & Ballantyne, 1991). Relationship marketing
refers "to all marketing activities aimed at establishing, budding, and maintaining booming
relational
exchanges"
(Morgan
&
Hunt,
1994).
Prior studies confirm that service companies have received incredible benefits of loyal
customers (Bagherzad, Chavosh, and Hosseinikhah, 2011). Moorman, Zaltman, and
Deshpand (1992) stated that customer loyalty was an intention to keep a valued relationship.
In the banking sector, it is the main job of manager and marketers to create and develop
customer loyalty if they want to maintain their company and increase its profitability.
Therefore, we hypothesize the association between relationship marketing and customer
loyalty as follows:

H1: Relationship marketing influences customer loyalty.

5.1.2 Relationship Marketing and Customer Satisfaction
Doyle (2002) argues that the three cornerstones of relationship marketing are: planning and
controlling of customer satisfaction, building and maintaining stable relationships (customer
loyalty) and customer value management. Satisfaction is a feeling that surfaces from an
evaluation process, i.e. when the consumer of a good or service compares what is received
against what is expected from the utilization of that good or service (Kotler et al., 2009). The
customer will be satisfied if the performance matches or exceeds the expectations, and in
contrary, the customer will be dissatisfied if the performance falls short of the expectation.
Each organization wants to know how to retain their clients, even if they show to be
satisfied. Richards refers that a few unsatisfied clients may wish not to defect, because they
do not look forward to be given improved service somewhere else and that some satisfied
18

clients may look for other options if they think they can get improved services in another
place
So, some techniques to maintain and improve satisfaction must be considered. An effective
complaint handling system is an excellent defensive tool. Ongoing surveys to measure
customer satisfaction and loyalty, and capture the voice of the customer are also essential.
The well-satisfied customer will bring the repeat sale that counts. James Cash Penney
Therefore, based on those empirical findings, hypothesis 2 is proposed as below:
H2: Relationship marketing tactics influence customer satisfaction.
5.1.3. Relationship Marketing and Customer Trust
The final concept necessary to build relationships is trust. In business, trust refers to the
confidence that one partner, the customer, has in the businesss reliability and integrity to
deliver goods and services (Proctor, 2000).
Branding is not merely about differentiating products; it is about striking emotional chords
with consumers. It is about cultivating identity, attachment, and trust to inspire customer
loyalty. Chinese brands score low on attributes such as 'sophisticated,' 'desirable,' 'innovative,'
'friendly,' and 'trustworthy.' (Nirmalya Kumar)The development of trust between salespeople
and their customers has traditionally been considered a critical element in developing and
maintaining a successful sales relationship.
Relationships with customers and in maintaining a companys market share. Therefore,
based on the prior empirical findings, hypothesis 3 is proposed as below:

H3: Relationship marketing tactics affect customer trust.

5.1.4. Customer Satisfaction, Customer Trust and Customer Loyalty
Satisfied customer is the best source of advertisement (G.S. Alag) A customer talking
about their experience with you is worth ten times that which you write or say about
yourself. (David J. Greer, Wind in Your Sails)
As business marketers placed greater emphasis on building long term relationships, trust
has assumed a central role in the development of marketing theory (Dwyer,Schurr and OH
1987:Morgan and Hunt 1994)and practice (Dertouzos,Lestr and Solow 1989)
"Unless you have 100% customer satisfactionyou must improve." ~ Horst Schulze, Ritz
Carlton
According to Doyle (2002), a highly satisfied customer will exhibit the following
characteristics: (1) stays in loyal longer, (2) buys more, (3) talks favorably about the
company, (4) pays less attention to competing brands and advertising, and (5) the company
will cost less to serve than new customers.
Loyalty cannot be blueprinted. It cannot be produced on an assembly line. In fact, it
cannot be manufactured at all, for its origin is the human heart-the center of self-respect and

19

human dignity. It is a force which leaps into being only when conditions are exactly right for
it-and it is a force very sensitive to betrayal. Maurice Franks
If people believe they share values with a company, they will stay loyal to the brand.
Howard Schultz
Based on those empirical findings, we proposed the following hypothesis:

H4: Customer satisfaction influences customer loyalty

More than half of bank customers believe that having a relationship of trust with their
financial institution is more important than getting the best value for money according to the
study of Coulter and Coulter (2003). It describes that when the customers have trust on the
services and products of a company, then it will lead them towards loyalty (Ribbink,
Liljander, and Streukens, 2004).
Get closer than ever to your customers. So close that you tell them what they need well
before they realize it themselves (Steve Jobs).
We see our customers as invited guests to a party, and we are the hosts. Its our job every
day to make every important aspect of the customer experience a little bit better. Jeff
Bezos
The role of trust is a crucial one (Harris and Goode, 2004). It affirms that customer loyalty
begins with trust. Based on those prior findings, the hypothesize the relation between
customer trust and customer loyalty can be mentioned as follows,

H5: Customer trust affects customer loyalty.

5.1.5. Customer loyalty influences customer retention

Loyal customers have a positive effect on customer retention, but customer loyalty is not
customer retention. Loyalty is only a valid concept in situations where customers have
options to choose from. The main issue is that retention should not be taken as a substitute for
loyalty and this suggests that banks need to understand why their consumers choose to stay
and should not assume that it is a positive conscious choice (Colgate et al., 1996).
A service recovery effort is also necessary, where a service provider is notified that a
problem has occurred (Trubik and Smith, 2000). A service recovery processes encompasses
all the actions taken to get a disappointed customer back to a state of satisfaction. The
plethora of literature on service recovery, both management and academic suggests that
service recovery is the most important factor in driving a customer to exit or stay after a
service failure. As a result, switching behavior can increase, as do complaints, cynicism
toward the concept of loyalty, and litigious activities (Schriver, 1997).

20

Retaining customers also make it difficult for competitors to enter the market or to increase
their market share, and loyal customers often refer new customers to the service provider,
which is very beneficial, as there is no expenditure in gaining the new customers (Du Plessis
2010: 63; Kuusik 2007: 5; Rootman 2006: 36).

6. Methodology of Perspective
Survey method will be used for this study using questionnaire as data collection
instrument. The questionnaire will be adapted from scales already used for previous studies in
the literature. Systematic sampling technique used to select the individuals from membership
directory data collection was done through telephonic questionnaire survey.

Table No. 2

The framework above shows proposed framework to serve as foundation of this study. The
purpose of this study is to examine how above mention factors affect to customer retention of
Nations Trust bank American Express card.
21

6.1. Operationalization
Operationalization of customer retention

Table No.3

22

7. The approach to data collection

In this study, the researcher will be gathering data through primary data, but also will be
used secondary data to gather research population and industry analysis.

7.1. Quantitative, Design

Quantitative research will be applied based on the nature of studies to gather a
representative data from the targeted respondents.
The advantage of using quantitative research is that it produces reliable data that are
usually qualified to some large population (Wyse, 2011). In this study,
A questionnaire will be used to collect the data from the respondents.

7.2. Primary data

Primary data will be organized for the specific purpose of addressing the problem at hand.
In this research, the primary data will be used is questionnaire survey through telephonic
conversation while delivering the questions researcher need cooperation and clarification
from the respondents. Besides that, primary data refer as first-hand information or data
obtained originally by the researcher on the variables of interest for the specific purpose of
the study. The respondents (professionals) will be selected as per a systematic manner.

7.3. Secondary data

Secondary data refer to information gathered by other parties that already conduct a
previous study. It helps researchers to get better understand to obtain research population for
questionnaire survey and collect financial data to analyze primary data. To obtain secondary
data, can be obtained the relevant articles and other sources through internet and online
library are aiding in the research. The researcher should collect customer information from
IESL directory and the directory of charted institute of accountants since it is the interested
population for the study

23

7.4. Sampling design

There are few steps under sampling design as follows;
7.4.1. Research population
Research population is the group of people where the researcher is interested in analyzing
to get relevant information for research purpose.
The population refers to the entire group of people, events, or things of interest that the
researcher wishes to investigate. (Sekaran & Bougie, 2009, p. 262). On the other hand,
systematic sampling has been chosen in order to select professionals which is the respondents
in this study. , systematic sampling is one of the probabilities sampling, which researcher first
randomly picks the first item or subject from the population. Then, the researcher will select
each not subject from the list.
The sample has been selected from the charted accountants and IESL engineers who have
obtained their memberships after 2006, stratified sampling and the sample compromised 150
individuals from each segment 75, who have obtained card facility regardless existing or
cancel the facility. When choosing the sample researcher will select every 3 rd individual
systematically along with membership nos issued after 2006 because each individual in the
population has an equal likelihood or chance to be chosen.

7.4.2. Sampling techniques

In this study, stratified sampling and systematic sampling technique was selected. To assess
customer's perceptions on quality of service in American express credit card researcher has to
get organized sampling frame. To accomplish this, the researcher will go through the
directories of IESL engineers & charted accountant to collect the customers information such
as contact no and home or office address.
Then should have to draw the sample can could be selected the particular sample through
MS Excel spreadsheet functions.

7.4.3. Sampling size

Before distributing the real questionnaire to the selected respondents, the researcher needs
to pre-test the questionnaires to the other people such as friends and family members. It will
be important to ensure the respondents understand the questionnaires and to avoid
misunderstanding occurs in the future. Researcher distributes 5 questionnaires for this pretest. Any misunderstanding about the questions, then researcher needs to redo the
questionnaire until it suits with the purposes of the study.

7.5. Research Instruments

24

Questionnaire survey has been used in this study. Questionnaires are defined as the series
of questions aim to gather prompt and accurate information from respondents. Thus, in order
to perform a good research, a good questionnaire must be designed. Hair, Babin, Money, and
Samuel (2003) mentioned that effectiveness and high response rate are the reasons for
researchers use questionnaire widely to collect primary data if the population of respondents
is well-educated. The main data collection instrument of this study is structured questionnaire
based on the literature review.

7.6. Method of data analysis

The data analysis starts with an exploration of the response, the respondents and the
reliability of the item indicators of service quality and customer satisfaction.
Descriptive Statistics; are used to describe the basic features of the data in a study. They
provide simple summaries about the sample and the measures. Together with simple
graphical analysis, they form the basis of virtually every quantitative analysis of data. The
Standard Deviation is a more accurate and detailed estimate of dispersion because an outlier
can greatly exaggerate the range. The findings will be calculated by using excel.

25

8. Data presentation and analysis

This chapter demonstrates the descriptive statistics calculated by analyzing primary data
collected through the structured questionnaire. The significance of the each factor to the customer
satisfaction is analyzed and, the output is presented by diagrams, charts and tabulations.
Demographics of the sampled responded are shown by charts and research attempt to predict
relationships among demographics,
8.1 Surveyed Respondents
Random samples of 80, charted accountants and IESL engineers were surveyed by means of a
structured questionnaire.

8.2 Demographic analysis of Respondents

The questionnaire includes seven (03) demographic questions. Summarized survey data on
demographics are illustrated by the following charts.
8.2.1 Gender Analysis

46%

54%

Male
Female

Table

No.4

Fig No.3

Gender

Frequency

Male

32

Female

38

Total

80

Gender Analysis

26

Response to this questioner indicates that (54%) of the total population are Female while rest
(46%) Male

8.2.2 Age Analysis

Table No.5

Age Group
Between 21-30
Between 31-40
Between 41-50
Above 50
Total

Fig No.4

Frequency
27
34
12
7
80

9%
15%

Between 2130

34%

Between 3140
Between 4150
Above 50

43%

According to the responses there are 34% responses in between 21-30 age group while 42%
respondents represent in between 31 to 40 age group, 15 % respondents represents in between
41-50 age group and rest 9% represents the above 50 age group.

8.2.3 Income Analysis

Table No.6

Income Level
Below RS 50,000
Between RS 51,000 to
100,000
Between RS 101,000 to
150,000
More than RS 150,000

Total

Fig No.5

Frequency
2
29

Below RS 50,000

20%

3%

33

Between RS 51,000 to 100,000

16
80

Between RS 101,000 to 150,000

36%

41%
More than RS 150,000

27

There are only 3% of respondents are having salaries below 50,000 RS while 36% are
representing salary scale in between 51,000 Rs to 100,000 Rs, Majority of respondents are
having salaries between 101,000 Rs to 150,000 Rs its 41% while rest 20% getting more than
150,000 Rs.

8.2.4 Experience Analysis

Table No.7

Experience
Yes
No
Total

Fig No.6

Frequency
64
16
80

20%

Yes
No

80%

As per survey findings there are 80% respondents are having an experience with credit card
facilities, while 20% respondents are never used credit cards but they have expectation
among the service quality of credit card facilities.

8.2.5 Card Type Analysis

Table No.8

Fig No.7

28

Card Type
American
Express
HSBC
Standard charted
Sampath
Commercial
HNB
BOC
Other
Total

Frequency
45
19
8
24
12
15
5
8
136

4%6%
11%

American
Express
HSBC

33%

9%

Standard
charted
Sampath
Commercial

18%
6%

14%

HNB
BOC
Other

Frequency of having an American express card is high at 33% from total population while
other cards at a level of below 20% Sampath enjoy the 2 nd place by having a share of 17%
.Respectively HSBC, HNB, Commercial and BOC having 14% , 11%, 9% , 6% & 6% while
next 4% goes for other banks.

29

4.3. Analysis of Variables

In this subchapter the descriptive statistics of each construct is illustrated in paragraph 4.3.1.,
and there is a choice of the statistical tests for testing hypotheses in paragraph 4.3.2.
4.3.1. Descriptive statistics of variables
The descriptive statistics of two variables are presented to get an overview of the rated service
quality and satisfaction. Within this research service quality is a predictor variable within
hypotheses 1 to 5.

Minimum

Maximum

Mean

Std.Deviatio
n

Relational
marketing
tactics
Satisfaction
Trust
Loyalty
Total
The minimum, maximum, mean and standard deviation scores of Service
Quality indicate that there are great differences in the service of the Leasing
and Finance sector.

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9. Conclusion and recommendations

As per the results of analysis processed by previous chapter findings of the study are explained
covering the researchers main objectives briefed in the Chapter I, and in this Chapter the
researcher listed down some recommendations to reduce the no of customers who left over the
brand American express
9.1 Conclusion
The analysis of primary data in Chapter four revealed that there are positive relationship between
hypothesis testings towards customer retention.
9.1.1. Finding 1 - Demographic characteristics
The majority of selected sample represent the Female but after the analyzed data it was figure
it out the majority of credit card users are Male. There are 42% of respondents in between of 3140 age group and 34% in 21-30 age group and only 9 % in above 50. Most no of respondents,
41% earns in between 101,000Rs to 150,000R fixed salary while 36% represent the 51,000Rs to
100,000Rs due to the professionalism income level is bit high when taking out the other general
professions.
9.1.2. Findings 2 -Analysis of Independent and Dependent variables
Today financial institutes facing many challenges to retain loyal customers because the
competition is high among similar companies to attract new customers from each other.
Since the rates and prices are not much different in banking and finance industry
companies are willing to give more attention towards premium service quality to keep
demand and differentiate the products and services they offer.
Increasing customer demand together with ever growing competition are compelling the financial
institutions to adapt new competitive and innovative ways which will help to take the lead in the
market place in the form of loyal customer base. (Sellers, 1989)
To present answers to the main research question the level of customer retention of American
express credit card of Nations Trust bank. The researcher used 5 dimensions to measure the level
of customer retention; customer satisfaction, customer trust, customer loyalty, and relational
marketing tactics of the brand.
As per the findings analyzing of independent and dependent variable, there are strong connection
between service levels to the customer retention therefore the researcher could be able to answer
to research questions as;
a)
b)
c)
d)

The influence of customer satisfaction is very high towards customer retention

The influence of customer trust is very high towards customer retention
The influence of customer loyalty is very high towards customer retention
The influence of relational marketing tactics are very high towards customer retention

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9.2. Recommendations
The basic purpose of this research work is to put forward recommendations of practical nature.
The following recommendations are proposed to American express cards of Nations trust bank
The marketers (Staff) should keep in mind and determine the factors of premium service quality
that enhances the customer satisfaction. Frequent surveys must be conducted to obtain data from
customers regarding their perceptions, suggestions and recommendation to improve the service
quality of the brand.
Innovating the services according to the needs and demands of the customers is very much
important. Customer must be the focus of every strategy. In this regard, Nations trust bank must
think in terms of end result of their service quality innovations. The focus should be on the long
run rather the current situation.

Bank must arrange continues training programs towards Service Quality to their employees to
give a premium service to its customers.
The flexible management environment of a company is highly influence to give a better and
premium service to its customers by its employees. Therefore, in terms of American Express
Nations trust bank should think about the staffs mind set to improve its quality.
The demographical approach could be analyzed in this regard to identify, how the company could
be improved the service quality demography.

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10. Delimitations of the study

The research population of this study will be limited to 150 individuals because of the cost
and time limitation.
Difficult to contact and get information due to busy life schedules of professionals.

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