Effect of service quality on customer satisfaction : a case of ZANACO bank.
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Date
2024
Authors
Muchimba, Chrislay Michelo
Journal Title
Journal ISSN
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Publisher
The University of Zambia
Abstract
The key to surviving in a global market is to focus on service quality for customers. Every organization should focus on providing quality service to customers. ZANACO bank has been implementing several service quality features and systems, such as changing the interior design of bank buildings, investing in technologies and taking services closer to the customers through ZANACO express agents, mobile banking and opening new branches among others. Hence, the study investigated the effect of service quality on ZANACO bank customers’ satisfaction. A survey was conducted with 397 ZANACO bank customers at Main Branch in Lusaka. The study used descriptive and causal designs. The study analyzed the data by obtaining frequencies, percent and means, and the study employed spearman correlation analysis to determine the effect. The study found that the service quality features important to bank customers were; quick in attending to customers, courtesy of the bank employees, accuracy of the banking transactions, safety of the banking services, customer care, convenient operating hours reliability of banking services and affordability (cost)of services. The study found that banks’ responsiveness, accuracy, reliability and empathy significantly affect customer satisfaction, while tangible features have weak to no effect on customer satisfaction. Customer satisfaction had a strong positive effect on customer loyalty, with a correlation coefficient of 0.9264, statistically significant at 0.0001 p-value. The study therefore recommended that: Banks should focus more on reliability, assurance, empathy and responsiveness to increase customer satisfaction; offering of incentives like reduction of banking charges; and employing customer loyalty programs to remain competitive.
Description
Thesis of Masters in Business Administration (MBA) General