IMPLICATIONS OF CUSTOMER SERVICE ON CUSTOMER LOYALTY IN THE NIGERIAN BANKING INDUSTRY. (A CASE OF FIRST BANK NIGERIA PLC, UMUAHIA, ABIA STATE)

Abstrtact

This research “Implication of Customer Service on Customer Loyalty” A study of First Bank Plc, Umuahia. The general objective of the study was to determine the Implication of Customer Service on Customer Loyalty in the Nigerian banking industry while specific objectives were to determine the extent to which speed of service affects customer loyalty to the bank, to determine the extent to which prompt attention to customers’ complaints contribute to the customer loyalty to the bank. In order to solve the research problem, hypothesis were formulated and tested using Chi-square statistical tool. Primary data were collected through the use of quesionnaire. The respondents comprised of the customers of the bank. Tables, frequencies and percentages were used in analysing the data collected. Data interpretation gave the following findings, speed of service affects customer loyalty to the bank. Accuracy affects customers’ loyalty to the bank, while prompt attention to customers’ complaints contributes to their loyalty. Based on the findings of the study, the following recommendations were made, that banks should stay to widening their clientele base by providing anywhere, anytime, any channel banking service to customers and that human resource developpment standard should be maintained in the recruitments, at all level and all times. The implications of the findings is that any bank that does not meet up with customers wanta and expectations in a competitive market situation will be losing its customer to it competitions gradually.

TABLE OF CONTENTS

Title Page ﾿ i

Declaration ﾿ ii

Certification ﾿ iii ﾿

Dedication ﾿ iv

Acknowledgement ﾿ v

Table of Contents ﾿ vi

List of Tables ﾿ vii

Abstract ﾿ viii ﾿

CHAPTER ONE ﾿ 1

1.0 ﾿ INTRODUCTION ﾿ ﾿ 1

1.1 ﾿ BACK GROUND OF THE STUDY ﾿ 1

1.2   STATEMENT OF PROBLEM ﾿ 3

1.3 ﾿ OBJECTIVES OF THE STUDY ﾿ 4

1.4 ﾿ RESEARCH QUESTIONS ﾿ 4

1.5 ﾿ STATEMENT OF HYPOTHESIS ﾿ 4

1.6 ﾿ SIGIFICANCE OF THE STUDY ﾿ 5

1.7 ﾿ SCOPE OF THE STUDY  ﾿ 6

1.8 ﾿ LIMITATION OF THE STUDY ﾿ 6

CHAPTER TWO ﾿ 7

2.0 ﾿ REVIEW OF RELATED LITERATURE. ﾿ 7

2.1      INTODUCTION ﾿ 7

2.2 ﾿ EMPIRICAL REVIEW ﾿ 7

2.3 ﾿ OPERATIVE QUALITY OF A SERVICE ORGANIZATION ﾿ 10

2.4 ﾿ DETERMINATS OF CUSTOMERS SERVICE IN BANKING ﾿ 10

2.5 RELATIONSHIP MARKETING , A STRATEGY  IN THE BANKING  ﾿ INDUSTRY . ﾿ 11

2.6 ﾿ SOME VARIABLES THAT ENHANCE RELATIONSHIP MARKETING IN THE BANKING INDUSTRY ﾿ 13

2.7 RELATIONSHIP MARKETING INVESTMENTS AS A KEY ISSUE IN BANKING INDUSTRY. ﾿ 16

2.8 ﾿ CUSTOMER SATISFACTION A MAJOR ANTECEDENT OF CUSTOMER ﾿ LOYALTY IN BANKING INDUSTRY ﾿ 17

2.9 ﾿ THEORETICAL FRAMEWORK ﾿ 19

2.10 ﾿ SUMMARY OF LITERATURE REVIEW ﾿ 20

CHAPTER  THREE ﾿ 22

3.0 ﾿ METHODOLOGY ﾿ 22

3.1  INTRODUCTION  ﾿ 22

3.2   RESEARCH  DESIGN: ﾿ 22

3.3 AREA OF THE STUDY ﾿ 22

3.4 THE POPULATION OF THE STUDY ﾿ 22

3.5  SAMPLE SIZE DETERMINATION ﾿ 23

3.6   SOURCES   OF DATA ﾿ 23

3.7   INSTRUMENTETION ﾿ 23

3.8   VALIDATION AND RELIABILITY OF RESEARCH INSTRUMENT. ﾿ 24

3.9 DATA ANALYSIS: ﾿ 24

CHAPER FOUR ﾿       ﾿ 25

4.0 ﾿ FINDINGS ﾿ 25

4.2 HIPOTHESIS TESTING ﾿ 35

CHAPTER FIVE ﾿ 41

5.0 ﾿ SUMMARY, CONCLUSION AND RECOMMENDATIONS ﾿ 41

5.1 ﾿ SUMMARY ﾿ 41

5.2 ﾿ CONCLUSION ﾿ 42

5.3 ﾿ RECOMMENDATION ﾿ 42

REFERENCES ﾿ 44

APPENDIX                    ﾿ 48