Effect Of Marketing Finacial Services On Banks Profitability (A Study Of Guaranteee Trust Bank Plc.)

ABSTRACT

The study examine effects of banks marketing services and profitability of banks with reference to study of Guanratee Trust Bank Plc. Abia state, using time series analysis spanning from 2006-2017. The data set were analyzed using Ordinary Least Squares (OLS) multiple regression technique. From the results, it was found that Gifts and Donations have positive and significant effect on the profitability of Guarantee Trust Bank plc. Secondly, Customers Deposit also have positive and significant effect on the profitability of Guarantee Trust Bank plc.  Also Electronic banking services of Guarantee Trust Bank plc has negative and significant effect on their profitability. In conclusion, Banks in improving their marketing operations and liquidity strength, customer relations, credibility, and effective participation in the resuscitation of the economy which in turn affect their profitability. However, gift and donation and customers deposit affects the profitability of Guarantee Trust Bank plc. But the relationship between Electronic Banking and profitability of Guarantee Trust Bank plc was found to be negative. Thus indicating that inefficiency in electronic banking is related to decrease in profitability of Guarantee Trust Bank Plc. Therefore, the study recommends that (i) Guarantee Trust Bank Plc. should continue investing on corporate social responsibilities, for the continued existence of the industry, increase in profitability and the development of the Nigerian economy. (ii) With respect to customers deposit in relation to bank profitability, all the units of the bank should be involved in marketing while banks should continue to make their customers feel important and have well equipped and experienced staff personnel in customer services unit to be able to provide solutions to customer’s complaints and challenges. (iii) Banks customers, management and shareholders should adopt and maintain good practices of electronic banking operation so that it will lead to increase the level of bank profitability.

TABLE OF CONTENTS

Cover page ﾿ i

Title Page ﾿ ii

Declaration ﾿ iii

Certification ﾿ iv

Dedication ﾿ v

Acknowledgement ﾿ vi

Table of Contents ﾿ vii

Abstract ﾿ viii

CHAPTER ONE ﾿ 1

INTRODUCTION ﾿ 1

1.1 ﾿ Background for the study ﾿ 1

1.2 ﾿ Statement of the Problem ﾿ 3

1.3 ﾿ objective of the study ﾿ 4

1.4 ﾿ Research Questions ﾿ 5

1.5 ﾿ Research Hypothesis ﾿ 5

1.6 ﾿ Scope of the Study ﾿ 5

1.7 Significance of the Study ﾿ 6

1.8 Limitations of the study ﾿ 6

CHAPTER TWO ﾿ 8

REVIEW OF RELATED LITERATURE ﾿ 8

2.1 Conceptual Framework ﾿ 8

2.1.1 Concept of Bank Marketing Services ﾿ 8

2.1.2 Marketing in Banking ﾿ 10

2.1.3 Structure of Bank Market ﾿ 10

2.1.5 The Marketing Mix in Banking Sector Service ﾿ 13

2.1.6   Development in Marketing Scope at the Aspect of Service Marketing ﾿ 13

2.1.7 ﾿ Internal Marketing ﾿ 13

2.1.8 Relationship Marketing ﾿ 14

2.1.9 Product and Service ﾿ 15

2.1.10 Marketing Approach to Banking Services ﾿ 16

2.1.11 The Reason for Marketing of Banking Services. ﾿ 17

2.1.12   Various Products or Services Banks Provide in Nigeria. ﾿ 18

2.1.13 Characteristics of Financial Services ﾿ 18

2.1.14   Factors that Influences Marketing of Banking Services. ﾿ 19

2.2 Theoretical Framework ﾿ 21

2.2.1 Game Theory ﾿ 21

2.2.2   Signaling Theory. ﾿ 21

2.2.3   Innovation Theory ﾿ 22

2.2.4   Product Quality Theory ﾿ 22

2.3 Empirical Framework ﾿ 23

CHAPTER THREE ﾿ 27

RESEARCH METHODOLOGY ﾿ 27

3.1 ﾿ Research Design ﾿ 27

3.2 ﾿ Area of the Study ﾿ 27

3.3 ﾿ Population of the Study ﾿ 28

3.4 ﾿ Nature and Sources of Data ﾿ 28

3.5 ﾿ Model Specification ﾿ 28

3.6 ﾿ Techniques of Analysis ﾿ 29

3.6.2    Multiple regression ﾿ 29

3.7    Test of Significance ﾿ 29

3.8 Decision Criterion ﾿ 30

CHAPTER FOUR ﾿ 31

PRESENTATION OF DATA, ANALYSIS AND INTERPRETATION ﾿ 31

4.1 Presentation of Data ﾿ 31

4.2 Test of Hypotheses ﾿ 34

4.3 Discussions of Findings ﾿ 35

CHAPTER FIVE ﾿ 37

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION ﾿ 37

5.1 Summary of Findings ﾿ 37

5.3 Conclusion ﾿ 37

5.2 Recommendations ﾿ 38

References

Appendix