Research Report on
Customer Satisfaction of Commercial Banks In Biratnagar City, Nepal
Bal Krishna Sharma MBA II, Fall 2011 Purbanchal University
1
Chapter 1 Introduction 1.1.
Background of Study:
Commercial bank occupies quite an important place in the framework of every economy. It provides capital for the development of industry, trade & business investing the saving collected as deposit. All the economic activities of every country is greatly influenced by the commercial banking business of that country. Commercial banks, by playing active roles, have changed the economic structure of the world. Integrated & speedy development of the country is possible only when competitive banking services reach nooks & corners of the country. In recent years, Banking sector of Nepal has been transformed from a sluggish and government-dominated sector to a much more agile, competitive and profitable industry. Different foreign banks have emerged recently which have increased the competition among commercial banks. In order to get competitive edge and to attract more and more customers, banks are focusing on providing better services to the customers. Banks in Nepal were not established everywhere in same period. It has passed many years upgrading this status and wide sector business. In 2042 BS Nepal also adopted liberal free economic policy and allowed to establish other joint venture banks under collaboration with foreign banks as well as under private sectors. At Present there are 31 commercial banks with many branches currently operating in Nepal. Customer satisfaction is a long-term strategy. Just as it is difficult to radically alter perceptions of product quality over a short time horizon, so it is difficult to quickly cultivate a reputation for superior customer service. Consequently customer satisfaction is as competitive advantage that is sustainable over the long term. In the last few years, subject of satisfaction and dissatisfaction has received a great deal of attention from academic researchers. Engel & Blackwell (1982) defined satisfaction as an evaluation that the chosen alternative is consistent with prior beliefs with respect to that alternative.
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The liberalization, privatization and globalization has ushered the customer relationship management in banks. The process of globalization and our move towards global standards changed the perception of customer service and the banking endeavor to serve the customer to build customer relationship banking. But to deliver on improved and in depth understanding of customer needs and fully integrated customer management system is required along with complete transparency. In the emerging market scenario, for survival and growth, it is critical for a bank to align its vision, mission, goals and objectives of customer satisfaction. 1.2. Research Problem The research problem of the study is to know the customer’s satisfaction level of customer of commercial banks in Biratnagar. 1.3. Research Question The main problem to be dealt with by the present research is the “question of performance in terms of customer satisfaction”. Thus, the specific problems can be clearly explained by finding answers to the questions a) What is the state of “customer satisfaction” of commercial banks in Biratnagar? b) What is the comparative situation of customer satisfaction in these banks? c) What are the factors that can lead to customers toward satisfaction?
1.4. Objective of Study In the study researchers try to find out what is the satisfaction level of customers for the service they received from the commercial banks in Biratnagar city and what factors are considered mostly by customers in respect of bank services to remain a long term customer of that particular bank. Moreover, the specific objectives of the study are: a) To investigate the customer satisfaction level in commercial banks of Biratnagar; b) To analyze the comparative performance of commercial banks in terms of major criteria. c) To find the most important factor motivating to remain with the bank.
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1.5.
Conceptual Framework
The research is mainly focused on finding customer satisfaction level in commercial banks of Biratnagar. While conducting research, first all the commercial banks located at Biratnagar city were chosen as the population and five banks were selected as sample by Random Sampling Method. Sunday and Friday were not used for data collection so that high reliability of responses could be maintained. Fifty structured questionnaire were administered to each of the sample banks (10 questions to each). After collection of data, all likert scale questions are assigned values 1 for “Highly Dissatisfied” and 5 for “Highly Satisfied”. A ranking question was assigned value 1 for the “least important” to 3 for the “high important” motivating factor. Mean and standard deviation on different topics of bank operations were calculated, correlation and chisquare test is done to find the appropriate result by comparing and testing calculated values of different banks.
1.6.
Hypothesis of research:
i) Customers are satisfied with the services received from their banks in Biratnagar. ii) Level of Satisfaction among commercial banks in Biratnagar is same.
1.7.
Significance of the study:
This study has its importance to provide information about customers’ satisfaction from different products and services offered to customers by commercial banks. Findings will be helpful to identify those areas which should be focused more to provide better services. This will help for banks for retaining their customers and attract new customers. This research is very important for future researchers. It is quite a bold step to enquire into the customer satisfaction in large banking sector. The study also fulfills some requirements of social audit of commercial banks in terms of customer satisfaction. The management of the sampled banks may also benefit from this study as the outcome of this study, though not very complete, raises many vital issues of the commercial banks in terms of their customers' banking service desires.
4
Though many of the commercial banks are in state of close down, especially after the advent of flexible liberalization policy, the number of commercial banks is increasing in Nepal due to the attractive market opportunity available in the country, Nowadays, the performance of these commercial banks has come under question in terms of customer satisfaction. 1.8.
Limitation of Study
This study is simply a assignment of research methodology to be studied in Masters of Business Administration (MBA) program in 2nd semester. There are some limitations that are given below: a. The study concerns only the sample of banks in Biratnagar city. b. Using a likert scale customers would likely be a neutral respondent. c. Each person has different standards to rate satisfaction, so it is possible that two persons may have rated the services of a same bank differently. d. There are different areas to be considered while studying the satisfaction level which are not possible in this short assignments so only depositor type of customer are mainly focused.
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CHAPTER 2
Literature Review
2.1. Introduction Customer satisfaction is generally described as the full meeting of one’s expectations (Oliver, 1980). Customer satisfaction is the feeling or attitude of a customer towards a product or service after it has been used. This study enhances the relationship between customer satisfaction and service quality. If the customer is fully satisfied then he will be loyal with the bank otherwise he will switch off to that bank which provides the better services. Gremler and W.Brown describes that business are not concerned only with attracting and satisfying customers but also to maintain a long-term relationship with the customers. The service management literature argues that customer satisfaction is the result of a customer’s perception of the value received in a transaction or relationship – where value equals perceived service quality relative to price and customer acquisition costs (see: Blanchard and Galloway, 1994; Heskett et al., 1990) – relative to the value expected from transactions or relationships with competing vendors (Zeithaml et al., 1990). Jamal and Naser(2002) and Beerli et al (2004) found the bank service quality as an important antecedent of customer satisfaction which leads towards customer loyalty. Jamal and Naser(2002) looked into the impact of service quality dimensions and customer expertise on satisfaction. Saulaite et al (2000) conducted a study in Qatar to assess whether customer services provided by banks are satisfactory to customers. Findings reveal that bank customers in Qatar are satisfied for convenient location and layout, politeness of staff and responsiveness to their needs. They are dissatisfied with bank interest rate policies and fee charged. Holstius et al. (1995) cited efficiency and courtesy of bank staff as the most important attributes in determining overall customer satisfaction, while other important attributes are convenience of location, range of services, reputation and availability of innovations.
6
Meyers and Mullins (2001) conducted a comparative study of levels customer satisfaction in banks versus credit union in Perth, Australia. The analysis reveals that consumers have better impression of credit unions then they have for banks. Credit unions are competing more directly with commercials banks in products and services offered. The respondents was dissatisfied with the fees charged by banks, the respondent also felt that they are getting a higher return on their money from the credit unions.
2.2. Independent Variables As per the study there are different variables which affects the outcome of the research, those variables which are not affected by any other variables are independent variables. While designing research there are different variables considered as independent such as: 1. Account Maintenance 2. Employee behavior 3. Branch location 4. ATM Service
2.3. Dependent Variables: The research is mainly focused on customer satisfaction so the dependent variable whose level depends on above listed independent variables is customer satisfaction
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CHAPTER 3
Research Methodology 3.1.
Introduction:
Research methodology refers to the various sequential steps to adopt by researcher in studying a problem with certain objectives in view. The basic objective of the study is to investigate the level of customer satisfaction in commercial banks of Biratnagar city. Researchers have felt very comfortable to come to the choice of research methodology. The study will draw the conclusion to the point that what is the customer satisfaction level in commercial bank of Biratnagar city and what factors are considered mostly by customers in respect of bank services to remain a long term customer of that particular bank.
3.2.
Research Design
This Study was conducted in the city of Biratnagar. The research is descriptive type because it investigates the satisfaction level of bank customers for services received from their banks. For research purpose, researchers conducted a survey through questionnaires which defined the method of data collection by primary data collection method. Sample unit was an account holder of commercial bank drawn as sample from random sampling method. In order to get better response from customers about their satisfaction level, researchers mostly focused on getting response from respondents who had frequent transaction with the banks, and the main exit gate was used as data collection place.
3.3.
Data Collection:
Researchers conducted a survey through questionnaires which defined the method of data collection by primary data collection method. Two days, especially Sunday and Friday, are known as peak-days in commercial banking sector. Therefore, these two days were not used for data collection so as to prefer high reliability of responses from the respondent. Fifty structured questionnaires were administered for each city branch of the sample banks (10 questions to each).
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The parking and exit gate were used for the data collection. Random sampling technique was adopted to select sample banks. Orientation on how to administer the questionnaire was given to data collectors before hand. During the data collection process, the data collectors first explained the respondents about the questions in the questionnaire and requested the respondents to provide factual information to draw a correct conclusion.
3.4.
Population and Sample
All the commercial banks operating in Biratnagar city were taken as the population of the study. Probability Random sampling technique was adopted where five (5) commercial banks were selected as the sample for the study. The selected sample seemed to represent generalize the total population. Generally, customers of commercial banks are depositors, borrowers, and others who get banking services. However, the present study could not cover all the customers of commercial banks as per the limit time framework. It has covered only the depositor of the bank.
3.5.
Research Instruments
A standard structured questionnaire was designed to collect the required information where five point Likert scale, ranking scale, and other demographic nominal information were used. The measure consists of mainly three sets of questions. The first set was related with Banks satisfaction factors, while the second set was related to their perceived satisfaction and references, and the third set included motivational factors to rank. Close ended questions are structured to collect information about customers’ satisfaction for different bank services. The data was collected using Likert scale to measure satisfaction level. Moreover a respondent was also asked what those factors are which he preferred most related to bank services.
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3.6.
Research Tools
At the beginning, a comprehensive data file was created. Then, variables and their labels were defined. Data were entered in MS excel sheet for calculation. Few statistical tools such as Mean, Standard Deviation, Pearson's Correlation, Chi Squire goodness of fit test, were used for the analysis. Mean is arithmetic average and standard deviation is measure of dispersion or variation (Fallik & Brown, 1983). Person's correlation shows a relation that exists between two or more variables (Wolff & Pant, 2005). Chi-square statistic is calculated by collecting observed values for each of the categories and examining the differences between the observed and expected values (Gupta, 1991).
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CHAPTER 4
Findings and Results 4.1. Introduction: The researchers are basing the report on the satisfaction level of customer in commercial banks of Biratnagar city. As regarding to the most focused objective the researchers are analyzing the comparative performance of commercial banks in terms of major criteria. To investigate the satisfaction level of customers the researchers are using the likert scale questionnaire for data collection and have given 1 point for “Highly dissatisfied” to 5 points for “Highly Satisfied” for calculations. 4.2. Background of Respondent The accountholders rendering the deposit service of the banks are the respondent for the questionnaire. Out of many service \offered by the commercial banks in Biratnagar the researchers have focused mainly to the deposit section for easy accessibility of data collection. 50 sample customers’ opinion from five sample banks (10 each) were collection and assumed to resemble the total population opinion. The details about respondent according to the demography selected by the researchers are shown in Table1 below: S.N
Commercial Bank
Business Owner
Salaried Person
Others
Male
Female
Male
Female
Male
Female
1
Nabil Bank Limited
1
0
3
2
1
3
2
Nepal SBI Bank Limited
0
0
8
2
0
0
3
Rastriya Banijya Bank
5
2
3
0
0
0
4
NMB Bank Limited
2
0
2
2
2
3
5
Kist Bank Limited
3
0
4
1
1
1
10
2
20
7
4
7
Total
Table 1: Demographic information of Respondent
As the values shown in table 1, the researchers have found that males are main customers of the bank. They do most of the transactions. Out of the 50 respondents 34 are male and 16 are female. From the category of salaried person male contribute 20 persons and from business owner they are 10.
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According to table 1, most of the business owners prefer Rastriya Banijya Bank, a governmental bank, because they feel their savings are more secured on governmental banks and beside business owner choose SBI, NMB, Nabil and Kist which are private commercial banks where they get different types of products and services.
4.3. Customer Satisfaction level Questionnaire was designed such that the researchers could collect two kinds of basic information on customer satisfaction. First, to what extent the respective commercial banks are conducting some program to satisfy their customers. And, second about actual level of customer satisfaction provided by these banks to their customers. These two elements were found highly correlated. The Person's Correlation Coefficient of these two responses (r=0.5666) was found positive related, which means if the program for satisfaction level is increased than level of satisfaction also increases. From the observation of general descriptive of mean and standard deviation of the above stated two scales, customer perception on banks' satisfaction program and the perceptual customer satisfaction is average in Commercial banks of Biratnagar. Both scales were provided five point Likert scale anchored by Negligible=1 to outstanding=5. The status of mean and standard deviation is presented in the following table-1. S.N
Variables
Mean
Std Deviation
1
Program Perception
3.18
0.40
2
Satisfaction
3.56
0.46
Table-2: Mean and Standard Deviation of Customer satisfaction The above table-2 shows the overall mean and standard deviation of two responses – banks' program for customer satisfaction and the actual level of satisfaction received by customers. The mean satisfaction is slightly higher than the mean program perception. Customers of commercial banks in Biratnagar have higher satisfaction level in respect to the programmes offered by banks to satisfy their customers or in general, customers were found "undecided" or "slightly-satisfied" with the present services of commercial banks in Biratnagar.
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Standard deviation was found less than 1. Hence, the information provided by customer is near to the average. This indicates that there is no higher variation in frequencies. Frequency figures of these two elements are presented in the following figure-1.
Customer Satisfaction level in Banks
Perception of Customer on bank's programme Negligible
Adequate 38%
4%
0.45 Little 12%
0.4
No. of Customer
Outstanding 0%
50%
0.5
0.35 0.3
26%
0.25 0.2 14%
0.15
10%
Highly Satisfied
Satisfied
Neutral
Highly Dissatisfied
Fair 46%
0.05 0% 0
Dissatisfied
0.1
Figure-1: Perceived Programmes and Customer Satisfaction of Commercial Banks
From the figure above the researchers could also analyze that the customers do not perceive that their bank services provided are at outstanding level. Most of customers are in dilemma whether the banks are doing adequately or fairly to provide them satisfaction and retain with the banks. Some of the customers perceive that a bank does not perform any such services further to make them satisfied. It’s simply they are with bank because of their deposits multiply with interest provided. Hence, it is better to compare positive responses with the negative ones. The above pie chart shows that 38% of the respondents responded positively while only 16% gave negative answer. It is, therefore, convincing that customers think that the current banking activities are good enough to satisfy them. Similarly, customer satisfaction level with regards to overall commercial banking was also found quite good. Out of the total 60% respondents stood in having weightage more to satisfaction side, while 14% went to the dissatisfaction. It is, therefore, clear that customer of commercial banks in Biratnagar are satisfied.
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4.4. Customer Satisfaction: A comparative Analysis It is essential to analyze the comparative satisfaction and program perception of customers of commercial banks in Biratnagar. Therefore, descriptive analysis was designed that provides the results of mean and standard deviation collected from the selected samples. As explained earlier, five point Likert type scale anchored by 1="Highly Dissatisfied" to 5="Highly Satisfied" was used for both items. Chi square, goodness of fit test was done to find if there exists any difference among the commercial banks’ status on the basis of satisfaction received by customers on their particular banks. S.N
Commercial Bank
Mean
SD
Cases
1
Nabil Bank Limited
4.2
0.63
10
2
Nepal SBI Bank Limited
3.8
0.70
10
3
Rastriya Banijya Bank
3.4
0.84
10
4
NMB Bank Limited
3.4
0.97
10
5
Kist Bank Limited
3.0
0.67
10
3.56
0.46
50
For entire population
Table-3: Summaries of Mean and Standard deviation of Customer satisfaction Table 3 values shows the calculated mean of different commercial banks are different. The mean here is differentiated on some negligible points. May be this type of differentiation is found because the respondent did not accurately provide their information or else they confused with the services they render from each banks. Even we find mean to be varied the chi square, goodness of fit test result at 1% level of significance (appendix 1) could not show any differences among commercial banks in Biratnagar on the basis of level of customer satisfaction received from their banks. So, we can conclude that level of customer satisfaction among commercial banks is same.
4.5. Strength and weakness of banks on satisfaction criteria Four major criteria were assumed to find out the comparative strengths and weakness of commercial banks in Biratnagar. They are a) Account Maintenance b) Employee Behaviour c) Branch Location d) ATM service Different sub indicators, under these four major criteria (in Appendix 2), were given to mark as per their satisfaction level under five point Likert scale anchored by 1="Highly Dissatisfied" to 5="Highly Satisfied" for all the items.
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Analysis of these criteria is discussed in following paragraph. Figure 2 shows the mean of commercial banks in Biratnagar on the four major criteria- Account Maintenance, Employee behaviour, Branch location and ATM Service. (Calculated values are shown in appendix 3)
45
Nabil
40
SBI
35
RBB
30
NMB
25
Kist
20 15 10 5 0
Account Maintenance
Employee Behaviour
Branch Location
ATM Service
Figure 2: Comparison of commercial Banks under four major criteria
Each bank’s comparative strength and weakness is analyzed here on the basis of reported mean values of four customer satisfaction criteria. As per the study analyze NMB Bank Limited was found strong in terms of Account, Branch and Employee behaviour but very weak on ATM facility, lack of ATM Machine in Biratnagar City, which becomes disadvantage to itself. According to the bar graph, the report proves that Nepal SBI Bank stands on the top level of ATM service, being a first bank to have two of its ATM machines inside Biratnagar city and remains in 2nd position in account maintenance field. 4.6. Factor motivating to remain with the bank. A ranking question was included in the questionnaire to collect information on most important motivation factor to remain on the bank. In the questionnaire ten (10) alternatives were provided to rank three most important with one rank for the top most important factor. After summarizing the rank received from respondent of different commercial banks a value was assigned for weight age, 1 for the least important factor to 3 for the most important factor. After assigning values mean values of all factors are calculated and tabulated in cross table for analysis purpose (Appendix 3).
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Those analyzed data is presented in figure 3 below: Staff Behaviour 13%
Others 31%
Branch Location 24%
Branch Network 15%
ATM Network 17%
Figure 3: Top four factor motivating to remain with the bank.
Among ten different factors, four important factors (Branch Location, ATM Network, Branch Network, Employee behaviour) on the basis of means taken form the rank values are listed with six factors remaining termed as others. On those listed four factor, Branch location is referred as the top factor having 24% of total weight and ATM Network is ranked as 2 nd important factor 27%. Similarly, Branch network is on 3 rd rank with 15% and staff behaviour on 4th rank occupying 13% of total weightage. We can say that customer of commercial banks in Biratnagar city choose bank for transaction which has better branch location and ATM Network and is influenced by branch network and employee behaviour.
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CHAPTER 5
Summary, Conclusion and Recommendation
5.1. Summary: Commercial bank occupies an important place in the framework of every economy. Commercial banks by playing active roles have changed the economic structure of the world. For the commercial banks sustain the customer acts as the king. Therefore, customer satisfaction is the major topic to be dealt with for the bank. Recently banking sector of Nepal has been transformed to more agile, competitive and profitable industry. Different foreign banks have emerged recently which have increased the competition among commercial banks. In order to get competitive edge and to attract more and more customers, banks are focusing on providing better services to the customers. Customer satisfaction is a long term strategy. The objective of the study therefore is to find out what is the satisfaction level of customers for the service they receive and what factors are considered mostly by customers in respect of bank services which makes research as descriptive. The research is started with the framework of providing questionnaire to 50 respondents from the total population and five sample banks are chosen for the study. The questionnaire was set as the likert scale, ranking scale and other demographic nominal information were used to collect primary data. The research is based on customer satisfaction of the commercial banks depending upon four criteria Account Maintenance, Employee Behaviour, Branch Location and ATM service as independent variable. To get better response from customers about their satisfaction level, responses were taken from respondents who had frequent transaction with the banks. Variables of collected data were created and all the data were entered in MS excel sheet for calculation. Few statistical tools such as Mean, Standard Deviation, Pearson's Correlation, Chi Squire goodness of fit test, were used for the analysis to come to the accurate and perfect conclusion.
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5.2. Conclusion: This study clearly showed that customers are satisfied with the commercial banks in Biratnagar city. To be more specific, customers were found satisfied with those banks which are located at feasible location with wide network, having wide and instant ATM service, and polite and courteous employee behavior. Customers of Biratnagar city were found sensitive toward the program offered by the banks to satisfy their customers. The customer perceived that their bankers are neither neglecting them nor are they conducting some outstanding customer satisfaction program. So most so the customer fall under slightly satisfied level of satisfaction. They are neither highly satisfied nor highly dissatisfied. The findings shows that customers are satisfied with their commercial banks and all the commercial banks in Biratnagar city are providing same level of satisfaction to their customers. Though NMB bank has ranked first in every criteria except ATM service, because of lack of ATM machine which becomes disadvantage to itself. Nepal SBI Bank stands on the top level of ATM service. The difference on result analyzed by satisfaction criteria and overall satisfaction differs because this study is limited only to depositor type of customers. Findings reveal that customers of commercial banks in Biratnagar are satisfied for convenient location and layout, politeness of staff and responsiveness to their needs and are dissatisfied with bank interest rate policies and fee charged. They are more likely to remain with the bank having convenient location with adequate parking facility and wide ATM networks. 5.3. Recommendation: We all know that satisfied customers are more likely to remain with the bank. Therefore, banks should be careful and focus more to the customers. It is the customers who would make the banks in running state. Banks customers are satisfied in overall perspective but at some places they are dissatisfied. Therefore, to make more and more customer attracted to render the service bank can have improvement in many areas. The likely recommendations given by researchers are the following:
To retain the existing customer and attract new one, banks should be more focused on giving higher interest rate on deposits.
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Customers are attracted with different product and services program bank launches. Therefore, banks should focus on creating the service program more.
Most of the customer of Biratnagar city uses banks at their convenient location and mostly using ATM machine for transactions so, bank should be established in central location with lots of parking facility and wide ATM network.
Banks not having ATM at Biratnagar city should launch ATM machines. As we already described customers at Biratnagar are more busy on ATM transactions.
All the customers are looking for better hospitality and humble words so, all the bank should mainly focus on employee behaviour to retain their customer.
5.3.1. Recommendation for future investigation: This research seems to become important for future researchers. It is quite a bold step to enquire into the customer satisfaction in large banking sector. The study also fulfills some requirements of social audit of commercial banks located at Biratnagar city in terms of customer satisfaction. The management of the sampled banks may also benefit from this study as the outcome of this study, though not very complete, raises many vital issues of the commercial banks in terms of their customers' banking service desires. The study covers only the level of satisfaction of the defined customers. The researchers collected opinions of customers without any bias, the study may not be representative enough because of the small sample. However, this research provides some clues about the facts. This study, therefore, may be very valuable for academicians as well as for practitioners. On the one hand, this study may help to know the actual performance of commercial banks in terms of customer satisfaction while on the other, it suggests some guide-lines for future research. However, there are many limitations of this study. Observation techniques, focus group survey, and other qualitative research will be more fruitful to analyze the problem more rigorously in future to find result on following sectors:
Strategies adopted by banks to attract new customer
A study on Bank customer retention
Gender Effects on Customer Satisfaction in Banking sector
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BIBLIOGRAPHY Ahmad Jamal, Kamal Naser(2002), “Customer satisfaction and retail banking: an assessment of some of the key antecedents of customer satisfaction in retail banking”, International Journal of Bank Marketing 20/4,146-160 AsuncioAn Berlin, Josef a D. MartAn and AgustAn Quintana(2004), “A model of customer loyalty in the retail banking market“, European Journal of Marketing, Vol. 38 No. 1/2,pp. 253-275 Blanchard, R.F. and Galloway, R.L. (1994). “Quality in retail banking”. International Journal of Service Industry Management, Vol. 5 No. 4, pp. 5-23. Heskett, J.L., Sasser, W.E. and Hart, C.W.L. (1990). Breakthrough Service. USA, NY: The Free Press. Khalid Al-Sulaiti Abdullah Al-Khulaifi Fawzi AI-Khatib(2000), “Banking services and customer satisfaction in Quatar: A statistical Analysis”, College of Business and Economics Qatar University Martin S. Meyers, Gary E. Mullins, “A Comparative Analysis of Levels of Customer Satisfaction in the Financial Services Industry: Banks versus Credit Unions in Perth, Australia” Oliver, R.L. (1980). “A cognitive model of the antecedents and consequences of satisfaction decisions”, Journal of Marketing Research, Vol. 17, September, pp. 46-9. Sthapit, A.B, Gautam H, Joshi P.R & Dongol P.M (2009), Statistical Methods, Fifth Edition, Kathmandu: Budda Academic Publisher and Distributor. Wolff, H.K. & Pant, P.R. (2005), Social Science Research and Thesis Writing, Fourth Edition, Kathmandu: Budda Academic Publisher and Distributor. Zeithaml, V., Parasuraman, A. and Berry, L.L. (1990), Delivering Quality Service, New York, NY: The Free Press.
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APPENDIX
Appendix 1 Chi square test for satisfaction level of commercial bank S.N
Commercial Bank
O
E
O-E
(O-E)2
(O-E)2/E
1
Nabil Bank Limited
4.2
3.56
0.64
0.4096
0.115056
2
Nepal SBI Bank Limited
3.8
3.56
0.24
0.0576
0.01618
3
Rastriya Banijya Bank
3.4
3.56
-0.16
0.0256
0.007191
4
NMB Bank Limited
3.4
3.56
-0.16
0.0256
0.007191
5
Kist Bank Limited
3
3.56
-0.56
0.3136
0.08809
Total
17.8
17.8
0
0.233708
Here, Calculated Value (χ2) = 0.2337 At 1% level of significance, tabulated value with 4 (5-1) df
χ20.01, 4 = 13.28 After the result we found Calculated value < Tabulated Value so, we can say that Level of satisfaction among commercial banks in Biratnagar is same.
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Appendix 2
Sub indicators of four major Criteria Dimension Account Maintenance
Indicator Forms and slips are easy to fill Ease to open account Account is held without errors Timely Bank Statements Charges are clearly explained Bank charges Interest rates on deposits Transactions are accurate Transactions are speedy Safety of your savings
Employee Behaviour
Greet you Well dressed Polite / Courteous Supportive / provide guidance Quick in processing Knowledgeable
Branch Location
Easy Accessibility of branch Security system of branch Infrastructure of branch Cleanliness of the branch Operation time of Branch Variety of products & services offered Parking facility
ATM Service
Wide ATM network Availability of ATM in working condition Amount withdrawal limit Easy to operate
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Appendix 3
Mean of commercial banks under four major criteria S.N
Commercial Banks
Account Branch Employee
ATM
1
Nabil Bank Limited
37.5
27.5
23.3
15.4
2
Nepal SBI Bank Limited
38.4
26.8
22.4
17
3
Rastriya Banijya Bank
33.8
26.2
22.9
12.2
4
NMB Bank Limited
39.8
29.3
25.8
5.6
5
Kist Bank Limited
33.3
23.9
22.1
11.5
Likert scale: 1 for “Highly Dissatisfied” to 5 “Highly Satisfied”
Appendix 4 Factor motivating to remain with the bank with their values Nabil
Nepal SBI
Rastriya
NMB
Bank Ltd Bank Ltd Banijya Bank Bank Ltd
Kist Bank
Total
Ltd
Mean
Branch Location
9
14
18
20
12
12.17
Low Charge
0
0
0
3
2
0.83
Interest Rate
3
2
8
0
7
3.33
Branch Environment
7
0
2
4
3
2.67
Wide Product Range
0
2
4
13
0
3.17
15
10
16
0
5
7.67
ATM Network
8
24
8
0
12
8.67
Staff behaviour
9
8
2
9
10
6.33
Transaction speed
9
0
2
4
9
4.00
Frills product
0
0
0
7
0
1.17
60
60
60
60
60
50
Branch Network
Total Value
Weight age= 1 for least important and 3 for most important
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Appendix 5
Questionnaire for Account holder Research Title: “Bank’s Customers Satisfaction”
Introduction: We, the students of MBA in Purbanchal University, Biratnagar, are conducting a research to find out bank customers’ satisfaction level for services received from Commercial banks. This research will be helpful for banks to provide better services to their customers. We request you to fill this questionnaire if you are an account holder of any Commercial bank in Biratnagar city. Your response will play a valuable role to compute our research precisely.
Instruction: Please tick a box in each line to show how you feel about different areas of your bank services. Mr./Ms.
Your Name Name of your Bank Location
Occupation:
Business owner
Age:
18-26
Salaried person 26-30
others
35-50
50+
ACCOUNT MAINTENANCE Q1. How satisfied are you with? Particulars Forms and slips are easy to fill Ease to open account Account is held without errors Timely Bank Statements Charges are clearly explained Bank charges
Highly Satisfied Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
24
Interest rates on deposits Transactions are accurate Transactions are speedy Safety of your savings EMPLOYEE BEHAVIOUR Q2. How satisfied you are with bank staffs who are/who? Highly Satisfied Neutral Dissatisfied Highly Satisfied Dissatisfied Greet you Well dressed Polite / Courteous Supportive / provide guidance Quick in processing Knowledgeable BRANCH LOCATION Q3. How satisfied are you with? Highly Satisfied Neutral Dissatisfied Highly Satisfied Dissatisfied Easy Accessibility of branch Security system of branch Infrastructure of branch Cleanliness of the branch Operation time of Branch Variety of products and services offered Parking facility ATM SERVICE Q4. How you are satisfied with? Highly Satisfied Neutral Dissatisfied Highly Satisfied Dissatisfied Wide ATM network Availability of ATM in working condition Amount withdrawal limit Easy to operate
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SATISFACTION Q5. How likely are you to? Very Likely
Likely Neutral Unlikely
Very unlikely
Recommend this bank to others Remain a customer of this bank
Q6. Overall how are you satisfied with the services you receive from your bank? Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied Balu
Q7. In your experience, how much effort is this bank doing to make you satisfied? Outstanding
Adequate
Fair
Little
Negligible Balu
Q8. Which are three major factors that motivate you to keep yourself with your bank? (Please use 1, 2 and 3 to prioritize these three factors. Where ‘1’ refers to most important)
(
) Bank location
(
) Wide branch network
(
) Low bank charges
(
) ATM network
(
) Interest rates on deposits
(
) Staff behavior
(
) Branch environment
(
) Transaction speed and accuracy
(
) Wide range of products
Frills product of service
(Any other-Please specify)
Thank you
