Managing service quality, customer's satisfaction and loyalty: The case of RHB Bank Jalan Padungan Branch / Augustine Iman Bandang and Lekny Eni Minier

Service quality is one of the key determinant in customer’s satisfaction and loyalty in banking industry. As such, the basis of the research was to explore the level of service quality, customer’s satisfaction and loyalty; that determine the importance of each service quality elements in rank order...

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Bibliographic Details
Main Authors: Bandang, Augustine Iman, Minier, Lekny Eni
Format: Thesis
Language:English
Published: 2017
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/37008/1/37008.pdf
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Summary:Service quality is one of the key determinant in customer’s satisfaction and loyalty in banking industry. As such, the basis of the research was to explore the level of service quality, customer’s satisfaction and loyalty; that determine the importance of each service quality elements in rank order and also assessing the strength of relationship between service quality, customer’s satisfaction and loyalty in the case of RHB Bank Jalan Padungan customers. By adapting the Banking Service Quality (BSQ) Index model, there are 29 service quality variables that have been identified and grouped into three service quality dimensions namely responsiveness, systemization of service delivery and reliable communication. These are then analysed using compare means analysis, regression analysis and Pearson Correlation analysis. The findings suggested that the level of service quality of RHB Bank Jalan Padungan is significantly strong and responsiveness has been identified as the most significant dimension, followed by reliable communication and systemization of service delivery respectively. The research also found that there are relatively strong relationship between service quality, customer’s satisfaction and loyalty. Therefore, it is strongly recommended that the manager should focus on the element of responsiveness and reliable communication in service quality by adopting effective strategies and action plan. To improve the level of responsiveness it is suggested that the manager implement the queue management system, improve competencies and professionalism, portray conducive atmosphere and effective layout and implement strategic employee management system. To improve reliable communication, the manager should ensure protection of customer confidentiality; ever ready ATM, CDM and cheque deposit machines to ensure service ethics are dependable and reliable. Lastly, there is a need to improve systemization of service delivery and to ensure easy and simplified process for complain and feedback management system.