Customer Satisfaction in the Kenyan Banking Industry
Customer satisfaction provides a platform for companies to enhance relationships with their customers thus enabling the companies to achieve their objectives for long- term success. This study investigates the current pattern of customer satisfaction in the Kenyan banking industry. A questionnaire survey was administered to 403 bank customers of the top five banks in Kenya. Software SPSS 22.0 was used to analyze the data gathered from the survey. The results of the analysis demonstrate that the overall level of customer satisfaction is more than 60%. The results also demonstrate that the most important factor for customer satisfaction is the wide availability of bank branches, and the factor most associated with customer dissatisfaction is the high prices of products and services. In addition, the results depicted that both satisfaction and dissatisfaction partially influence the number of banking products and banks that clients choose to open accounts with. The study further gives suggestions for policy-making and possible areas for future research. (original abstract)
- Abubakar, M. M., Mokhtar, S. S. M., & Abdullattef, A. O. (2014). The Role of Long-Term Orientation and Service Recovery on the Relationships between Trust, Bonding, Customer Satisfaction and Customer Loyalty: The Case of Nigerian Retail Banks. Asian Social Science, Vol. 10, No. 2, pp. 209-220.
- Amudha, R., Surulivel, S. T., & and Vijaya Banu, C. (2012). A Study on Customer Satisfaction towards Quality of Service of an Indian Private Sector Bank using Factor Analysis. European Journal of Social Sciences, Vol. 29, No. 1, pp. 12-25.
- Anand, S. V. & M. Selvaraj, M. (2013). Evaluation of Service Quality and its Impact on Customer Satisfaction in Indian Banking Sector: A Comparative study using SERVPERF. Life Science Journal, Vol. 10, No. 1, pp. 3267-3274.
- Anderson, E. W., Fornell, C., & and Lehmann, D. R. (1994). Customer Satisfaction, Market Share, and Profitability: Findings from Sweden. The Journal of Marketing, Vol. 58, No. 3, pp. 53-66.
- Arbore, A. & Busacca, B. (2009). Customer Satisfaction and Dissatisfaction in Retail Banking: Exploring the Asymmetric Impact of Attribute Performances. Journal of Retailing and Consumer Services, Vol. 16, No. 4, pp. 271-280.
- Belas, J., Cipovova, E., & Demjan, V. (2014). Current trends in area of satisfaction of banks' clients in the Czech Republic and Slovakia. Transformation in Business & Economics, Vol. 13, No 3(33), pp. 219-234.
- Belas, J., & Demjan, V. (2014). Satisfaction of bank customers. Case studies from the Czech Republic. Actual problems ofeconomics, No. 12(162), 2014, pp. 315-323.
- Belas, J., Demjan, V., Holec, M., & Chocholakova, A. (2014). The feelings of customers while communicating with the bank in the context of buying habits. Case study from the Czech Republic and Slovakia. Proceedings of the 19th Annual International Conference on Macroeconomic Analysis and International Finance, May 29.-31.5., Rethymno, Greece. Available at http://economics.soc.uoc.gr/macro/docs/Year/2014/papers/paper_3_133.pdf
- Bulmer, M. (2004). Questionnaires. SAGE Publications Limited, London.
- Chakrabarty, A. (2006). Barking up the Wrong Tree: Factors Influencing Customer Satisfaction in Retail Banking in the UK. International Journal oof Applied Marketing, Vol. 1, No. 1, pp. 1-7.
- Ernst & Young. (2014). Winning through Customer Experience: EY Global Consumer Banking Survey 2014. Available at: http://www.ey.com/Publication/vwLUAssets/EY_-_Global_Consumer_Banking^Survey_2014/$FILE/EY-Global-Consumer-Banking-Survey-2014.pdf (accessed on 10 December 2014)
- Fiordelisi, F. & Molyneux, P. (2007). Value Creation in Banking. In EFA 2007Ljubljana Meetings Paper.
- Fonseca, J. R. (2014). E-Banking Culture: A Comparison of EU 27 Countries and Portuguese Case in the EU 27 Retail Banking context'. Journal of Retailing and Consumer Services, Vol. 21, No. 5, pp. 708-716.
- Fram, E. H. & McCarthy, M. S. (2011). Retaining Customer Satisfaction in Turbulent Times. International Journal of Bank Marketing, Vol. 29, No. 7, pp. 555-562.
- Gritti, P. & Foss, N. (2010). Customer Satisfaction and Competencies: An econometric Study of an Italian bank. Applied Economics Letters, Vol.17, No. 18, pp. 1811-1817.
- Gupta, A. & S. Dev, S. (2012). Client Satisfaction in Indian Banks: An Empirical Study. Management Research Review, Vol. 35, No. 7, pp. 617-636.
- Hoq, M. Z. & Amin, M. (2010). The Role of Customer Satisfaction to enhance Customer Loyalty. African Journal of Business Management, Vol. 4, No. 12, pp. 2385-2392.
- Infotrak (2014). The East African Banking Customer Satisfaction Survey Report. Available at http://www.infotrakresearch. com/downloads/E.AFRICA%20INFOTRAK%20BANKING%20CSS%20BOILER%20NBK%281%29.pdf (accessed on 9 December 2014)
- Kanning, U. P. & N. Bergmann, N. (2009). Predictors of Customer Satisfaction: Testing the classical paradigms. Managing Service Quality. An International Journal, Vol.19, No. 4, pp. 377-390.
- Katwalo, A. M. & S. I. Muhanji, S. I. (2014). Critical Success Factors for the "Unbanked" Customers in Kenya. International Journal of Bank Marketing, Vol. 32, No. 2, pp. 88-103.
- Kaura, V. (2013). Antecedents of Customer Satisfaction: A study of Indian Public and Private sector banks. International Journal of Bank Marketing, Vol. 31, No. 3, pp.167-186.
- KPMG. (2013). Africa Banking Industry Customer Satisfaction Survey. Available at http://www.kpmg.com/CO/es/ IssuesAndInsights/ArticlesPublications/Documents/Africa_Banking_Industry_Customer_Satisfaction_Survey-April2013.pdf (accessed on 10 December 2014).
- KPMG. (2014). Banking in Africa. Available at http://www.kpmg.com/ Africa/en/IssuesAndInsights/Articles-Publications/ General-Industries Publications/Documents/Banking%20in%20Africa.pdf (accessed on 11 December 2014)
- Liberati, C. & P. Mariani, P. (2012). Banking Customer Satisfaction Evaluation: A Three-Way factor perspective. Advances in Data Analysis and Classification, Vol. 6, No. 4, pp. 323-336.
- Mandal, P. C. & Bhattacharya, S. (2013). Customer Satisfaction in Indian Retail Banking: A Grounded Theory Approach. The Qualitative Report, Vol. 18, No. 28, pp. 1-21.
- Manrai, L. A. & Manrai, A. K. (2007). A Field Study of Customers' Switching Behavior for Bank Services. Journal of Retailing and Consumer Services, Vol. 14, No. 3, pp. 208-215.
- Meyer, T., Stobbe, A., Haibach, M. & Walter, N. (2006). What we learn from the differences in Europe. E-Banking Snapshot, Vol. 16, No. 1, pp. 1-5.
- Molina, A., Martfn-Consuegra, D., & Esteban, A. (2007). Relational Benefits and Customer Satisfaction in Retail Banking. International Journal of Bank Marketing, Vol. 25, No. 4, pp. 253-271.
- Munari, L., Ielasi, F., & L. Bajetta, L. (2013). Customer Satisfaction Management in Italian Banks', Qualitative Research in Financial Markets, Vol. 5, No. 2, pp. 139-160.
- Narteh, B. & J. Kuada, J. (2014). Customer Satisfaction with Retail Banking Services in Ghana. Thunderbird International Business Review, Vol. 56, No. 4, pp. 353-371.
- Omar, O. E. (2008). Determinants of retail bank choice in Nigeria: A Focus on Gender-Based Choice Decisions. Service Business, Vol. 2, No. 3, pp.249-265.
- Osarenkhoe, A. & Komunda, M. B. (2013). Redress for Customer Dissatisfaction and its Impact on Customer Satisfaction and Customer Loyalty. Journal of Marketing Development and Competitiveness, Vol. 7, No. 2, pp. 102-114.
- Shi, B. & G. Zhao, G. (2007). Introducing ACSI Model to Measure Customer's Satisfaction for Banking Service. Proceedings of the 2007 International Conference on Management Science and Engineering, Sydney, Australia, 20-23 August 2007, pp. 171-175.
- Singh, J. & G. Kaur, G. (2011). Customer Satisfaction and Universal Banks: An Empirical Study. International Journal of Commerce and Management, Vol. 21, No. 4, pp. 327-348.
- Terpstra, M., T. Kuijlen and K. Sijtsma (2014),'How to develop a Customer Satisfaction Scale with Optimal Construct Validity', Quality & Quantity,Yo. 48, No. 5, pp. 2719-2737.
- Tesfom, G. & Birch, N. J. (2011). Do Switching Barriers in the Retail Banking Industry Influence Bank Customers in Different Age Groups Differently?' Journal of Services Marketing, Vol. 25, No. 5, pp.371-380.
- Uddin, M. B. & B. Akhter, B. (2012). Determinants of Customer Satisfaction of Banking Industry in Bangladesh. Pak. J. Commer. Soc. Sci, Vol.6, No. 2, pp. 242-256.
- Wruuck, P. (2013). Pricing in Retail Banking: Scope for Boosting Customer Satisfaction & Profitability. Available at http:// www.dbresearch.com/PROD/DBR_INTERNET_EN PR0D/PR0D0000000000304766/Pricing+in+retail+banki ng%3A+Scope+for+boosting+customer+satisfaction+%26+profitability.PDF (accessed on 17 December 2014)