Service quality of banking institutions and customer satisfaction in Uganda

Abstract

The study examined the relationship between service quality of banking institutions and customer satisfaction using Bank of Africa Uganda as a case study. It was guided by four research objectives which were; the relationship between tangibility of service and customer satisfaction, the relationship between responsiveness of service provision and customer satisfaction, the relationship between reliability of service provision and customer satisfaction and the relationship between service assurance and customer satisfaction. The researcher used a cross-sectional design with both qualitative and quantitative approach to data collection and analysis. Data was collected using questionnaires and interviews. The study was carried out at Bank of Africa Uganda Kampala road branch with a target population of 650 and a sample of 242 employees. Simple random sampling was used to select customers where as stratified random sampling was used to select staff in marketing, branch operations and sales since these categories interact with customers on a daily basis. Data was analyzed quantitatively and qualitatively using the Statistical Package for Social Scientists 17.0 (SPSS).Descriptive statistics, frequency percentages, tables and figures were the basis of analysis for quantitative data. Qualitative data was interpreted by composing the explanations and substantiating them using the respondents open responses. The Study findings revealed that there is a significant positive relationship between tangibility of service and customer satisfaction, there is a significant positive relationship between bank responsiveness and customer satisfaction, a significant positive relationship between reliability and customer satisfaction and a strong significant positive relationship between reliability and customer satisfaction. Based on the findings of the study, it was concluded that there is a positive significant relationship between service quality and customer satisfaction. It was therefore recommended that banks need to pay much attention on improved service delivery through timely delivery of services, quick response to customer queries, as well as management ensuring that their branches are in a good conditions to serve customers and making sure that their staff are presentable and knowledgeable of the various bank products to be in positon to attend to all customers at all times without delay through staff inductions and trainings