Abstract

The paper aims to develop and validate an analytical framework to assess the service quality and customer satisfaction and hence customer loyalty in banks. We develop a multivariate probit model for the evaluation of service quality and customer satisfaction and an ordered logit model for the rating of customer service of the most frequently used bank. To validate the models, we conduct a survey of 1107 customers from the branches of eight banks in three major cities of the peninsular Malaysia in 2013. The validation was carried out in two stages. First, we analyze the customers’ satisfaction on the core and relational dimension of service quality using multivariate probit model. In the second stage, we analyze the customers’ overall service rating on their most frequently used bank using ordered logit model. The proposed framework can be used by banks to assess service quality and customer satisfaction and identify customers who are likely to switch. This would prove extremely beneficial to banks in the formulation of segment specific customer retention strategies. The framework would also assist regulators to gauge the level of customer confidence in the individual banking institution and intervene as and when necessary to maintain stability in the banking system.

Highlights

  • The entrepreneurial career selection behaviour in entrepreneurship through entrepreneurial education is one of the ways to create perceptions and equip individuals with strong entrepreneurial knowledge and skills (Henderson and Robertson, 2000); (Ishak Hj Abdul Rahman et al, 2006)); (Robertson et al, 2003)

  • This is parallel with the study of Nor Aishah Buang dan Ruhizan Mohd Yassin (2008) which found that too few entrepreneurship courses were given to students from majors such as engineering majors and science majors. They are not given the opportunity to pursue entrepreneurial education. This opinion was supported by the study conducted by which states that there are only four public higher education institutions offering entrepreneurial courses for students at the Faculty of Engineering not included in Universiti Teknologi Malaysia (UTM), Universiti Tun Hussein Onn Malaysia (UTHM), and Universiti Teknikal Malaysia Melaka (UTeM)

  • General Hypothesis (H05.1): “There is no significant difference in the level of entrepreneurship intention of engineering students in UTM, UTHM, and UTeM based on entrepreneurship education”

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Summary

1.Introduction

The entrepreneurial career selection behaviour in entrepreneurship through entrepreneurial education is one of the ways to create perceptions and equip individuals with strong entrepreneurial knowledge and skills (Henderson and Robertson, 2000); (Ishak Hj Abdul Rahman et al, 2006)); (Robertson et al, 2003). Formal and informal entrepreneurial education is an initial inventory of individual development that is necessary for those who want to become an entrepreneur (Kuratko, 2009); (Zaidatol, 2010). The incentives for entrepreneurship are in line with statistics from the Department of Statistics, Malaysia which shows an increase in the number of unemployed graduates at 3.1 percent and has given significant challenges to higher education institutions (Nor Hafiza and Binti Othman, 2012); (Marcela et al, 2012); (Ioana Panc et al, 2012); (Nihan et al, 2012); (Nor Fadhilah Nasharudin and Halimah Harun, 2010); (Salmah et al, 2009); (Nor Aishah Buang dan Ruhizan Mohd Yassin, 2008); (Hoe Chee Hee, 2006); (Nor Aishah Buang et al, 2005) to develop quality graduates and have a variety of skills. In order to increase the intention of engineering graduates to venture into entrepreneurship, this study is conducted to identify the significant differences in the entrepreneurial intention level of final year students and to identify whether there is a significant relationship between entrepreneurial intentions and entrepreneurship career behavior

Entrepreneurial Education
Entrepreneur Intention Theories
Entrepreneurship Career Behavior Theory
Entrepreneurship Education and Entrepreneurial Intention
Research Objective
Methodology
Research Data and Analysis
Findings
Conclusion
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