Service Quality and Customer Satisfaction of Banking Services in Nigeria

Abstract

A proper understanding of the high demands and sophisticated changes in customers’ needs in developing economies has made the study of service quality imperative in this 21st century banking operations. This study focused on the effect of service quality on customer satisfaction of banking services in developing economies, such as Nigeria. The research designs for this study were cross-sectional survey and phenomenological research. Topman formula was used to derive the sample size of 947 customers of commercial banks that participated in the study. Data were obtained from the questionnaire. Standard multiple regression analysis was employed for data analysis. Findings from the study revealed that there is a significant joint effect of service quality factors (service attractiveness, customer friendliness, bank automation effectiveness and safe transactions) on customer satisfaction. The study concluded that attractive services, customer friendliness, effective bank automation services, and safe transactions to customers are potentials for business re-engineering in organisations, especially in the banking sector.