CHAPTER ONE
INTRODUCTION
1.1 Background of the study
Customer satisfaction is generally described as the full meeting of one’s expectations.
Customer satisfaction is the feeling or attitude of a customer towards a product or
service after it has been used. Kotler (2000) has been described as satisfaction is a
person’s feelings of pleasure or disappointment resulting from comparing a product’s
perceived performance (or outcome) in relation to his or her expectations.
Satisfaction is very important factor to the any organization. Especially it is important
to the government bank like BOC. Because as a service supplied institution, any
banks’ main target is the customer. The working of the customer’s mind is a mystery
which is difficult to solve and understanding the nuances of what customer
satisfaction is, a challenging task. That’s why there are many expectations in the
customers’ mind from the bank. If can’t recognize the expected expectations of
customers bank can’t achieve their targets, then customer can easily switch from one
service provider to another provider, at low cash.
At present market become a competitive market. And also there are large number of
banks are situated in Sri Lanka. But government banks are situated too low. Among
those banks BOC is the one of the main government bank in the Sri Lanka. As a main
government bank of BOC, people are expected better service from this bank.
Customers are expected the quality of product from the product supplied organization.
Although customers are expected a quality of service from the service organization,
sometime they cannot provide quality of service. However Customer Satisfaction
depends on the service quality of the any organization. If satisfy the customers, firstly
should be provide high quality service to the customers. It is also same to the BOC in
Pambahinna.
In service oriented industry well trained employees, convenience of the branch
location, attractive physical facilities and new technologies are highly affected. In this
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branch space of the branch is not sufficient. As well there are other weaknesses in this
branch when consider about the customer satisfaction. Then it is important study on
customer satisfaction with reference to Pampahinna branch. Because of high customer
satisfaction and loyalty give an organization a better base than its competitors and
allows it to flourish in the industry.
1.2 Research Problem
Do service quality dimensions have an impact on the level of customer
satisfaction about Pambahinna BOC branch?
1.3 Research Objectives
Major Objective
To determine whether there is a relationship between service quality
dimensions and customer satisfaction.
Specific Objectives
To investigate the level of customer satisfaction about Pambahinna BOC
branch.
To investigate most important factors influence on customer satisfaction.
To investigate the expectations and requirements of the customers.
Research Questions
What is the level of customer satisfaction?
What are the important factors that influence on customer satisfaction?
What are the expectations and requirements of the customers?
1.4 Significance of the study
Customers are the life blood of the banking sector. Therefore retaining the current
customers and attracting new customers is very essential for survival of the banking
sector. For that reason, they should identify the customers’ requirements and
expectations by studying the customer satisfaction of banking sector.
As a government own financial institution, BOC, directly participate in the
development of the country. They provide more than 50% of financial contributions 2
to government for launch giant, development project customers’ investments are very
important for that. Therefore bank can attract more customers by delighting them. To
delight customers this study finding may useful for bank.
Studying the prior researches provide great support for other researches. Because
going through the prior studies they can identify the gap and similarities between
them and new comers who enter to this field, they can gather basic knowledge
regarding the prior research.
1.5 Hypothesis
1) H0 – There is not a relationship between customer satisfaction and service quality
dimensions.
H1 – There is a relationship between customer satisfaction and service quality
dimensions.
2) H0 – The level of service in BOC is not high.
H1 – The level of service in BOC is high.
3) H0 -Service features are not a most important factor impact on customer
satisfaction about Pambahinna BOC branch.
H1 – Service features is the most important factor of customer satisfaction about
Pambahinna BOC branch.
4) H0 – Tangible is not the most important factor of customer satisfaction about
Pambahinna BOC branch.
H2 - Tangible is the most important factor of customer satisfaction about
Pambahinna BOC branch.
5) H0 – Responsiveness is not the most important factor of customer satisfaction
about Pambahinna BOC branch.
H3 - Responsiveness is the most important factor of customer satisfaction about
Pambahinna BOC branch.
6) H0 - Assurance and Reliability is not the most important factor of customer
satisfaction about Pambahinna BOC branch.
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H4 - Assurance and Reliability is the most important factor of customer
satisfaction about Pambahinna BOC branch.
7) H0 – Empathy is not the most important factor of customer satisfaction about
Pambahinna BOC branch.
H5 - Empathy is the most important factor of customer satisfaction about
Pambahinna BOC branch.
1.6 Methodology
1. The data collected from both primary and secondary sources was used in this
research for achieving the research objectives.
2. A standard questionnaire was used as the instrument in collecting primary data
for measuring level of Customer Satisfaction about Pambahinna branch and
collects the secondary data from various methods such as, Articles published
in the news papers and the internet, web sites of Bank of Ceylon, Annual
reports of BOC, relevant text books, research articles, journals and magazines.
3. A standard questionnaire was used as the main research instrument in
collecting primary data for measuring level of customer satisfaction about
Pambahinna branch. This questioner divide into three section and its
questions are created on the model of customer satisfaction.
4. The population of the research consists of the entire customers of the BOC
Pambahinna branch. Among this population as the sample unit of the study
was selected the customers of BOC Pambahinna branch in university of
Sabaragamuwa.
5. The data gathered with the use of the questionnaire was analyzed using SPSS
analysis (tabular and graphical analysis), bi- variety and multivariate analysis
(Pearson’s Correlation analysis, reliability test – Chronbatch’s Alpha value
and multiple linear regression analysis).
1.7 Limitation of the study
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Information was collected only from 25 customers of BOC. So could not get
all the users’ feedback. Therefore couldn’t make 100% accuracy decisions.
The most of customers they are not prefer to give the actual information and
the information which collected from questioner are not sufficient, because
misunderstand of questions.
In this research study to show the relationship between service quality factors
and customer satisfaction, the researcher had used only five service quality
factors. (features, Tangible, Responsiveness, Assurance and Reliability and
Empathy) But there Research was conducted only limited sample and
researcher had no opportunity to cover population.
The study was based on the assumption that the respondents will always be
truthful and correct.
The study depends upon responses of the respondents, who are believed to be
giving the right information. Thus the accuracy of the survey and its findings
depends a lot on the respondents and their responses.
The study was confined to the Pambahinna village, so the results may not be
the same in other parts of country which are having different market
conditions.
1.8 Disposition of the Thesis.
This thesis is composed of five chapters.
Chapter One: This chapter presents a brief background of the study, problem
statement, research objectives, and research questions. Finally significance of the
study, hypotheses of the study, limitations of the study are presented.
Chapter Two: This chapter presents a Literature review explains various authors’
findings and finally Conceptualization and Operationalization of the research.
Chapter Three: The third chapter discusses about the methodology of the study.
Here includes the type of data that the researcher used, data sources, data collection
methods, data presentation and data analysis methods.
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Chapter Four: The chapter four is about presentation, analysis and discussion of the
data that are collected by the researcher for the purposes of achieving preset
objectives.
Chapter Five: The chapter five comprises the summary of the entire research study
known as conclusion. Then recommendations included to it.
CHAPTER TWO
LITERATURE REVIEW
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2.1 Literature
2.1.1 Customer
There are two distinct types of customers. They are external and internal. An external
customer can be defined in many ways, such as the one who uses the product or
service, the one who purchase the product or service, or the one who influence the
sale of the product or service.
An external customer exists outside the organization and generally falls into three
categories: current prospective and lost customers. Each category provides valuable
customer satisfaction information for the organization. Every employee in the
organization must know how their job enhances the total satisfaction of the external
customer. Performance must be continually improved in order to retain existing
customers and to gain new ones.
An internal customer is just as important. Every function, whether it is engineering,
order processing or production has an internal customer each receives a product or
service and in exchange, provides a product or service. Every person in a process is
considered a customer of the preceding operation. (Bester Field et al, 2005)
2.1.2 SatisfactionSatisfaction is the state felt by a person who has experienced a performance (or
outcome) that has fulfilled his or her expectations. Satisfaction is thus a function of
relative levels of expectation and perceived performance. Expectations are formed on
the basis of past experiences with the same or similar situations, statements made by
friends and other associates, and statements made by the supplying organization.
Satisfaction is a feeling of fulfillment of a need or requirement comparing with an
expectation. These are several level of satisfaction. Such as,
If the performance falls short of expectations. The customer is dissatisfied.
If the performance matches the expectation, the customer is satisfied.
If the performance exceeds expectations. The customer is highly satisfied or
delighted.
(Kotler & Keller, 2006)
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2.1.3 Customer Satisfaction
Customer Satisfaction is the state of mind that customers have about a company when
their expectations have been met or exceeded over the life time of the product or
service. The achievement of customer satisfaction leads to company loyalty and
product repurchase. (http:en.wikpedia.org/wiki/customer-satisfaction)
2.1.4. Customer Satisfaction of Banking
The term bank is generally understood as “an institution that holds a banking license
granted by financial supervision authorities. Under the authorities, the bank conducts
the most fundamental banking services like accepting deposits and making loans and
other financial services” (Wikipedia)
The service quality has been widely used to assess the service performance of various
service organizations including banks (Cowling and Newman, 1995). There are 18
service quality attributes in banking. They are: access, aesthetics, attentiveness,
availability, care, tidiness, comfort, commitment, communication, competence,
courtesy, flexibility, friendliness, functionality, integrity, reliability, responsiveness
and security and all those are directs to the customer satisfaction. (Johnston 1995)
Customer satisfaction is also related to the service offerings. With retail banking, the
convenience and competitiveness of the provider’s offerings can be expected to affect
a customer’s overall satisfaction and ongoing patronage. The location is a major
determinant of bank choice (Anderson et al, 1976, Laroche and Taylor, 1988)
In retail banking there is an ongoing relationship between the service provider and the
customer. Hence, customer satisfaction is based on as evaluation of multiple
interactions. For this investigation, satisfaction is considered as a composite of overall
customer attitudes towards the service provider that incorporates a number of
measures. These frequently used measures are overall service quality, meeting
expectations and Customer Satisfaction. (Housknecht, 1990, Heskett et al, 1994,
Jones and Sasser, 1995)
2.1.5 Service Quality
8
Ghobadian et al (1994) posit that most of the service quality definitions fall within the
“Customer led” category. Juran (1999) elaborates the definition of customer led
quality as “features of products which meet customers’ needs and thereby provide
customer satisfaction.” As service quality relates to meeting customers’ needs, we
will be looking at “perceived service quality” in order to understand consumers
(Arnauld et al, 2002) Gronroos (1984) and Parasuraman et al (1985) look at perceived
quality of service as the difference between customers.”
2.2 Conceptualization and Operationalization
2.2.1 Conceptualization
The concept is created as follow to do this study. The conceptual framework based on
factors of service quality and those are related to the customer satisfaction. They are
service features, tangible, responsiveness, reliability and assurance and empathy. The
following conceptual framework has build prior to this study by considering above
factors of service quality.
Figure 2.1 Conceptual frameworks.
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Service Features
Investment rates Deposits Loans
Service charges
Source: Constructed by a researcher.
Service quality measurements
It is generally accepted that customer satisfaction often depends on the quality of
product or service offering. (Anderson and Sullivan, 1993; Levesque and McDougall,
1996) For this reason, research on Customer Satisfaction is often closely associated
with the measurement of quality. (East, 1997). Thus, both service quality and
Customer Satisfaction share a close relationship, through they are normally
conceptualize as unique or separate constructs (Bitner and Hubbert, 1994, Cronin and
Taylor, 1992; Patterson and Johnson, 1993; Taylor and Baker, 1994) Levesque and
McDougall, (1996) identified service quality, service features and customer complaint
handling in measuring determinants of the Customer Satisfaction.
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Tangible
Appearance Clean and pleasant place Location Space Technology Documents
Responsiveness
Speed Banking hours Well trained staff
Assurance and Reliability
Promised service Trust Confidence Accuracy
Empathy
Caring And listening Handling enquiries
Customer Satisfaction
Brand loyalty
Recommend to others Switch off to other banks
Frequency Number of accounts Number of years
After extensive research, Zeithamal, Parasuraman and Berry found five dimensions
customers use when evaluating service quality. They named their survey instrument
SERVQUAL. They are Tangibles, Eliability, Responsiveness, Assurance and
Empathy. All dimensions are important to customers, but some more than others.
Service providers need to know which are which to avoid majoring in minors. At the
same time they can’t focus on only one dimension and left the others suffer.
Sureshchandar, Rajendran, and Anantharaman, (2003) have identified five factors of
service quality from the customers’ perspective. Those are a) Core service or service
product, b) Human elements of service delivery, c) Systematization of service
delivery non-human element, d) Tangibles of service and e) Social Responsibility.
Parasuraman et al. (1985) identified 97 items or criteria in measuring service quality.
They argued that consumers used similar criteria irrespective of the type of service in
measuring service quality. They then group these criteria into ten key categories
which the labeled as “Service quality determinants” (P.48). The determinants are
reliability, responsiveness, competence, access, courtesy, communication, credibility,
security, understanding, knowing the customer and tangibles. Later in another
research (Parasuraman et al, 1988), they refined the dimensions into only five
dimensions, tangibles, reliability and assurances responsiveness, Service features and
empathy.
Service features
The competitiveness of provider’s offerings (competitive interest rates on loans,
reasonable service fees), (Levesque and McDougall, 1996)
H1: Service features are most important factor impact on Customer Satisfaction about
Pambahinna BOC of students in university of Sabaragamuwa.
Tangible
The physical appearance of the service facility (equipment, machinery, employee
appearance etc.) or the man – made physical environment, (Moller, 2007).Tangible
defines the appearance of the physical facilities and surroundings, the equipment,
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personnel and of cause the way of communication. The tangible dimensions create the
first hand impression which the customers get and may in the future relate company
with. (http://www.bukisa.com/articles/289284_the-importance-of-the-dimensions-of-
service-quality)
H1: Tangible is most important factor impact on Customer Satisfaction about
Pambahinna BOC of students in University of Sabaragamuwa.
Responsiveness
The employees’ willingness to help the customers and provide prompt service like
Friendliness, being consistently courteous (Moller, 2007).Responsiveness means
Respond quickly, promptly, rapidly, immediately, instantly.
(http://www.serviceperformance.com/articles/33_Five_Service_Dimensions.php).Res
ponsiveness refers to the reaction time of the service. (Author: Elyse, PMP,
CPHIMS).Responsiveness defines the company’s willingness to help its customers
and provide it with a good, fast and quality service. Like all the other dimensions
responsiveness is also very important, the customers will with no doubt be able to feel
if they are valued customers and if they get the best quality service possible.
(http://www.bukisa.com/articles/289284-the-importance-of-the-dimensions-of-
service-quality)
H1: Responsiveness is most important factor impact on Customer Satisfaction about
Pambahinna BOC of students in University of Sabaragamuwa
Reliability and Assurance
Reliability
Reliability means the ability of employees to perform accurately and confidently
(Moller, 2007). Reliability refers to the dependability of the service providers and
their ability to keep their promises. (Author: Elyse, PMP, CPHIMS). Reliability
defines the ability of the company to perform and complete the promised service,
quality, accurately and on time. Reliability just as important as the first hand
impression, because every customer wants to know that their suppliers of what it may
be are reliable and give the service agreed including great quality within the given
timeframe without compromising on the quality.
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(http://www.bukisa.com/articles/289284_the-importance-of-the-dimensions-of-
service-quality)
Assurance
Assurance refers to the level of certainty a customer has regarding the quality of the
service provided (Author: Elyse, PMP, and CPHIMS) Assurance defines the
employees of the company, that they are skilled workers which can gain the trust and
confidence of the customers. The employees must be able to give the customers
assurance in the products they are trying to sell. If the coming or current clients of the
company are not comfortable or feel safe dealing with the employees they are likely
not to continue doing business with your company. Assurance is a lot about keeping
and maintaining business relations. (http://www.bukisa.com/articles/289284_the-
importance-of-the-dimensions-of-service-quality)
H1: Reliability and Assurance is most important factor impact on Customer
Satisfaction about Pambahinna BOC of students in University of Sabaragamuwa
Empathy
Whether or not the employee was caring and provided individualized attention.
(Moller, 2007). Empathy is when a service employee shows that she understands and
sympathizes with the customer's situation. The greater the level of this understanding
is the better. Some situations require more empathy than others (Author: Elyse, PMP
and CPHIMS). Empathy defines a company who cares and gives individualized
attention to its customers so they feel special and valued as a customer. The first
dimension of empathy combines the second, third and fourth dimension to a higher
level, without they yet still can be compared, as they are all individual dimensions of
the service quality mix. It is very important to give the customers individualized and
quality attention, the more special and valued they feel the higher the chances are for
them to return to your company and continue doing business
(http://www.bukisa.com/articles/289284_the-importance-of-the-dimensions-of-
service-quality) Services can be performed completely to specifications. Yet
customers may not feel provider employees care about them during delivery. And this
hurts customers’ assessments of providers’ service quality.
(http://www.serviceperformance.com/articles/33_Five_Service_Dimensions.php)
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H1: Empathy is most important factor impact on Customer Satisfaction about
Pambahinna BOC of students in University of Sabaragamuwa
Customer satisfaction
Customer satisfaction is defined as a business term, is a measure of how products and
services supplied by a company meet or surpass customer expectation.” But that
seems off when you look at the separate. (http:en.wikpedia.org/wiki/customer-
satisfaction)
Brand loyalty
Brand loyalty is a consumer’s preference to buy a particular brand in a product
category. It occurs because consumers perceive that the brand offers the right product
features, images or level of quality at the right price. This perception becomes the
foundation for a new buying habit. Basically, consumers initially will make a trial
purchase of the brand and, after satisfaction, tend to form habits and continue
purchasing the same brand because the product is safe and familiar. Brand loyalists
have this mindset. I am committed to this brand; I am willing to pay a higher price for
this brand over other brands; will recommend this brand to others.
(http://www.extension.iastate.edu/agdm/wholefarm/html/c5-54.html).So Recommend
to others and switch off to other banks can get under brand loyalty.
Frequency
Frequency is the number of occurrences of a repeating event per unit time. It is also
referred to as temporal frequency. The period is the duration of one cycle in a
repeating event, so the period is the reciprocal of the frequency.
(http://en.wikipedia.org/wiki/Frequency). So number of years and number of accounts
can get under frequency.
As pointed out Parasuraman et al, 1988 refined the dimensions into only five
dimensions, tangibles, reliability and assurances responsiveness, Service features and
empathy.
The relationship between service quality dimensions and customer satisfaction has
received considerable academic attention in the past few years. But the nature of the
exact relationship between service quality dimensions and Customer Satisfaction 14
(especially in the way the two constructs have been operationalized) is still shrouded
with uncertainty. Even many researchers have operationalized Customer Satisfaction
by using a single item scale, Sureshchandar et.al (2002), they have operationalized
Customer Satisfaction as a multi dimensional construct.
Sureshchandar et.ai(2002), have identified in their research that people whose
perception of service quality dimensions are poor have poor satisfaction levels, people
whose perception of service quality dimensions are medium satisfaction levels, and
those who have ranked the service quality dimensions as high are highly satisfied with
the services of the organization. Therefore, there exists a great dependency between
service quality dimensions and Customer Satisfaction, an increase in one is likely to
lead to an increase in another.
The responsiveness service expectation dimension was found to consistently to be the
most important expectation across all countries. Thereafter, the relative importance of
subsequent service dimensions has been ranked as follows, Responsiveness,
Reliability, Tangibles, Assurance and Empathy. For most countries the core service
attributes of efficient staff, shorter queues, service reliability and convenient locations
are most important to customers. Furthermore, this attributer appeared to be
increasingly important over time. Any efforts to increase the speed of processing
information and customers are likely to have an important and positive effect on
Customer Satisfaction. The results suggest that core dimensions such as
responsiveness (driven by staff efficiency and shorter queues), and reliability
(performing dependably and accurately) are more important while relational issues
surrounding assurance and empathy are of less important.
Jamal and Nasar (2002) have investigated the determinants of Customer Satisfaction
in the retail banking in Pakistan. The report findings are from a survey, which found
about determinants of customer satisfaction in the retail banking in Pakistan. For that
purpose a total of 300 questionnaires were randomly distributer to customers of a
specific bank in Pakistan. According to their findings, they have emphasized that
there was a strong relationship between service quality dimensions and Customer
Satisfaction. There was however no relationship between tangible aspects of the
service environment.
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2.2.2 Operationalization of independent variables
This study based on service quality and Customer Satisfaction in banking industry.
Data was collected using questionnaires (Appendix 1) from customers. The factors
and the related question on questioner were reflected by the following table.
Table 2.1 Dimensions and sub dimensions (Measures) of independent variables.
Dimensions Indicators Measures Elements /Sub dimensions
Variable 01
Service Features
1. Interest rates
Deposits (Q5)
Loans (Q6)
Liker scale BOC pay competitive interest rate on deposits than other banks
1. Completely dissatisfied
2. Dissatisfied
3. Neither satisfy nor dissatisfy
4. Satisfy
5. Very much satisfy
BOC charge competitive interest rate on loans than other banks
1. Completely dissatisfied
2. Dissatisfied
3. Neither satisfy nor dissatisfy
4. Satisfy
5. Very much satisfy
2.Service charges
(Q7)
Liker scale Charges for other services in BOC
1. Completely dissatisfied
2. Dissatisfied
3. Neither satisfy nor dissatisfy
4. Satisfy
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5. Very much satisfy
Variable 02
Tangible
1. Appearance (Q8)
Liker scale Neat in appearance
1. Completely dissatisfied
2. Dissatisfied
3. Neither satisfy nor dissatisfy
4. Satisfy
5.Very much satisfy
2. Clean and pleasant place (Q9)
Liker scale Maintaining clean and pleasant, convenient working environment
1. Completely dissatisfied
2.Dissatisfied
3. Neither satisfy nor dissatisfy
4. Satisfy
5. Very much satisfy
3. Location (Q10)
Liker scale Convenience of the location of the branch
1.Completely dissatisfied
2. Dissatisfied
3. Neither satisfy nor dissatisfy
4. Satisfy
5. Very much satisfy
4 Space (Q11)
Liker scale There is a enough space in bank (Internal and External- vehicle park)
1. Completely dissatisfied
2. Dissatisfied
3. Neither satisfy nor dissatisfy
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4. Satisfy
5. Very much satisfy
5.Technology (Q12)
Liker scale High Technology used by BOC (The computer system used, ATM……etc)
1. Completely dissatisfied
2. Dissatisfied
3. Neither satisfy nor dissatisfy
4. Satisfy
5. Very much satisfy
6.Documents (Q13)
Liker scale Readable and understandable bank statements
1. Completely dissatisfied
2. Dissatisfied
3. Neither satisfy nor dissatisfy
4. Satisfy
5. Very much satisfy
Variable 03
Responsiveness
1.Speed (Q14)
Liker scale Speed of the service(waiting time for having transactions)
1. Completely dissatisfied
2. Dissatisfied
3. Neither satisfy nor dissatisfy
4. Satisfy
5.Very much satisfy
2.Banking hours (Q15)
Liker scale Convenience of operating hours
1. Completely dissatisfied
2. Dissatisfied
3. Neither satisfy nor dissatisfy
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4. Satisfy
5. Very much satisfy
3. Well trained staff
(Q16)
Liker scale Knowledge and experience of staff regarding the banking hours
1. Completely dissatisfied
2. Dissatisfied
3. Neither satisfy nor dissatisfy
4. Satisfy
5. Very much satisfy
Variable 04
Assurance and Reliability
1. Promised service
(Q17)
Liker scale Providing the service as promised by the bank
1. Completely dissatisfied
2. Dissatisfied
3. Neither satisfy nor dissatisfy
4. Satisfy
5. Very much satisfy
2. Trust (Q18)
Liker scale Trust and Security of transactions
1. Completely dissatisfied
2. Dissatisfied
3. Neither satisfy nor dissatisfy
4. Satisfy
5. Very much satisfy
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3.Confidence (Q19)
Liker scale Confidentially of transactions
1. Completely dissatisfied
2. Dissatisfied
3. Neither satisfy nor dissatisfy
4. Satisfy
5. Very much satisfy
4. Accuracy(Q20)
Liker scale Accuracy of the transactions and documents (Error free records)
1. Completely dissatisfied
2. Dissatisfied
3. Neither satisfy nor dissatisfy
4. Satisfy
5. Very much satisfy
Variable 05
Empathy
1. Caring And listening (Q21)
Liker scale Response to complaints very friendly
1. Completely dissatisfied
2. Dissatisfied
3. Neither satisfy nor dissatisfy
4. Satisfy
5. Very much satisfy
2.Handling Liker scale Way of handling enquiries
20
enquiries
(Q22)
1. Completely dissatisfied
2. Dissatisfied
3. Neither satisfy nor dissatisfy
4. Satisfy
5. Very much satisfy
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design
The research design involves a series of decisions including the determination of type,
purpose, setting, sampling plan and time horizon etc. of the study. According to this
research here researcher identify who are the customers of Pambahinna BOC branch
as population of the study, from this population researcher selected 25 customers of
BOC Pambahinna branch as the sample to gather data. Also customers are selected
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by using Random sample method. In here researcher use both primary and secondary
data and secondary data and to collect primary data researcher use questioner. For
obtain secondary data researcher use Internet, books and websites.
3.1.1. Type of the study
The type of the study is Explanatory and descriptive nature. The study can be
explanatory when the focus is on cause-effect relationships, explaining what causes
produce what effects (Yin, 1994).Explanatory type of research is grounded in theory,
and theory is created to answer why and how questions. In an explanatory study, the
researcher uses theories or hypotheses to account for the forces that caused a certain
phenomenon to occur.
3.1.2 Purpose of the Study
The purpose of this study is to fill the gap in the knowledge of the customer
satisfaction regarding banking sector .But researcher think research is not enough.
3.1.3 Study Setting
This study was conducted in the natural environment with less interference of the
researcher. As the type of this study is descriptive, the data were collected in the
natural setting under a field survey.
3.1.4 Time Horizon of the Study
The data for this study were collected at a single point of time (Zikmund, 1997;
Sekaran, 1999), thus, the study is single cross-sectional in time horizon. The period
chosen for the study is May-June 2011. Data were collected during this period.
3.1.5 Data Sources Used for the Study
Primary data
The study has been used primary data. The primary data has collected through
distributing questioners to selected dealers.
Secondary data
The researcher Collect the secondary data from various methods such as, Articles
published in the news papers and the internet, web sites of Bank of Ceylon, Annual
reports of BOC, relevant text books, research articles, journals and magazines.
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3.1.6. Research Approach
In first step, to find out the variables, which affect, Customer Satisfaction a rigorous
literature survey was conducted. Secondly, a pilot survey was conducted to modify a
questioner. Finally, a field survey was conducted by using the refined questionnaire.
3.2 Sample Plan
The sample plan has been explained under the major areas of population, sampling
method, data collection method, and data analyzing method.
3.2.1 Population of the Study
The population of the research consists of the entire customers of the BOC
Pambahinna branch. Among these customers approximately BOC Pambahinna branch
has five thousand two hundred dealers in the University of Sabaragamuwa.
3.2.2 Sample Unit
Sample unit of the study was the customers of BOC Pambahinna branch in University
of Sabaragamuwa.
Table 3.1: Number of customers about BOC Pambahinna branch in University
of Sabaragamuwa, and the number of the selected customers for the study by
students in each year in University of Sabaragamuwa.
Faculties No. of customers No. of customers selected
First year 900 45
Second year 900 45
Third year 750 35
Fourth year 650 30
Total (SUSL) 3400 25
23
Source - http://www.sab.ac.lk/
3.2.3 Sample Frame
The list of customers in university of Sabaragamuwa which is available at the
Pambahinna BOC branch was taken as the sampling frame.
3.2.4 Sampling procedure
The researcher randomly selected as one student from each rooms in the hostel.
3.2.5 Sample size
Table 3.2: Testing the sample adequacy: KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .721
Bartlett's Test of Sphericity
Approx. Chi-Square 30.571
df 10
Sig. .001
Source: Output of the analysis of survey data, 2011(Refer appendix …………………)
According to the tables 3.2, Kaiser-Meyer-Olkin Measure of Sampling Adequacy is
equal or more than 0.5. Therefore, it shows the sample adequately represent the
population of customers about BOC Pambahinna branch in University of
Sabaragamuwa Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy index
(value of 0.730) confirm the appropriateness of the data for exploratory factor
analysis (EFA).
3.3 Research instruments
A standard questionnaire was used as the instrument in collecting primary data for
measuring level of Customer Satisfaction about Pambahinna branch.
Questionnaire
24
Questionnaire, the main research instrument was comprised of three major sections.
Such as section A, B, C.
Section A:
Section A of the questioners includes the self- developed questions related to the
general information regarding the transactions of BOC Pambahinna branch. Under
that there are four questions.
Section B:
Section B of the questioner includes the self-developed questions related to the
conceptualization or model of the study. These questions relate to the each
independent variables or service quality dimensions. First one is the Service features.
Under that there are three questions for each indicator of Service Features. Second
one is the Tangible. Under that there are six questions for each indicator of Tangible.
Third one is the Responsiveness. Under that there are three questions for each
indicator of responsiveness. Fourth one is the Assurance and Reliability. Under that
there are four questions for each indicator of Assurance and Reliability. Fifth one is
the empathy. Under this there are two questions for each indicator of Empathy.
Finally there are eighteen questions under section B.
Section C:
Section C of the questioner includes the self-developed questions related to the
conceptualization or model of the study. These questions relate to the dependable
variables. Under this there are eight questions.
3.4. Analysis of data
The analysis was conducted in three steps. At the first step, descriptive statistical
measures such as mean, frequencies and categorical tables were used. Further, to
identify the relationships between the dependant and independent variables, cross
tabulations were employed. Then in the second step to test the reliability of the
questionnaire Reliability analysis was conducted. In the second step, hypotheses
25
testing were conducted using One sample tests, Independent Samples T-tests,
Regression and correlations analysis.
3.4.1 Descriptive Statistics
Descriptive statistics were used to analyze each variable of the study. Frequency
distribution was counted to measure how many respondents have given the same
answer to the same question. Percentages were calculated to determine the fraction of
entrepreneurs who gave a particular response. The personal information of each
entrepreneur was collected only for confirming the identity of each entrepreneur of
the selected sample and to study their backgrounds.
3.4.2 Reliability of the questionnaire
The Cronbach’s alpha value method used to check whether the questionnaire
developed by the researcher especially for this research purpose, measures the
variables reliably. If the corresponding alpha value of a given set of questions is
greater than 0.7or closer to accepted minimum level 0.70 (Sekaran 2006; Malhothra
2004) the researcher can conclude that the set of questions used to measure a
particular variable is reliable.
3.4.3 Hypotheses Testing
The test statistics of determining the nature of Beta is important. Various methods of
determining the utility of the model as a predictor of the independent variable include
“t” test and “f” test for detecting the significant of the slope.
In statistical data analyzing, H0 is always called the null hypothesis and H1 is called
the formulated hypothesis, which is called the alternative hypothesis.
Accordingly, if null hypothesis (H0) reject then can conclude that at least one of the
independent variables significantly contribute to the prediction of the dependent
variable. If H0, reject it demonstrates that any of the independent variables (or
combination of them) not explain the behaviors of the dependent variable.
The aforesaid ‘F’ test and p values are used to determine which of the independent
variables useful predictors are.
26
The importance of the ‘F’ values is that, if the computed ‘F’ value exceeds the table
value, we can reject the null hypothesis (H0) and be able to conclude that at least one
of these independent variables is a significant predictor of the dependent variable.
Therefore, H0 is rejected if computed ‘F’ value > table ‘F’ value
Thus, if a b value is not rejected, that particular b (Beta) value has a significant ‘F’
value. Therefore, this implies a need to the hypothesis, which is attributed to that b.
considering the effects on the dependent variable ‘F’ distribution, is used to compare
two population variances.
The ‘F’ values can be obtained using a computer statistical package that provides an
exact ‘F’ statistics giving the computed ‘F’ value and corresponding degree of
freedom. This is the use of the table value of ‘F’.
For this study ‘P’ value is used (instead of the table value) to come to a conclusion.
The predictive ability of the regression analysis could be designed by both ‘F’ value
and the ‘P’ value of the regression model. The ‘P’ value is the value of significance at
which the hypothesis test procedure changes the conclusion. 'α'(Alpha value) is the
significant value at which the hypothesis test procedure changes conclusion. If;
(Alpha value) is the smallest value for ‘α’ for which one can reject the null hypothesis
(H0) that is the point at which the test is significant. Therefore ‘P’ value is often called
the observed ‘α’ or ‘observed significant level. Here, the analysis uses α = 0.05 as
the minimum level ‘α’ and if the observed ‘α’ value is more than 0.05 it fails to reject
the null hypothesis (H0).
Therefore, this can be symbolically presented as follows:
If p – value <; then, reject H0
If p – value >; then, accept H0
Thus;
The smaller the p –value, the higher the significance
When using p – value in this manner, the procedure in our study is,
Reject H0, If p – value < α (0.05) and,
27
Accept H0, If p – value > α (0.05).
Measure of location
To measure the location within a data set the, mean or average value has selected for
this study. Measures of central tendency describe the centre of the distribution.
If, Service Features ≤ 2.49 (The answer of the respondent is Strongly dissatisfy or
Dissatisfy), then the independent variable being measured takes low values and hence
does not drive them for their customer satisfaction.
If, Service Features = 2. 5 - 3.49(The answer of the respondent is neutral), then the
independent variable being measured takes average value and hence marginally
influence their customer satisfaction.
If, Service Features ≥ 3.5 (The answer of the respondent is Very much satisfy or
Satisfy ), then the independent variable being measured takes high values and hence
does drive them for their customer satisfaction. Similarly, the customer satisfaction of
the BOC Pambahinna branch measured using the Liker five-point scale; from strongly
dissatisfy to very much satisfy. In that manner;
If, the answer of the respondent ≤ 2.49 then the level of customer satisfaction and
Service features are low.
If, the answer of the respondent = 2. 5 - 3.49 then the customer satisfaction and
service features of them is average.
If, the answer of the respondent ≥ 3.5 then the customer satisfaction and service
features of them is high.
Likewise for each independent variable can measure one by one.
One Sample T-test
The One-Sample T Test procedure tests.
To test the hypothesis 3.5 midpoint value of 5-point scale used. A significance level
of α= 0.05 is selected.
28
Pearson’s Co-efficient of Correlation Analysis
Pearson’s Co-efficient of Correlation make out the degree of linear relationship that
exists between two variables
If the Pearson’s coefficient of correlation is close to 1 (> 0.5) with a high significant
level (F< 0.05) then, there is a strong positive relationship between the two variables.
If the Pearson’s coefficient of correlation is close to -1 (> - 0.5) with a high significant
level (F< 0.05) then, there is a strong negative relationship between the two variables.
If the Pearson’s coefficient of correlation is close to 0 (<-0.5 or –0.5) with a high
significant level (F< 0.05) then, there is a positive or negative relationship between
the two variables, but not so strong.
Regression analysis
Correlation analysis provides a research only with the type of relationship between
two variables. But in multiple regressions analysis the whole set of variables will be
used to predict the dependent variable. Hence to identify the most important
dimensions of two variables, step-by-step regression analysis was conducted.
The inclusion of variable will be done according to the highest weight age with the
dependent variable in the correlation analysis. Therefore, in this analysis it was
assumed that the independent variable could be represented as a linear relationship
with the other variables.
It must be emphasized here that the multiple regressions could be used to conduct the
omitted parameter test to assess the direct and indirect effects of the independent
variables on the dependent variable. Only multivariate model could include all the
variables at the same time in an analysis. It must be mentioned here that the multiple
regression analysis is the only one of the multivariate methods, which uses more than
one variable in an analysis. One purpose of using the regression analysis is to arrive at
a method for predicting a value for the dependent variable.
Correlation analysis provides only a significant relationship between each
independent variable. In other words, the regression model always indicates by how
29
much (Beta value) each independent variable could affect the dependent variable.
Thus, the technique of multiple linear regressions explains the behavior of a
dependent variable using more than one predictor (independent/exploratory) variable
simultaneously.
The regression model is given below.
Y= b0 + b1 + b2 + b3
According to the sequence of ‘r’ value of variables, the multiple regressions are given
below.
Customer satisfaction = b0+b1 (Service features) +b2 (Tangible) +b3 (Responsiveness)
+b4 (Assurance and Reliability) + b5 (Empathy) +E
Y = b0 + b1(X1) + b2 (X2) + b3 (X3) + b4 (X4) + b5 (X5) + E
Where,
Customer Satisfaction = Y
Service Features = X1
Tangible = X2
Responsiveness = X3
Assurance and Reliability = X4
Empathy = X5
Beta (b0) is the intercept of the sample regression line and is the estimate of the
population intercept examining the estimate of the slope (b1, b2, b3,, bk,)
This model provides information on the nature of the relationship. Considering the
population slope (b): when, b=0, the population line is perfectly horizontal.
H0 = b1 = b2 = bk = 0
H1 = at least one b ≠ 0
30
Coefficient of determination (R2) is another method of examining how well the model
provides estimates that fit the sample data. When any additional variables are
included, the predictive ability of the model should be significantly improved with the
addition. The less the error term, the higher the predictability can identify of the
regression analysis.
.
CHAPTER FOUR
DATA PRESENTATIONAND ANALYSIS
4.1 Sample Profile
4.1.1 General Information reason for use BOC Pambahinna branch
4.1.1.1 The ways of get information about BOC Pambahinna branch
31
When people going to join with a bank as a customer do their transactions first they
should know about the bank, location, its services and advantages can get after join
the bank. They can know about these things by getting information in various ways.
These ways can be, from other persons, Printed media, electronic media and others.
For BOC Pambahinna branch is as follows.
Table 4.1: The ways of get information about the BOC Pambahinna branch
Ways of get information Percentage
From other persons 80%
From printed media 4%
From electronic media 0%
Other 16%
Source: Survey Data 2011
Figure 4.1: The ways of get information about the BOC Pambahinna branch.
Source: Survey Data 2011
4.1.1.2: The reason for select BOC Pambahinna branch to do transaction
People select bank to do transaction upon several reasons. They are may be
government bank, closeness of the bank, Special offers from the bank, banking from
longtime and quick service and hospitality of the staff. For BOC Pambahinna branch
is as follows.
Table 4.2: The reasons of select the BOC Pambahinna branch
Reason for select the bank Percentage32
Government bank 16%
Closeness of the bank 72%
Special offers from the bank 4%
Quick service and hospitality of the staff 8%
Source: Survey Data 2011
Figure 4.2: The reasons of select the BOC Pambahinna branch
Source: Survey Data 2011
4.1.1.3: The services get from BOC Pambahinna branch
Normally people use bank to get some services. There are may be Personal bank
services (Saving accounts, Fixed accounts), Current account services, Pawning
services, Loan facilities and Foreign money exchange. These some services also can
get from BOC Pambahinna branch.
Table 4.3: The services get from the BOC Pambahinna branch 33
Services get from bank Percentage
Personal bank services 100%
Current account services 0%
Pawning services 0%
Loan facilities 0%
Foreign money exchange 0%
Source: Survey Data 2011
Figure 4.3: The services get from the BOC Pambahinna branch
Source: Survey Data 2011
4.2 Validation of Measurement Properties
Properties of the measurement should be assessed at least through ensuring content
validity and construct validity (Sekaran, 2003). Hence, the validations of
measurements used in the study are discussed in the following sections.
4.2.1 Content Validity
34
Content validity ensures that the measure includes an adequate and representative set
of items that tap the concept. The more the scale items represent the domain or
universe of the concept being measured, the greater the content validity. To put it
differently, content validity is a function of how well the dimensions and elements of
a concept have been delineated (Sekaran, 2003).
4.2.2 Construct Validity
Construct validity testifies to how well the results obtained from the use of the
measure fit the theories around which the test is designed (Sekaran, 2003). Factor
analysis is a multivariate technique that would confirm the dimensions of the concept
that have been operationally defined, as well as to indicate which of the items are
most appropriate for each dimension (establishing construct validity) (Sekaran, 2003).
Table 4.4: Construct validity of Service Features, Tangible, Responsiveness, Assurance and Reliability, Empathy and Customer Satisfaction
Construct Dimensions Cumulative %
Service Quality Service features 53.786
Tangible68.372
Responsiveness 80.691
Assurance and Reliability 90.205
Empathy 96.301
Customer Satisfaction 100.000
Source: Output of the analysis of survey data, 2011 (Refer Appendix………….)
4.3 Reliability of the Constructs
It is very important to the researchers to ensure the reliability of the questionnaires
developed by themselves for a particular research purpose. The reliability of a
questionnaire is that the question items of a particular questionnaire measure the
variables being studied reliably.
Table 4.5 Summery of the reliability analysis
35
Source: Output of the analysis of survey data, 2011
Key: The table 4.5 shows that the reliability of the variables is closer to or greater
than the accepted minimum level 0.70 (Sekaran 2006; Malhothra 2004)
4.4 Level of Customer Satisfaction
The first objective of the study is to investigate the level of customer satisfaction
about Pambahinna BOC branch.
Hence the decision Criteria is to investigate the level of customer satisfaction is if
Mean value is equal or less than 1.0-2.49 on five point scale and standard deviation
less than 1.0 could consider as the level of Customer Satisfaction is low and if Mean
value is equal or less than 2.5-3.49 on five point scale and standard deviations less
than 1.0 could consider as the level of Customer Satisfaction is Moderately low. On
the other hand if Mean value is equal or greater than 3.5- 5.0 on five point liker scale
and standard deviation less than 1.0 could consider as the level of Customer
Satisfaction is high.
To test whether the population mean conform to a given hypothesis one-sample t test
for a single mean conducted. So test the hypothesis that the mean level exceeds 3.5,
the midpoint value on a 5-point scale and significance level of α= 0.05 are selected.
Further if the value of the calculated t statistics are larger than the critical value (test
value 3.5), reject Ho. If the calculated t value is smaller than the critical value, do not
reject Ho.
Based on the objective one, the hypothesis 1 was derived after reviewing the relevant
literature as follows.
Level of Customer Satisfaction
36
The data given in the table 4.6 shows the key descriptive statistics of the different
scales measuring the Customer Satisfaction.
Table 4.6 Descriptive Statistics of Customer Satisfaction
N Minimum Maximum Mean Std. DeviationRecommend to others 25 0 1 .68 .476
Switch off to the bank 25 0 1 .72 .458
Number of accounts 25 0 1 .84 .374
Number of years 25 1 2 1.12 .332
Valid N (likewise) 25
Source: Output of the analysis of survey data, 2011
According to the table 4.6, it is noticeable that the four indicators namely recommend
to others, Switch off to another bank, Number of accounts and Number of years from
Q 27-30 are above the scale’s mid-point, 3.5 on a 5-point scale. From the results, it
may be seen that the mean value of all are above 0.68 and less than 1.12 on a 5- point
scale. And standard deviation without number of years for other every question item
takes values less than 1.0 by further supporting the idea by providing evidence. Hence
the level of Customer Satisfaction is less within the selected sample of Customers in
Pambahinna BOC branch.
To test whether these results are statistically significant, a Single sample test was
performed. The result of the tests is given in the table 4.7
Table 4.7 One-Sample T- Test of Customer Satisfaction
Test Value = 0
t df
Sig. (2-
tailed)
Mean
Difference
95% Confidence Interval
of the Difference
Lower Upper
37
Recommend to others 8.660 24 .000 2.00 1.52 2.48
Switch off to another bank 8.660 24 .000 2.00 1.52 2.48
Number 0f accounts 6.928 24 .000 1.60 1.12 2.08
Number of years 12.101 24 .000 2.24 1.86 2.62
Source: Output of the analysis of survey data, 2011
The results given in the table 4.7 disclose that t values at 3.5 midpoint value are
significantly difference from estimated mean values Q 27to Q30. The t values are
ranged from 8.660- 12.101. And they are statistically significant at 0.0001% (99%)
level of significance. Further test values are positive at 95% confidence interval of the
difference. Hence, the results suggest that there is significant difference exists in
indicators of Customer Satisfaction and they are statistically significant.
Level of Customer Satisfaction
The data given in the table 4.8 shows the key descriptive statistics of Customer
satisfaction (Comparing with independent variables).
Table 4.8 Descriptive Statistics of Customer Satisfaction
N Mean Std. Deviation Std. Error Mean
Service Features 25 1.5867 .81240 .16248
Tangible 25 1.8733 .59566 .11913
Responsiveness 25 2.2000 .64550 .12910
Assurance and Reliability 25 2.8300 .76960 .15392
Empathy 25 1.7000 .84163 .16833
Customer Satisfaction 25 1.4000 .36799 .07360
Source: Output of the analysis of survey data, 2011
According to the table 4.8 it is noticeable that five dimensions of Service Quality
which are affecting to Customer Satisfaction are less than the scale’s mid- point, 3.5
on a 5 point scale. In addition, standard deviations of these dimensions take values
less than 1.0 by further supporting the idea by providing evidence. Hence, the level of
Customer Satisfaction is less within the selected sample of customers in Pambahinna
BOC branch.
38
To test whether these results are statistically significant, a Single Samples Test was
performed. The results of the tests of the tests are given in the table 4.9.
Table 4.9 One-Sample T- Test of Customer Satisfaction
Test Value = 0
t df
Sig. (2-
tailed)
Mean
Difference
95% Confidence
Interval of the
Difference
Lower Upper
Service Features 9.765 24 .000 1.5867 1.2513 1.9220
Tangible 15.725 24 .000 1.8733 1.6275 2.1192
Responsiveness 17.041 24 .000 2.2000 1.9336 2.4664
Assurance and Reliability 18.386 24 .000 2.8300 2.5123 3.1477
Empathy 10.100 24 .000 1.7000 1.3526 2.0474
Customer Satisfaction 19.022 24 .000 1.4000 1.2481 1.5519
Source: Output of the analysis of survey data, 2011
Service Quality dimensions Influence to the level of Customer Satisfaction
Table 4.10 shows the influence of Customer Satisfaction and the dimensions of
Service Quality (Service Features, Tangible, Responsiveness, Assurance and
Reliability and Empathy) on the level of Customer Satisfaction.
Table 4.10: Correlations Customer Satisfaction
Service Features
Pearson Correlation .466(*)
Sig. (2-tailed) .019
Tangible Pearson Correlation .387
Sig. (2-tailed) .056
39
Responsiveness Pearson Correlation .702(**)
Sig. (2-tailed) .000
Assurance and Reliability Pearson Correlation .540(**)
Sig. (2-tailed) .005
Empathy Pearson Correlation .505(*)
Sig. (2-tailed) .010
* Correlation is significant at the 0.05 level (2-tailed).
** Correlation is significant at the 0.01 level (2-tailed).
Key: Strong positive relationship – Pearson coefficient of correlation > 0.5
Positive, not strong relationship – Pearson coefficient of correlation < 0.5
Source: Output of the analysis of survey data, 2011 (Refer Appendix………….)
Summary of Service Quality Influence to the level of Customer Satisfaction
1. Test statistics of Service Features
Pearson Correlation = .466
Significant level (2-tailed) = 0.019
P- Value < 0.001 < 0.005
The Pearson’s coefficient of correlation is = 0.466* (P=0.019); which is not very
much close to plus one. But the significant level is (P- value) 0.019 which is < 0.01
< 0.05. Therefore, researcher can conclude that though there is a positive correlation
between Customer Satisfaction and Service Features, it is not much strong.
2. Test statistics of Tangible
Pearson Correlation = .387
Significant level (2-tailed) = 0.056
P- Value < 0.001 < 0.005
The Pearson’s coefficient of correlation is = 0.387 (P=0.056); which is not close to
plus one. But the significant level is (P- value) 0.056 which is < 0.01 < 0.05.
Therefore, researcher can conclude that though there is a positive correlation between
Customer Satisfaction and Tangible, it is not much strong.
3. Test statistics of Responsiveness
Pearson Correlation = .702
Significant level (2-tailed) = 0.000
P- Value < 0.001 < 0.00540
The Pearson’s coefficient of correlation is = 0.702(**) (P=0.000); which is close to
plus one. But the significant level is (P- value) 0.000 which is < 0.01 < 0.05.
Therefore, researcher can conclude that though there is a strong positive correlation
between Customer Satisfaction and Responsiveness.
4. Test statistics of Assurance and Reliability
Pearson Correlation = .540
Significant level (2-tailed) = 0.005
P- Value < 0.001 < 0.005
The Pearson’s coefficient of correlation is = 0.540(**) (P=0.005); which is close to
plus one. But the significant level is (P- value) 0.005 which is < 0.01 < 0.05.
Therefore, researcher can conclude that though there is a strong positive correlation
between Customer Satisfaction and Assurance and Reliability.
5. Test statistics of Empathy
Pearson Correlation = .505
Significant level (2-tailed) = 0.010
P- Value < 0.001 < 0.005
The Pearson’s coefficient of correlation is = 0.505(**) (P=0.010); which is close to
plus one. But the significant level is (P- value) 0.010 which is < 0.01 < 0.05.
Therefore, researcher can conclude that though there is a strong positive correlation
between Customer Satisfaction and Empathy.
4.5 Most important factor influence on Customer Satisfaction
The third objective of the study was to investigate most important dimensions influence on
Customer Satisfaction.
To cover this objective the hypothesis number three, four, five, six and seven were
derived.
Hypotheses 3: Service features is the most important dimension influence on
Customer Satisfaction of Pambahinna BOC branch.
41
To test above, firstly the researcher conducted the Correlation analysis under section
4.6 in order to find whether there are correlations exist among the dependent variable
(Customer Satisfaction) and each of the independent variables. Pearson’s coefficient
of correlation was used for the purposes of analyzing and interpretation.
The multiple linear regression analysis was carried out to investigate the relationship
between the dependent variable (Customer Satisfaction) with each independent
variable namely Service features, Tangible, responsiveness, Assurance and Reliability
and Empathy. The stepwise was applied to identify the most important variables in the
model.
Table 4.11 shows the model summery after applying the stepwise multiple regression
procedure. The final model includes the variable as Service Features. All the variables
are significant at 99% level of significance.
Table 4.11: The Model summery of the stepwise multiple regression analysis
Model R R Square Adjusted R Square
1 .702(a) .492 .470
A Predictors: (Constant), R
Source: Output of the analysis of survey data, 2011
Table 4.12: The model developed through the stepwise multiple regression analysis
Model
Un-standardized
Coefficients
Standardized
Coefficients t Sig.
B Std. Error Beta
1 (Constant) .520 .194 2.682 .013
Reliability .400 .085 .702 4.723 .000
a. Dependent Variable: Customer satisfaction (Refer Appendix……….)
Source: Output of the analysis of survey data, 2011
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