THE EFFECT OF QUALITY SERVICE ON CUSTOMER SATISFACTION, LOYALTY AND RETENTION IN THE GHANAIAN BANKING INDUSTRY

Abstract

The study was conducted using the SERVQUAL dimensions to measure the satisfaction level of Barclays bank customers and its effects on their loyalty to the bank. The research covered the KNUST, Adum and Suame branches of Barclays bank involving one hundred and eleven customers and nine managers. Both primary and secondary data were used to seek information on staff satisfaction. External customers’ views were also sought on their level of satisfaction and their intentions to continue doing business with Barclays bank. The responses of the staff indicated that Barclays bank is doing well recognizing staff as the key factor in the bank’s quality customer service delivery process. The study also revealed that customers were most satisfied with Barclays bank service delivery dimensions like Tangibility, Reliability and Assurance, but it was otherwise with Responsiveness and Empathy. Since Responsiveness is one of the values of Barclays bank, the researchers’ recommend that, it has to be given a critical look, because customers expect prompt response to their requests without delays. The customer is the reason for the business and expects that staff deal with them in a caring manner. The researchers’ thus recommend that staff training on Empathy be re-enforced to enhance their level of confidence in this quality service dimension. The researchers’ again showed that although there were occasions where a few customers left to other banks, most customers affirmed their loyalty with Barclays bank and said they would recommend the bank to friends and relatives.