EFFECT OF COMPETITION ON CUSTOMER LOYALTY IN THE BANKING SECTION (A CASE STUDY OF KUMAWUMAN RURAL BANK)

Abstract

In today’s very competitive business environment, businesses must adapt their strategies in the sphere of customer management so as to reduce the cost incurred in acquiring new customers. One major influencer of such efforts is customer service and relationship management. It is therefore imperative that firms take keen interest in ways of boosting the quality of services rendered to customers. Unfortunately, the issue of service quality is not treated the importance it requires as done to product quality and as such little study is conducted on the subject matter. It is against this backdrop that this study was undertaken to examine the effect of service quality on the performance of the banking industry and loyalty levels of customers using one hundred (100) customer of the Ahinsan branch of the Kumawuman Rural Bank as a case study using non-probability method. The study used questionnaires to collect data. Statistical Package for Social Scientist (SPSS) and Microsoft Excel were used to analyze data gathered and presented using tables, figures and chats The study generally agreed with literature that service quality is very important to consumers. The respondents mentioned they stick to KRB due to its acclaimed quality and would not accept minor errors in the quality of service, an indication of how high they consider quality in their purchase decisions. It was suggested that since the customers do not take likely to the quality of services they enjoy, conscious effort is made to maintain or improve the quality services projected currently to the consumers.