(A case study of Bahawalpur)

 In the present banking system, excellence in customer service is the most

important tool for continuous business growth. Customer complaints are part of
the business life of any Institution. This is more so for banks because they are
service organizations .As a service organization, customer service and
satisfaction should be the prime concern of any bank. The service quality and
complaint handling system leads to customer satisfaction which has been well
defined by (Terrence levesque , Gorden H.g Mcdougall ,1996)
 Study significant :
 This study is very important because it will provide a better knowledge of
determinant of Customer Satisfaction to the Managers due to this a bank
Managers can increase their bank profitability and performance. If the managers
don’t know about the determinant of customer satisfaction then they can’t
increase their performance so, this study is very helpful to understand the
determinant of customer satisfaction.
 The overall objective of this is to identify the major determinants of customer
satisfaction in the commercial bank of Pakistan by giving due emphasis in
Bahawalpur. More specifically this study is aimed to examine the roles of
service quality on customer satisfaction in the banks of Bahawalpur and to
Understand the roles of complaint handling system on customers‟
satisfaction in banks of Bahawalpur.
 Reports of banking sector has shown that increasing number of complaints

resulting from failure of service quality which in turn emanate from lack of

enough knowledge concerning the factors that determines customers

satisfaction and customer complaint handling which switches customer

satisfaction to dissatisfaction.
 What is the role of services Quality on customers‟ satisfaction in

banks of Pakistan?

 What is the effect of customer complaint handling system on

customer satisfaction in banks of Pakistan?

 Article Variables Methodo Conclusion
Title logy
A major contribution of this study is the provision of an approach
Determinants of Service quality ,service Questionna for managers to identify the determinants of customer satisfaction
customer feature ,competitive ire and future intentions towards the service provider. The approach
satisfaction in interest ,service should incorporate constructs or items beyond service quality to
retail banking problems, service capture the domain of factors that drive customer satisfaction.
Also, the study provided insights and implications for managers in
recovery retail banks who want to improve customer satisfaction and
retention rates.

Service quality functional quality, Questionna The findings indicate that these models of service quality do not
perform equivalently in this particular setting. Although the
perspectives and improvement in quality ire Technical/Functional Quality dimensions reliably predicted levels
satisfaction in ,customer satisfaction of customer satisfaction,. To the extent that the private banking
industry represents both a high-contact and high-level service
private banking ,service quality situation, we might conclude that the Technical/Functional
Quality-based model of service quality ± compared with the
SERVQUAL-based model ± is better suited to predict customer
satisfaction when customers are actively involved or highly
interested in service delivery.
 Article Title Variables Metho Conclusion
dology

A model of customer Customer loyalty, Question The study contribute to the academic literature by
considering customer loyalty not only as a frequency
loyalty in the retail Customer satisfaction, naire of repeated purchase, but also including the
banking market Costs, service Quality psychological meaning of loyalty. In this sense, we
have differentiated between the two types of concept
of customer loyalty (loyalty based on inertia and true
brand loyalty).

A model of customer Customer satisfaction, Question Study shows that in a service failure context, to
satisfaction in the retail complaint handling naire implement an adequate complaint management is
crucial to reach higher levels of customer satisfaction.
banking market system, service quality Service quality dimensions which have functional and
dimensions, technical service have impact on customer
satisfaction.
Article Variables Methodology Conclusion
Title
Service quality, Service quality, Questionnaire The research findings suggest that the drive towards
satisfaction, satisfaction, ease of banking and convenience is favored by the
customer and, therefore, banks should find
perceived value perceived value,
alternative strategic routes designed to improve
and loyalty customer loyalty, service delivery (either human-based or technology-
among commercial based). Bank customers’ attitudes towards the
customers in banking provision of services and subsequent levels of
commercial perceived value and customer satisfaction
banking in
Nakuru
Municipality,
Kenya
Explaining Customer Questionnaire Thus, in a service failure context, to implement an
customer satisfaction, adequate complaint management is crucial to reach
higher levels of customer satisfaction. As a result of
satisfaction with Complaints,
the greater influence of procedural and informational
complaint Consumer justice on satisfaction with complaint handling, a
handling psychology, service organization must train its contact employees
Service failures to explain the reasons behind the failure and to
respond to customer complaints with promptness
and skill.
Promptness

Staff
Responsivene Expectation
ss
s
Waiting Attitude
Time Service Quality
Service Intentions
Rating
Customer
Service
Customer
Processing satisfaction
time of
complaint
Response to

Complaint
Complaint

Handling system
Friendliness of
Employee’s

Quality Rating

Complaint
process
 The type of research employed here was descriptive in nature. This
is because the intention of this study is to describe the present
satisfaction level of the customers with regard to factors like
services quality and complaints handling system of banks of
Pakistan by giving special emphases in Bahawalpur. The target
population that involved in this study were general public who are at
the legal age to hold a savings, and or current account.
Questionnaire were used as a data collection instrument from
customers.
 The target population that involved in this study is
general public who are at the legal age to hold a savings, and or current
account. Questionnaire were used as a data collection instrument from
customers.
A sample of 100 respondents are randomly selected from
the whole population.
 Therefore, hypothesis to this study were expressed based service
quality & complaint handling system two dimension. By reviewing
literature, the following hypotheses developed to this study.

 H1: There is positive relationship between services quality and

customer satisfaction.

 H2: Effective customer complaint handling will enhance customer

satisfaction.
 Fig.1 Correlation between the service quality , complaint handling system and customer satisfaction.

 Constructs Service Quality Complaint Handling System Customer Satisfaction Sig

 Service Quality - - - 0.000

 Complaint Handling System - - - 0.000

-
 Customer Satisfaction 0.955* 0.959** - 0.000

 ***Correlation Is Significant At 0.01 Level

 Fig.2 Pearson correlation index test results.

 As shown in Table 1 statistically significant relationship has been found among variables at 0.01
levels. Correlation value between customer satisfaction and customer complaint handling is
0.959 which depicts that if customer complaints are handled effectively, customer satisfaction
can be enhanced. Previous work has shown that customer who encounter with service failure
and recovered effectively will be more satisfied than someone who did not meet with such
mistakes (recovery paradox). Statistically, high significance detected by this study supports the
above view. Correlation value between service quality and customer satisfaction is found to be
0.955 which shows that organization can enhance customer satisfaction through quality
service delivery.


 Hypothesis Testing

Hypothesis correlation index P –value Test result



 H1: There is positive relationship between services quality and customer satisfaction 0.955** 0.000 supported

 H2: Effective customer complaint handling will enhance customer satisfaction 0.959** 0.000 Supported

The results of the correlation analysis supported the hypothesis H1

and H2 proved that there is a positive relationship between “Service
quality and customer satisfaction”, ”Complaint handling system and
customer satisfaction.


 Services quality is one of the determinant factors of customer satisfaction.
Delivering outstanding services to the customer determines long run
performance of the organization. Customer service can be enhanced through
superior and valuable service features. There is positive and significant
relationship between services quality and customer satisfaction. However,
the finding of this study show high satisfaction trend of the customers with
regard to services quality of banks of Bahawalpur. Satisfactory customer
service delivery can be achieved if customer complaints are handled
appropriately.
 Previous work has shown positive relationship between customer
complaint handling and customer satisfaction. Customer complaint
dealing system of the banks of Bahawalpur is contributing highly
towards customer satisfaction. Well defined system is not in a place
to process customer complaints efficiently and effectively.
 The banks are highly recommended to examine determinants of
customer satisfaction within its every day services delivery. In this
regard Organization must ensure the possession of all the banking
services expected from world class banks. Managers must ensure
that customer complaints are addressed with top most priority and
Create organizational position that recognizes complaints as
opportunities to encourage customer complaints and deal
accordingly.
 The following limitations affected the finding of
this study.
 Since sample size is very limited, it is not large enough to
represent entire users of the service.