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Customer Satisfaction in saving and credit

cooperative in Kathmandu valley

By

Pratik Nath Panta

A project work report submitted to Pokhara University in partial fulfilment


of the

Requirements for the degree of

Bachelor in Business Administration – Banking and Insurances (BBA-


BI)

At the

APEX COLLEGE

Pokhara University

Mid-Baneshwor, Kathmandu

June, 2016
Declaration

I hereby declare that Project Report entitled “Customer Satisfaction in saving and
creditcooperative in Kathmandu valley” submitted for the BBA-BI is my original work
and the project work has not formed the basis for award of any degree, diploma, or
other similar titles.

……………….

Signature

Pratik NathPanta

June, 2016
CERTIFICATE

This is to certify that the project work titled “Customer Satisfaction in saving and
creditcooperative in Kathmandu valley” submittedby Pratik NathPanta (14450263) for
the partial fulfillment of the requirement of BBA-BI embodies the bonafide work done by
him under my supervision.

Signature of the Supervisor

Name:

Date:

Name and Signature:

In-charge Of Research or PW:

Date:
Acknowledgement
I would like to express my very great gratitude to my supervisor DR.Gangaram B.K for his
advice, motivation and moral support while writing this research report. Advice given by
him was really important for me to complete this research report successfully.

I would also like to offer my great thanks to Mr. Surrendra Mahato for his time and
valuable information for the completion of my report.

Last but not least, I would also like to express my very great gratitude to my beloved
family, friends and the respondents who support, motivate and directly indirectly
contributed in completing this thesis.
Table of Contents
Chapter 1 .......................................................................................................................................... 0
Introduction .................................................................................................................................. 1
Problem statement........................................................................................................................ 2
Research Question ....................................................................................................................... 2
Research objective ....................................................................................................................... 3
Conceptual framework ................................................................................................................. 4
Literature review .......................................................................................................................... 5
Research Methodology .............................................................................................................. 16
Limitation of the study: .............................................................................................................. 17
Chapter 2 ........................................................................................................................................ 18
Data Presentation and Analysis ................................................................................................. 18
2.1 Reliability Statistics ............................................................................................................. 18
2.2 Demographic Profile of the Respondents ............................................................................ 18
2.2.1 Gender ........................................................................................................................... 18
2.2.2 Age ................................................................................................................................ 20
2.2.3 Education Level of the Respondent .............................................................................. 21
2.2.4 Deposit Interest Rate Lead To My Satisfaction ............................................................ 22
2.2.5 Interest on loan is proper and effectively determined ................................................... 23
2.2.6 I Am Satisfied With Interest Rate Provided By This Cooperative ............................... 24
2.2.7 There Are Variety Of Saving Option In This Cooperative Leading To My Satisfaction
............................................................................................................................................... 25
2.2.8 Location Was A Factor For Choosing This Cooperative For Transaction ................. 26
2.2.9 Location as A Factor For Performance Of The Work Effectively And Efficiently ...... 27
2.2.10 employee behavior and treatment is fair in this organization ..................................... 28
2.2.11 Employee present themselves with a problem solving attitude .................................. 29
2.2.12 Employee are helpful and cooperative towards the customers ................................... 30
2.2.13 I feel loan procedure of the cooperative is fair and proper ......................................... 31
2.2.14 I feel loan procedure of the cooperative is fair and proper ......................................... 32
2.2.15 I feel loan procedure of the cooperative is fair and proper ......................................... 33
2.2.16 The loan issue procedure is fast and reliable .............................................................. 34
2.2.17 i am satisfied with this cooperative as a whole ........................................................... 35
2.3 Descriptive Statistics ............................................................................................................ 36
2.3.1 Descriptive analysis of interest rate .............................................................................. 36
2.3.2 Descriptive analysis of saving option ........................................................................... 36
2.3.3 Descriptive analysis of location .................................................................................... 37
2.3.4 Descriptive analysis of employee ................................................................................. 37
2.3.5 Descriptive analysis of loan term .................................................................................. 38
2.3.6 Descriptive analysis of satisfaction ............................................................................... 38
2.4 Correlations .......................................................................................................................... 39
2.5 Hypothesis testing- results ................................................................................................... 40
2.6 Regression analysis .............................................................................................................. 41
2.6.1 Model summary ............................................................................................................ 41
2.6.2 ANOVAb ....................................................................................................................... 41
2.6.3 Coefficients ................................................................................................................... 41
Major Findings ........................................................................................................................... 42
CHAPTER 3 .................................................................................................................................. 44
3.1 SUMMARY AND CONCLUSION..................................................................................... 44
3.1.1Summary of the Findings ............................................................................................... 44
3.1.2 Conclusion .................................................................................................................... 45
Bibliography .................................................................................................................................. 46
Appendiix....................................................................................................................................... 47
Chapter 1
Introduction

Consumer or customer is the most important person in any organization. a consumer is


not dependent on the business but the business is dependent on the consumer or
customer. In that sense a consumer or customer satisfaction is one of the most important
aspect in the organization development. Consumer satisfaction is the supreme aim in the
modern business world. Success and failure of the whole organization depends on the
level of the consumer satisfaction. if the customers are treated well or if their needs are
met they become well satisfied towards the organization and if not they are not satisfied
and this becomes the base for the upliftment or downfall of the organization as a whole.

A co-operative is an autonomous body of people united voluntarily to meet their common


economic, social and cultural needs and aspiration by jointly working for betterment and
development of each member. This organization works with the main motto of “one for
all and all for one”.

A cooperative is a non profit motive community organization and businesses that are
owned and managed by the people who use their services, get involved in there, live there
or bet some benefit from there. So cooperative can be defined as a joint ownership of
people engaging in the production or distribution of goods or the supplying of services,
operated by its members for their mutual benefit. It is typically organized by consumers
and farmers and are more economic resilient than many other enterprise. Co-operatives
are based on the values of self-help, self-responsibility, democracy,
equality, equity and solidarity. In the tradition of their founders, co-operative members
believe in the ethical values of honesty, openness, social responsibility and caring for
others.

A saving and credit cooperative is financial cooperative democratically controlled by its


members and operated for the purpose of promoting thrift , providing credit at
competitive rates and providing other financial services to its members .in Nepal the
development of cooperative seems to have a long and detailed history.

In case of Nepal cooperative started from dhukati , parma , karma vakari and guthi for
small community development and now it is integrated in the social and economical
developmental for both rural and urban areas . with the intention of further development
and upgratement cooperative department was established under the agricultural ministry

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in 2010.later his majesty king Mahendra propounded and presented the provisions for
management and operation of the cooperative institutions in 2013.under that very
provision 5 individual cooperative were established in chitwan in chaitra 20, 2013

Problem statement

As stated earlier, the number of cooperative in Nepal is increasing. They are not
expanding only in their number but also in activities and services. On the other hand due
to limitation by provisions, laws rules and services often the customer feels neglected or
indifferent by the organization. Though some of the customers are satisfied and well
treated most are often below the unsatisfactory level. Customers being the life blood of
any organization every individual organization try to satisfy and fulfill the need and want
of the customer to help them be satisfied and content. .under the prevalence of this
situation, the major problem identified regarding the cooperative (saving and credit
cooperative) are:

1. What is the level of customer satisfaction in the different cooperatives?

2. What are the factors that lead to customer satisfaction?

3. What are the ways of improving customer satisfaction in any cooperative


organization?

Research Question

Is there any relation between customer satisfaction and appearance of the employee in the
organization?

 Is there any relation between customer satisfaction and interest rate defined by the
organization?

 Is there any relation between customer satisfaction and location of the


organization?

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 Is there any relation between customer satisfaction and behavior of the employees
in the organization?

 What are the ways or steps taken by the organization to satisfy the consumer?

 What is the timeframe in payment of the loan?

Research objective

This study aims to assess the cooperatives performance in terms of customer satisfaction.
However, the functional objectives of the study are:

 To find out the comparative level of satisfaction and dissatisfaction of customers


in the saving and credit cooperatives.

 To investigate the level of satisfaction in the cooperative sector form location of


the organization

 To investigate the interest rate in the cooperative and its impact in customer in
satisfaction

 To suggest ways to improve the level of satisfaction among the customers

 To investigate the impact of timeframe in customer satisfaction.

Hypothesis presented .

H01: there is no significant relation between Interest Rate and satisfaction level of
customer

H02: there is no significant relation between saving option and satisfaction level of
customer

H03: there is no significant relation between location and satisfaction level of customer

H04: there is no significant relation between employee behavior and satisfaction level of
customer

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H05: there is no significant relation between loan term and satisfaction level of customer

Conceptual framework

There are various studies done to determine the level of customer satisfaction and factors
affecting them. On the basis of these information and studies we can know that there
number of dependent and independent variable involved in the determination of
customers satisfaction. However of these various independent and dependent variables
we take in consideration only few or major ones due to lack of time and resources to
analyze each and every one of them. Here, research will be conducted on the periphery of
saving and credit cooperative.

Interest rate

Saving options

Location Satisfaction

Employee behavior

Loan term

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Literature review
Ravi C. S and Kundan Basavaraj(2013) investigated the preference and satisfaction level
of customer towards loans , deposit schemes, insurance and value added services
rendered by private and public banks in shivamogga district . Business and vehicle loans
are fast moving than other services and overall satisfaction resulted at 50%. Further,
overall satisfaction on bank deposit schemes resulted positively well other service of
banking still need to be given attention by focusing on customer issues . New innovative
schemes, strategies to cater to non users other serviuces have to be adopted

The Co-operative Bank knows that success in the corporate banking sector isn’t a
mass marketing exercise as it may be in retail banking; it’s down to the quality of its
relationships with customers. The front cover of its company brochure does highlight
the phrase ‘good with money’, but your eye is drawn by the strap line ‘As One –
Success built on relationships’. According to Keith Alderson- Managing Director of
Corporate and Business Banking, “We treat our customers as individuals – we really
get to know them and their businesses. Our success comes from a clear commitment
to genuine, long lasting relationships.” To deliver on its ‘relationships’ promise, one
of the ways the bank invests in service and customer relationship, is by giving its
relationship managers a smaller client base and additional support staff to improve
their availability and the customer experience.

The co-operative society puts much of its success in recent years down to it’s
fanatical focus on customer service. The bank knows from its customer satisfaction
survey data that more satisfied customer are more likely to use more of the banks
products and are more likely to recommend- in fact 51% have recommended the
bank in the last year. In recent years the cooperative’s revenue and profit have grown
along with customer satisfaction. There have also been other business successes. For
example the bank maintained a strong and stable capital position and at a time when
many of its competitors have firmly closed the door to companies wanting borrow.
Over the last three years , its network has doubled and it has won numerious new
customers who were dissatisfied with their previous banks.

An exploratory study on measuring service quality and satisfaction has revealed that
perceived quality has a direct and positive impact on overall customer satisfaction. It has
also been made clear that the number and nature of underlying service quality
determinants are contingent both upon country- and business specific considerations. In
this context, and in order to identify the major determinants affecting customer
satisfaction deriving from service delivery in a large cooperative bank in Greece, the
present study attempts to develop a customized scale to measure service quality.
Accordingly, based on relevant research findings and the views of both the customers and
executives of the researched bank, a preliminary 38-item scale was developed and the

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corpus of data was collected from a sample comprised of this large cooperative bank’s
customers in Crete, Greece. The combination of exploratory and confirmatory factor
analysis, following a scale purification process, which resulted in a reduced 21-item
scale, has yielded seven determinants: Communication for Building up Trust, Personnel
Relationship, Quality-Price Relationship, Understanding and Consulting, Bank Set of
Values, Serviceability, and Educational Support. The results of regression analysis
indicated that customer satisfaction with the cooperative bank is mostly affected by: Bank
Set of Values, Quality-Price relationship, Understanding and Consulting, and
Communication for Building up Trust.

Service quality, the effective delivery of which has sometimes been disputed ((Voss,
2004)commonly has been viewed as an elusive and complicated construct. In terms of
(croft, 1991)), high quality service is generally defined as a constant process of predicting
and satisfying customers’ requirements and expectations. Oaklands in addition, states that
banking quality service implies the degree to which a specific type of service meets
customers’ expectations. Satisfaction is sometimes defined as an end-state resulting from
a consumer’s purchasing experience, which can either emerge as a cognitive reward or an
emotional response to an experience. Customer satisfaction has been investigated as a
‘perceptual, evaluative and psychological process’ taking place during service delivery .It
may derive from any dimension relevant or irrelevant to quality, and judgments may be
formed by no quality components; it also requires experience for its delivery Scholars
have identified customer- and situational-specific determinants that affect overall
satisfaction. In relation to high -quality confidence - related services such as those
provided in the context of banking, functional quality is emphasized as the most vital
driver for customer satisfaction .Service quality and overall satisfaction have been found
to be closely. The distinction and coherent relationship between service quality and
satisfaction has been a pivotal concern in marketing literature and in academic- as well as
practitioner-oriented relevant research. Although numerous empirical works have
concentrated on the causal order of the constructs at issue, there is little consensus as to
whether expectations for the delivery of a specific service directly affect satisfaction or
whether perceived quality is the main antecedent of satisfaction. Bahia et al. (2000)
suggest that in case of multidimensional, regularly-performed and high-contact services,
such as those delivered in banking settings, service quality is most likely to affect
satisfaction. Similarly, Papasolomou (2002) advocates that service quality in the banking
sector, viewed as a multivariate construct encompassing dimensions, such as
convenience, reliability, service portfolio and service personnel, has had a substantial
impact on customer satisfaction. Overall, researchers have emphasized that perceived
quality, assumed as an antecedent of customer satisfaction, has a direct and positive
impact on overall satisfaction

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S.Sivesan (2012) found the impact of the service quality on customer's satisfaction in
banking sectors. Service qualities are interrelated with customer satisfaction. Manager of
the bank or administrative body needs to identify the primary quality determinants,
clearly, managing the customer expectation, educating the knowledge to customer
regarding the service for improving the service quality of banking in the sector.

Quality Dimensions in Banking: A comprehensive literature review has revealed that


quality, on account of the rather intricate and elusive conceptualization it encompasses,
has often involved -inter alia measurement discrepancies). In this respect, no universal
scale standard, particularly in the banking sector, can ensure valid and reliable
measurement of perceived quality (Wang, et al. 2003). Overall, research has revealed
explicit country- and culture-specific discrepancies in banking services as regards quality
expectations, importance and perceptions. have investigated ethnicity-specific customer
expectations in the Canadian retail banking sector and identified several differentiating
components in retail banking service expectations, depending on ethnic group.
Additionally, Furrer, Liu, and Sudharshan (2002) emphasized that service quality
importance and perceptions are highly contingent upon customers’ values and beliefs,
which are culture-specific. Since the mid 90’s, research has been focused on various
quality determinants, among which the ten major determinants indicated by 58
Satisfaction with Cooperative Banking are considered more likely to generate high levels
of customer satisfaction in the banking sector of various countries. To provide a
comprehensive discussion of the potential quality determinants affecting satisfaction,
BANKSERV, a versatile instrument employed for measuring perceived service quality
delivered to Australian commercial banking customers, comprises four discriminating
factors (totalling 17 items), namely: 1. staff conduct; 2. Credibility; 3. Communication;
and 4. access to teller services. In addition, Bahia, investigated customer expectations and
perceptions and developed the Bank Service Quality (BSQ) measure. They applied an
exploratory factor analysis and identified six dimensions (totalling 31 items), that is, 1.
Effectiveness and assurance; 2 .access; 3. Price; 4. Tangibles ; 5. service portfolio; and
6. Reliability. by investigating quality in various British banks, employed principal
component factor analysis and developed SYSTRA-SQ, which measured customer
perceptions only; thus, they proposed four dimensions (totalling 21 items) : 1. service
system quality; 2. behavioral service quality; 3. machine service quality; and 4. service
transactional accuracy. Similarly, J) by using principal component extraction with an
orthogonal rotation measured only customer perceptions in various banks in the Arabian
Emirates that concluded in four dimensions (totalling 29 items): 1. personal skills; 2.
Reliability; 3. Image; and 4. Value. Multiple regression analysis results demonstrated
that, despite the fact that all four dimensions were indicative of determining quality in
conventional banks by emphasizing value and image, quality in Islamic banks was
determined only by personal skills and values. In addition, Athanassopoulos, Gounaris
and Stathakopoulos (2001) highlighted six country specific dimensions (totaling 25

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items) in Greece: 1. employee competence to deliver bank services; 2. bank reliability; 3.
product innovation; 4. Pricing; 5. physical evidence of the delivered services; and 6.
consumers’ convenience provided by the bank network. Finally, the research conducted
by Mihelis, Grigoroudis, Siskos, Politis and Malandrakis (2000), which involves
measuring satisfaction in private banking in Greece, was based on the assumption that
customer satisfaction represents a modern approach for quality based on the preference
disaggregation model MUSA, and identified five dimensions (totalling 23 items): 1. bank
personnel; 2. bank products; 3 bank image; 4. service delivery; and 5. access. In
conclusion, the various research efforts made in industry-specific contexts with a view to
identifying quality determinants have demonstrated that service quality may be
determined by the individual or aggregate perceptions of (1) the technical and functional
quality of an organization, (2) service products, service delivery, and service
environment, (3) reliability, response, empathy, safety and physical evidence associated
with service delivery, and (4) image, value, pricing and social responsibility.

DR. snehalkumar H| mistry (2013) focused on the factors that are affecting customer
satisfaction in banks and analyze their effects. It is revealed that customer satisfaction is
the key for many banks and cooperatives to survive competition. Customer gives third
preference to assurance factors, it include criteria like safety of transaction consisting in
service etc. so , banks and cooperative weather they are private sector of public sector
they should give more focus on increasing reliability, responsiveness and assurance. For
that they can give training to their employee who will help them to give personalize
service.

A comparative study on customers perception on service quality in cooperative and


nationalized banking sector. Suggested that financial system is the most important
institutional and functional vehicle for the economic transformation in the country.
Banking sector is reckoned as the hub and barometer of the financial system. As a pillar
of the economy, this sector plays a predominant role in the economic development of the
country. The banking sector is considered as growth facilitator. In recent years, the
banking industry around the world has been undergoing a rapid transformation. As India
is moving towards a service economy marketers require knowing more about marketing
service product. Service has increasingly assumed a vital position in the Indian Economy.
There is a prospective market for services and increasing supremacy of services in
economies contribution of service sector have drawn growing attention to the issues of
the service sector. Quality has been recognized as a strategic tool for attaining efficiency
and improved business performance. This paper includes the review of literature on
service quality and behaviour intension and discussed in relation to each of the research
question. The paper concludes with a summary and description of implication of the
findings. The research has examined the customer service in banking sector in this paper
under three major headings, viz.,pre sale service , product features, office services,

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Behavioural Response, post sale services and with regard to satisfaction on service
quality on people, physical evidence and processes. Keywords: service quality, product
features, office services, behavioural intension, post sale services Customer Satisfaction
Customer is the backbone of a business. He is also a core component of a business.
Mahathma Gandhi aptly stressed the significance of the customer in a business.
According to him “ A customer is the most important visitor on our premises. He is not
depended on us, we are dependent on him. He is not an interruption to our work. He is
the purpose of it. He is not an outsider on our business. He is a part of it. We are not
doing him a favour by serving him. He is doing us favour by giving an opportunity to do
so” This is a strong indication that a business cannot survive without customers and a
well built customer base. The extension of proper consideration to the customers with
care and affection thus becomes a pre requisite for the survival and success of a business.
The banking sector, one of the major service sector components is not an exception to
this. The customer is the prime mover of banking activities. In the global competition,
one of the biggest challenges for banks is to meet the rising customer needs and
expectations. The needs and requirements of 18 Journal of Management and Science says
customers are varied, complicated and dynamic in nature and are very hard to satisfy.
What is deemed good today may become obsolete in days to come. The task of attracting,
winning and retaining profitable customers is a complicated and tiresome affair to
achieve. However, banks should exercise vigilance to identify the changing needs of the
customer and monitor his moves and reactions towards the actions taken by the banks for
pleasing him. The customers today are very hard to please, because they have some
peculiarities and uniqueness. Their likes and dislikes are not alike. They are smart in
nature. They are price and time conscious. They demand more and never tolerate lapses.
They want all the services under one roof. They hate to deal with complicated
procedures. The lists of their satisfaction are changing day by day. Thus, today
performing banking business is becoming a challenging affair. To register a win in this
situation banks should possess a mind and a broad mechanism to gauge the changing
needs and aspirations of the customers. Moreover they should be more liberal
incorporating changes and novelties in the service portfolio offered by them to please and
retain the customers. “Once good service is extended to customer a loyal customer will
work as an Ambassador to the bank and facilitate the growth of business”. Customer
satisfaction is the buzz word of marketing. According to Oliver(1980) Customer
satisfaction is a summary psychological state when the emotions surrounding
disconfirmed expectations are coupled with the consumers prior feelings about
consumption experience‟. Kotler (2006) also expresses that satisfaction is a person‟s
feelings of pleasure or disappointment resulting from comparing a product‟s perceived
performance in relation to his or her expectation. Howard and Sheth (1969) defined
customer satisfaction as „the buyer‟s cognitive sate of being adequately or inadequately
rewarded for the sacrifices he has undergone‟. Customer satisfaction results when

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customers confirm their pre –purchase expectations for a purchased service or positively
disconfirm their expectations regarding purchased services, resulting in some level of
post purchase affect toward the experience . DR.A.H. Sequeira(2012) made an attempt to
address the issues related to customer satisfaction and quickness of transaction in co-
operative banks . It is clear from the results that the customer services are reasonably
satisfactory

A report of customer satisfaction in urban cooperative banks displayed the urban


cooperative banking movement in India can be traced to the close of nineteenth century
when, inspired by the success of the experiments related to the cooperative movement in
Britain and the cooperative credit movement in Germany such societies were set up in
India. From its origins then to today, the thrust of UCBs, historically, has been to
mobilize savings from the middle and low income urban groups and purvey credit to their
members - many of which belonged to weaker sections.So, the application of the
knowledge of customer satisfaction is imperative to establishing and maintaining a long-
term relationship with customers and long-term competitiveness. In this context, for the
better performance and growth of UCBs, it has become very essential to give proper
weight age to the opinions of customers of these banks and at the same time to measure
and monitor the customer satisfaction continuously. In the present paper an attempt has
been made to identify factors (as perceived by customers) which are expected to be
dictating and determining the service quality performance of Urban Cooperative Banks of
Punjab, Haryana and Himachal Pradesh. Customer satisfaction has been considered the
essence of success in today’s highly competitive banking industry.) mentioned that the
customer is the king. Generally speaking, if the customers are satisfied with the provided
goods or services, the probability that they use the services again increases (East, 1997).
Also, satisfied customers will most probably talk enthusiastically about their buying or
the use of a particular service; this will lead to positive advertising (File and Prince, 1992;
Richens, 1983). On the other hand, dissatisfied customers will most probably switch to a
different brand; this will lead to negative advertising .The significance of satisfying and
keeping a customer in establishing strategies for a market and customer oriented
organization cannot be ignored .Singh and Kaur (2011) determined the factors that have
an impact on customer satisfaction as regards the working of select Indian universal
banks. The study was conducted using the survey method. Data were collected through a
well-structured questionnaire from a sample of respondents. The major findings of the
study show that customer satisfaction is influenced by seven factors – employee
responsiveness, appearance of tangibles, social responsibility, services innovation,
positive word-of-mouth, competence, and reliability. The results of multiple regressions
showed that three variables: social responsibility, positive word-of-mouth, and reliability
have major influences on the overall satisfaction of the customer. Ganguli studied the
factors affecting customer satisfaction in the Indian retail banking sector. Online
structured questionnaire developed to determine the factors for customer satisfaction was

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distributed among the respondents. The dimensions were identified using a factor
analysis. Next the reliability and validity of the factors for customer satisfaction were
established. The paper identifies four generic dimensions in the technology-based
banking services – customer service, technology security and information quality,
technology convenience, and technology usage easiness and reliability. It was found that
customer service and technology usage easiness and reliability have positive and
significant impact on customer satisfaction.

This genuine customer service spirit is one of the main factors behind The
Cooperative Bank’s success in improving customer satisfaction, but it’s not always
enough. Sometimes companies make improvements but customers don’t notice. They
have their own agendas, priorities, busy lives and work pressures. Moreover, human
beings have an unfortunate habit of taking good service for granted but noticing and
remembering all the things that didn’t go quite right. The Co-operative Bank
addresses this risk by providing extensive feedback to customers about the customer
survey, its results and the actions they are taking in the light of what customers have
told them.

Customer communications start with a letter before the start of the survey and a
thank-you letter from Keith Alderson after they have taken part which also outlines
the key results. This is followed by a four page feedback leaflet that provides a
detailed account of the survey results and, importantly, the actions that Corporate
Banking is taking as a consequence of the survey. The results and actions are also
published on the Corporate Banking website and in its customer magazine, ‘Insight’.
A very effective measure is Relationship Managers’ use of the printed leaflet in face-
to-face meetings with existing and potential clients or at networking events.

This brings us back to where we started. The extensive feedback on how Corporate
Banking listens to its customers and acts on what it hears helps to reinforce the
relationship between the bank and its customers. It nurtures the like-mindedness, the
feeling that the relationship isn’t just based on a series of transactions (albeit
delivered efficiently and with friendly service) but on a bigger strategic picture that
all are working towards that enhances the long term interests of the bank, its
customers and society as a whole.

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With this type of customer focused culture, you would expect the bank to monitor its
customers’ satisfaction. It’s done this for quite a few years, the last three of which
have been with The Leadership Factor. The survey is annual since customer bases in
corporate banking are quite small and the bank has promised that no-one will be
asked to participate in the survey more often than once every 18 months. Contacts
are interviewed by telephone, providing a rich vein of customer comments for
detailed insight as well as statistical tracking of performance. In keeping with the
bank’s customer focused mission, Anita Kielty from the Business Management team,
is keen to emphasise that “The survey is not just a tick box exercise– it’s a real tool
to help us fully understand how customers feel about their relationship with The Co -
operative Bank. In the corporate banking market, the level of service plus the depth
and quality of relationships with customers are the main differentiators”.

The customer experience through the customers’ eyes

Anita is conscious that a good customer experience has to be defined and monitored
through the customers’ eyes, not based on what the company thinks is good customer
service. Consequently, The Cooperative Bank began its Customer Survey
Measurement programme with The Leadership Factor by conducting exploratory
research (based on face-to-face in-depth interviews with a representative sample of
customers) to thoroughly understand what factors were most important to them in
their relationship with their corporate banker. The exploratory research confirmed
the bank’s belief that at the forefront of customers’ priorities was the expectation that
the bank would:

 Treat them as valued customers


 Keep them well informed
 Make a real effort to understand their business
 Be genuinely interested in their custom.

There’s no denying that The Co-operative Bank’s strong emphasis on customer


relationships has enabled it to achieve very high levels of customer satisfaction and
loyalty. The bank has improved its customer satisfaction index every year over the
last few years and is now well up in the top quartile of The Leadership Factor’s very
large database of organisations’ customer satisfaction performance. Other highlights
include the fact that 88% of customers feel they are treated fairly by the bank, 91%

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find it easy to contact their Relationship Manager and 84% would definitely use the
bank for any future banking requirements. Moreover, The Co-operative Bank as a
whole (including Retail Banking) is consistently near the top of all key measures
(customer satisfaction, complaint handling and net promoter score) on the UKCSI.

Internal communications

In Corporate Banking Division, the results of the customer satisfaction survey are
eagerly awaited and widely communicated internally. As soon as the results are
available they are presented to the leadership team plus managers of all departments
and teams, regional managers and staff representatives across all touch points of the
customer experience. Following this, Keith Alderson sends a short message with
high level results to the whole business, but as far as the detail is concerned,
corporate banking has an excellent system to ensure that the details from the survey
are cascaded to all staff who are involved with corporate customers, with Chris
Wilson, Head of Real Estate and Public Sector Development and Richard France,
Head of Corporate Relationship Banking presenting findings to their regional teams
and ensuring robust action plans are in place addressing the areas of concern raised
via the survey. Customer satisfaction is a regular agenda item for the monthly
manager meetings with both corporate staff and support areas. To ensure key
messages are delivered consistently, every member of the 12,000 staff in CFS
receives a monthly face to face briefing which cascades through the organisation,
starting with Neville Richardson CEO presenting it to his leadership team. Customer
Satisfaction is a key component of this briefing known as “The Understanding”.

Within Corporate Banking dissemination of the survey results is extensive. Anita and
her colleagues provide full details of the customer satisfaction survey results to all
relevant customer facing teams. As well as results for the Regional Managers, the
bank can drill right down to scores and customers’ comments for each indi vidual
Relationship Manager (unless the respondent opts for anonymity). This rich stream
of information enables all teams and each RM to absorb precise and relevant
customer insight. Based on this they all develop their own action plans, sometimes in
consultation with their customers to make sure they’re on the right tracks. And that’s

13
another reason for Corporate Banking’s success. They don’t just make what they
think are improvements, they make what the customer says are improvements!

Taking action

The action plans leave few stones unturned. The Co-operative Bank’s success isn’t
based on a few high profile companywide initiatives - improving customer
satisfaction rarely is. It’s based on myriad small changes at team or individual RM
level that are highly targeted on what specific customers want. For example, the
bank’s Queries Team simplified some forms to make them easier for customers to
complete. Another team improved its ability to keep customers informed by finding
out exactly when and how they wanted to be updated and then making sure that all
customers received precisely the communications they wanted when they expected
them. One RM learned that he was going too many extra miles for customers, giving
great personal service but doing too much himself with adverse impact on his
availability to other customers. He improved customer satisfaction by delegating
more to the Customer Support teams.

In Customer Support actions have included the introduction of new technology to


allow call recording and more checks on calls. This has led to more one-to-ones, but
with a new twist where instead of the advisor listening whilst the manager gives
feedback on the call, the advisor reviews it and outlines to their manager what they
see as the good points and the areas for improvement. Then the manager comments
and offers help if needed, but often it’s not necessary because the advisors
themselves know exactly how a call could have been improved. The customer survey
results also feed into staff training programmes for new and existing employees.
Based on customer feedback new or amended training modules have covered
answering the phone, handling queries, keeping customers informed and delivering
on promises.

A further example of the bank’s commitment to improve the customer experience is


that they have invested millions of pounds developing their new internet banking
platform for business users. They launched the new electronic banking service in
2010 and are gradually rolling out the upgraded internet based version of Financial
Director.

14
Internal benchmarking

Every month Anita and her colleagues follow up all the action plans. This isn’t a big
stick exercise. The culture is so customer focused that people don’t need monitoring
to implement their action plans. It’s more about sharing information because once
Anita’s up to date, she can update progress on the intranet so that everyone can see
what other teams are doing to improve customer satisfaction. This great cross -
communication is further enhanced by joint customer service workshops across the
front line and support teams.

Maximising the benefits of internal benchmarking in this way is another key


ingredient in Corporate Banking’s success. Following each survey, The Leadership
Factor uploads the results onto a secure interactive web reporting site which team
members can access with passwords. They can compare results across regional
teams, Relationship Managers etc, learning from the teams or individual RMs that
have the highest customer satisfaction for each question but the internal
benchmarking extends beyond Corporate Banking.

Customer service culture

Other businesses within Co-operative Financial Services are very interested in


Corporate Banking’s customer satisfaction activities, so in addition to The
Understanding, the survey results are published in the in-house magazine, ‘The
Know’, as are other customer service features.

For example, the December 2010 issue showcased Co-operative Financial Services’
efforts for National Customer Service Week, including visits to call centres by
colleagues from across the business under ‘The Exchange’ scheme, designed to
foster mutual understanding across different teams. There were also training
sessions, competitions and even fancy dress to get everyone into the customer
service spirit.

15
Research Methodology

Research methodology is simply the study to analyze relation between various variables
and elements. Here in this research we have dependent element as satisfaction and
various independent elements like time, location, interest rate, and flexibility. There is a
dependent factor or element ie. Customer satisfaction.

Primary data collection:

Primary method of data collection is the method in which the information is collected
first hand from the environment or research area. Here, interview and questioner method
is used to collect the data.

Sampling

The study is primarily based on the primary data. A sample of questionnaire is prepared
and administered to respondents.

Interview

Some of the respondents were interviewed to gain proper prospects of the survey.

Data Collection Instrument

Researchers develop a set of questionnaire regarding the description of the respondent,


phenomena of the respondent and collect the data through the questionnaire. There are
basically 3major question related to demographic component. Remaining 16 question is
related the respondent view for independent factor affecting the dependant variable.

Data Analysis

Data will be analyzed by using relevant charts and graphs by using the SPSS software.

16
Limitation of the study:

For the completion of the project there are certain factors that must be considered. These
factors and aspects are considered as limitation of this report. Some of these limitations
of here are as follows.

 This study is based on the willingness of the customers to provide the necessary
Information. So is dependent on their feel and desire to share and give
information.

 The information and data in completion of this report are limited by time and
resources.

 Only 7-8 institutions have been samples and analyzed.

17
Chapter 2

Data Presentation and Analysis

2.1 Reliability Statistics

Reliability Statistics

Cronbach's Alpha N of Items


.836 21

The reliability analysis shows that there is the reliability of the research as per Cronbach's
Alpha 0.836 for overall latent item .in simple words the research is 83.5% reliable.
Therefore it plots that the overall quantities based data and output are relevant and
reliable.

2.2 Demographic Profile of the Respondents


2.2.1 Gender

Gender Frequency Percent Cumulative


Percent
Male 14 46.7 46.7
Female 16 53.3 100.0
Total 30 100.0

18
The given bar graph reveals that out of the total respondents selected as sample for the
survey, 46.7% are male and 53.3% are female.

19
2.2.2 Age
Particular Frequency Percent Cumulative Percent
below 25 3 10.0 10.0
25-35 10 33.3 43.3
36-45 10 33.3 76.7
46 and above 7 23.3 100.0
Total 30 100.0

The given table and graph represents the age group of the respondents, which reveals that
10% of the respondents belongs to below 25 age group, 33% belongs to 25-35 age group,
33% belongs to 36-45 age group and the rest 23.3% belongs to above 46 years. Overall
the samples are found to be concentrated to the age group 25-45.

20
2.2.3 Education Level of the Respondent

Education level Frequency Percent Cumulative Percent


Masters 9 30.0 30.0
Bachelors 11 36.7 66.7
high school 10 33.3 100.0
Total 30 100.0

The bar shows education level, which reveals that 30% of them are master graduates,
36.7% bachelor graduates and 33.3% high school graduates.

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2.2.4 Deposit Interest Rate Lead To My Satisfaction

Dimension Frequency Percent Cumulative Percent


strongly agree 11 36.7 36.7
Agree 5 16.7 53.3
Neutral 3 10.0 63.3
Disagree 2 6.7 70.0
strongly disagree 9 30.0 100.0
Total 30 100.0

Using liker scale, the given bar and graph clearly presents forward the view of people regarding
deposit rate. Here, 36.7% people agree the reason for their satisfaction to be rate of interest in
deposit .similarly, 16% people and 10% agree and are neutral to the issue. Of the total people
only 6% disagree and 30% strongly disagree to the factor’s role for satisfaction.

22
2.2.5 Interest on loan is proper and effectively determined

Dimension Frequency Percent Cumulative Percent


strongly agree 4 13.3 13.3
Agree 5 16.7 30.0
Neutral 4 13.3 43.3
Disagree 10 33.3 76.7
strongly disagree 7 23.3 100.0
Total 30 100.0

The bar graph represents people’s perception regarding the determination of the loan. Most
people believe that the loan rate is just made up or not effectively determined. It comprises of
33.3% people disagreeing to loan rate effectiveness. This is slightly lower in 23.3% people
strongly disagreeing to it. Similarly 13% people strongly agree, 16.7% agree and 13.33% are
neutral about it.

23
2.2.6 I Am Satisfied With Interest Rate Provided By This Cooperative

Dimension Frequency Percent Cumulative


Percent
strongly agree 2 6.7 6.7
Agree 4 13.3 20.0
Neutral 4 13.3 33.3
Disagree 13 43.3 76.7
strongly disagree 7 23.3 100.0
Total 30 100.0

The above table and figure show satisfaction level of people with interest provided by the
cooperatives. Here we can see that maximum people are dissatisfied with interest rate provide by
the cooperative. It shows 43.3% people disagreeing and 23.3% strongly disagreeing with interest
rate, only 6.7% are strongly satisfied and 13.3% are satisfied with the interest rate. remaining 13.3
% people are neutral about it.

24
2.2.7 There Are Variety Of Saving Option In This Cooperative Leading To My
Satisfaction

Dimension Frequency Percent Cumulative


Percent
strongly agree 7 23.3 23.3
Agree 6 20.0 43.3
Neutral 10 33.3 76.7
Disagree 4 13.3 90.0
strongly disagree 3 10.0 100.0
Total 30 100.0

The above table and figure show variety of saving option that lead to the satisfaction of a
customer. About 33.33% people are neutral about this. Second range with 23.3% people strongly
agrees that saving options lead to their satisfaction. 20% and 13% people agree and disagree
about the topic and only 10% customer strongly with it.

25
2.2.8 Location Was A Factor For Choosing This Cooperative For Transaction

Dimension Frequency Percent Cumulative


Percent
strongly agree 18 60.0 60.0
Agree 3 10.0 70.0
Neutral 3 10.0 80.0
Disagree 1 3.3 83.3
strongly disagree 5 16.7 100.0
Total 30 100.0

using the likert scale, the graph represents the respondent view of location as a factor for
choosing this cooperative for transaction which reveals that 16.7% people strongly
disagree to the fact, 34.1% disagree, 26.8% neutral, 26.4% agree and 9.8% are strongly
agree to the fact.

26
2.2.9 Location as A Factor For Performance Of The Work Effectively And
Efficiently

Dimension Frequency Percent Cumulative


Percent
strongly agree 6 20.0 20.0
Agree 11 36.7 56.7
Neutral 3 10.0 66.7
Disagree 6 20.0 86.7
strongly disagree 4 13.3 100.0
Total 30 100.0

using the liker scale, the graph represents the respondent view of location as a factor for
performance of the work effectively and efficiently which reveals that 13.3% people
strongly disagree to the fact, 20% disagree, 10% neutral, 36.7% agree and 20% strongly
agree to the fact.

27
2.2.10 employee behavior and treatment is fair in this organization

Dimension Frequency Percent Cumulative


Percent
strongly agree 11 36.7 36.7
Agree 12 40.0 76.7
Neutral 2 6.7 83.3
Disagree 4 13.3 96.7
strongly disagree 1 3.3 100.0
Total 30 100.0

Using the liker scale, the graph represents the respondent view about employee behavior
and treatment is fair in this organization which reveals that 3.3% people strongly disagree
to the fact, 13.3% disagree, 6.7% neutral, 40% agree and 36.7% strongly agree to the fact.

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2.2.11 Employee present themselves with a problem solving attitude

Dimension Frequency Percent Cumulative


Percent
strongly agree 3 10.0 10.0
Agree 14 46.7 56.7
Neutral 7 23.3 80.0
Disagree 3 10.0 90.0
strongly disagree 3 10.0 100.0
Total 30 100.0

using the liker scale, the graph represents the respondent view of Employee presentation
of themselves with a problem solving attitude which reveals that 10% people strongly
disagree to the fact, 10% disagree, 23.3% neutral 46.7% agree and 10% strongly agree to
the fact.

29
2.2.12 Employee are helpful and cooperative towards the customers

Dimension Frequency Percent Cumulative


Percent
strongly agree 8 26.7 26.7
Agree 9 30.0 56.7
Neutral 7 23.3 80.0
Disagree 4 13.3 93.3
strongly disagree 2 6.7 100.0
Total 30 100.0

using the liker scale, the graph represents the respondent view of Employee presentation
of themselves with a problem solving attitude which reveals that 10% people strongly
disagree to the fact, 10% disagree, 23.3% neutral 46.7% agree and 10% strongly agree to
the fact.

30
2.2.13 I feel loan procedure of the cooperative is fair and proper

Dimension Frequency Percent Cumulative


Percent
strongly agree 8 26.7 26.7
Agree 6 20.0 46.7
Neutral 1 3.3 50.0
Disagree 10 33.3 83.3
strongly disagree 5 16.7 100.0
Total 30 100.0

using the liker scale, the graph represents the respondent view of Employee presentation
of themselves with a problem solving attitude which reveals that 10% people strongly
disagree to the fact, 10% disagree, 23.3% neutral 46.7% agree and 10% strongly agree to
the fact.

31
2.2.14 I feel loan procedure of the cooperative is fair and proper

Dimension Frequency Percent Cumulative


Percent
strongly agree 3 10.0 10.0
Agree 4 13.3 23.3
Neutral 2 6.7 30.0
Disagree 16 53.3 83.3
strongly disagree 5 16.7 100.0
Total 30 100.0

Using the liker scale, the graph represents the respondent view of how they feel about
loan procedure which reveals that 16.7% people strongly disagree to the fact, 57%
disagree, 6.7% neutral, 13.3% agree and 10% strongly agree to the fact.

32
2.2.15 I feel loan procedure of the cooperative is fair and proper

Dimension Frequency Percent Cumulative


Percent
strongly agree 5 16.7 16.7
Agree 8 26.7 43.3
Neutral 6 20.0 63.3
Disagree 7 23.3 86.7
strongly disagree 4 13.3 100.0
Total 30 100.0

using the liker scale, the graph represents the respondent feelings towards loan procedure
of the cooperative being fair and proper which reveals that 13.3% people strongly
disagree to the fact, 23.3% disagree, 20% neutral,26.7% agree and 16.7% strongly agree
to the fact.

33
2.2.16 The loan issue procedure is fast and reliable

Dimension Frequency Percent Cumulative


Percent
strongly agree 3 10.0 10.0
Agree 7 23.3 33.3
Neutral 8 26.7 60.0
Disagree 6 20.0 80.0
strongly disagree 6 20.0 100.0
Total 30 100.0

Using the liker scale, the graph represents the respondent feelings towards loan procedure
being fast and reliable which reveals that 20% people strongly disagree to the fact, 20.%
disagree, 26.7% neutral,23.3% agree and 10% strongly agree to the fact

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2.2.17 i am satisfied with this cooperative as a whole

Dimension Frequency Percent Cumulative


Percent
strongly agree 7 23.3 23.3
Agree 4 13.3 36.7
Neutral 6 20.0 56.7
Disagree 10 33.3 90.0
strongly disagree 3 10.0 100.0
Total 30 100.0

Using the liker scale, the graph represents the respondent towards the cooperative as a
whole which reveals that maximum people are unsatisfied. It constitutes of 33.3%, most
people are strongly satisfied with 23.3% proportion, some people are neutral with 20%
ratio, .13.3% people are just satisfied. And about 10%people are completely dissatisfied.

35
2.3 Descriptive Statistics

2.3.1 Descriptive analysis of interest rate

Particulars Mean Std. remarks


Deviation
Interest 3.26 1.035 Neutral
deposit interest rate lead to my satisfaction 2.77 1.716 Disagree
interest on loan is proper and effectively 3.37 1.377 Neutral
determined
I am satisfied with interest rate provided by this 3.63 1.189 Disagree
cooperative

In the given analysis the interest factor for the satisfaction of customer in cooperative is
presented. It shows that majority of the people are neutral about interest that affect the
satisfaction level. The highest mean level is 3.63 and lowest is 2.77 giving the average
3.26. This presents the idea that most people are neutral about the interest rate in the
organization.

2.3.2 Descriptive analysis of saving option

Particulars Mean Std. remarks


Deviation
Saving option 2.92 1.009 Neutral
There are variety of saving option in this 2.67 1.269 Neutral
cooperative leading to my satisfaction
There are variety of credit option in this 3.17 1.262 Neutral
cooperative leading to my satisfaction

In the given analysis the saving factor for the satisfaction of customer in cooperative is
presented. It shows that majority of the people are neutral about saving that affect the
satisfaction level. The highest mean level is 3.17 and lowest is 2.67 giving the

36
average2.92. This presents the idea that most people are neutral about the saving option
in the organization.

2.3.3 Descriptive analysis of location

Particulars Mean Std. Remarks


Deviation
Location 2.32 .973 Agree
location was a factor for choosing this 2.07 1.552 Agree
cooperative for transaction
Location of this cooperative has helped me to 2.20 .887 Agree
work effectively and efficiently
Location of this cooperative is suitable for all 2.70 1.368 Neutral
the customers

In the given analysis the location factor for the satisfaction of customer in cooperative is
presented. It shows that majority of the people agree about saving that affect the
satisfaction level. The highest mean level is 2.70 and lowest is 2.07 giving the
average2.32. This presents the idea that most people agree about the location for
satisfaction of the customer.

2.3.4 Descriptive analysis of employee

Particulars Mean Std. Remarks


Deviation
Employee behavior 2.38 .791 Agree
employee behavior and treatment is fair in this 2.07 1.143 Agree
organization
Employee present themselves with a problem 2.63 1.129 Neutral
solving attitude
Employee are helpful and cooperative towards 2.43 1.223 Agree
the customers

37
In the given analysis the employee factor for the satisfaction of customer in cooperative is
presented. It shows that majority of the people agree about employee that affect the
satisfaction level. The highest mean level is 2.63 and lowest is 2.07 giving the
average2.38. This presents the idea that most people agree about the employee behavior
for satisfaction of the customer.

2.3.5 Descriptive analysis of loan term

Particulars Mean Std. Remarks


Deviation
Loan term 3.13 .801 Neutral
I feel loan procedure of the cooperative is fair 2.93 1.530 Neutral
and proper
I am satisfied with loan procedure of this 3.53 1.224 Disagree
cooperative
The time frame for loan payment is suitable for 2.90 1.322 Neutral
me
The loan issue procedure is fast and reliable 3.17 1.289 Neutral

In the given analysis the loan term for the satisfaction of customer in cooperative is
presented. It shows that majority of the people are neutral about employee that affect the
satisfaction level. The highest mean level is 3.53 and lowest is 2.90 giving the average
3.13. This presents the idea that most people agree about the employee behavior for
satisfaction of the customer.

2.3.6 Descriptive analysis of satisfaction

Particulars Mean Std. Remark


Deviation s
i am satisfied with this cooperative as a whole 2.93 1.363 Neutral

In the given analysis most people are neutral about the cooperative’s level and state of
satisfaction.

38
2.4 Correlations
Correlations
Interest on saving and locati employee Satisfac
loan deposit on behavior tion
Interest Pearson 1 .016 .161 .285 .821**
on loan Correlation
Sig. (2-tailed) .935 .396 .127 .000
saving Pearson .016 1 .485** .437* .164
and Correlation
deposit Sig. (2-tailed) .935 .007 .016 .388
Location Pearson -.161 .485** 1 .498** .002
Correlation
Sig. (2-tailed) .396 .007 .005 .992
employee Pearson .285 .437* .498**
1 .299
behavior Correlation
Sig. (2-tailed) .127 .016 .005 .109
**
Satisfacti Pearson .821 .164 .002 .299 1
on Correlation
Sig. (2-tailed) .000 .388 .992 .109
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed). N = 30

The correlation coefficient between customer’s satisfaction and Interest on loan has
been found to be 0.821 which is positively correlated. It reveals that there is positive
correlation between them. The p-value is found to be 0.001 which is less than 0.05
(0.001< 0.01) which means that there is a significant relationship between Interest on
loan and customers’ satisfaction. Therefore, alternative hypothesis is accepted.

The correlation coefficient between customer’s satisfaction and saving and deposit
has been found to be 0.164 which is positively correlated. It shows there is positive
correlation between them. The p-value is found to be 0.388 which is more than
0.05(0.388>0.05).It means there is no significant relationship between customer’s
satisfaction and reliability. Therefore, null hypothesis is accepted.

39
The correlation coefficient between customer’s satisfaction and location has been
0.992 which is positively correlated. It explains that there is positive correlation
between customer’s satisfaction and location. The p-value is found to be 0.002 which
is less that 0.05 (0.002<0.01). It means there is significant relationship between
customer’s satisfaction and location Therefore, null hypothesis is accepted.

The correlation coefficient between customer’s satisfaction and employee behavior


has been found to be 0.299 which is positively correlated which reveals that there is
negative correlation between customer’s satisfaction and employee behavior. The p-
value is found to be 0.109 which is more then 0.05 (0.109>0.05). It means there is no
significant relationship between customer’s satisfaction and employee behavior
Therefore, null hypothesis is accepted.

2.5 Hypothesis testing- results

As per the analysis and study made above we conclude

H01: there is no significant relation between Interest Rate and satisfaction level of
customer

rejected

H02: there is no significant relation between saving option and satisfaction level of
customer

Accepted

H03: there is no significant relation between location and satisfaction level of customer

Accepted

H04: there is no significant relation between employee behavior and satisfaction level of
customer

Accepted

40
2.6 Regression analysis

2.6.1 Model summary


Model Summary
Model R R Square Adjusted Std. Error of the
R Square Estimate

dimension0 1 .468a 0.219 0.056 1.324


a. Predictors: (Constant), Loan term, Location, Saving, Employee, interest

The given table summarizes the model that R for the data or study research is 0.46% and R square
is 21.9. which means 46.8% of independent is explained by dependent variable. Here F is 1.34
and significance level is 0.01

2.6.2 ANOVAb
ANOVAb
Model Sum of df Mean Square F Sig.
Squares
1 Regression 11.792 5 2.358 1.345 .001a
Residual 42.074 24 1.753
Total 53.867 29
a. Predictors: (Constant), Loan term, Location, Saving, Employee, interest
b. Dependent Variable: i am satisfied with this cooperative as a whole
Loan term=Location= Saving= Employee= interest =0 (This means no linear
relationship between dependent and independent variables).

2.6.3 Coefficients
Coefficients
Model Unstandardized Standardized T Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) .134 1.209 .111 .912
Interest .250 .457 .190 .548 .589
Saving .193 .293 .143 .657 .517
Location .058 .334 .041 .173 .864
Employee .335 .409 .195 .821 .420
Loan term .242 .564 .142 .430 .671
a. Dependent Variable: satisfaction level

41
In the above table 2.17 the dependent variables are interest, saving location, employee
behavior and long term loan. And it explains that 25% affect is of interest on customer’s
satisfaction, 19.3% of saving options on customers satisfaction, 5.8% of location on
customer’s satisfaction ,33.5% of employee behavior on customers satisfaction and
24.2% is of loan term on customer’s satisfaction..

Since all factors are more than 0.05 level of significance all factors are significant.

Major Findings

A cooperative should focus on the customer’s satisfaction. Customer is the life of the
cooperative. Without proper customer loyalty and devotion in the cooperative the
cooperative will not satisfy. Here various factors that make a customer loyal to the
cooperative are taken in consideration; these factors are considered a reason for the
satisfaction. In other words, the research analyses various factors like location of the
cooperative, interest rate, saving option, loan term etc for satisfaction of the cooperative’s
customers. After analyzing the data we got major findings:

Demographic of the respondents

 After taking the survey of 30 customers as 100% shows the gender of respondent
where 46.7% are male 53.3% are female hence it shows majority of customers are
female.
 As per the age group of the respondents, 10% of the respondents belongs to below 25
age group, 33% belongs to 25-35 age group, 33% belongs to 36-45 age group and the
rest 23.3% belongs to above 46 years. Overall the samples are found to be
concentrated to the age group 25-45.
 The research also focused on the education level of the respondent, which reveals that
30% of them are master graduates, 36.7% bachelor graduates and 33.3% high school
graduates. Here we can see that most people are bachelors degree holders. And least
are masters degree holders

42
 After the analysis of customer satisfaction it is found that interest rate on saving and
deposit is very important for providing customer satisfaction. About 37.5 % of total feel
necessity of proper interest rate for customer satisfaction in a cooperative.
 Similarly saving option doesn’t plays a very important role for satisfaction of the
cooperative. It was found using liker scale 23.4% people feel the variety of saving
options importance for satisfaction
 Location of the cooperative is also found not so essential for customer satisfaction. The
survey revealed that 9.2 %.feel need of proper location of the cooperative this might be a
small proportion but is essential for providing satisfaction
 Employee behavior also have not much impact on satisfaction of the customer about
33.33% customer felt that employee behavior is a essential factor for satisfaction of the
customer.
 After making analysis of all the data by using data analysis tools such as Correlation,
Regression, Cronbach Alpha Reliability we got major outcome. The overall data shows
positive correlation, significance, reliability, ranking of prior independent variable for
customer’s satisfaction.
 Hence it is concluded that all the service factors loan term, interest etc are very essential
for increasing Customer Satisfaction basically on saving and credit cooperative in Nepal.

43
CHAPTER 3

3.1 SUMMARY AND CONCLUSION

Consumer or customer is the most important person in any organization. a consumer is


not dependent on the business but the business is dependent on the consumer or
customer. In that sense a consumer or customer satisfaction is one of the most important
aspect in the organization development. Consumer satisfaction is the supreme aim in the
modern business world. Success and failure of the whole organization depends on the
level of the consumer satisfaction. if the customers are treated well or if their needs are
met they become well satisfied towards the organization and if not they are not satisfied
and this becomes the base for the upliftment or downfall of the organization as a whole.

3.1.1Summary of the Findings

The research study made a clear description of the factors that affect the customer
satisfaction. There are various factors and elements that affect the satisfaction level of the
customer’s satisfaction. Some of these factors taken in consideration to to judge the
customers satisfactions were location, interest rate, employee behavior, saving options
and loan term.on the basis of these five dimensions customers satisfaction was evaluated.

Since the numbers of cooperative are increasing more in numbers day by day it is
essential to evaluate the satisfaction level of the customer from the service provided by
these cooperative. However, due to variety of cooperative’s we, have focused on the
saving and cooperative alone to evaluate the satisfaction level. This research was
conducted to know the relationship between customer satisfactions based on five
dimension of service offered. The literature review provided useful insights about the
relationship of service offered with customer satisfaction

Customer satisfaction has become important due to increase in competition. As, it is


considered very important factor in the survival of the cooperative. According to these
literatures, customer satisfaction with the proper service and satisfaction in customer will
led to higher level of operation and profit. A satisfied customer is six times more likely to
repurchase a product and share his experience with five or six other people further
unsatisfied customer can banish more business from organization then a highly satisfied
customer do i.e. higher customer satisfaction leads to increase loyalty. There is different
research, surveys conducted by different researcher on this matter. They have given
definitions; statement in this matter how ever gives the same outcome

44
The study was a survey that used structure questionnaire to the targeted population of
customer inside Kathmandu valley who were involved in the cooperative bisiness as a
customer. Out of 50 customers sampled 30 respondent responded to the questionnaire.
SPSS was used for finding out the result of data analysis. Based on the objective analysis
of data and discussion of result, the following are summary of major findings and
conclusion of the study.

 Analysis of all the data by using data analysis tools such as Correlation, Regression,
Cronbach Alpha Reliability we got positive outcome. The overall data shows the
variables are positively correlation this research was found to be 83% reliable.
 There is significant relationship among the variables as a whole. Cronbach alpha shows
the data are reliable hence, gives the positive outcome. Therefore, it is concluded that all
the service quality factorsemployee behavior,location etc are very essential for increasing
Customer Satisfaction basically on saving and credit cooperative in Nepal.

3.1.2 Conclusion

The study provided insight about the various dimensions and their association with
customer satisfaction. The study has come up with the finding that was quested through
research objectives. The relationship of customer satisfaction dimensions identified
(location ,interest rate, employee behavior, deposit rate,loan term) and are tested with
customer satisfaction.

From the analysis and findings, it is clear that all the factors of comfotability and easiness
are very essential for customer satisfaction. The analysis shows the relationship among
variables is significant as a whole i.e. there is positive relationship between various
dimension and customer satisfaction. So cooperative socitey should focus on increasing
service quality, proper location, interest rate that lead to increase in customer satisfaction
. Proper focus on these factors all can get economic benefit as well as social benefit
which can be very fruitful for increasing the sales in competitive market for the
cooperative asa whole. It is concluded that all the factors like location , deposit rate,
employee behavior etc are very essential for increasing Customer Satisfaction basically
on cooperative in Nepal

45
Bibliography
“Service Quality And Customer Satisfaction: A Case Study - Banking Sectors In Jaffna
District,Sri Lanka” International Journal of Marketing, Financial Services & Management (S.
Sivesan, 2012).

Measuring Customer (Dr. Snehalkumar H Mistr july 7 2013).

ACBG -Association of Cooperative Banks of Greece (febrary 2011).

Anderson, W. E. ((1994),). “A customer satisfactionn research prospectus.

Bahia and Nantel, B. ((2000)). in their research into a National Bank of Canada ,Montreal.
Canada ,Montreal.

co-operative.coop. (n.d.). Retrieved from report on article: http://www.co-


operative.coop/Corporate/sustainability-report-
2012/downloads/Delivering_value/DV_customers_section.pdf

Dr. A. H. Sequeira, “. E. (2012). Customer Services In Co- Operative Banks: A Case Study”,
science research network, research paper, . Retrieved from ssrn: http://ssrn.com

dr. balwinder singh, f. m. (2000). A report of customer satisfaction in urban cooperative banks.
punjab technical university.

Parasuraman, “. A. (1998). a qualitativeframe work for measuring satisfaction.

Ravi C.S, K. B. (January 2013.). “Customers Preference And Satisfaction Towards Banking
Services With Special Reference To Shivamogg District In Karnataka. Trans Asian Journal of
Marketing & Management Research Vol.2 Issue 1, .

-what you need to know about co-operative banks. (2000). Retrieved from www.rediff.com: 1.
http://www.rediff.com/money/report/perfin-what- you-need-to-know-about-co-operative-banks/

46
Appendiix
QUESTIONNAIRE
Dear respondent, I am a student of apex college conducting a survey for the research
project. This research is based on the satisfaction of customer in the saving and saving
credit cooperative inside the Kathmandu valley. Your sincere response would be valuable
to me and would definitely help me to arrive at a conclusion as per my research objective.

These information would be confidential and only be used for research purpose. Show
your level of agreement in the following statement tick in an appropriate box to indicate
any one of the following
1) Strongly agree 2) agree 3) neutral 4) disagree 5) strongly disagree

.1. Gender

a) Male b) female

2) Age
a) Below 25 years
b) 25-35 years
c) 36-45 years
d) Above 46

3) Highest level of education.


a) Masters
b) Bachelors
c) High school

SN Questions 1 2 3 4 5
Interest rate
1 Deposit interest rate lead to my satisfaction.
2 Interest on loan is proper and effectively
determined
3 I am satisfied with the interest rate provided by this
cooperative

Saving options
4 There are variety of saving options in this
cooperative leading to my satisfaction
5 There are variety of credit options in this
cooperative leading to my satisfaction

47
Location
6 Location was a factor for choosing this cooperative
for transaction
7 Location of this cooperative has helped me work
effectively
and efficiently
8 Location of this cooperative is suitable for all the
customer

Employee behavior
9 Employee behavior and treatment is fairing this
organization
10 Employee present themselves with a problem
solving attitude
11 Employee are helpful and cooperative towards the
customers

Loan term
12 I feel loan procedure is fair and proper
13 I am satisfied with loan procedure of the
cooperative
14 The time frame for loan payment is suitable for me
15 The loan issue procedure is fast and reliable.

16 I am satisfied with this cooperative as a whole

48
49

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