CUSTOMER SATISFACTION OF JANATA BANK AT

NEW ROAD BRANCH

A Project Report

Submitted By

Rajanish Simkhada

P.U Registration No: 2016-2-03-2020

Atlantic International College

Exam Roll No: 17032310

Submitted To

Faculty of Management

Pokhara University

A project work submitted to Pokhara University in partial fulfillment of

the requirements for the degree of

Bachelor of Business Administration (BBA)

Kathmandu, Nepal

September 2019
 DECLARATION

I hereby declare that the project work report entitled “Customer Satisfaction of
Janata Bank at New Road Branch” submitted for the BBA is my original work and
the project work report has not formed the basis for the award of any degree, diploma
or other similar titles.

………………………..

Rajanish Simkhada

Katmandu, 2019

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 CERTICICATE

This is to certify that the Project Work titled “Customer Satisfaction of Janata
Bank at New Road Branch” submitted by Rajanish Simkhada; Exam Roll No.
17032310 for the partial fulfillment of the requirements of BBA embodies the
bonafide work done by him under my supervision.

………………..

Prakash Kumar Gautam

September, 2019

ii
 ACKNOWLEDGEMENTS

The success and outcome of this report required a lot of guidance and assistance from
many people. I am extremely fortunate to have got this all along with the completion
of my project report with the supervision of Prakash Kumar Gautam. Whatever I have
done is only due to such supervision and I would not forget to him.

I would like to express my special thanks of gratitude to Prof. Dr. Mahendra Parshad
Shrestha, Chairman of Atlantic International College; Er. Shankar N. Adhikari,
Principal of Atlantic International College; Mr. Dhurba Pd. Subedi Academic Director
of Atlantic International College and all the faculty members of Atlantic International
College for providing me with all the facility that was required.

I thank Pokhara University and Atlantic International College for allowing me to

study on the topic “Customer Satisfaction of Janata Bank at Newroad Branch”,
and providing for all support and guidance which helped me to complete the project
on time. This also helped me to know about so many new things.

I am extremely grateful to all the respondents who participated in the research and
provide me with the required information based on which the project report is based
upon. I would also thank all the respondents for providing time to fill up the
questionnaire despite their busy schedule.

Lastly, I would also like to thank all my classmates and friends who helped me during
research and while preparing the report in a various way. I would also like to thank
them for all the encouragement and their constant motivation.

Sincerely,

Rajanish Simkhada

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 ABSTRACT

This research project focuses on identifying the impacts of service quality on

customer satisfaction in Janata Bank of Newroad Branch. The main objective of this
project is to explore the factor affecting the customer satisfaction of Janata bank, to
examine the most important factor motivating to remain with the bank and to identify
the impact of service quality on customer satisfaction of the banks. A sample of 107
customers was selected using stratified sampling technique. For the purpose of the
study primary data were collected using likert scale based questionnaire. And the data
was analyzed using frequency analysis, reliability analysis, descriptive statistics,
correlation, independent sample T-test and regression analysis. The result of this
study shows that, there was significant relationship between all service quality
dimension and customer satisfaction in Janata bank of Newroad. In the correlation
analysis all service quality dimension (reliability, assurance, empathy, tangible and
responsiveness) have positive and significant impact on customer satisfaction at the
bank. However, the overall analysis (regression analysis) responsiveness has no
impact on customer satisfaction. Based on these, it is recommended that the bank
should work more on the responsiveness to enhance customer satisfaction.

In conclusion, the Adjusted R Square indicates 0.53 or about 53% of variance on

dependent variables can be explained by service quality dimension (i.e. reliability,
assurance, responsiveness, empathy and tangible) and the remaining 47% of variance
may be due to some other independent variables not included in model. The Durbin-
Watson value is 2.162 which are very near to the 2. Thus, it indicates that the model is
perfectly fits the data.

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 TABLE OF CONTENTS
DECLARATION .............................................................................................................. i
CERTICICATE...............................................................................................................ii
ACKNOWLEDGEMENTS ........................................................................................... iii
ABSTRACT.................................................................................................................... iv
TABLE OF CONTENTS................................................................................................. v
LISTS OF TABLE......................................................................................................... vii
LIST OF FIGURE ....................................................................................................... viii
ABBREVIATIONS ......................................................................................................... ix
CHAPTER 1 INTRODUCTION ................................................................................ 1

1.1 Background ..................................................................................................... 1

1.2 Meaning of Bank ............................................................................................. 1

1.3 History of Bank in Nepal ................................................................................ 2

1.4 Introduction of Janata Bank Nepal Limited .................................................... 3

1.5 Introduction of Customer Satisfaction ............................................................ 4

1.6 Statement of the problem ................................................................................ 6

1.7 Objective of Study........................................................................................... 7

1.8 Literature Review ............................................................................................ 7

1.9 Theoretical Framework ................................................................................. 14

1.10 Operational definition of variable.............................................................. 14

1.11 Hypothesis ................................................................................................. 15

1.12 Significance of the study ........................................................................... 16

1.13 Research Methodology .............................................................................. 16

1.13.1 Research Design........................................................................................ 16

1.13.2 Nature and sources of data ........................................................................ 16

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 1.13.3 Population and Sample ............................................................................. 16

1.13.4 Data Collection ......................................................................................... 17

1.13.5 Data Analysis ............................................................................................ 17

1.12 Limitation of the study .............................................................................. 17

CHAPTER 2 DATA PRESENTATION AND ANALYSIS ................................... 18

2.1 Data Analysis ................................................................................................ 18

2.2 Background Information from Respondents ................................................. 18

2.3 Reliability Test .............................................................................................. 19

2.4 Descriptive Analysis ..................................................................................... 19

2.5 Correlation Analysis ...................................................................................... 24

2.5.1 Hypothesis Testing................................................................................. 24

2.6 Independent Sample T-test ............................................................................ 26

2.7 Regression Analysis ...................................................................................... 28

2.8 Coefficient Analysis ...................................................................................... 29

2.9 Major Findings .............................................................................................. 31

CHAPTER 3 SUMMARY, CONCLUSION & RECOMMENDATION ............. 32

3.1 Summary ....................................................................................................... 32

3.2 Conclusion..................................................................................................... 33

3.3 Recommendation ........................................................................................... 34

REFERENCES ........................................................................................................... 35
APPINDIX I ............................................................................................................... 38

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 LISTS OF TABLE

Table 1 Capital Structure of Janata Bank Nepal Ltd ................................................ 4

Table 2 Shareholding Structure of Janata bank ........................................................ 4

Table 3 Background information of Respondents .................................................. 18

Table 4 Descriptive Statistics of Reliability ........................................................... 19

Table 5 Descriptive Statistics of Assurance ........................................................... 20

Table 6 Descriptive Statistics of Responsiveness ................................................... 21

Table 7 Descriptive Statistics of Empathy.............................................................. 21

Table 8 Descriptive Statistics of Tangible .............................................................. 22

Table 9 Descriptive Statistics of Customer Satisfaction......................................... 23

Table 10 Reliability test as a whole .......................................................................... 19

Table 11 Correlation Analysis between customer satisfaction and its factors ......... 24

Table 12 Independent sample t test between customer satisfaction and its factors .. 26

Table 13 Model Summary and ANOVAs ................................................................ 28

Table 14 Coefficient table ........................................................................................ 29

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 LIST OF FIGURE

Figure 1 Conceptual Framework.............................................................................. 14

viii
 ABBREVIATIONS

ATM Automatic Teller Machine

BBA Bachelor of Business Administration

B.S Bikram Sambat

LTD Limited

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 CHAPTER 1

INTRODUCTION
1.1 Background

It is very hard to collect the correct information of the origin of bank. The world
“Bank” has derived from the Italian word “Banco” which means accumulation of
money of stock. It is believed that its origin is from the French word “Banque” which
means “beach” for keeping, lending and exchanging of money or coin in the market
place by money lenders or money changers. It is believed that the ancestors of modern
banking system were merchants, goldsmiths and moneylenders. Modern banking
sowed its seed in the medieval Italy despite strong Christian prohibition against
charging interest.

The bank had started in Italy in 12th century as a public bank. The bank of Venice
that was established in1158 A.D. was the first bank in the history of banking.
Following its establishment various bank such as Bank of Barcelona, which was
established in 1401 A.D. was the second bank of the world. Similarly, Bank of
Geneva (1407), Bank of Amsterdam (1609), and Bank of Hindustan (1770) were
established. The first commercial bank was the “Bank of England” which was
established in 1844 A.D.

1.2 Meaning of Bank

Bank is a financial institution, which is engaged in monitory transaction. Bank has

always been the most importance and largest financial intermediates. Banks collect
the scattered money from the public providing those interests and services. This
collection becomes the capital for the bank to invest. “Banking means the accepting of
money for the view of lending or investment of deposit from the public repayable on
demand or otherwise and withdraw able by cheque, draft or otherwise”, is according
to Banking Regulation Act 1949 of India. World Bank says, “Bank or a financial
institution that accepts funds in the forms of deposit repayable on demand or at short
notice.”

Some important meaning of bank given by different scholars is as follows:

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Leaf (2007) a bank is that institution or individual who is always ready to service
money on deposit to be returned against the cheque of their depositor.

White (1995) bank is a manufactures of credit and machine for facilitating exchanges.

Crowther (1941) a bank is a dealer in debt in his own and other people are the bankers
business is them to take the debt of the people to otter his own in exchange and
thereby to credit money.

Therefore, the bank is a financial institution which accepts deposits from the general
public and provides loans to different sectors at different interest rates. Bank pays the
vital role in the economical condition.

1.3 History of Bank in Nepal

In the context of Nepal, like as in the other countries the goldsmith and landlords
where the ancient banker. The Nepalese people were highly exploited by ‘Sahu
Maharjan’ by charging higher interest rate, compound interest rate and even by
manipulating the principle amount. The introducing of ‘Tajarath Adda’ during the
tenure of the Prime Minister Ranoddip Sing (1993B.S.) was the first step towards the
institutional development of banking in Nepal. The first commercial bank ‘Nepal
Bank Limited’ was established on 30th Kartik 1994 B.S. and started to perform
proper banking activities. With the realization of central bank to develop monetary
policy as well as to have proper control over commercial banks and banking sectors
Nepal Rastra Bank was established on 14th Baishak 2014 B.S. under Nepal Rastra
Bank Act 2012 B.S. Likewise, Rastra Banijye Bank under the full ownership of
government was established on Magh 2022 as per ‘Rastra Banijya Bank Act 2012
B.S.’. The growths of the bank accelerated only after the adoption of liberal economic
policy by Nepalese Government. This has attracted many new investors and
encourages opening many new modern banks with joint venture for foreign banks.
Nepal Arab Bank was established on 29th Adhad 2041 B.S.as the first bank modern
bank with the joint venture of Dubai Bank Ltd. U.A.E. subsequently following its
established Nepal Indo Suez Bank France, Nepal Grinlands Bnak England on16th
Marg 2043 B.S. with its joint venture of Grinlands Bank England, Himalayan Bank
Ltd. on 5th Marg 2049 B.S. with the joint venture of Habib Bank of Pakistan, Nepal
SBI Bank Ltd. in 28th Ashad 2050 B.S. with joint venture of State Bank of India,
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Nepal Bangladesh Bank Ltd. on 28th Jestha 2050 B.S. with the joint venture of
International Finance Investment and Commercial Bank, Everest Bank Ltd. on 1st
Kartik 2051 B.S. with joint venture of Panjab National Bank, Bank of Kathmandu
Ltd. on 28th Falgun 2051 B.S. with joint venture of the Siam Commercial Bank,
Thailand.

Now, there are 28 commercial bank, 33 Development bank, 25 finance companies, 39

Insurance companies, 65 Institution of small finance, 25 Merchants banks with 6651
branches.

1.4 Introduction of Janata Bank Nepal Limited

Janata Bank Nepal Limited is the 27th commercial bank established under the Bank &
Financial Institution Act, 2063. The bank's corporate office is located at Central
Business Park, Thapathali, Kathmandu. Currently, the bank is operating with 135
branches, 3 extension counters, 1 Limited Branch Outlet (LBO), 103 ATM's and 50
Branchless Banking Outlets and will gradually expand its branch network to provide
its service all over the country. With large numbers of promoters, the bank was the
first licensed commercial bank with initial paid-up capital of NPR 2,000 Million and
currently the Bank has paid up capital of NPR 8,000 Million. The bank profiles are:

Vision

To become the preferred bank for all stakeholders

Mission

Create greater financial outreach, contribute to nation’s prosperity with highest level
of risk management and governance.

Goals

Phygital, Onboarding, Service Excellence, Vigilance, Granularity, Learning

Organization, Branding

Values

CRIPA as in customer Centricity, Reliability, Integrity, Passion, Accountability

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Table 1

Capital Structure of Janata Bank Nepal Ltd

Authorized Capital 10,000 Millions

Issued Capital 8,000.78 Millions

Paid Up Capital 8,000.78 Millions

Ownership Pattern of Janata bank

Janata Bank Nepal Limited with an authorized Capital NPR 10 billion and Issued and
Paid up Capital 8.07 billion. The Bank has over 70 thousand public shareholder of
which 1300 are promoter shareholders. The promoters represent different walks of life
of the society, including business personnel, society activists, intellectuals etc. The
ownership structure of the bank is as follows: 8,000.78

Table 2

Shareholding Structure of Janata bank

Promoter 51%

Public 49%

Total 100%

1.5 Introduction of Customer Satisfaction

Customer satisfaction is one of the most important concepts in the field of marketing
studies today. Customer satisfaction is a long-term strategy. Just as, it is difficult to
radically alter perceptions of product quality over a short time horizon, so it is
difficult to quickly cultivate a reputation for superior customer service. Consequently
customer satisfactions as competitive advantage that is sustainable over the long term.
In the last few years, subject of satisfaction and dissatisfaction has received a great
deal of attention from academic researchers. Engel & Blackwell (1982) defined
satisfaction as an evaluation that the chosen alternative is consistent with prior beliefs
with respect to that alternative.

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Customer satisfaction in the banking industry plays a vital role to create a healthy
business status being service based industry. In any service based industry customer
service is at highest priority. Customer service can be provided by well trained person
in planned systematic manner or can be provided by means of well planned self-
service. In banking industry customers are more directly linked with the banks’
personnel for any kind of services or products. Therefore, Banks should always focus
on training its front desk staffs to provide quality service knowing their expectations
and wants.

Customer satisfaction is one of the important outcomes of marketing activity.

It serves to link processes culminating purchase and consumption with post purchase
phenomena such as attitude change, repeat purchase, and brand loyalty. This opinion
has been supported by Jamal and Naser (2003) and Mishra (2009). Customer
satisfaction is generally described as fully meeting their expectation and is the feeling
or attitude of a customer towards a product or service after it has been used. Likewise,
many researchers conceptualize customer satisfaction as an individual’s feeling of
pleasure or disappointment resulting from comparing a product’s perceived
performance (or outcome) in relation to his or her expectations. Customer satisfaction
has been considered the essence of success in today’s highly competitive banking
industry. Prabhakaran and Satya (2003) mentioned that the customer is the king.
Heskett et al. (1997) argued that profit and growth are stimulated primarily by
customer loyalty. Ndubisi (2005) and Pfeifer (2005) pointed out that the cost of
serving a loyal customer is five or six times less than a new customer. Several
researchers including Tariq and Moussaoui (2009) and Ehigie (2006) found that
loyalty is a direct outcome of customer satisfaction. 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. On the other hand, dissatisfied customers will most probably
switch to a different brand; this will lead to negative advertising (Nasserzadeh et al.,
2008).

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1.6 Statement of the problem

Satisfying customers is the first major mission and purpose of any business
organization. It is when customers are satisfied the organizations achieves higher
sales, profit and market share and vice versa. Customer satisfaction also leads
organizations to gain loyalty and achieve the desired objectives. Therefore, it is
essential for organizations to satisfy their customers promptly so that they can achieve
what they plan. Banks as a business organization should provide a great care for its
customers’ to attract, retain and gain their loyalty. Nevertheless, banks found in our
country (Nepal) have little care about their customers. This leads them to use more
obsolete and traditional technologies that cause dissatisfaction and switching among
customers. This means the banks are not satisfying their customers enough due to
many factors in which using traditional technologies is among them (Abebe, 2013).
Simply customers of the bank have not being satisfying by its services. This is due to
poor service quality of the bank that results from absence of new and improved
technologies.

Many studies indicate that there are links between customer satisfaction, service
quality & `profitability. In order to meet customer demand, many companies need to
better serve their customers. Better quality of service can usually get a higher market
share and better returns (Slu & Mou, 2003). Because of high market competition
service quality becomes an increasingly important issue in the field of competitive
market. Therefore, these issues become very important to satisfy the customer
(Broderick & Vachirapornpuk, 2002). Kassa (2012) has made a survey on service
quality in relation to customer satisfaction in commercial bank of Ethiopia. On the
other hand, (Levesque & McDougall, 1996) comprehensively analyzed the effects of
service quality, service features, and customer complaint handling on customer
satisfaction in the Canadian retail-banking sector.

Among the different problems regarding customer satisfaction, following will be the
major concern of the study.

 What are the factors that can lead to customers toward satisfaction?
 What are the most satisfactory factors that are provided by Janata bank to
its customers?

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  How satisfied customers are with service quality in Newroad branch?

1.7 Objective of Study

The general objective of this research project is to assess the impact of service quality
on Customer Satisfaction in Janata Bank of Newroad Branch. The main objective of
this research study will be to explore the customer satisfaction in Janata Bank.

Moreover, the specific objectives of the study are:

 To explore the factor affecting the customer satisfaction in Janata bank.

 To examine the most important factor motivating to remain with the bank.
 To identify the impact of service quality on customer satisfaction of the
banks.

1.8 Literature Review

Customer satisfaction is an important theoretical as well as practical issue for most

marketers and customer researchers. Customer satisfaction can be considered the
essence of success in today’s highly competitive world of business.

Lopez, Hart, & Rampersad (2007) conducted a research on the topic, “Ethnicity and
Customer Satisfaction in The Financial Service Sector.” For 230 respondents varied in
demographics and background. In this research, convenience random sampling
method was used. The data are collected through questionnaire. The objective of the
study is to describe research carried out to determine whether South Florida's
heterogeneous retail banking customers have differing perceptions of the importance
of service quality dimensions; and to ascertain whether various ethnic groups report
different levels of customer satisfaction with their retail banks. This study claimed
that by using the one of the service quality tool in which customer satisfaction was
measured on the basis of ten dimensions. Results significantly show that out of
ten five dimensions namely reliability, responsiveness, tangibles, empathy &
assurance shows the positive impact on customer satisfaction. Thus, this study
concluded that organizations must focus on service quality and they did not need to
give more attention in corporate image of organization.

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Husnain (2016) conducted a research on the topic, “The impact of e-banking on
customer satisfaction: evidance from banking sector of Pakistan.” For 264 customers
of different level of income. The objective of this study was to test the satisfaction of
customers with e-banking. Decsiprtive statistical tools like mean, correlation, multiple
regression analysis were used to draw conclusion. From the statistical analysis, it has
been observed that consumer are fairly satisfied with the e-banking services in term of
service quality. The major finding of the study include there is a relationship of each
independent variable (i.e realiability, responsiveness, Access, tangible and
Communication)with the dependent variable (i.e customer satisfaction) when
conclude that in Pakistan, people evaluate e-banking on three key dimentions out of
five of the SERVQUAL model: Responsiveness, Relaiability and Assurance. Thus,
the study conclude that service quality in e-banking leads to satisfied customers and
thus bank can gain competative advantage by offering better quality services to their
customer in todays emulous world.

Dhariyal & Sharma (2019) conducted a research on the topic, “Analysis impact of
brand image on customer preferance: A compaartive study of public and private
sector banks in Kamaun region of Uttarakhand.” For 20 customers of different banks.
The objective of the study was to identify the most influencing factor in selection of
bank sector, to analyse the difference between influencing factor of public and private
bank sector and to examine the relationship between barnd image and customer
preferance. Descriptive statistical tools like mean, standard devaition were used to
draw conclusion. Ms-excel and IMB SPSS-16 are used to analyse the collected data.
The major finding of the study include there is a relationship of each independent
variable (i.e location, friendly behaviour, brand image, interest rate and quick service)
with the dependent variable (i.e customer preferance). They find, customer now a
days are not only exposed of what types of service is being provided banks in India
but in the world as a whole. They expect much more than what is actually being
provided, so the new coming banking sector has to provided and cater to all the needs
of the customers otherwise, its difficult to survive in the competation coming up.
Bank need to have a better outlook towards to actually what customers are requiring.

Khan & Abdullah (2019) conducted a research on the topic, “The Effect of ATM
Service Quality on Customers Satisfaction and Loyalty: An Emphirical Analysis.”

8
The objective of the study was to examine the ramification of ATM service qualities
on overall customer satisfaction. The data were collected through questionnaires. In
this research, convenience random sampling method was used. Information from 211
ATM users was collected from different places of Kurdistan region using a structured
questionnaire. A pilot survey was conducted to ensure all dimensions meets to its
objectives of research. SPSS-22 was used for analyzing the data. To recognize the
service quality components of ATM and their association with overall customer
satisfaction descriptive analysis, correlation and coefficient and regression test and
ANOVA test were used. The major finding of the study include there is a relationship
of each independent variable (i.e reliability, convenient, security, fulfillment and
responsiveness) with the dependent variable (i.e customer satisfaction). Results
indicates that majority of dimensions are significantly correlated with overall
customer satisfaction. At the end, few recommendations were made for improvement
of ATM service quality.

Premraj & Sankaralingam (2012) conducted a research on the topic, “Customer

Satisfaction in Indian Retain Bankin- A study with reference to Chenni.” The
objective of the study was to analyze the overall satisfaction level of customer
regarding service rendered by bank in Chennai. With the banking habits percolating
down to the lower strata, increasing literacy, ever growing customers’ expectations,
automation and competition, satisfying retail banking customers has become a
daunting task. The study analysis the service quality perception of 480 retail banking
customers in Chennai, chosen from SBI Group, Nationalized Banks, Private sector
and Co-operative Banks, to assess their satisfaction level regarding the services
rendered by banks and identify those service factors which have the maximum impact
on customer satisfaction. Descriptive statistical tools like mean, variance and
regression analysis were used to draw conclusion. The major finding of the study
include there is a relationship of each independent variable (i.e reliability, tangible,
assurance empathy, competativeness,courtesy and responsiveness) with the dependent
variable (i.e customer satisfaction). It indicates that reliability and competitiveness
have the maximum impact on customer satisfaction. Hence, banks need to be more
innovative and endeavor to provide more value added services to boost the
satisfaction level of customers. Banks have to overhaul their services and fine tune
their service quality in order to satisfy the growing customer’s expectations. They

9
have to be innovative and provide more value added services. This alone will enable
banks to sustain and grow in this contemporary highly automated, dynamic and
competitive environment.

Gupta & Dev (2012) conducted a research on the topic, “Client Satisfaction in Indian
Bank: an empherical study.” The objective of this paper is to identify the factors
impacting customer satisfaction in Indian banks and analyze their effects the level of
customer satisfaction through a regression analysis. The primary contribution of this
study is the analysis and resulting insights on the critical factors impacting client
satisfaction within the Indian retail banking sector. The data were collected through
questionnaires. In this research, convenience random sampling method was used. The
questionnaire was then sent out to current customers of 13 retail banks in India. In
total, 420 completed questionnaires were received, out of which 400 were found to
have been accurately and completely answered. A factor analysis suggests that there
are five factors driving customer satisfaction: “service quality”, “ambience/hygiene”,
“client participation/involvement”, “accessibility” and “financial”. Subsequent
multiple regression analysis revealed that “service quality”, “ambience and hygiene”,
and “client participation and involvement” in that order are the most important factors
impacting client satisfaction. The results from the current study are crucial because
previous studies have produced scales that bear a resemblance to SERVQUAL, a
generic measure of service quality, which may not be solely adequate to assess the
perceived quality of service in the Indian banking sector.

Moranu & Duhnea (2018) conducted a research on the topic, “E-Banking and
Customer Satisfaction with Banking Service.” The objective of the study was to test
the relationship between service quality and satisfaction. A descriptive quantitative
analysis was conducted. The data were collected using a questionnaire as a research
tool. The questionnaires were randomly distributed, and out of 750, 667 were returned
filled in. After eliminating the ones that were incomplete, the research was finally
conducted on 643 questionnaires, using IBM SPSS Statistics 2. Descriptive statistical
tools like mean, standard devaition were used to draw conclusion. The research
conducted revealed that overall customer satisfaction with banking services and
customer satisfaction with e-banking services are strongly correlated, thus pointing
out the importance of e-banking services. The research results also indicated that the

10
assessment of the satisfaction with e-banking services does not differ based either on
gender, or on residence environment (rural/urban). However, the level of satisfaction
with e-banking services is significantly lower for the age group over 65 years old
compared to other age groups.

Worimegbe, Abosede, & Worimegbe (2018) conducted a research on the topic,

“Efficiency Customers Satisfaction and Deposit Money Banks Performance in
Nigeria”. The objective of the study was to examine the effect of customer
satisfaction on bank performance. In this research, data used in achieving the research
objectives were from both primary and secondary sources. The Data Envelopment
Analysis (DEA) and Structural Equation Model (SEM) were employed in the analysis
of data. 600 hundred questionnaires from 18 deposit money banks. The study reveals
that technical efficiency leads to customers’ satisfaction. The findings also show that
customers’ satisfaction affects bank performance. Further-more, efficiency influences
banks’ financial performance and this indicates that banks that pursue improved
financial performance using a singular approach may be fundamentally misguided.
This conclusion has important implications because it suggests that deposit money
banks should concentrate effort firstly on efficiency before customers’ satisfaction.

Munari, Lelasi, & Bajetta (2013) conducted a research on the topic, “Customer
Satisfaction Management in Italian Banks”. The objective of this study was to present
the results of a survey that aimed to analyze the state of organizational and operative
evolution of the functions and activities overseeing customer satisfaction in Italian
banks. The research was conducted by questionnaire, to which 92 banks responded,
representative of 77 per cent of the total assets of the Italian banking system.
Descriptive statistical tools like bar diagram are used to draw conclusion. The analysis
of the results makes it possible to highlight the current approaches aimed at managing
customer satisfaction, as well as the extent of integration between this and other
management processes within the banks surveyed. The authors found that in these
banks customer satisfaction is no longer a staff activity but increasingly a line activity,
it involves the responsibility of top management and is a key indicator in staff
incentive schemes. The research aims to contribute to the literature on customer
satisfaction on the one hand, by verifying if and how banks measure and manage
some of the customer satisfaction cause-effect relationships investigated by studies on

11
the subject and, on the other hand, by focusing attention on organization and internal
processes aimed to support the assessment and improvement of customer satisfaction.

Lone, Aldawood, & Bhat (2017) conducted a research on the topic, “Customer
satisfaction towards Islamic banking in Saudi Arabia: an application of CARTER
model.” For 428 customers of different level of income. The objective of this study
was to view the satisfaction level of customers of Islamic banks in Saudi Arabia
through solicitation of the CARTER model (compliance, assurance, reliability,
tangibility, empathy & responsiveness). This study is expected to help practitioners
predict the future of Islamic finance in Saudi Arabia while taking the overall response
of customers into consideration. The paper presents primary data collected through a
self-designed questionnaire on a five-point Likert scale from four regions of Saudi
Arabia. ANOVA test was used to interpret the data collected on the basis of six
dimensions of CARTER model. The results reveal that customers are satisfied with
the working of Islamic finance as far as various dimensions of CARTER model are
concerned. Of the six dimensions, a relatively lower rating was found with respect to
compliance (the only dimension that makes Islamic banks different from conventional
banks), indicating that Islamic banking institutions should pay due attention towards
compliance dimension. After analyzing data using different statistical techniques, the
results clearly show that there is no difference of opinion among the customers of all
the regions of Saudi Arabia in terms of compliance, assurance, reliability, empathy,
responsiveness and tangibility of Islamic finance. But mean score in all regions and in
all variables is more than the average score as far as the five-point Likert scale is
concerned. Therefore, it can be comprehended that people of Saudi Arabia are fully
satisfied with the Islamic finance, but range of opinion varies from region to region
and across variables. Conclusively, in terms of compliance, assurance, reliability,
empathy, responsiveness and tangibility; there is almost the same opinion about the
Islamic finance in all the regions of Saudi Arabia. The results indicate that customers
of Saudi Arabia are satisfied with Islamic banking working and therefore it can be
predicted that the future of Islamic banking is shining in this country. All the variables
are towards agree scale when average is calculated, which is a good indication that
this banking has made good image among the society in general and customers in
particular.

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Awan, Bukhari, & Iqbal (2016) conducted a research on the topic, “Service quality
and customer satisfaction in the banking sector A comparative study of conventional
and Islamic banks in Pakistan.” The objective of this study was to investigate the
service quality and its relationship to customer satisfaction among the customers of
conventional banks and Islamic banks. A modified SERVQUAL scale is utilized to
ascertain the functional dimensions of service quality specific to the industry and
service context under study. A field survey carried out with the help of a
questionnaire constructed by using a modified SERVQUAL scale. Data were
collected from 200 walk-in customers conveniently drawn from three major
conventional banks and three Islamic banks located in urban areas of Pakistan. Data
were analyzed using the analytical hierarchy process to identify service quality and
customer satisfaction-related factors for Islamic and conventional banks. By using
factor analysis, 52 measurement items with a factor loading greater than (0.5) were
identified to form five service quality dimensions namely empathy, service
architecture, convenience service encounter, employee service criteria, customer
focus and five customer satisfaction dimensions: responsiveness, competency, safe
transaction, competitive services, knowledge for the overall banking industry
explained 56 percent of the variance. Results from regression analysis of the
relationship between multidimensional service quality dimensions and unidimensional
customer satisfaction factors also validated the importance of service quality aspects
for behavioral intentions (satisfaction, feelings) for customers from conventional
banks and Islamic banks. This study concluded that the SERVQUAL dimensions
would replicate in the banking industry but with certain modifications of structure that
are based on the priority of service quality and customer satisfaction elements from
the perspective of customers. Of equal importance, the research proposed that, in
addition, functional quality is a principal determinant of overall service quality and
customer satisfaction for both types of banking systems, i.e. conventional as well as
Islamic banking system in Pakistan.

13
1.9 Theoretical Framework

The theoretical framework is the structure that can hold or support a theory of a
research study. The theoretical framework introduces and describes the theory that
explains why the research problem under study exists.

 Reliability
 Assurance
 Responsiveness Customer satisfaction
 Empathy
 Tangible

 Gender

Figure 1: Theoretical Framework

1.10 Operational definition of variable

Reliability

The appearance of physical facilities, equipment, personnel, and communication

material

Assurance

The ability to perform the promised service dependable and accurately

Responsiveness

The willingness to help customers and provide prompt service

Assurance

The knowledge and courtesy of employees, and their ability to convey trust &
confident. They include:

 Competence
 Courtesy
 Security
 Credibility
14
Empathy

The caring individualized attention provided to the customer. They include:

 Understanding
 Communication
 Access

1.11 Hypothesis

Reliability

H0: there is no significance relationship between reliability and customer satisfaction

H1: there is significance relationship between reliability and customer satisfaction

Assurance

H0: there is no significance relationship between assurance and customer satisfaction

H1: there is significance relationship between assurance and customer satisfaction

Responsiveness

H0: there is no significance relationship between responsiveness and customer

satisfaction

H1: there is significance relationship between responsiveness and customer

satisfaction

Empathy

H0: there is no significance relationship between empathy and customer satisfaction

H1: there is significance relationship between empathy and customer satisfaction

Tangible

H0: there is no significance relationship between tangible and customer satisfaction

H1: there is significance relationship between tangible and customer satisfaction

15
1.12 Significance of the study

This study has its importance to provide information about customers’ satisfaction
from different products and services offered to customers by Janata Bank at Newroad
Branch. Findings will be helpful to identify those areas which should be focused more
to provide better services. This will help for banks for retaining their customers and
attract new customers. This research is very important for future researchers. It is
quite a bold step to enquire into the customer satisfaction in large banking sector. The
study also fulfills some requirements of social audit of Janata bank in terms of
customer satisfaction. The management of the sampled banks may also benefit from
this study as the outcome of this study, though not very complete, raises many vital
issues of the Janata banks in terms of their customers' banking service desires.

1.13 Research Methodology

1.13.1 Research Design

This study has conducted in the context of Janata bank. The research is descriptive
type because it investigates the satisfaction level of bank customers for services
received from their banks. For research purpose, researchers conducted a survey
through questionnaires which defined the method of data collection by primary data
collection method. Sample unit will be an account holder of Janata bank drawn as
sample from random sampling method. In order to get better response from customers
about their satisfaction level, this research will mostly focused on getting response
from respondents who had frequent transaction with the banks, and the main exit gate
was used as data collection place.

1.13.2 Nature and sources of data

This study has used primary data to meet the objective of the study. Primary data will
be collected regarding depositor perception and opinion towards Janata bank.

1.13.3 Population and Sample

Non-probability convenience sampling technique will adopt where Janata bank at

Newroad branch will be selected as the sample for the study. The selected sample
seemed to represent generalize the total population. Generally, customers of Janata

16
bank are depositors, borrowers, and others who get banking services. However, this
study will not cover all the customers of Janata bank as per the limit time framework.
It will only cover the depositor, borrower of the Janata bank. The sample number was
107 consumers from Newroad branch.

1.13.4 Data Collection

For purpose of collection of data, a researcher has conducted a survey through

questionnaires which defined the method of data collection by primary data collection
method. A standard structured questionnaire will design to collect the required
information where five point Likert scale, ranking scale, and other demographic
nominal information will use.

1.13.5 Data Analysis

Here for analysis of data both, both descriptive and inferential statistics was used.
SPSS ver.23 software was used for different statistical analysis to process the
collected data. Similarly, ms excel was used for various calculation, creating pie-chart
and analysis of data.

1.12 Limitation of the study

 The sample size is small due to which generalizability may be low.

 Only limited statistical tools have been used.

17
 CHAPTER 2

DATA PRESENTATION AND ANALYSIS

2.1 Data Analysis

This chapter will present a discussion of the final results and the process through
which the results were obtained. In addition to this, background information of
respondents will be presented. Finally, the statistical methods of analysis were
discussed, which included a reliability test, descriptive analysis, correlation analysis,
independent sample t-test and regression analysis through SPSS version 23.

2.2 Background Information from Respondents

One hundred seven questionnaires were distributed to the respondents. The

demographic characteristics include: gender, age and level of income of the
respondent. The table below shows the details of background information of the
respondents.

Table 3

Background Information of Respondents

Characteristics Frequency Percent

Male 59 55.1
Gender
Female 48 44.9
Total 107 107
20-40 102 95.3
Age
above 40 5 4.7
Total 107 107
below 15000 39 36.4
Monthly Income 15000-30000 46 43
above 30000 22 20.6
Total 107 107

Table 3 presents the background information of the respondents of the study. The
survey showed that there were 59 males & 48 females. As far as age of respondents is
concerned, 95.3 percent of the respondents are in the range of 20-40 years, 4.7 percent

18
of the respondents are in the range of above 40 years. With regard to monthly income
level of respondents, below Rs.15000 represents 36.4 percent of the customer,
Rs.15000 to Rs.30000 represents 43 percent of the customers and above Rs.30000
represents 20.6 percent.

2.3 Reliability Test

Table 4
Reliability test as a whole

Reliability Statistics
Cronbach's Alpha N of Items
0.854 22

In table 3 the Cronbach's Alpha is 0.854, which is greater than 0.7. So, there is not
any problem to use these instruments to continue with this study.

2.4 Descriptive Analysis

The descriptive analysis consists of the mean and standard deviation of each question
that was asked to the respondents. Likert scale questions were asked to find out the
relationship between dependent and independent variables. Five Likert scale was used
for the analysis of the variable in which 1 strongly disagree, 2 disagree, 3 neutral, 4
agree, 5 strongly agree. The descriptive analysis presented in table and chart for easy
understanding of the variables.

2.4.1 Descriptive Statistics of Reliability

Table 5

Descriptive Statistics of Reliability

Descriptive Statistics Mean Std. Deviation

Banks fulfill its promise at the time indicated 3.85 0.408
Banks perform the service exactly at the first time 3.76 0.612
Bank show a keen interest in solving your problems 3.96 0.433
Bank insist on error free record 3.13 0.515

The table 4 shows the descriptive analysis of reliability factor. The mean and S.D for
the first question “Banks fulfill its promise at the time indicated” is 3.85 and 0.408

19
respectively. For the 2nd question “Banks perform the service exactly at the first
time” where the mean and S.D is 3.76 and 0.612. For the 3rd question “Bank show a
keen interest in solving your problems” where the mean and S.D is 3.96 and 0.433.
For the 4th question “Bank insist on error free record” where the mean and S.D is
3.13 and 0.525. It shows that the 3rd question is more important where there is more
mean (3.96) than other as compared by mean. Over the service reliability, bank is
found to be more interested on solving the customer’s problem.

2.4.2 Descriptive Statistics of Assurance

Table 6

Descriptive Statistics of Assurance

Descriptive Statistics Mean Std. Deviation

Bank’s staff behavior instills confidence in me 3.26 0.588
I feel safe in my transaction with the bank 4.12 0.428
Bank’s staff are courteous with me 3.50 0.502
Bank’s staff have the knowledge to answer all my question 4.01 0.651

Table 5 shows the descriptive analysis of assurance factor. The mean and S.D for the
1st question “Bank’s staff behavior instills confidence in me” is 3.26 and 0.588. For
second question “I feel safe in my transaction with the bank” where the mean and
standard deviation is 4.12 and 0.428. For the third question “Bank’s staff are
courteous with me” where the mean and standard deviation are 3.50 and 0.502. For
the fourth question “Bank’s staff have the knowledge to answer my entire question”
where the mean and S.D is 4.01 and 0.651. It shows that the second question is more
important where there is more mean (4.12) than others as compared by mean. Over
the service assurance, bank is found to be safer in customer’s transaction with the
bank.

20
2.4.3 Descriptive Statistics of Responsiveness

Table 7

Descriptive Statistics of Responsiveness

Descriptive Statistics Mean Std. Deviation

Banks staff give you prompt service 3.6 0.530
Banks staff tell you exactly the time the service will be
perform 3.83 0.541
Banks staff always willing to assist you 3.35 0.600
Banks staff are not too busy to respond to my question 3.82 0.563

Table 6 shows the descriptive analysis of responsiveness factor. The mean and S.D
for the 1st question “Bank’s staff give you prompt service” is 3.6 and 0.530. For
second question “Banks staff tell you exactly the time the service will be perform”
where the mean and standard deviation is 3.83 and 0.541. For the third question
“Banks staff always willing to assist you” where the mean and standard deviation are
3.35 and 0.600. For the fourth question “Banks staff are not too busy to respond to my
question” where the mean and S.D is 3.82 and 0.563. It shows that the second
question is more important where there is more mean (3.83) than others as compared
by mean. Over the service responsiveness, bank found to be the bank staff tells
customer’s exactly the time the service will be performed.

2.4.4 Descriptive Statistics of Empathy

Table 8

Descriptive Statistics of Empathy

Descriptive Statistics Mean Std. Deviation

Banks give me individual attention 3.17 0.651
Bank operating hours convenient to me 3.50 0.757
The bank has my interest at heart 3.17 0.466
Banks staff understand my specific needs 3.52 0.757
Customer care provide me sufficient information 3.30 0.662

Table 7 shows the descriptive analysis of empathy factor. The mean and S.D for the
1st question “Banks give me individual attention” is 3.17 and 0.651. For second
21
question “Bank operating hours convenient to me” where the mean and standard
deviation is 3.50 and 0.757. For the third question “The bank has my interest at heart”
where the mean and standard deviation are 3.17 and 0.466. For the fourth question
“Banks staff understand my specific needs” where the mean and S.D is 3.52 and
0.757. For the fifth question “Banks Customer care provide me sufficient
information” where the mean and S.D is 3.30 and 0.662. It shows that the fourth
question is more important where there is more mean (3.52) than others as compared
by mean. Over the service empathy, bank is found to be the bank staffs more
understand customer’s specific needs.

2.4.4 Descriptive Statistics of Tangible

Table 9
Descriptive Statistics of Tangible

Descriptive Statistics Mean Std. Deviation

The banks employees has a neat and professional appearance 4.01 0.376
Material associated with the service like pamphlets, statement
are visually appealing at the bank 3.9 0.362
Bank physical facilities visually nice 3.84 0.415
Bank has modern equipment and tools 3.86 0.444
There is no waiting lobby 1.61 0.844

Table 8 shows the descriptive analysis of tangible factor. The mean and S.D for the
1st question “The banks employees has a neat and professional appearance” is 4.01
and 0.376. For second question “Material associated with the service like pamphlets,
statement are visually appealing at the bank” where the mean and standard deviation
is 3.90 and 0.362. For the third question “Bank physical facilities visually nice” where
the mean and standard deviation are 3.84 and 0.415. For the fourth question “Bank
has modern equipment and tools” where the mean and S.D is 3.86 and 0.444. For the
fifth question “There is no waiting lobby” where the mean and S.D is 1.61 and 0.844.
It shows that the first question is more important where there is more mean (4.01)
than others as compared by mean. Over the service tangible, bank is found to be the
banks employees have more neat and professional appearance.

22
2.4.4 Descriptive Statistics of Customer Satisfaction

Table 10

Descriptive Statistics of Customer Satisfaction

Descriptive Statistics Mean Std. Deviation

I am satisfied with the banks complete range of service 3.38 0.577
I am satisfied with the performance of the employees of this
bank 4.01 0.400
I am satisfied of being a client of this bank 4.01 0.523
I am satisfied with the bank employees professional competence 4.02 0.363
I am satisfied with the quick service of this bank 3.99 0.466
I am satisfied with the respectful behavior of employees 4.14 0.399

Table 9 shows the descriptive analysis of customer satisfaction factor. The mean and
S.D for the 1st question “I am satisfied with the banks complete range of service” is
3.38 and 0.577. For second question “I am satisfied with the performance of the
employees of this bank” where the mean and standard deviation is 4.01 and 0.400. For
the third question “I am satisfied of being a client of this bank” where the mean and
standard deviation are 4.01 and 0.523. For the fourth question “I am satisfied with the
bank employees professional competence” where the mean and S.D is 4.00and 0.348.
For the fifth question “I am satisfied with the quick service of this bank” where the
mean and S.D is 3.99 and 0.466. For the sixth question “I am satisfied with the
respectful behavior of employees” where the mean and S.D is 4.14 and 0.399. It
shows that the sixth question is more important where there is more mean (4.14) than
others as compared by mean. Over the customer satisfaction, bank is found to be
customer’s more satisfied with the respectful behavior of employees.

23
2.5 Correlation Analysis
Table 11
Correlation Analysis between customer satisfaction and its factors
AVG_R AVG_A AVG_RP AVG_E AVG_T AVG_CS
AVG_R 1
AVG_A .411** 1
AVG_RP .267** .580** 1
AVG_E .311** .650** .413** 1
AVG_T .408** .299** .286** .306** 1
AVG_CS .210* .592** .468** .606** .492** 1
** Correlation is significant at the 0.01 level (2-tailed).
* Correlation is significant at the 0.05 level (2-tailed).

Where,

Avg_R = Average Reliability

Avg_A = Average Assurance

Avg_RP = Average Responsiveness

Avg_E = Average Empathy

Avg_T = Average Tangible

Avg_CS = Average Customer Satisfaction

In the table 11, the overall result shows that there is a significant relationship between
customer satisfaction and its factor affecting (i.e. reliability, assurance,
responsiveness, tangible and empathy) because all the factors have significant
relationship customer satisfaction of Janata bank of Newroad branch. This indicates
that if the Janata bank can improve the factors affecting customer satisfaction than
customer satisfaction will also increase. The Janata bank should focus to increase
their service quality than, they can easily increase the satisfaction level of customers.

2.5.1 Hypothesis Testing

The results in table 11 indicate that, the correlation between customer satisfaction and
reliability is 0.210 at the 0.05 significance level. This result indicates that there is
highly positive and significance relationship between reliability and customer
satisfaction. That means, if the banks provide high reliability to their customers than

24
they can easily increase customer satisfaction. Thus, alternative hypothesis H1 is
accepted that means there is a significant relationship between reliability and
customer satisfaction of bank.

The correlation between customer satisfaction and assurance is 0.592 at the 0.01
significance level. This result indicates that there is highly positive and significance
relationship between assurance and customer satisfaction. That means, if the banks
provide high assurance to their customers than they can easily increase customer
satisfaction. Thus, alternative hypothesis H1 is accepted that means there is a
significant relationship between assurance and customer satisfaction of bank.

The correlation between customer satisfaction and responsiveness is 0.468 at the 0.01
significance level. This result indicates that there is highly positive and significance
relationship between responsiveness and customer satisfaction. That means, if the
banks provide high responsiveness to their customers than they can easily increase
customer satisfaction. Thus, alternative hypothesis H1 is accepted that means there is a
significant relationship between responsiveness and customer satisfaction of bank.

The correlation between customer satisfaction and empathy is 0.606 at the 0.01
significance level. This result indicates that there is highly positive and significance
relationship between empathy and customer satisfaction. That means, if the banks
focus on empathy to their customers than they can easily increase customer
satisfaction. Thus, alternative hypothesis H1 is accepted that means there is a
significant relationship between empathy and customer satisfaction of bank.

The correlation between customer satisfaction and tangible is 0.492 at the 0.01
significance level. This result indicates that there is highly positive and significance
relationship between tangible and customer satisfaction. That means, if the banks
focus on tangible to their customers than they can easily increase customer
satisfaction. Thus, alternative hypothesis H1 is accepted that means there is a
significant relationship between tangible and customer satisfaction of bank.

25
2.6 Independent Sample T-test
Table 12
Independent sample t test between customer satisfaction and its factors

Independent Samples Test

Levene's Test for
Equality of Variances t-test for Equality of Means
F Sig. t Df Sig. (2-tailed)
Equal variances
assumed 0.439 0.509 0.496 105 0.621
AVG_R Equal variances
not assumed 0.52 98.827 0.605
Equal variances
assumed 0.742 0.391 -1.161 105 0.248
AVG_A Equal variances
not assumed -1.152 97.327 0.252
Equal variances
assumed 4.542 0.035 -1.587 105 0.116
AVG_RP Equal variances
not assumed -1.625 104.924 0.107
Equal variances
assumed 0.129 0.72 1.549 105 0.124
AVG_E Equal variances
not assumed 1.54 98.274 0.127
Equal variances
assumed 0.014 0.905 -1.842 105 0.068
AVG_T Equal variances
not assumed -1.867 104.392 0.065
Equal variances
assumed 5.535 0.021 0.046 105 0.963
AVG_CS Equal variances
not assumed 0.045 78.784 0.965

In table 12 Levene's Test for Equality of Variances shows that the significance level
for reliability is higher than 0.05 (i.e. 0.509) significance level. That means the equal
variances assumed between male and female users of bank for satisfaction from
reliability. In t-test for Equality of Mean, the significance level is higher than 0.05
(i.e.0.621) level of significance. So, there is no significance different between mean of
male and female users of bank for satisfaction from reliability.

The Levene's Test for Equality of Variances shows that the significance level for
assurance is higher than 0.05 (i.e. 0.391) significance level. That means the equal
variances assumed between male and female users of bank for satisfaction from
assurance. In t-test for Equality of Mean, the significance level is higher than 0.05

26
(i.e. 0.248) level of significance. So, there is no significance different between mean
of male and female users of bank for satisfaction from assurance.

The Levene's Test for Equality of Variances shows that the significance level for
responsiveness is less than 0.05 (i.e. 0.035) significance level. That means the equal
variances not assumed between male and female users of bank for satisfaction from
responsiveness. In t-test for Equality of Mean, the significance level is higher than
0.05 (i.e. 0.107) level of significance. So, there is no significance different between
mean of male and female users of bank for satisfaction from responsiveness.

The Levene's Test for Equality of Variances shows that the significance level for
empathy is higher than 0.05 (i.e. 0.129) significance level. That means the equal
variances assumed between male and female users of bank for satisfaction from
empathy. In t-test for Equality of Mean, the significance level is higher than 0.05 (i.e.
0.124) level of significance. So, there is no significance different between mean of
male and female users of bank for satisfaction from empathy.

The Levene's Test for Equality of Variances shows that the significance level for
tangible is higher than 0.05 (i.e. 0.905) significance level. That means the equal
variances assumed between male and female users of bank for satisfaction from
tangible. In t-test for Equality of Mean, the significance level is higher than 0.05 (i.e.
0.068) level of significance. So, there is no significance different between mean of
male and female users of bank for satisfaction from tangible.

27
2.7 Regression Analysis

Table 13
Model Summary and ANOVAs

Model Summaryb
Adjusted R Std. Error of the F Durbin-
Model R R Square Square Estimate Change Watson
1 0.743 0.552 0.53 0.22275 24.863 2.162
a Predictors: (Constant), AVG_T, AVG_RP, AVG_R, AVG_E, AVG_A
b Dependent Variable: AVG_CS

ANOVAa
Model Sum of Squares Df Mean Square F Sig.
1 Regression 6.168 5 1.234 24.86 0.000
Residual 5.011 101 0.05
Total 11.18 106
a Dependent Variable: AVG_CS
b Predictors: (Constant), AVG_T, AVG_RP, AVG_R, AVG_E, AVG_A

Table 13 clearly indicates that the relationship between tangible, assurance, reliability,
responsiveness and empathy and consumer satisfaction has been established. It has
obtained using regression model summary and ANOVA.

ANOVA table is for deciding whether independent variables are able to predict
dependent variables with the model selected. Here sig or p value is 0.000< 0.05, this
indicates that the model is significant or model fits the data well. Thus we can
conclude the independent variables can predict dependent variables in this study.
Now, the coefficients table is interpretable because the ANOVA table shows the
model is significant.

The Adjusted R Square indicates 0.53 or about 53% of variance on dependent

variables can be explained by service quality dimension (i.e. reliability, assurance,
responsiveness, empathy and tangible) and the remaining 47% of variance may be due
to some other independent variables not included in model. The Durbin-Watson value
is 2.162 which are very near to the 2. Thus, it indicates that the model is perfectly fits
the data.

28
2.8 Coefficient Analysis

Table 14

Coefficient Table of Service Quality Factors

Coefficientsa
Unstandardized Standardized
Model Coefficients Coefficients
B Std. Error Beta T Sig.
1 (Constant) 1.235 0.318 3.881 0
AVG_R -0.165 0.071 -0.181 -2.34 0.022
AVG_A 0.245 0.088 0.283 2.79 0.006
AVG_RP 0.103 0.071 0.12 1.454 0.149
AVG_E 0.203 0.056 0.322 3.625 0
AVG_T 0.387 0.084 0.348 4.621 0
a Dependent Variable: AVG_CS

Hence
Y= a+b1x1+b2x2+b3x3+b4x4+ b5x5+E

Y= 1.235- 0.165x1+0.245x2+0.103x3+0.203x4+0.387x5+E

Where, Y = dependent variable = consumer satisfaction and X= independent variable

a= constant
X1 = Reliability
X2= Assurance
X3= Responsiveness
X4= Empathy
X5= Tangible
E= Error

In table 14 shows the existence of mathematical relationship between tangible,

assurance, reliability, responsiveness and empathy and consumer satisfaction towards
bank. Thus, consumer satisfaction affects tangible, assurance, reliability,
responsiveness and empathy of bank. The p-value of tangible, assurance, reliability,
responsiveness and empathy is 0.022, 0.006, 0.149, 0.000 and 0.000 respectively. The
beta value of these variable are -0.165,0.245, 0.103, 0.203, and 0.387 which indicate

29
that one unit change in reliability leads 0.165 unit change in customer satisfaction.
Likewise one unit changes in assurance leads 0.245 unit change in customer
satisfaction. Likewise one unit changes in responsiveness leads 0.103 unit change in
customer satisfaction. Likewise one unit changes in empathy leads 0.203 unit change
in customer satisfaction. Likewise one unit changes in tangible leads 0.387 unit
change in customer satisfaction respectively.

The findings of this study also indicated that tangible is the most important factor to
have positive and significant effect on customer satisfaction, followed by assurance,
responsiveness and empathy.

30
2.9 Major Findings
 In the descriptive analysis, Assurance has higher mean (i.e. 4.12) in
comparison to other service quality dimensions.
 In the correlation analysis there is positive and significant difference between
customer satisfaction and service quality dimensions (Reliability, Assurance,
Responsiveness, Empathy and Tangible). That is the correlation value is
greater than p value (0.05 and 0.01 level of significances)
 In the independent sample t-test, there is no significance different between
male and female respondents between the five service quality dimensions. (i.e.
p value>0.05).
 In the regression analysis, The Adjusted R Square indicates 0.53 or about 53%
of variance on dependent variables can be explained by service quality
dimension (i.e. reliability, assurance, responsiveness, empathy and tangible)
and the remaining 47% of variance may be due to some other independent
variables not included in model. The Durbin-Watson value is 2.162 which are
very near to the 2. Thus, it indicates that the model is perfectly fits the data.
 In overall, the highest relationship was found between empathy and customer
satisfaction, while the lowest relationship was found between reliability and
customer satisfaction.

31
 CHAPTER 3

SUMMARY, CONCLUSION & RECOMMENDATION

3.1 Summary

There were 107 opinion statements for this study and four opinions were developed to
measure the consumer satisfaction towards Janata bank. Except for demographic
information, all items were measured using five-point scales. The lesser score would
indicate a favorable of consumer satisfaction towards Janata bank. The five-point
Likert scale was used as below:

1= Strongly Disagree, 2= Disagree, 3= Neutral, 4= Agree, 5= Strongly Agree

The responses were collected and the data was arranged and analyzed using Microsoft
word and SPSS software packages. Under SPSS software, the collected data were
analyzed through various approaches such as, reliability analysis, analysis of
demographic profile, descriptive analysis, independent sample t-test, correlation
analysis and regression analysis.

The study was planned at investigating the impacts of core banking and service
quality on customer satisfaction in Janata bank Newroad branch. The data were
obtained through questionnaire from customers of the bank. The results of
background information of respondents indicated that majority of the total
respondents (55.1 percent) are male, (95.3 percent) aged in the range of 20-40 years,
and (43 percent) of the respondents income are Rs.15000-30000 in a month.

The results of the descriptive statistical analysis indicated that, customers were most
satisfied with the assurance dimensions of service quality. Furthermore, customers
were less satisfied with responsiveness dimensions of service quality. The correlation
result shows that there is significance relationship between customer satisfaction and
its factor affecting (i.e. assurance, responsiveness, empathy and tangible). Reliability
and customer satisfaction (r = 0.210, p > 0.05), assurance and customer satisfaction (r
= 0.592, P >0.01), responsiveness and customer satisfaction (r = 0.468, P >0.01),
empathy and customer satisfaction (r= 0.606, p>0.01) and tangible and customer
satisfaction (r= 0.492, P >0.01). This indicates that if the bank can improve the factors
affecting customer satisfaction than customer satisfaction will also increase. The

32
banks should focus to increase their reliability, to improve empathy, to provide
responsiveness, increase their assurance as per their service quality than, they can
easily increase satisfaction level of customers.

The finding also indicates that the highest relationship was found between empathy
and customer satisfaction, while the lowest relationship was found between reliability
and customer satisfaction.

3.2 Conclusion

This study is conducted in order to find the consumer satisfaction towards the bank
service at Newroad branch. Reliability, assurance, responsiveness, empathy and
tangible were the independent variable of the study whereas Consumer Satisfaction
was the dependent variable.

The study was conducted to examine the impacts of the application of service quality
on customer satisfaction Janata bank Newroad branch. The finding of the study
indicates that customers of bank were satisfied by the five service quality dimensions
(tangibility, reliability, responsiveness, assurance and empathy). The finding of the
study also indicates that, customers were most satisfied with the assurance dimensions
of service quality. However, customers were less satisfied responsiveness dimensions
of service quality. The correlation result shows that all service quality dimensions
(tangibility, assurance, empathy, responsiveness and reliability) are positively and
significantly related with customer satisfaction.

According to the t-test results for difference in the level of satisfaction based on
respondent characteristics, there is a no significant difference in satisfaction between
male and female respondents.

In conclusion, the Adjusted R Square indicates 0.53 or about 53% of variance on

dependent variables can be explained by service quality dimension (i.e. reliability,
assurance, responsiveness, empathy and tangible) and the remaining 47% of variance
may be due to some other independent variables not included in model. The Durbin-
Watson value is 2.162 which are very near to the 2. Thus, it indicates that the model is
perfectly fits the data.

33
Thus, the study conclude that service quality in bank leads to satisfied customers and
thus bank can gain competitive advantage by offering better quality services to their
customer in today's emulous world.

3.3 Recommendation

Under this chapter, after the completion of summary and conclusion,

recommendations are given, recommendation are suggestion, advices or feedbacks of
customer that have been given to the bank.

Following recommendations can be drawn on the basis of the study:

 As per the research, to increase customer satisfaction bank should incorporate

the traditional lobby facility into modern digitalized coupon system in the
bank.

34
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 APPINDIX I
Survey Questionnaire on Customer Satisfaction in Janata Bank

Dear Respondent,

I am pleased to inform you that I am undertaking a research work on Customer

Satisfaction in Janata Bank. For your kind information, it is purely an academic work
and your response will be kept confidential and anonymous. Information provided by
you will be analyzed at aggregate level.

Thank you
Rajneesh Simkhada

Please put a tick mark in the appropriate box

General information of the Respondent

1. Gender
i. Male ( )
ii. Female ( )
iii. Other ( )
2. Age
i. Below 20 ( )
ii. 20-40 ( )
iii. Above 40 ( )
3. Monthly Income
i. Below 15000 ( )
ii. 15000-30000 ( )
iii. Above 30000 ( )

Customer Satisfaction with Relation to Service Quality Dimensions

Please mark a tick in an appropriate response that best describe your perception
towards the role of service quality dimension in customer satisfaction. It is a humble
request to realize each statement as me is used for you i.e. respondent. [1- Strongly
Disagree, 2- Disagree, 3- Neutral, 4- Agree, 5- Strongly Agree]

38
Measurement Items / Service Attributes 1 2 3 4 5

Reliability
Banks fulfill its promise at the time indicated
Bank’s perform the service exactly at the first time
Bank show a keen interest in solving your problems
Bank insist on error free record
Assurance
Bank’s staff behavior instills confidence in me
I feel safe in my transaction with the bank
Bank’s staff are courteous with me
Bank’s staff have the knowledge to answer all my question
Responsiveness
Bank’s staff give you prompt service
Bank’s staff tell you exactly the time the service will be
performed
Bank’s staff always willing to assist you
Banks staff are not too busy to respond to my question
Empathy
Banks give me individual attention
Bank operating hours convenient to me
The bank has my interest at heart
Bank’s staff understand my specific needs
Customer care provide me sufficient information

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Tangible
The bank's employees has a neat & professional appearance
Material associated with the service like pamphlets, statements
are visually appealing at the bank
Bank physical facilities visually nice
Banks has modern equipment & tools
There is no waiting lobby
Customer Satisfaction Questionnaire (CSQ)
I am satisfied with the bank’s complete range of services.

I am satisfied with the performance of the employees of this

bank.
I am satisfied of being a client of this bank.

I am satisfied with the bank employees’ professional competence

I am satisfied with the quick service of this bank.

I am satisfied with the respectful behavior of employees.

If you have any comments or suggestions regarding service quality, please mention
here:
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
....................................................
Thank you for your kind cooperation.

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