i

IMPACT OF EXTENDED MARKETING MIX

ON CUSTOMER SATISFACTION IN STATE
BANKING SECTOR

FINAL PROJECT SUBMITTED TO

TEXILA AMERICAN UNIVERSITY
IN PARTIAL FULFILLMENT OF THE REQUIREMENT
FOR THE AWARD OF THE

MASTER OF BUSINESS ADMINISTRATION

[MBA]

Submitted by
K.M.N. Konara
(Enrollment No. 34192)

Under the guidance of

D.A.M. Perera (PhD)
Senior Lecturer,
Faculty of Business Studies and Finance, Wayamba University of Sri
Lanka, Kuliyapitiya, Sri Lanka
 ii

Table of Content

Acknowledgement............................................................................................................................4

Abbreviations...................................................................................................................................5

List of Tables....................................................................................................................................6

List of Figures..................................................................................................................................6

List of Annexures.............................................................................................................................6

1Introduction....................................................................................................................................7

2.Statement of the Problem..............................................................................................................7

3.Rationale of the Study...................................................................................................................8

4.General and Specific Objectives of the study...............................................................................8

4.1 Research Objectives...................................................................................................................8

4.2 Research Model and Hypothesis................................................................................................8

5.Review of Literature....................................................................................................................10

5.1 Customer Satisfaction..............................................................................................................10

5.2 Marketing Mix..........................................................................................................................10

5.3 State Banks...............................................................................................................................12

5.4 Marketing Mix and Customer Satisfaction.............................................................................12

6.Methodology of Study.................................................................................................................13

6.1 Study Area................................................................................................................................13

6.2 Population of the study and Sampling Method........................................................................13

6.3 Study Duration.........................................................................................................................13

6.4 Sampling Method.....................................................................................................................13

6.5 Sample Size..............................................................................................................................14

6.6 Study Tools..............................................................................................................................14

6.7 Pretesting.................................................................................................................................14
 iii

6.8 Collection Of Data...................................................................................................................14

6.9 Data Analysis...........................................................................................................................14

7. Observations and Findings.........................................................................................................15

7.1 Respondent Profile...................................................................................................................15

8. Discussion..................................................................................................................................18

9. Conclusion..................................................................................................................................18

10.Salient Recommendations on the Problem Study.....................................................................18

11.Summary of the Project Report.................................................................................................19

12.References.................................................................................................................................20

13.Annexure...................................................................................................................................23
 iv

Acknowledgment

I would like to appreciate all those who helped me in the completion of this project. It would
have been impossible without the effort of many individuals who have supported me directly
and indirectly. I thank cosmic energy for providing me the strength to complete this work, and
especially my husband Nalin Wijesinghe for continuous support given to make this research a
real success and finally to friends for supporting me during all this period. I take this
opportunity to thank my supervisor Dr. Aminda Perera (Ph.D.) who has given me knowledge
and constant support to refine my work and deliver quality research outcome.

Further, I wish to offer sincere thanks to my prestigious bank for facilitating me to conduct
interviews for my research.
 v

Abbreviations

EMM Extended Marketing Mix

CS Customer Satisfaction
SBS State Banking Sector
ANOV Analysis of Variance
A
LCBs Licenced Commercial Banks
List of Tables
Table 1: Respondents Profile (Gender).....................................................................................................15
Table 2: Respondents Profile (Age)..........................................................................................................15
Table 3: Respondents’ Profile (Education Level)......................................................................................15
Table 4: Pearson Correlation Between the Customer Satisfaction and Marketing Mix
Elements....................................................................................................................................................16
Table 5: ANOVA for customer satisfaction between different age groups................................................16
Table 6: ANOVA for customer satisfaction between different education levels.......................................17
Table 7: Levene’s t-test for the Comparison of Customer Satisfaction between the gender
groups........................................................................................................................................................17

List of Figures
Figure 1:Proposed Research Model............................................................................................................9

List of Annexures
Questionnaire…………………………………………………………………………...……23
 7

1. Introduction

The banking market is comparatively competitive and rapidly changing with technological
changes. Thus, banks need to maintain steady growth while making sufficient profits. This
assures a sufficient dividend payout and a considerable level of reserves within the bank to
reduce the potentially vulnerable conditions due to external environmental changes.

Within a competitive structure, since the products developed within the market are poorly
differentiated (Cvijovic et al., 2017). The banks need to maintain a standard level of customer
relationship management system, which provides quality service to the customer. This creates
an opportunity for the banks to develop a long term relationship with the customers.

According to Zairi (2000), financial institutions heavily focus on the customer than letting
them go away to assure the future security, and they are heavily depending on customers
focusing on customer satisfaction, loyalty, and retention. Customer satisfaction is the overall
attitude of the customer or behavior towards the particular service provider, or either it can be
an emotional reaction towards the customer expectation gap. (Kotler, 2000) Within the
current dynamic environment, customer satisfaction is comparatively essential. Satisfied
customers are most likely to share their experiences with others around them.

Similarly, the dissatisfied customers also approach to many other external parties with their
negative experience, which may create reputational damage to the organization. (Mohsan, et
al., 2011).

Banks can use differentiated strategies to create a satisfied and loyal customer. According to
LaBarbera & Mazursky (1983), the organizations should develop long-lasting customer
relationships while satisfying various needs and wants of the customer, which motivates the
customers to continue the business with the organization on an ongoing basis.

Shankar & Chin (2011) identified that the elements in the marketing mix, namely product,
price, place, and promotion are the controllable tools of customer satisfaction. Thus, the
current study focuses on the impact of the extended marketing mix to create a satisfied
customer in the banking sector.

2. Statement of the Problem

Bank marketing deals with providing services to satisfy the financial needs and wants of its
customers. When satisfying such financial needs, customers expect specific services.
 8

However, the ultimate objective of a bank is to induce the people to do business with a
particular bank, and to fulfill such the banks may use all the techniques and strategies of
marketing. Since the banks are in the service sector, it is highly required to maintain the right
level of satisfaction among their customers. The traditional marketing mix cannot be
responsible for the total marketing function of a service organization like banks. It requires all
elements of the service marketing mix.

The service marketing mix plays a vital role in bank marketing. It consists of the various
elements of a marketing programmer which need to be considered to successfully implement
the marketing strategy and positioning in the markets. However, it is not clear whether all the
elements in the service marketing mix is leading to create a satisfied customer within the
bank. Further, it will be helpful for the banking sector to identify the key elements which
enhance customer satisfaction sensitively so that the banks can invest in more in those areas
when they develop their marketing strategy. This study focus on identifying such critical
elements of the service marketing mix, which could be useful for the banks to invest in
improving customer satisfaction, which may lead to creating a sustainable customer base.

3. The rationale of the Study

Through this research, it is possible to identify the most critical elements in the Marketing
Mix and accordingly, banks can set up their marketing plans for the future. Further, this sets
up a proper guideline for the banks to plan their marketing campaigns while investing their
marketing budget effectively. Thus it will help the banks to minimize the expenses that they
afford on less effective marketing strategies. Ultimately this will lead the banks to increase
their profitability and develop a corporate customer base.

4. General and Specific Objectives of the study

4.1 Research Objectives

The objective of this research is to

1. Identify the impact of the extended marketing mix to create a satisfied customer within
the banking system
2. Identify the critical elements of the extended marketing mix which has a significant
influence on creating a satisfied customer
3. To check whether there is any difference between customer satisfaction based on the
demographic characteristics of the customer.
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4.2 Research Model and Hypothesis

The study identified seven variables in the marketing mix, which are independent variables as
in product, price, place, promotion, people, process, and physical evidence, while the impact
of such independent variables has been tested against customer satisfaction. However, the
consumer's gender, age, and educational level have been considered as intermediary variables
when measuring the level of customer satisfaction.

Customer
Extended Marketing Mix
Satisfaction

Gender
Product (H1)
Age
Price (H2) Education

Place (H3)
Promotion (H4)
People (H5)
Process (H6)
Physical Evidence (H7)

Figure 1:Proposed Research Model

5. Review of Literature

5.1 Customer Satisfaction

Hansemark & Albinson (2004) discuss the customer satisfaction by approaching to three
perspectives as in the definition of the concept, recognition of customer satisfaction,
enhancement of customer satisfaction and they have identified the customer satisfaction as the
dominant attitude or the behavior that the customer holds towards a specific product or
service.
Kotler (2000) defines customer satisfaction as a feeling of pleasure or disappointment hold by
the customer, which occurs as a result of comparing the perceived performance or outcome
against the expectation of a particular customer. Thus Liu and Yen (2010) stated that
customer satisfaction means the benefits that the customer obtains than their cost.

So that customer satisfaction is a perception. (Amy, 2007) According to the study of Lundahl,
et al., (2009), there have been two dimensions of customer satisfaction as in technical and
 10

functional. The technical dimension is focusing on what is delivered compared to the

expectation, and the functional dimension is mainly focused on the social interaction between
the parties.

The customer's repurchase or retention intentions are greatly influenced by customer

satisfaction as well as the switching decisions are heavily impacted by the dissatisfaction of
the customer. (LaBarbera & Mazursky, 1983) However, the success of an organization
heavily depends on customer satisfaction, and it is essential to manage relationships with
customers to achieve customer satisfaction. (Bitner, 1995) The businesses tend to secure their
future revenue while reducing their future transaction cost via customer satisfaction (Bolton,
1998; Reichheld & Sasser, 1990).

Customer satisfaction is one of the perspectives of the balanced scorecard and also a key
performance indicator. Thus for any product, it is essential to survive within the competitive
market place by differentiation of customer satisfaction. Marketing is a set of steps that
deliver value that could be valued by customers, and further, it helps to create a relationship
with customers while providing benefits to the organization. (Armstrong & Kotler, 2011).

According to Neelakantam (2015), a successful marketing strategy follows five key steps as
in target the customer, understand the customer, make value for the target customer,
communication of values, and make easy for the customer to buy that value. Managing this
process of marketing is highly relying on the marketing mix.

5.2 Marketing Mix

The marketing mix is a model for creating and implementing marketing strategies. According
to Borden, (1964), the elements of the marketing mix are the tactics which are well known as
4 Ps’.

The model was developed by Neil Borden in 1949 with set of 12 elements which included the
product-planning, pricing, branding, personal selling, channels of distribution, advertising,
promotions, display, packaging, servicing, physical handling, and fact-finding and analysis
(Goi, 2009) which later narrowed down to 4 key categories namely product, price, place and
promotion (Selim & Habibur, 2015; Amy, 2007). The businesses need to know about the
target customers, their preferences before they mix the marketing elements to develop a
specific marketing strategy to attract customers (Neelakantam, 2015).
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The Product can be either a tangible or intangible outcome of a production process that fulfills
human needs and wants (Amy, 2007). According to Selim & Habibur (2015), the product
must meet the needs of the target market, and they highlight that it is vital to maintain a good
quality when producing a product to retain the customers with the business. According to
Kotler (2009), a product can be a formal product which is a physical product bought by
consumers to fulfill their own needs and wants, core product which transfers the benefit with
the formal product to the customer, Augmented product which provide overall satisfaction to
the customer through formal product and system product which provide more add-ons with
augmented product. Neelakantam (2015) stated that features, design, quality, brand name,
packaging, services, and variety are the essential tools that assured customer satisfaction in
terms of product.

Price is the amount paid for a product by the customer to purchase the product (Neelakantam,
2015; Amy, 2007), or it is the total of the value that the customer exchanges in return of the
benefits obtained by consuming a particular product (Kotler and Armstrong, 2004). The
businesses add a profit margin to the total cost when deciding the price of the product.
Neelakantam (2015) says that tools such as list price, discounts, allowance, payment period,
and credit terms can be used when developing the pricing strategy of the business.

Kotler and Armstrong (2004) have introduced the concept of ‘Target Costing, ’ which sets up
a plan to calculate the cost production from the product development stage itself, focusing on
a predetermined price. Thus it would be helpful for the businesses to control their costs and
sell a product to the predetermined price. However, it is crucial to consider the customer’s
perception of the product value when determining the pricing strategy (Hanna & Dodge,
1995).
The place is the location where the product can be purchased, or it can be a series of activities
that have been taken place to make the product available to customers, or it is the distribution
channel (Neelakantam, 2015; Amy, 2007) This defines the level of accessibility to the
product. Distribution channels mean goods and services flow in one direction from producer
to consumer; thus, the payments generated by them will flow in another way.

Neelakantam (2015) address the promotion as a method of advertising, personal selling, sales
promotion, and public relation. Further, he related this promotion function to communication
function, emphasizing that promotion is a two-way communication method that assists
customers in obtaining product education. According to Haruna (2015), a bank can
communicate a persuasive message about a particular product. However, promotion brings
 12

benefits to the business by encouraging healthy promotion. Promotional activities such as

advertising, sales and promotion, public relations, direct marketing, and personal selling are
considered to be highly effective customer communication methods that bring endless
benefits to the business (Selim & Habibur, 2015).

Kottler (2003) introduced people, process, and physical evidence factors as an extension to
the traditional marketing mix, and further, it has been addressed as a service marketing mix.
People are the primary parties who are involved in service delivery. The level of training
given to the employees and their interpersonal behavior profoundly impacts to determine the
level of customer satisfaction. (Haruna, 2015).

The process is the method of rendering the service or understanding the product design,
features, and quality. (Neelakantam and Haruna, 2015) While the Physical Evidence engaged
with the environment that the business operates. The environment can be either the place,
village, country or region (Haruna, 2015).

5.3 State Banks

The banking system of Sri Lanka can be categorized into two principal sections as Licensed
Commercial Banks and Licensed Special Banks. Within the Sri Lankan economy, there are 26
Licensed Commercial Banks and 07 Licensed Special Banks operating to contribute to the
growth of the economy. Meantime, within the Sri Lankan context, the Licensed Commercial
Banks are again can be privately owned and publicly owned.

The Peoples’ Bank Plc is one of the largest licensed commercial banks which operates for 57
years while maintaining 19 million customer base among their group. It is a bank which
contributes approximately 19.8 billion of Sri Lankan Rupees to the government every year
while holding an asset base of over 1.7 trillion Sri Lankan Rupees (peoples bank.lk).

5.4 Marketing Mix and Customer Satisfaction

According to Mammon (2012), there is a significant impact of the product element of the
marketing mix towards customer satisfaction. Ismail et al., (2015) also found that the
correlation between the product and the customer satisfaction is relatively high. Further,
according to Haruna (2015), banks can expand their market share by having viable products.
Further, the quality of their service is profoundly impacting to develop customer satisfaction.
 13

According to the study done by Varki and Colgate (2001), based on the sample of U.S and
New Zealand markets, it has been identified that the customer perception of price in the
banking industry directly influences customer satisfaction. Cohen et al. (2007) identified that
loyal customers take less business time to do a transaction while they are less sensitive to the
prices of the product. However, it is essential to have continuous customer satisfaction to
develop a loyal customer to the business.

On different platforms, it has been identified that there is a considerable impact of price on
customer satisfaction (Leverin & LiLjander, 2006). Contradiction to that Wahab et al.: (1999)
and Chen & Chang (2005) identified that there is only a small correlation between price and
customer satisfaction.

A survey conducted in Bahrain found that the place or location of the bank branch, ATMs,
and parking availability impacts profoundly towards customer satisfaction among young
customers. (Almossawi, 2001) However, as per Mohammad, et al., (2012), the management
should consider more on the electronic aspect when they focus on satisfying the customer.

The advertising has only a general acceptance by the customers within the banking industry
Mylonakis (2009), and the promotion has led to creating dissatisfaction among customers.
Instead, it has found that the management intervention towards customer education has a high
impact on the banking industry.

According to Ojusalo (2003), the level of interaction of staff to the services and customer
satisfaction has a considerable effect. Bangladesh based research done by Siddiqi (2011)
identified that the quality of service and interrelation directly lead to developing customer
loyalty and customer satisfaction.

Further, it has been found that the fast service or self-banking services provided by the banks
also profoundly impacting to develop of a loyal and satisfied customer base to the bank. Eisa
& Alhemoud (2009). However, Jamal & Naser (2002) emphasize that service quality is
heavily impacting to determine customer satisfaction and potential customer to the banking
industry.
According to Le Blank and Nguyen (1988), the physical environment of the bank is also
impacting mostly to determine the customer satisfaction, and it allows the customers to
experience a certain level of perceived service quality.

6. The methodology of the Study

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The mixed research method used during the study and the primary study was mainly
conducted using a research questionnaire and interviews with bank customers and
professionals in the industry. The research findings were analyzed using qualitative data
analysis techniques to conclude

6.1 Study Area

The study focuses on identifying customer satisfaction among the bank customers based on
extended marketing mix which helps the banks to develop an effective marketing strategy.
This would focus on enhancing the literature on marketing strategies relating to the banking
industry.

6.2 Population of the study and Sampling Method

The target population of this research is all the customers who use commercial banks for their
day to day financial needs. The research focused on the customers in the state banking sector
and selected a sample of 80 (n = 80) customers to obtain data about their customer
satisfaction level. Additionally, the research focused on maintaining proper gender balance
while selecting the sample to avoid the biases limitation of this research. The research used a
random sampling method to select a sample of customers to measure their satisfaction level.

6.3 Study Duration

After the appropriate segments were finalized, the empirical data collection took place from
01st to 20th August 2018.

6.4 Sampling Method

The data was collected by using a questionnaire that focused on seven areas of the research
model. The Likert scale questionnaire is designed by covering the above eight dependent
variables and the independent variable to collect customer information. The research used a
random sampling method to select a sample of customers to measure their satisfaction level.

6.5 Sample Size

Data were collected among 80 customers to analyze their behavioral patterns.

6.6 Study Tools

A structured questionnaire deployed for gathering data. The questionnaire consisted of two
sections – Section one contained seven general questions to gather the respondent’s
demographic details. The second section was designed with specific questions to determine
 15

the impact of 7P’s of bank customers. The second sections occupied with the 5-point Lickert
Scale, ranging from 1(Totally Disagree) to 5 (Totally Agree).

6.7 Pretesting
The questionnaire was pre-tested with fifteen randomly selected respondents. Based on the
comments of the respondents, the questionnaire was adjusted and optimized.

6.8 Collection Of Data

The questionnaire was initially prepared in English and later translated to Sinhala. It was self-
administrated among selected respondents.

6.9 Data Analysis

The Data Has Been Analyzed Based On The Pearson Correlation Coefficient Test To Know
The Level Of Influence Of Each Variable For The Dependent Variable, Which Is Customer
Satisfaction, And A One-Way Anova Test Has Been Performed To Identify Whether There Is
Any Variation Of Customer Satisfaction Among The Intermediary Variables Considered In
This Research.

7. Observations and Findings

7.1 Respondent Profile

Table 1: Respondents Profile (Gender)

Valid Cumulative
Gender f %
Percent Percent
Male 48 56.5 60 60
Female 32 37.6 40 100
Total 80 94.1 100
  85 100
According to the background studies, it is noted that the sample is male dominant, with 56.5
percent of male representation.

Table 2: Respondents Profile (Age)

  Valid Cumulative
f %
Percent Percent
Under 20 years 2 2.4 2.5 2.5
 16

21-30 years 22 25.9 27.5 30.0

31-40 years 28 32.9 35.0 65.0
41-50 years 15 17.6 18.8 83.8
51 years and above 13 15.3 16.3 100.0
Total 80 94.1 100.0

As reveals by Table 02, 21- 30 years and 31- 40 years age group is highly dominant in
responding where there is a cumulative 58.8 percent of respondents from these two age
groups.

Table 3: Respondents’ Profile (Education Level)

  Cumulative
f % Valid Percent
Percent
No formal education 4 4.7 5.0 5.0
Basic Education 24 28.2 30.0 35.0
Diploma 40 47.1 50.0 85.0
First Degree 11 12.9 13.8 98.8
Master’s Degree 1 1.2 1.3 100.0
Total 80 94.1 100.0

When analyzing the education level, the majority of respondents are diploma holders (47.1
percent), and the respondent's group dominates with 75.3 percent of basic education and
diploma holders.

Table 4: Pearson Correlation Between the Customer Satisfaction and Marketing Mix
Elements

Correlations
  Produc Price Place Promotio Proces People Physical
t n s Evidence
Pearson .702** .659 **
.479 **
.667** .597** .706 **
.715**
Correlatio
n
Sig. 0 0 0 0 0 0 0
(2-tailed)
N 80 80 80 80 80 80 80
**. Correlation is significant at the 0.01 level (2-tailed).

The research data was analyzed based on Pearson correlation coefficient in Table 04 with a
significant level of 0.01 (p<.01) and the findings concluded that there is a strong positive
 17

correlation between product (r = 0.702, p<.01), people (r = 0.706, p<.01) and physical
evidence (r = 0.715, p<.01) and customer satisfaction. This means a business can improve its
customer satisfaction by enhancing the status of the product, people, and physical
environment.

When considering the price (r = 0.659, p<.01), process (r = 0.597, p<.01) and promotion (r =
0.667, p<.01), there is a positive and moderate correlation with customer satisfaction.
However, the place has the least correlation (r = 0.479, p<.01) with customer satisfaction
within the banking industry. The main impact of this would be the availability of online
banking systems to do the transactions which limit the number of visits to the branch by a
customer.
The hypothesis has been tested based on 99% confidence level, and the alternative hypothesis
has been accepted in for all the variables. This means that product, price, place, promotion,
process, people, and physical evidence are positively correlated to customer satisfaction.

Table 5: ANOVA for customer satisfaction between different age groups

Sum of
Df Mean Square F Sig.
Squares
Between Groups .872 4 .218 .576 .681
Within Groups 28.424 75 .379
Total 29.297 79

According to the ANOVA results in Table 05, the mean of customer satisfaction among
different respondents’ age groups has no considerable difference (F4, 80 = 0.681, p<0.05).
This explains that though the sample is within different age groups, the sample always
holding the same level of satisfaction towards the banking services.

Table 03 exhibits the results of the ANOVA test to compare the means of satisfaction among
the different educational levels. However, the results show that there is no significant
difference in customer satisfaction between the different educational groups (F4, 79 = 0.705,
p<0.05). This means that the age and educational background shows less influence to create a
satisfied customer within the business.
 18

Table 6: ANOVA for customer satisfaction between different education levels

Sum of Df Mean F Sig.

Squares Square
Between Groups .823 4 .206 .542 .705
Within Groups 28.474 75 .380
Total 29.297 79

Table 7: Levene’s t-test for the Comparison of Customer Satisfaction between the gender
groups

Interest 0.12
Year 02
Deposit 1,000,000

The total number of male respondents is 48 (n=48), while the female respondents are 32
(n=32). As per the table no 07, Levene’s t-test with 0.05 significant level (t = 0.81) states that
there is no significant difference in the level of customer satisfaction among the male and
female respondents. It further confirms that the intermediary variables of Age, Gender, and
Educational Level are least influential when determining customer satisfaction.

8. Discussion

The main objective of this research was to identify the impact of the extended marketing mix
(7 Ps) on customer satisfaction. The research focused on age, gender, and level of education
of the respondents when analyzing the level of customer satisfaction.

The findings revealed that irrespective of age, gender, or the educational level, customer
satisfaction has a strong and positive correlation with the product, people, and physical
environment. Further, Price, Promotion, and Process show a positive and moderate correlation
with customer satisfaction. However, there is a nominal correlation between place and
customer satisfaction. The highest possible reason for this could be the availability of an
online banking facility, which limits the customers’ attention to the location of the bank
branches or ATMs.

9. Conclusion
 19

The research was executed to develop an empirical debate on implementing of 7ps marketing
mix as a model in the banking industry. The study aims to find the impact of the marketing
mix with seven elements on retail bank customer satisfaction in the Kurunegala area. The
analysis revealed that product, people, and physical evidence significantly affect customer
satisfaction while price, place, promotion, and process are not significantly related to
customer satisfaction. Therefore bank management should pay more attention to investing
towards enhancement of product, people, and physical evidence areas, which will highly
contribute to customer satisfaction.

The bank Management should deploy well trained right personnel, with a high level of social
interaction in marketing their banks’ products. People who are engaged in customer service
should pay prompt attention to customer requirements and also should well respond to
customer complaints.

Management should pay attention to providing a more conducive environment for their
customers who are coming to obtain services, including parking space, air conditioning,
CCTV protection, and a more secure environment with security personal.

Modern-day customer needs to be fulfilled in the shortest possible time; therefore, Banks
must deploy the extended marketing mix to receive a competitive advantage in satisfying
customers by really identifying and knowing customers needs and catering them most
appropriately.

10. Salient Recommendations on the Problem Study

Since the products have got a positive relationship with customer satisfaction, banks should
introduce a new variety of products that caters to the needs of multiple market segments.
Also, banks should work on innovating new financial products that attract new customers to
the bank.
Banks should take steps to harmonize the elements of place to ensure customer satisfaction.
Management should strengthen its digital platform to cater to the complex customer needs of
the modern era.
 

11. Summary of the Project Report

 20

The study focuses on analyzing the impact of the extended marketing mix on customer
satisfaction within the banking sector. A structured questionnaire method has been used to
collect data from a random sample. The sample customers were selected randomly to
represent different age groups and educational levels. The study used a quantitative research
approach to analyze the primary data collected from 80 frequent banking customers. The data
were analyzed by using Statistical Package for Social Sciences (SPSS: Version 25), basically
focusing One-way ANOVA and Pearson’s Correlation Coefficient to identify the level of
influence of 7 Ps of the extended marketing mix on customer satisfaction. According to the
research finding, it was noted that customer satisfaction has a strong and positive correlation
with the product, people, and physical environment, but Price, Promotion, and Process shows
a positive and moderate correlation with customer satisfaction. However, there is a nominal
correlation between Place and customer satisfaction. Based on the results, it was noted that
means of different age groups, gender, and education levels have no significant influence
when determining customer satisfaction towards banking services. The findings of this study
are especially crucial for the Banking sector to develop their marketing strategies and to plan
their marketing budgets to optimize customer satisfaction by providing ongoing competition
to the banking sector.
 21

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13. Annexure
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