Electronic Banking Service and Customer Satisfaction

as Perceived by Agribusiness Entrepreneurs

in Tagum City

A Thesis

Presented to the

Thesis Committee, Department of Business Administration

UM Tagum College, Tagum City

In Partial Fulfillment

of the Requirement for the Degree

Bachelor of Science in Business Administration

Major in Financial Management

IVAN AÑOVER

NATASHA EVONNE KYLE OCZON

HONNEY MAE PANGGO

DECEMBER 2022
 INTRODUCTION

Satisfaction is an important post-purchase component in the marketing

literature (Khazaei et al., 2014, p.17). Customer satisfaction is a measure of how
products and services supplied by a company meet or surpass customer expectation
(Neil 2019, para.2). When your clients are satisfied, they trust your brand and stay
loyal to it. These devoted clients are a big source of revenue for brands and
encourage repeat business. Your company's income and customer turnover rates
suffer greatly when you lose customers. Customers' roles in services are continually
underscored in marketing literature, particularly in the recent development of a new
approach, called service-dominant logic (Khazaei et al., 2014, p.17). The banking
industry is a commodified space. With everyone offering nearly the same products
and services without much room to compete on price, the satisfaction customers
have with their banks is what gives one bank a competitive advantage over another
(Vaslow 2018, para.2). Since humans evolved to react more profoundly to negative
experiences than good ones, negativity is a far more extrinsic motivator than
happiness. One customer’s negative feedback can seriously damage the company’s
reputation. And after one negative experience, customers will never do business with
that company again (Patel 2021, para.3). If a customer received a negative
experience they can easily turn into a detractor and try to warn other people against
doing business with you and that’s something that could sink even the most
successful business (Rana, 2022, para.9). Barret (2018, para.3) states that a single
negative review can drive away approximately 22% of customer. Since customer
happiness is so crucial to the banking sector, it is crucial to evaluate the client
experience and find areas for improvement (Vaslow 2018, p.4).

Grönroos (2007, as cited in O Bacetic, and A Persson, 2018) states “customer

satisfaction is fulfillment in terms of pleasurable services which are related to the
whole consumption experience” (p.3). “It is a measure of how well a company's
products and services satisfy or exceed the expectations and demands of its
customers. Customer satisfaction is critical to the success of company strategy
because it prevents clients from requesting services or products from its rivals” (Gil
and Cervera, 2008, as cited in Al- Hawary and Al- Smeran 2017., p.171). “Customer
satisfaction is a crucial factor as it can determine whether the bank will fail or survive,
which is why customer feedback has to be collected regularly” (Green & Thompson,
2000, as cited in O Bacetic, and A Persson, 2018, p.3). “Customer satisfaction
helps organizations and businesses to increase their return and achieve competitive
advantage, in addition customer satisfaction leads to long term profits by making the
customer loyal to the Organization” (Jochen & Lewin, 2009, as cited in Al- Hawary
and Al- Smeran, 2017, p.171). Consistent with these definitions, and in the context of
this study, customer satisfaction is the customer's attitude formed in response to
utilizing any type of E-Banking services.

Banks have made significant technological investments and have embraced

electronic and telecommunication networks globally in order to supply a variety of
value-added goods and services (Kitsios, Giatsidis & Kamariotou 2021 para.4).
“Internet banking is the industry which uses computer technology to provide better
services to customers and help in the development of banking practices” (Rahmath
& Hema 2010 as cited in Ling et al., 2016, p. 81). “Currently, almost banks are
embracing electronic banking as a means of improving service quality of banking
services. They are providing electronic banking to their customer to increase
customer satisfaction in banking services” (Worku et al., 2016 as cited in
ResearchWap, para.6). As the banking services becoming more online, perceptions
on customer satisfaction have led to an increase in competition, globalization and
convergence, forcing banks to develop new strategies to retain their customers.
Technological innovations are one of the effective ways to increase the level of
service quality to satisfy customer needs (Ling et al., 2016, p.81). Accordingly, E-
Banking attributes may increase, decrease, or keep the same customer satisfaction
(Hammoud, Bizri & El Baba, 2018b para.12). For this sake, it is crucial to implement
new banking services in order to develop and keep better relationships with
customers. Hence building up competitive predominance almost depends on
customers’ satisfaction with banking service. It is recognized that banks gaining
higher customer satisfaction will have a conspicuous marketing ascendancy because
the higher customer satisfaction is associated with greater revenues, increased
cross-sell rations, higher customer retention and bigger market share (G Worku, A
Tilahun, MA Tafa, 2016, p.6).

At this point in the study, electronic banking and customer satisfaction are
available in the new setup. Previous research has discussed and concentrated on
the relationship between electronic banking and customer satisfaction. However, we
were unable to locate any studies in a local setting that looked into electronic
banking and customer satisfaction in adult agribusiness entrepreneurs. Researchers
are interested in conducting this study because we want to know how effective e
banking is in terms of adult agribusiness entrepreneurs' customer satisfaction.

The goal of this research is to find out how adult entrepreneurs perceive the
significance and influence of the indicators listed on Electronic Banking and
Customer Satisfaction. It also attempted to achieve the following goals; to know the
influence of Electronic Banking when measured in terms of: Web Design and
Content and Service Quality; to determine the factors affecting the customer
satisfaction among adult agribusiness entrepreneurs in Tagum City in terms of:
Convenience, Reliability and Assurance; and to determine the relationship of
Electronic Banking and Customer Satisfaction among adult agribusiness
entrepreneurs in Tagum City. The null hypothesis of this study is measured with a
level of significance at 0.05 stating that there is no significant relationship between
electronic banking and customer satisfaction
 Methods
Participants

The subjects of this study are adult agribusiness entrepreneurs aged 18 to 49

years old vending agricultural products in Tagum City, the researcher will collect the
verified numbers of agribusiness entrepreneurs, which is 1,079. The selection of
respondents will be determined with the use of a convenience sampling method.
Convenience sampling is a method of collecting samples by taking samples that are
conveniently located around a location (Edgar & Manz 2017, para.1).

Instruments

The study will be conducted using a survey-questionnaire as an instrument.

The research questionnaire is a set of question used to collect data from
respondents. The survey-questionnaire in this research is adopted-modified from the
study of (Hammoud, Bizri & Baba 2018, p. 8-11) and (Tharanikaran, Sritharan and
Thusyanthy 2017, p. 71-72) for both independent and dependent variable to match
the needs of the investigation.

Design and Procedure

This study will use the quantitative approach, a non-experimental research

design utilizing a descriptive correlational study. To meet the main objective of this
study, descriptive correlational design will be used. The purpose of descriptive
correlational design is to provide static pictures of situations as well as establish the
relationship between different variables (McBurney & White (2009) cited in IvyPanda.
2022 para.3). This study uses a convenience sampling to collect data. The
researcher will collect information from the adult agribusiness entrepreneurs in all
public market in Tagum city. The study will discover the ascendancy of Electronic
banking and Customer satisfaction feature. For the time being, researchers are
searching more data needed in the study.

Following approval from the panel members, the researchers will gather data
for the study in accordance with the following steps and procedures. The adopted-
modified questionnaire will be used to determine the level of electronic banking and
customer satisfaction as perceived by agribusiness entrepreneurs in Tagum city.
First, they will write a letter to management asking for permission. Survey
questionnaires will be administered to study respondents once the letter of
endorsement is approved. Statistical analysis will be performed after all data
gathered from the respondents is collected, tallied, and tabulated by the researchers.
Analysis and interpretation will be conducted of the statistical results. In conclusion,
the study findings will be used to formulate recommendations based on the data.

After collecting the data the researcher use the statistic tools to analyze the

data which the Mean is to determine the level of Electronic banking and Customer

satisfaction among agribusiness entrepreneurs in Tagum city and Person (r) to

determine the relationship between Electronic banking and Customer satisfaction

among adult agribusiness entrepreneurs in Tagum city.

The statistical tools that will be used for the data analysis and interpretations

are the following. First, mean, to determine the level of electronic banking services

and customer satisfaction perceived by Agribusiness Entrepreneurs in Tagum City.

Pearson-r to determine the significant relationship between electronic banking

services and customer satisfaction perceived by Agribusiness Entrpreneurs in

Tagum City and lastly multiple regression, to determine which of the indicators of

electronic banking services best predicts customer satisfaction perceived by

Agribusiness Entrepreneurs in Tagum City. Pertinent data will be gathered with

questionnaire and were subjected to appropriate statistical treatment.

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