Perceived Service Quality and Customers' Patronage of Selected Banks in Abeokuta, Ogun State, Nigeria

Abstract—

This study examined the effect of service quality dimensions on customer loyalty to the providers of retail banking services. It investigates the relationship between service quality dimensions of effectiveness and assurance, access, price, tangibles, service portfolio and reliability and customers’ patronage. To achieve this purpose, The study employed Simple random sampling to select six banks namely First Bank Plc, United Bank of Africa Plc, Guarantee Trust Bank Plc ,Access Bank, First City Monument Bank and Zenith Bank Plc for this study. Convenience sampling method was used to select 240 customers of the selected banks. The data were analysed through the use of Statistical Package for Social Science (SPSS),while Pearson’ s correlation co-efficient and multiple regression analysis were used to test the hypotheses formulated whether significant relationship exist between service quality dimensions and customers’ patronage. Result of the findings revealed that there is a positive strong relationship between the six service quality dimensions and customer patronage but only three independent variables namely effectiveness and assurance, price and tangibles have positive effects on customer patronage with the co-oefficient of 0.739, 0.305 and 0.264 respectively at 1% level of significance. Thus, this study suggested that banks should focus more on the six attributes of service quality dimensions of BSQ model especially access, service portfolio and reliability that recorded negative values in order to enjoy strong patronage by customers.

Keywords— Banks, Patronage, Customer, Access, Portfolio.