Service Delivery and Customer Satisfaction in Selected Commercial Banks in Central Division, Kampala

Abstract 

The study examined the relationship between service delivery and customer satisfaction among selected Banks in Kampala, Uganda; based on five specific objectives: (i) to determine respondent’s profiles in terms of gender, age, marital status, level of education position and experience; (ii) level of service delivery (iii) level of customer satisfaction; (iv) difference in the level of service deliver and level of customer satisfaction according to relevant profile variables; and (v) relationship between service deliver and customers satisfaction among the selected banks in Kampala, Uganda. It used a descriptive correlation design, survey, expos facto and cross-sectional survey designs. A self administered questionnaire was used to collect primary data from 331 respondents out of a population of 2400 using convenient sampling technique. Data was analyzed using SPSS’s frequencies and percentages, means, one way ANOVA, Pearson’s Linear Correlation Coefficient. The data analysis revealed that most of the respondents were female, married and in the age bracket of 20 — 39 years; majority were bachelor’s degree holders; with experience of 5 years and above. The study went ahead to reveal that both the level of service delivery and customer care was high. One way ANOVA revealed that service delivery significantly differed according to age and experience; and the level of customer satisfaction differed according to education and experience. Lastly, PLCC and Regression analysis showed that service delivery positively and significantly correlated to customer satisfaction. Basing on the study findings, the researcher made the following recommendations: Banks need to have complaint registers on their counter for Customer to record their complaints about the services and in areas where they are not satisfied; use friendly system to make ATM transactions easier and cheaper, this will reduce queues on the counter inside the bank; locate ATM5 in convenient places to reduce the distance customers move to access their finances and secondly, these ATM5 need to be in safe places to reduce robbery and coning of customers after withdrawing their cash; staff need to devote enough effort in resolving customer problems and complaints as and when they arise; banks to set fair interest rates to attract more customers; banks follow up customers to establish their level of satisfaction on the services offered.

TABLE OF CONTENT

Preliminary pages Page

Declaration A

Declaration B ii

Approval Sheet iii

Dedication iv

Acknowledgement v

Abstract vi

Table of contents vii

List of Tables ix

CHAPTER Page

ONE PROBLEM AND ITS SCOPE 1

Background of the Study i

Statement of the Problem 2

Purpose of the Study 3

Research Objectives 3

General Objective 3

Specific Objectives 3

Research Questions 4

Hypothesis 4

Scope of the study 4

Significance of the Study 5

Operational Definition of Key terms 5

TWO REVIEW OF RELATED LITERATURE 7

Concepts/Ideas from Authors and Experts 7

Theoretical Perspective 11

Related studies 18

Research gap 22

THREE METHODOLOGY 22

Research Design 22

Study Population 22

Sample Size 22

Sampling Procedure 23

Research Instrument 23

Validity and Reliability of the Instrument 23

Data Gathering Procedure 24

Data Analysis 24

Ethical Consideration 25

Limitations of the Study 25

FOUR ANALYISIS AND INTERPRETATION OF DATA 27

Respondents Profile 27

Level of Service delivery 28

Level of Customer satisfaction 31

Differences in the level of service delivery according to profile variables 33

Differences in the level of customer satisfaction according to profile variables 36

Relationship between service delivery and customer satisfaction 39

FIVE FINDINGS, CONCLUSIONS AND RECOMMENDATION 41

Summary of Findings 41

Conclusion 42

Recommendations 42

Areas for Further Research 43

REFERENCES• 44

APPENDICES 47

Appendix IA: Transmittal Letter for the Researcher 47

Appendix IB: Transmittal Letters for the Respondents 48

Appendix II: Clearance from Ethics Committee 52

Appendix III: Research Instruments 53

Appendix IV: Content Validity Index 56

Appendix V: Determination of Sample size 58

Appendix VI: Researcher’s CV 59