Impact of Service Quality on the Customers’ Satisfaction Among Listed Deposit Money Banks in Nigeria

Abstract

Despite the recent advancement in Information and Communication Technology (ICT) which is expected to facilitate financial intermediation in the Nigerian banking system, the banks customers’ service unit often attend to several customers complaints in relation to several issues among which is the direct or indirect services delivery between the banks and customers. Meanwhile, the management of banks and other stake holders deemed it necessary to device means of assessing the customers’ service delivery quality to ensure that maximum standard quality of services are delivered to ensure customers satisfaction which ultimately led to the survival and growth of the banking sectors. This study seeks to investigate the impact of service
quality on customers’ satisfaction among the listed Deposit Money Banks in Nigeria (DMBs) during the period of 2021. The population of the study is infinite for the fact that the number of customers is not clearly disclosed by the banks. The study adopts Godden (2014) formular, to determine the sample of the infinite population. The study employs correlational and survey research design. The study adopts simple random technique and Partial Least Square – Structural Equation Modeling (PLS-SEM) to analyse the data generated with the aid of Smart PLS 3.3 software package. The outcome of the study reveals that functional service quality has no significant impact on customers’ satisfaction. However, it is further revealed that relational service quality is 1% significantly and positively impacting on customers’ satisfaction of listed DMBs in Nigeria. Based on the findings, the study recommends that the board and management of the listed DMBs in Nigeria should strengthen their operational policy particularly on relational service quality which includes assurance, responsiveness, friendliness, courtesy, and commitment respectively, that will enhance their customers’ satisfaction and retention through sustainable loyalty and by extension leading to general increase in performance of the banks.