Determinants of customer-perceived service quality and their relationship to customer satisfaction and loyalty in Agrobank / Dido Dandu

Purpose - This study attempts to examine the determinants of customer-perceived service quality and their relationship to customer satisfaction and loyalty in Agrobank. Design/methodology/approach - In 2000 Bahia and Nantel proposed a specific scale, the BSQ, (Bank Service Quality) for measuring perceived service quality in retail banking consisting of six dimensions: effectiveness and assurance; access; price; tangibles; service portfolio; and reliability. The data were collected and administered by means ofstructured questionnaires based on BSQ (Bahia and Nantel, 2000). There were 98 usable, completed returned questionnaires for analysis using SPSS Version 16 software. Statistical methods, such as the t-test, Cronbach’s-alpha and factor analysis, were then employed to answer the research questions. Findings - The results showed that there are many factors that influence customers’ satisfactions and dissatisfactions; and loyalty toward the banking service provider namely effectiveness, assurance, reliability, access, price and tangibility. There are no significant differences in their perceptions of the bank service quality between all the demographic variables. The research also revealed that generally the respondents were fairly satisfied with the level ofservice quality performed by Agrobank. Practical Implication - The results have significant implications for Agrobank in formulating, implementing and evaluating their operational, marketing and human resource strategies.Originality/value - This study is important to determine key relationships between service dimensions, service performance and cultural settings to achieve higher customer focus, to increased customer satisfaction in order to achieve higher customers’ loyalty. Key words: Service Quality, Bank, Customer, Customer Satisfaction, Loyalty