Quality of service and customer satisfaction: a conjoint analysis for the Nigerian bank customers

Abstract

Purpose

The purpose of this paper is to evaluate the perceptions of Nigerian banking customers regarding customers’ evaluation of their banks service quality based on their banks actual performance on current banking service delivery.

Design/methodology/approach

A survey has been used to collect primary data and 1,245 usable questionnaires were used in the analysis. A conjoint analysis with stated preference data were used to construct the consumers’ behavior, while discrete choice method was employed to evaluate the preferences. More information was obtained by in cooperating heterogeneity into the model by the random coefficient and the test variance with the primary attributes and social demographics and individual characteristics.

Findings

Discrete choice analysis shows that bank management should focus on: reduction of transaction errors, transaction cost, waiting time and initial online learning time. This four attributes have strong impact on customer’s satisfaction depending on quality performance. Relative to other services the reduction in waiting time and transaction cost are the most important services to the Nigerian banking customers. Other findings of willingness to pay and consumer preference for other attributes reveal more information for improved banking policies.

Research limitations/implications

The sample only focussed on the urban areas and did not consider rural dwellers. Future research should aim to improve on these by including a variable in the utility set up that captures the distance of the respondent to the main city.

Practical implications

Nigerian banking customers do not care about a friendly smile as customer care. Rather, they value more on the waiting time and transaction cost showing that convenience and cost dimensions have strong and direct effect on service quality. Other dimensions identified includes, reliability, product portfolio, security and privacy, ease of use, accessibility, and competence and credibility.

Originality/value

This study has drawn on a sample of 1,245 Nigerian banking customers and evaluating how the survey respondents perceive their respective banks’ performance by their evaluation of the current banking service delivery.

Citation

Dauda, S.Y. and Lee, J. (2016), "Quality of service and customer satisfaction: a conjoint analysis for the Nigerian bank customers", International Journal of Bank Marketing, Vol. 34 No. 6, pp. 841-867. https://doi.org/10.1108/IJBM-04-2015-0062