Research Report on

Customer Satisfaction of Commercial Banks In Biratnagar City, Nepal Bal Krishna Sharma

MBA II, Fall 2011

Purbanchal University

1

Chapter 1

Introduction

1.1. Background of Study:

Commercial bank occupies quite an important place in the framework of every economy.

It provides capital for the development of industry, trade & business investing the saving

collected as deposit. All the economic activities of every country is greatly influenced by

the commercial banking business of that country. Commercial banks, by playing active

roles, have changed the economic structure of the world. Integrated & speedy

development of the country is possible only when competitive banking services reach

nooks & corners of the country.

In recent years, Banking sector of Nepal has been transformed from a sluggish and

government-dominated sector to a much more agile, competitive and profitable industry.

Different foreign banks have emerged recently which have increased the competition

among commercial banks. In order to get competitive edge and to attract more and more

customers, banks are focusing on providing better services to the customers.

Banks in Nepal were not established everywhere in same period. It has passed many

years upgrading this status and wide sector business. In 2042 BS Nepal also adopted

liberal free economic policy and allowed to establish other joint venture banks under

collaboration with foreign banks as well as under private sectors. At Present there are 31

commercial banks with many branches currently operating in Nepal.

Customer satisfaction is a long-term strategy. Just as it is difficult to radically alter

perceptions of product quality over a short time horizon, so it is difficult to quickly

cultivate a reputation for superior customer service. Consequently customer satisfaction

is as competitive advantage that is sustainable over the long term. In the last few years,

subject of satisfaction and dissatisfaction has received a great deal of attention from

academic researchers. Engel & Blackwell (1982) defined satisfaction as an evaluation

that the chosen alternative is consistent with prior beliefs with respect to that alternative.

2

The liberalization, privatization and globalization has ushered the customer relationship

management in banks. The process of globalization and our move towards global

standards changed the perception of customer service and the banking endeavor to serve

the customer to build customer relationship banking. But to deliver on improved and in

depth understanding of customer needs and fully integrated customer management

system is required along with complete transparency. In the emerging market scenario,

for survival and growth, it is critical for a bank to align its vision, mission, goals and

objectives of customer satisfaction.

1.2. Research Problem

The research problem of the study is to know the customer’s satisfaction level of

customer of commercial banks in Biratnagar.

1.3. Research Question

The main problem to be dealt with by the present research is the “question of

performance in terms of customer satisfaction”. Thus, the specific problems can be

clearly explained by finding answers to the questions

a) What is the state of “customer satisfaction” of commercial banks in Biratnagar?

b) What is the comparative situation of customer satisfaction in these banks?

c) What are the factors that can lead to customers toward satisfaction?

1.4. Objective of Study

In the study researchers try to find out what is the satisfaction level of customers for the

service they received from the commercial banks in Biratnagar city and what factors are

considered mostly by customers in respect of bank services to remain a long term

customer of that particular bank.

Moreover, the specific objectives of the study are:

a) To investigate the customer satisfaction level in commercial banks of Biratnagar;

b) To analyze the comparative performance of commercial banks in terms of major criteria.

c) To find the most important factor motivating to remain with the bank.

3

1.5. Conceptual Framework

The research is mainly focused on finding customer satisfaction level in commercial

banks of Biratnagar. While conducting research, first all the commercial banks located at

Biratnagar city were chosen as the population and five banks were selected as sample by

Random Sampling Method. Sunday and Friday were not used for data collection so that

high reliability of responses could be maintained. Fifty structured questionnaire were

administered to each of the sample banks (10 questions to each).

After collection of data, all likert scale questions are assigned values 1 for “Highly

Dissatisfied” and 5 for “Highly Satisfied”. A ranking question was assigned value 1 for

the “least important” to 3 for the “high important” motivating factor. Mean and standard

deviation on different topics of bank operations were calculated, correlation and chi-

square test is done to find the appropriate result by comparing and testing calculated

values of different banks.

1.6. Hypothesis of research:

i) Customers are satisfied with the services received from their banks in Biratnagar.

ii) Level of Satisfaction among commercial banks in Biratnagar is same.

1.7. Significance of the study:

This study has its importance to provide information about customers’ satisfaction from

different products and services offered to customers by commercial banks. Findings will

be helpful to identify those areas which should be focused more to provide better

services. This will help for banks for retaining their customers and attract new customers.

This research is very important for future researchers. It is quite a bold step to enquire

into the customer satisfaction in large banking sector. The study also fulfills some

requirements of social audit of commercial banks in terms of customer satisfaction. The

management of the sampled banks may also benefit from this study as the outcome of

this study, though not very complete, raises many vital issues of the commercial banks in

terms of their customers' banking service desires.

4

Though many of the commercial banks are in state of close down, especially after the

advent of flexible liberalization policy, the number of commercial banks is increasing in

Nepal due to the attractive market opportunity available in the country, Nowadays, the

performance of these commercial banks has come under question in terms of customer

satisfaction.

1.8. Limitation of Study

This study is simply a assignment of research methodology to be studied in Masters of

Business Administration (MBA) program in 2nd semester. There are some limitations

that are given below:

a. The study concerns only the sample of banks in Biratnagar city.

b. Using a likert scale customers would likely be a neutral respondent.

c. Each person has different standards to rate satisfaction, so it is possible that two

persons may have rated the services of a same bank differently.

d. There are different areas to be considered while studying the satisfaction level which

are not possible in this short assignments so only depositor type of customer are

mainly focused.

5

CHAPTER 2

Literature Review

2.1. Introduction

Customer satisfaction is generally described as the full meeting of one’s expectations

(Oliver, 1980). Customer satisfaction is the feeling or attitude of a customer towards a

product or service after it has been used. This study enhances the relationship between

customer satisfaction and service quality. If the customer is fully satisfied then he will be

loyal with the bank otherwise he will switch off to that bank which provides the better

services. Gremler and W.Brown describes that business are not concerned only with

attracting and satisfying customers but also to maintain a long-term relationship with the

customers.

The service management literature argues that customer satisfaction is the result of a

customer’s perception of the value received in a transaction or relationship – where value

equals perceived service quality relative to price and customer acquisition costs (see:

Blanchard and Galloway, 1994; Heskett et al., 1990) – relative to the value expected

from transactions or relationships with competing vendors (Zeithaml et al., 1990).

Jamal and Naser(2002) and Beerli et al (2004) found the bank service quality as an

important antecedent of customer satisfaction which leads towards customer loyalty.

Jamal and Naser(2002) looked into the impact of service quality dimensions and

customer expertise on satisfaction.

Saulaite et al (2000) conducted a study in Qatar to assess whether customer services

provided by banks are satisfactory to customers. Findings reveal that bank customers in

Qatar are satisfied for convenient location and layout, politeness of staff and

responsiveness to their needs. They are dissatisfied with bank interest rate policies and

fee charged.

Holstius et al. (1995) cited efficiency and courtesy of bank staff as the most important

attributes in determining overall customer satisfaction, while other important attributes

are convenience of location, range of services, reputation and availability of innovations.

6

Meyers and Mullins (2001) conducted a comparative study of levels customer

satisfaction in banks versus credit union in Perth, Australia. The analysis reveals that

consumers have better impression of credit unions then they have for banks. Credit

unions are competing more directly with commercials banks in products and services

offered. The respondents was dissatisfied with the fees charged by banks, the respondent

also felt that they are getting a higher return on their money from the credit unions.

2.2. Independent Variables

As per the study there are different variables which affects the outcome of the research,

those variables which are not affected by any other variables are independent variables.

While designing research there are different variables considered as independent such as:

1. Account Maintenance

2. Employee behavior

3. Branch location

4. ATM Service

2.3. Dependent Variables:

The research is mainly focused on customer satisfaction so the dependent variable whose

level depends on above listed independent variables is customer satisfaction

7

CHAPTER 3

Research Methodology 3.1. Introduction:

Research methodology refers to the various sequential steps to adopt by researcher in

studying a problem with certain objectives in view. The basic objective of the study is to

investigate the level of customer satisfaction in commercial banks of Biratnagar city.

Researchers have felt very comfortable to come to the choice of research methodology.

The study will draw the conclusion to the point that what is the customer satisfaction

level in commercial bank of Biratnagar city and what factors are considered mostly by

customers in respect of bank services to remain a long term customer of that particular

bank.

3.2. Research Design

This Study was conducted in the city of Biratnagar. The research is descriptive type

because it investigates the satisfaction level of bank customers for services received from

their banks. For research purpose, researchers conducted a survey through questionnaires

which defined the method of data collection by primary data collection method. Sample

unit was an account holder of commercial bank drawn as sample from random sampling

method. In order to get better response from customers about their satisfaction level,

researchers mostly focused on getting response from respondents who had frequent

transaction with the banks, and the main exit gate was used as data collection place.

3.3. Data Collection:

Researchers conducted a survey through questionnaires which defined the method of

data collection by primary data collection method. Two days, especially Sunday and

Friday, are known as peak-days in commercial banking sector. Therefore, these two days

were not used for data collection so as to prefer high reliability of responses from the

respondent. Fifty structured questionnaires were administered for each city branch of the

sample banks (10 questions to each).

8

The parking and exit gate were used for the data collection. Random sampling technique

was adopted to select sample banks. Orientation on how to administer the questionnaire

was given to data collectors before hand. During the data collection process, the data

collectors first explained the respondents about the questions in the questionnaire and

requested the respondents to provide factual information to draw a correct conclusion.

3.4. Population and Sample

All the commercial banks operating in Biratnagar city were taken as the population of

the study. Probability Random sampling technique was adopted where five (5)

commercial banks were selected as the sample for the study. The selected sample seemed

to represent generalize the total population.

Generally, customers of commercial banks are depositors, borrowers, and others who get

banking services. However, the present study could not cover all the customers of

commercial banks as per the limit time framework. It has covered only the depositor of

the bank.

3.5. Research Instruments

A standard structured questionnaire was designed to collect the required information

where five point Likert scale, ranking scale, and other demographic nominal information

were used. The measure consists of mainly three sets of questions. The first set was

related with Banks satisfaction factors, while the second set was related to their

perceived satisfaction and references, and the third set included motivational factors to

rank.

Close ended questions are structured to collect information about customers’ satisfaction

for different bank services. The data was collected using Likert scale to measure

satisfaction level. Moreover a respondent was also asked what those factors are which he

preferred most related to bank services.

9

3.6. Research Tools

At the beginning, a comprehensive data file was created. Then, variables and their labels

were defined. Data were entered in MS excel sheet for calculation. Few statistical tools

such as Mean, Standard Deviation, Pearson's Correlation, Chi Squire goodness of fit test,

were used for the analysis. Mean is arithmetic average and standard deviation is measure

of dispersion or variation (Fallik & Brown, 1983). Person's correlation shows a relation

that exists between two or more variables (Wolff & Pant, 2005). Chi-square statistic is

calculated by collecting observed values for each of the categories and examining the

differences between the observed and expected values (Gupta, 1991).

10

CHAPTER 4

Findings and Results

4.1. Introduction:

The researchers are basing the report on the satisfaction level of customer in commercial

banks of Biratnagar city. As regarding to the most focused objective the researchers are

analyzing the comparative performance of commercial banks in terms of major criteria.

To investigate the satisfaction level of customers the researchers are using the likert scale

questionnaire for data collection and have given 1 point for “Highly dissatisfied” to 5

points for “Highly Satisfied” for calculations.

4.2. Background of Respondent

The accountholders rendering the deposit service of the banks are the respondent for the

questionnaire. Out of many service \offered by the commercial banks in Biratnagar the

researchers have focused mainly to the deposit section for easy accessibility of data

collection. 50 sample customers’ opinion from five sample banks (10 each) were collection

and assumed to resemble the total population opinion. The details about respondent

according to the demography selected by the researchers are shown in Table1 below:

S.N Commercial Bank Business Owner Salaried Person Others

Male Female Male Female Male Female

1 Nabil Bank Limited 1 0 3 2 1 3

2 Nepal SBI Bank Limited 0 0 8 2 0 0

3 Rastriya Banijya Bank 5 2 3 0 0 0

4 NMB Bank Limited 2 0 2 2 2 3

5 Kist Bank Limited 3 0 4 1 1 1

Total 10 2 20 7 4 7

Table 1: Demographic information of Respondent

As the values shown in table 1, the researchers have found that males are main customers

of the bank. They do most of the transactions. Out of the 50 respondents 34 are male and

16 are female. From the category of salaried person male contribute 20 persons and from

business owner they are 10.

11

According to table 1, most of the business owners prefer Rastriya Banijya Bank, a

governmental bank, because they feel their savings are more secured on governmental

banks and beside business owner choose SBI, NMB, Nabil and Kist which are private

commercial banks where they get different types of products and services.

4.3. Customer Satisfaction level

Questionnaire was designed such that the researchers could collect two kinds of basic

information on customer satisfaction. First, to what extent the respective commercial

banks are conducting some program to satisfy their customers. And, second about actual

level of customer satisfaction provided by these banks to their customers. These two

elements were found highly correlated. The Person's Correlation Coefficient of these two

responses (r=0.5666) was found positive related, which means if the program for

satisfaction level is increased than level of satisfaction also increases.

From the observation of general descriptive of mean and standard deviation of the above

stated two scales, customer perception on banks' satisfaction program and the perceptual

customer satisfaction is average in Commercial banks of Biratnagar. Both scales were

provided five point Likert scale anchored by Negligible=1 to outstanding=5. The status

of mean and standard deviation is presented in the following table-1.

S.N Variables Mean Std Deviation

1 Program Perception 3.18 0.40

2 Satisfaction 3.56 0.46

Table-2: Mean and Standard Deviation of Customer satisfaction

The above table-2 shows the overall mean and standard deviation of two responses –

banks' program for customer satisfaction and the actual level of satisfaction received by

customers.

The mean satisfaction is slightly higher than the mean program perception. Customers of

commercial banks in Biratnagar have higher satisfaction level in respect to the

programmes offered by banks to satisfy their customers or in general, customers were

found "undecided" or "slightly-satisfied" with the present services of commercial banks

in Biratnagar.

12

Standard deviation was found less than 1. Hence, the information provided by customer

is near to the average. This indicates that there is no higher variation in frequencies.

Frequency figures of these two elements are presented in the following figure-1.

Perception of Customer on bank's programme

Outstanding0%

Negligible4%

Adequate38%

Fair46%

Little12%

0%

14%

26%

50%

10%

00.05

0.10.15

0.20.25

0.30.35

0.40.45

0.5

No.

of C

usto

mer

Hig

hly

Dis

satis

fied

Dis

satis

fied

Neu

tral

Satis

fied

Hig

hly

Satis

fied

Customer Satisfaction level in Banks

Figure-1: Perceived Programmes and Customer Satisfaction of Commercial Banks

From the figure above the researchers could also analyze that the customers do not

perceive that their bank services provided are at outstanding level. Most of customers are

in dilemma whether the banks are doing adequately or fairly to provide them satisfaction

and retain with the banks. Some of the customers perceive that a bank does not perform

any such services further to make them satisfied. It’s simply they are with bank because

of their deposits multiply with interest provided.

Hence, it is better to compare positive responses with the negative ones. The above pie

chart shows that 38% of the respondents responded positively while only 16% gave

negative answer. It is, therefore, convincing that customers think that the current banking

activities are good enough to satisfy them. Similarly, customer satisfaction level with

regards to overall commercial banking was also found quite good. Out of the total 60%

respondents stood in having weightage more to satisfaction side, while 14% went to the

dissatisfaction. It is, therefore, clear that customer of commercial banks in Biratnagar are

satisfied.

13

4.4. Customer Satisfaction: A comparative Analysis

It is essential to analyze the comparative satisfaction and program perception of

customers of commercial banks in Biratnagar. Therefore, descriptive analysis was

designed that provides the results of mean and standard deviation collected from the

selected samples. As explained earlier, five point Likert type scale anchored by

1="Highly Dissatisfied" to 5="Highly Satisfied" was used for both items. Chi square,

goodness of fit test was done to find if there exists any difference among the commercial

banks’ status on the basis of satisfaction received by customers on their particular banks.

S.N Commercial Bank Mean SD Cases

1 Nabil Bank Limited 4.2 0.63 10

2 Nepal SBI Bank Limited 3.8 0.70 10

3 Rastriya Banijya Bank 3.4 0.84 10

4 NMB Bank Limited 3.4 0.97 10

5 Kist Bank Limited 3.0 0.67 10

For entire population 3.56 0.46 50

Table-3: Summaries of Mean and Standard deviation of Customer satisfaction

Table 3 values shows the calculated mean of different commercial banks are different.

The mean here is differentiated on some negligible points. May be this type of

differentiation is found because the respondent did not accurately provide their

information or else they confused with the services they render from each banks. Even

we find mean to be varied the chi square, goodness of fit test result at 1% level of

significance (appendix 1) could not show any differences among commercial banks in

Biratnagar on the basis of level of customer satisfaction received from their banks. So,

we can conclude that level of customer satisfaction among commercial banks is same.

4.5. Strength and weakness of banks on satisfaction criteria

Four major criteria were assumed to find out the comparative strengths and weakness of

commercial banks in Biratnagar. They are a) Account Maintenance b) Employee

Behaviour c) Branch Location d) ATM service

Different sub indicators, under these four major criteria (in Appendix 2), were given to

mark as per their satisfaction level under five point Likert scale anchored by 1="Highly

Dissatisfied" to 5="Highly Satisfied" for all the items.

14

Analysis of these criteria is discussed in following paragraph. Figure 2 shows the mean

of commercial banks in Biratnagar on the four major criteria- Account Maintenance,

Employee behaviour, Branch location and ATM Service. (Calculated values are shown

in appendix 3)

0

5

10

15

20

25

30

35

40

45

AccountMaintenance

EmployeeBehaviour

Branch Location ATM Service

Nabil

SBI

RBB

NMB

Kist

Figure 2: Comparison of commercial Banks under four major criteria

Each bank’s comparative strength and weakness is analyzed here on the basis of reported

mean values of four customer satisfaction criteria. As per the study analyze NMB Bank

Limited was found strong in terms of Account, Branch and Employee behaviour but very

weak on ATM facility, lack of ATM Machine in Biratnagar City, which becomes

disadvantage to itself. According to the bar graph, the report proves that Nepal SBI

Bank stands on the top level of ATM service, being a first bank to have two of its ATM

machines inside Biratnagar city and remains in 2nd position in account maintenance field.

4.6. Factor motivating to remain with the bank.

A ranking question was included in the questionnaire to collect information on most

important motivation factor to remain on the bank. In the questionnaire ten (10)

alternatives were provided to rank three most important with one rank for the top most

important factor. After summarizing the rank received from respondent of different

commercial banks a value was assigned for weight age, 1 for the least important factor to

3 for the most important factor. After assigning values mean values of all factors are

calculated and tabulated in cross table for analysis purpose (Appendix 3).

15

Those analyzed data is presented in figure 3 below:

Branch Location24%

Branch Network15%

Others31%

ATM Network17%

Staff Behaviour13%

Figure 3: Top four factor motivating to remain with the bank.

Among ten different factors, four important factors (Branch Location, ATM Network,

Branch Network, Employee behaviour) on the basis of means taken form the rank values

are listed with six factors remaining termed as others. On those listed four factor, Branch

location is referred as the top factor having 24% of total weight and ATM Network is

ranked as 2nd important factor 27%. Similarly, Branch network is on 3rd rank with 15%

and staff behaviour on 4th rank occupying 13% of total weightage.

We can say that customer of commercial banks in Biratnagar city choose bank for

transaction which has better branch location and ATM Network and is influenced by

branch network and employee behaviour.

16

CHAPTER 5

Summary, Conclusion and Recommendation

5.1. Summary:

Commercial bank occupies an important place in the framework of every economy.

Commercial banks by playing active roles have changed the economic structure of the

world. For the commercial banks sustain the customer acts as the king. Therefore,

customer satisfaction is the major topic to be dealt with for the bank.

Recently banking sector of Nepal has been transformed to more agile, competitive and

profitable industry. Different foreign banks have emerged recently which have increased

the competition among commercial banks. In order to get competitive edge and to attract

more and more customers, banks are focusing on providing better services to the

customers.

Customer satisfaction is a long term strategy. The objective of the study therefore is to

find out what is the satisfaction level of customers for the service they receive and what

factors are considered mostly by customers in respect of bank services which makes

research as descriptive. The research is started with the framework of providing

questionnaire to 50 respondents from the total population and five sample banks are

chosen for the study. The questionnaire was set as the likert scale, ranking scale and

other demographic nominal information were used to collect primary data. The research

is based on customer satisfaction of the commercial banks depending upon four criteria

Account Maintenance, Employee Behaviour, Branch Location and ATM service as

independent variable.

To get better response from customers about their satisfaction level, responses were

taken from respondents who had frequent transaction with the banks. Variables of

collected data were created and all the data were entered in MS excel sheet for

calculation. Few statistical tools such as Mean, Standard Deviation, Pearson's

Correlation, Chi Squire goodness of fit test, were used for the analysis to come to the

accurate and perfect conclusion.

17

5.2. Conclusion:

This study clearly showed that customers are satisfied with the commercial banks in

Biratnagar city. To be more specific, customers were found satisfied with those banks

which are located at feasible location with wide network, having wide and instant ATM

service, and polite and courteous employee behavior. Customers of Biratnagar city were

found sensitive toward the program offered by the banks to satisfy their customers. The

customer perceived that their bankers are neither neglecting them nor are they

conducting some outstanding customer satisfaction program. So most so the customer

fall under slightly satisfied level of satisfaction. They are neither highly satisfied nor

highly dissatisfied. The findings shows that customers are satisfied with their

commercial banks and all the commercial banks in Biratnagar city are providing same

level of satisfaction to their customers.

Though NMB bank has ranked first in every criteria except ATM service, because of

lack of ATM machine which becomes disadvantage to itself. Nepal SBI Bank stands on

the top level of ATM service. The difference on result analyzed by satisfaction criteria

and overall satisfaction differs because this study is limited only to depositor type of

customers.

Findings reveal that customers of commercial banks in Biratnagar are satisfied for

convenient location and layout, politeness of staff and responsiveness to their needs and

are dissatisfied with bank interest rate policies and fee charged. They are more likely to

remain with the bank having convenient location with adequate parking facility and wide

ATM networks.

5.3. Recommendation:

We all know that satisfied customers are more likely to remain with the bank. Therefore,

banks should be careful and focus more to the customers. It is the customers who would

make the banks in running state. Banks customers are satisfied in overall perspective but

at some places they are dissatisfied. Therefore, to make more and more customer

attracted to render the service bank can have improvement in many areas. The likely

recommendations given by researchers are the following:

To retain the existing customer and attract new one, banks should be more focused

on giving higher interest rate on deposits.

18

Customers are attracted with different product and services program bank launches.

Therefore, banks should focus on creating the service program more.

Most of the customer of Biratnagar city uses banks at their convenient location and

mostly using ATM machine for transactions so, bank should be established in central

location with lots of parking facility and wide ATM network.

Banks not having ATM at Biratnagar city should launch ATM machines. As we

already described customers at Biratnagar are more busy on ATM transactions.

All the customers are looking for better hospitality and humble words so, all the bank

should mainly focus on employee behaviour to retain their customer.

5.3.1. Recommendation for future investigation:

This research seems to become important for future researchers. It is quite a bold step to

enquire into the customer satisfaction in large banking sector. The study also fulfills

some requirements of social audit of commercial banks located at Biratnagar city in

terms of customer satisfaction. The management of the sampled banks may also benefit

from this study as the outcome of this study, though not very complete, raises many vital

issues of the commercial banks in terms of their customers' banking service desires. The

study covers only the level of satisfaction of the defined customers. The researchers

collected opinions of customers without any bias, the study may not be representative

enough because of the small sample. However, this research provides some clues about

the facts. This study, therefore, may be very valuable for academicians as well as for

practitioners. On the one hand, this study may help to know the actual performance of

commercial banks in terms of customer satisfaction while on the other, it suggests some

guide-lines for future research.

However, there are many limitations of this study. Observation techniques, focus group

survey, and other qualitative research will be more fruitful to analyze the problem more

rigorously in future to find result on following sectors:

Strategies adopted by banks to attract new customer

A study on Bank customer retention

Gender Effects on Customer Satisfaction in Banking sector

19

BIBLIOGRAPHY

Ahmad Jamal, Kamal Naser(2002), “Customer satisfaction and retail banking: an

assessment of some of the key antecedents of customer satisfaction in retail banking”,

International Journal of Bank Marketing 20/4,146-160

AsuncioAn Berlin, Josef a D. MartAn and AgustAn Quintana(2004), “A model of

customer loyalty in the retail banking market“, European Journal of Marketing, Vol. 38

No. 1/2,pp. 253-275

Blanchard, R.F. and Galloway, R.L. (1994). “Quality in retail banking”. International

Journal of Service Industry Management, Vol. 5 No. 4, pp. 5-23.

Heskett, J.L., Sasser, W.E. and Hart, C.W.L. (1990). Breakthrough Service. USA, NY:

The Free Press.

Khalid Al-Sulaiti Abdullah Al-Khulaifi Fawzi AI-Khatib(2000), “Banking services and

customer satisfaction in Quatar: A statistical Analysis”, College of Business and

Economics Qatar University

Martin S. Meyers, Gary E. Mullins, “A Comparative Analysis of Levels of Customer

Satisfaction in the Financial Services Industry: Banks versus Credit Unions in Perth,

Australia”

Oliver, R.L. (1980). “A cognitive model of the antecedents and consequences of

satisfaction decisions”, Journal of Marketing Research, Vol. 17, September, pp. 46-9.

Sthapit, A.B, Gautam H, Joshi P.R & Dongol P.M (2009), Statistical Methods, Fifth

Edition, Kathmandu: Budda Academic Publisher and Distributor.

Wolff, H.K. & Pant, P.R. (2005), Social Science Research and Thesis Writing, Fourth

Edition, Kathmandu: Budda Academic Publisher and Distributor.

Zeithaml, V., Parasuraman, A. and Berry, L.L. (1990), Delivering Quality Service, New

York, NY: The Free Press.

20

APPENDIX

Appendix 1

Chi square test for satisfaction level of commercial bank

S.N Commercial Bank O E O-E (O-E)2 (O-E)2/E

1 Nabil Bank Limited 4.2 3.56 0.64 0.4096 0.115056

2 Nepal SBI Bank Limited 3.8 3.56 0.24 0.0576 0.01618

3 Rastriya Banijya Bank 3.4 3.56 -0.16 0.0256 0.007191

4 NMB Bank Limited 3.4 3.56 -0.16 0.0256 0.007191

5 Kist Bank Limited 3 3.56 -0.56 0.3136 0.08809

Total 17.8 17.8 0 0.233708

Here, Calculated Value (χ2) = 0.2337

At 1% level of significance, tabulated value with 4 (5-1) df

χ20.01, 4 = 13.28

After the result we found Calculated value < Tabulated Value so, we can say that

Level of satisfaction among commercial banks in Biratnagar is same.

21

Appendix 2

Sub indicators of four major Criteria

Dimension Indicator

Account Maintenance Forms and slips are easy to fill

Ease to open account

Account is held without errors

Timely Bank Statements

Charges are clearly explained

Bank charges

Interest rates on deposits

Transactions are accurate

Transactions are speedy

Safety of your savings

Employee Behaviour Greet you

Well dressed

Polite / Courteous

Supportive / provide guidance

Quick in processing

Knowledgeable

Branch Location Easy Accessibility of branch

Security system of branch

Infrastructure of branch

Cleanliness of the branch

Operation time of Branch

Variety of products & services offered

Parking facility

ATM Service Wide ATM network

Availability of ATM in working condition

Amount withdrawal limit

Easy to operate

22

Appendix 3

Mean of commercial banks under four major criteria

S.N Commercial Banks Account Branch Employee ATM

1 Nabil Bank Limited 37.5 27.5 23.3 15.4

2 Nepal SBI Bank Limited 38.4 26.8 22.4 17

3 Rastriya Banijya Bank 33.8 26.2 22.9 12.2

4 NMB Bank Limited 39.8 29.3 25.8 5.6

5 Kist Bank Limited 33.3 23.9 22.1 11.5

Likert scale: 1 for “Highly Dissatisfied” to 5 “Highly Satisfied”

Appendix 4

Factor motivating to remain with the bank with their values

Nabil

Bank Ltd

Nepal SBI

Bank Ltd

Rastriya

Banijya Bank

NMB

Bank Ltd

Kist Bank

Ltd

Total

Mean

Branch Location 9 14 18 20 12 12.17

Low Charge 0 0 0 3 2 0.83

Interest Rate 3 2 8 0 7 3.33

Branch Environment 7 0 2 4 3 2.67

Wide Product Range 0 2 4 13 0 3.17

Branch Network 15 10 16 0 5 7.67

ATM Network 8 24 8 0 12 8.67

Staff behaviour 9 8 2 9 10 6.33

Transaction speed 9 0 2 4 9 4.00

Frills product 0 0 0 7 0 1.17

Total Value 60 60 60 60 60 50

Weight age= 1 for least important and 3 for most important

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Appendix 5

Questionnaire for Account holder Research Title: “Bank’s Customers Satisfaction”

Introduction: We, the students of MBA in Purbanchal University, Biratnagar, are conducting a research to find out bank customers’ satisfaction level for services received from Commercial banks. This research will be helpful for banks to provide better services to their customers. We request you to fill this questionnaire if you are an account holder of any Commercial bank in Biratnagar city. Your response will play a valuable role to compute our research precisely.

Instruction: Please tick a box in each line to show how you feel about different areas of

your bank services.

Your Name Mr./Ms.

Name of your Bank

Location

Occupation: Business owner Salaried person others

Age: 18-26 26-30 35-50 50+

ACCOUNT MAINTENANCE

Q1. How satisfied are you with?

Particulars Highly Satisfied Satisfied Neutral Dissatisfied Highly

Dissatisfied Forms and slips are easy to fill Ease to open account Account is held without errors Timely Bank Statements Charges are clearly explained Bank charges

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Interest rates on deposits Transactions are accurate Transactions are speedy Safety of your savings

EMPLOYEE BEHAVIOUR

Q2. How satisfied you are with bank staffs who are/who?

Highly Satisfied

Satisfied Neutral Dissatisfied Highly Dissatisfied

Greet you Well dressed Polite / Courteous Supportive / provide guidance

Quick in processing Knowledgeable

BRANCH LOCATION

Q3. How satisfied are you with?

Highly Satisfied

Satisfied Neutral Dissatisfied Highly Dissatisfied

Easy Accessibility of branch

Security system of branch Infrastructure of branch Cleanliness of the branch Operation time of Branch Variety of products and services offered

Parking facility

ATM SERVICE

Q4. How you are satisfied with?

Highly Satisfied

Satisfied Neutral Dissatisfied Highly Dissatisfied

Wide ATM network Availability of ATM in working condition

Amount withdrawal limit Easy to operate

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SATISFACTION

Q5. How likely are you to?

Very Likely

Likely Neutral Unlikely Very unlikely

Recommend this bank to others

Remain a customer of this bank

Q6. Overall how are you satisfied with the services you receive from your bank?

Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Balu

Q7. In your experience, how much effort is this bank doing to make you satisfied?

Outstanding Adequate Fair Little Negligible Balu

Q8. Which are three major factors that motivate you to keep yourself with your bank? (Please use 1, 2 and 3 to prioritize these three factors. Where ‘1’ refers to most important)

( ) Bank location ( ) Wide branch network ( ) Low bank charges ( ) ATM network ( ) Interest rates on deposits ( ) Staff behavior ( ) Branch environment ( ) Transaction speed and accuracy ( ) Wide range of products Frills product of service

(Any other-Please specify)

Thank you