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Barking Up the Wrong Tree – Factors Influencing Customer Satisfaction in Retail Banking in the UK - Page 6

DETERMINANTS OF CUSTOMER SATISFACTION IN RETAIL BANKING

Overall satisfaction = f (in-branch satisfaction, ATM satisfaction, economic satisfaction and remote service satisfaction)

The regression analysis places overall satisfaction as the dependent variable while in-branch satisfaction, ATM satisfaction, economic satisfaction and remote service satisfaction; are the independent variables. The adjusted r-squared for the model is 0.247. The F statistic obtained is 276.241(p value: 0.000), which indicates that the independent variables have an influence on the dependent variable at the 5% significance level.

The Table 4 below illustrates the results of the regression analysis as explained. The P values illustrate that there is relationship between the four satisfaction determinants and overall satisfaction, significant at 5% significance level. The results in Table 4 show that in branch satisfaction has a strong influence on overall satisfaction (standardised coefficient value of 0.322), followed by economic factors, remote satisfaction and ATM satisfaction.

Table 4: Influence of Determinants of Satisfaction on Overall Satisfaction

 

Standardised coefficients (beta)

Std. error

T

P value

Constant

0.035

1.837

0.066

In-branch satisfaction

0.322

0.012

37.816

0.000

ATM satisfaction

0.046

0.009

4.093

0.000

Economic satisfaction

0.184

0.010

17.236

0.000

Remote satisfaction

0.119

0.011

11.331

0.000

Table 5 below shows the mean values, and standard deviation of the respective determinants of overall satisfaction. From Table 5, the mean for in-branch satisfaction is 1.9345, with a standard deviation of 0.6418 which means that the responses for items under the in-branch satisfaction factor is very positive with most responses in the very satisfied or fairly satisfied categories. The mean for ATM satisfaction is similar 1.973, meaning respondents are fairly satisfied with ATM services both in availability and reliability. While the mean for economic factors was 2.807 and remote services satisfaction showed a mean of 2.467. This implies that respondents are less satisfied yet positive with both economic and remote services factors.

Table 5: Mean Values of Overall Satisfaction Determinants

Satisfaction determinants

Total

Mean

Std. Deviation

In-branch satisfaction

10168

1.9345

0.6418

ATM satisfaction

10168

1.9732

0.8329

Economic satisfaction

10168

2.8070

0.7567

Remote services satisfaction

10168

2.4667

0.6989

In summary, all four satisfaction factors positively influence overall satisfaction in retail banking. The most significant factor influencing overall satisfaction is in-branch satisfaction while the least significant factor influencing overall satisfaction is ATM related satisfaction.

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