Modelling Customer Satisfaction at Ghana Commercial Bank: An Application of Ordinal Logit Regression

Abstract

Abstract

In the competitive banking business, customer satisfaction is taken as a matter of success. It rely on a multitude of factors and varies from one customer to another and product to product. The capability and ability of a bank depends on the degree of its customer satisfaction. Thus banks usually place more weight on customer satisfaction and loyalty. This paper analysed the effect of service quality on customer satisfaction at Ghana commercial bank. It was noted in the results that service quality dimensions on tangible, responsiveness, empathy and trust are relevant contributing factors to customer satisfaction at Ghana commercial bank. However, reliability and assurance, in terms of, service quality aspects are not really contributing significantly to customer satisfaction. The study suggest the following managerial policies. First, the managers should regularly conduct customer surveys and should incorporate feedback in the changes desired by the customers. The banks can provide training programs for their employees in order to make them more effective while dealing with the customers, especially in handling customer complaints. This can help to improve satisfaction by reducing defections of dissatisfied customers.