Effect of Customer Service Care on Effective Human Relations in the Service Industry (A Case Study of Zenith Bank Plc)
Chapter One
OBJECTIVES
- To evaluate how Customer service care affects effective human relations in the zenith bank.
- To identify if there are some barriers to Customer service care provision by Customer service care staff of Zenith Bank, Abuja.
- To establish how Customer service care impacts customer loyalty at zenith bank.
- To identify which other Customer service care activities, customers will regard as satisfactory in zenith bank.
CHAPTER TWO
LITERATURE REVIEW
INTRODUCTION
This chapter reviews theoretical literature on customer service and effective human relation, customer loyalty, difference between customer loyalty and retention and barriers to customer satisfaction.
CUSTOMER
Customers could best be described as those who use the output of work, the end users of products or services. They may be internal to the organisation such as the employees and directors or external like members of the public, other businesses, or government (Dei- Tumi, 2005).
A customer is a person who buys goods or services from the service provider. It may also refer to any potential buyer( http://en.wikipedia.org).
The word “custom” means “habit”, a person who goes to a store on a frequent basis to purchase their products or services, thus it is their habit to buy from that particular store. In the opinion of Peter Drucker, there are now a complete new breed of customers with high standards and expectations (Dei-Tumi, 2005).
And as competition increases there is the need to devise creative and new ways of meeting the ever-increasing demands of the modern- day customer who is very
sophisticated, knowledgeable, demands excellent products and services and has alternatives.
CUSTOMER SERVICE
Customer service is an organization’s ability to supply their customers’ wants and needs (http://sbinfocanada.about.com).
Customer service is the provision of service to customers before, during and after a purchase. It also means serving the customer, and involves all contact with the customer, be it face-to-face, or indirect contact (i.e. dealing with complaint letters).
Again, According to Jamier (2002), “Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer expectation.
Customer service can be expressed in personal and interpersonal skills such as communication skills, listening skills, language, gestures and posture, telephone techniques.
According to Turban et al (2002), it is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer expectation. Customer service may be provided by a person (e.g., sales and service representative), or by automated means called self-service.
THE CUSTOMER PERCEIVED SERVICE QUALITY
Customer perceived service quality is the customers own perception of the service based on different factors contributing to the service, from the process to the final outcome. According to Grönroos (2001), “quality is what customers perceive”. Customers buying service consider everything that contributes to the process and the final outcome in making their assessments of the service. However the subjective assessment of the actual service experiences is the customer perceived service quality as pointed out by Looy et al (2003), Zeithaml et al (2006), and Grönroos (2001).
Sureshchander et al (2002), points out that service firms have a difficulty envisioning and understanding what aspects of the service that define high quality to the consumers and at what levels, they are needed to be delivered. Also, that the aspect of managing a service interaction also requires understanding the complicated behaviour of employees that find its way into the customers perception of the service quality.
On a careful inspection of the dimensions of quality, a major focus rests on the component of human interaction in the service delivery that consists of human behaviour and attitudes. Looy et al (2003) is also of the same opinion that customers are not one- dimensional in judgment, because a lot of other factors influence service quality, most researchers agree on these dimensions of service quality as a measure of service quality.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
This chapter outlines the methodology used in the research as follows: The research purpose and research design is mentioned followed by data collection method, population, sampling frame, sampling technique, questionnaire design and profile of the organization.
RESEARCH PURPOSE
According to (Saunders et al, 2009) enquiries can be classified in terms of their purposes as well as the research strategy which is used. (Robson, 1993)
Three categories of the enquiries are identified, but often one of them is used.
It can either be exploratory study, where the researcher is trying to find out what is happening so as to seek new insights, to ask questions and access phenomena in a new light (Robson, 1993). It is the best when the researcher is uncertain of which theories are useful and when it is difficult to determine important characteristics and relations.
Descriptive study is used in descriptive studies portrays accurate profile of situations’ (Robson, 1993).
Explanatory study on the other hand looks at the relationship between variables. A situation is studied in order to explain the relationship between the variables.
In this particular research, descriptive study is used since we are not very sure of the answers, and explanatory will be used partly to determine the relationship between customer service and customer satisfaction.
RESEARCH DESIGN
After defining the research purpose, the use of qualitative research was considered to collect and analyse data. Research strategy is a general plan of how to answer the research questions that have been set. The most important thing is to look for the strategy that is appropriate for the research question(s) and objectives to be chosen (Saunders et al. 2009).
According to Saunders et al. (2009), Survey method is a popular and common strategy in business research. It enables large amount of data to be collected from an ideal population and in a highly economical way. Often, questionnaires are used and data are standardized, it is easily understood and easy to compare.
This method tends to gain a deeper understanding for the problems investigated through different sources of information, as well as to be able to describe a general picture of the reliability in which the problem is involved (Walliman, 2005).
COLLECTING DATA
Primary and Secondary Data
A researcher can opt for collecting data from secondary sources or from primary sources. Primary data is used for this specific study whereas, secondary data is data collected by others for the use of their specific purpose (Saunders et al. 2009).
Due to the nature of this study where the intention is to investigate a specific company’s customer satisfaction, the researcher decided to collect primary data in form of a questionnaire survey.
Secondary data in terms of company information and background history has also been used in this research in order to get a deeper understanding about the company.
DATA COLLECTION METHOD
The gathering of data ranged from a simple observation at the banking hall to collection of information through questionnaire from various customers in the banking hall.. The method of research determined how the data is collected. Questionnaire and observation were used to recover raw data in this case. And the questionnaire was also in two parts, part was answered by the external customers and part was also answered by the internal customers so as to be able to answer the research questions.
POPULATION
A population is the whole group that the research focuses on. A population consists of all elements- individuals, item or objects whose characteristics are being studied
Sample is the segment of the population that is selected for investigation (Bryman and Bell, 2003). In quantitative research, the need to sample is one that is almost invariably encountered. And sampling constitutes a key step in the research process in social survey research.
The population was expected to involve all categories of customers- retail, private/ executive, Corporate and customer service personnel in the bank.
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSIONS
INTRODUCTION
In this chapter, presentation, analysis and discussion of the results from data collected will be looked at. Raw data was analysed using SPSS, and excel to arrive at frequency tables and percentages.
DATA ANALYSIS
How satisfied a customer is depends on the quality of service received by the customer. Gap analysis model by Ziethaml et. al., (1988) and Groonros (2000) is often used to determine the quality of service.
The gap is often between the perception of customers and their expectation, which will eventually determine whether they are dissatisfied, satisfied or excited.
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECCOMENDATIONS
INTRODUCTION
In this final chapter, a summary of the results that came out in reference to the research questions are presented. This is followed by conclusion and recommendations for the bank and in case of future research.
FINDINGS
How does Customer Service Affect Customer Satisfaction In Wuse Branch Of Zenith Bank in Abuja?
It is argued that quality customer service positively affects customer satisfaction. As Looy et al (2003) points out that Service quality is one of those factors that contribute to customer satisfaction.
From the data obtained, it is certain that the Wuse branch of Zenith bank provides appreciable level of customer service as expected by customers. This is deduced from customer responses obtained.
Among the banks promises to its customers are provision of relationship manager, phone calls on pertinent banking issues, and visits from relationship managers as a way of strengthening banking relations.
Responses obtained from customers affirmed that, the bank has to a very large degree, delivered on these promises. However, keeping to these service promises are seen as just satisfying. That is to say they just meet the expectation of their customers.
For a bank that aims at being highly competitive, it would be expected that, they delight their customers. Delighting the customer implies exceeding the service promised and providing services customers do not even expect to see.
What Are The Barriers To Quality Customer Service Provision In Wuse Branch Of Zenith Bank?
From literature, barriers to quality customer service provision can be from the management of the company, the systems and processes, the working environment, the employee themselves or communication.
From the responses obtained from the customer service staff of Wuse branch of Zenith bank, it was realized that, each of the staffs serve averagely above 100 customers a day and due the large numbers, the staffs are pressured to be able to give attention to, and be patient with each and every individual customer.
Also some of the staffs attested to the fact that there are some managerial decisions which affect their service delivery. It was also inferred from the responses given that management needed to employ staff with good customer relations for the customer service department.
Responses again show that, there is a barrier to quality customer service as far as systems in the bank are concerned. Internet banking needed to be improved such that the link seldom goes down, in that case customer service personnel will not break their service delivery, Also that will help the customers do pertinent transactions such as transfers between accounts within the same bank on the internet themselves so as to reduce the numbers at the banking halls.
On the service providers themselves, the data collected indicated that they needed to attend to customers on time, with a turnaround time of 5minutes on the average. They also needed to maintain high level of good customer service no matter the circumstances and they needed to be motivated, either from management or from within.
How Does Customer Service Impact Customer Loyalty At The Wuse Branch Of Zenith Bank?
A past research shows that satisfaction is a reliable predictor of re-purchase intentions (Wang, 2001). And maximization of customer loyalty is a priority for most industries.
From data obtained, because majority of customers of Wuse branch of Zenith bank are satisfied with most customer services provided them as seen in research question1, they are loyal to the bank. Majority of the customers have been banking with Zenith since the bank came to Abuja and are still with the bank. Most of the customers also have recommended the bank to others and they intend to continue banking with Zenith.
Also from the retention strategies put in place by Zenith bank, most of the customers are satisfied with tangibles such as state of art banking hall and professional service provided by the staff.
Zenith bank however does not have a spacious packing space which is one of the concerns raised by the customers.
Other retention strategies such as reliability, responsiveness, empathy and assurance are generally satisfying to customers and therefore their loyalty to the bank.
Which Other Customer Service Activities Will Really Satisfy Customers At Zenith Bank?
Involvement of the customer in decision making has great implication for both customer and service provider. (Farquahar, 2004; Ennew & Binks 1996).
Literature points out that the interaction between customers and service providers is an important determinant of perceptions of service quality (Zenithal et al 1988).
The research has revealed that customers will like internet banking to be more effective than it is now.
Packing space for customers is another thing that customers came up with.
Visa ATM cards provision on time, sms transaction on phones, fastness of tellers and increase in their number are other concerns of customers that came up.
CONCLUSION
The purpose of the research was to find out whether the excellent customer service promised by Zenith bank, is being practised in the Wuse branch to the satisfaction of customers.
From the findings above, the customer service provision promised by Zenith bank is being delivered to the satisfaction of the customers in Wuse branch.
Customers are also loyal to the Wuse branch of Zenith bank and will continue banking with them due to the excellent customer service provision.
Even though there are few barriers to customer service provision from the bank. It has not negatively affected the service provision promised by the bank and so satisfaction of customers is also not affected.
In conclusion, the researcher can confidently say that good customer service provision will positively affect satisfaction of customers and that is the case in the Wuse branch of Zenith bank.
RECOMMENDATION
Customer service is very important issue as far as service delivery in today’s industry is concerned. More so when competition is so great in the banking sector of Ghana. To stay in competition, service providers must set goals alright which is in the form of promise to customers. But to be ahead of competitors or to remain in competition service providers must give more than the expectation of customers so as to delight them.
Customer service providers of Wuse branch should put other customer service strategies that will delight customers in place. Example; notification of any transaction on customers’ accounts should be linked to cell phones of customers.
Management should supervise the customer service personnel closely so that anyone who does not have good customer relations is taken from that department.
Internet banking is of much concern to both the external and internal customers of Zenith bank so it must be looked at and improved if possible.
More tellers must also be provided to make queues in the banking hall shorter and less burdensome on the staff.
Further research can look at the management’s point of view as far as customer service provision in Zenith bank is concerned, for comparison.
REFERENCES
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