Determinants of Satisfaction of Customer in Commercial Banks

Abstract

Customers’ satisfaction in context of the Banking refers to the level of perceived satisfaction that has been gained by utilizing the products and services offered by the bank.This study has been conducted with the objective to find out the satisfaction level of the services provided by the bank and to determine the socioeconomic factors affecting the customer satisfaction. Customers’ satisfaction in the banking sector is affected by the various aspects. In this study, 13 indicators were constructed for which the Cronbach Alpha was 0.946. These inputs were the statements which were constructed in the questionnaire using Likert scale of five point. For the analysis of the effects of various independent variables on dependent variables, linear regression model was used. The dependent variable was customer satisfaction while independent variables were age, yearly income, educational level, gender, profession, marital status and duration of account in bank. 10 branches of Mega Bank Nepal from Kathmandu valley were selected randomly. 10 clients of each branch were selected on convenience basis which makes up to 100 customers.The mean score of all 13 statements were more than 3 which means that on average, the customers are satisfied. The overall mean of the customer satisfaction was found to be 3.17.The regression model showed that customer satisfaction was negatively associated with income of the customer while it is positively associated with the profession of the respondent (business).