Share:


The challenge of banking services development – giving its rightful place to customer satisfaction

    Andreea-Daniela Moraru   Affiliation
    ; Cristina Duhnea   Affiliation
    ; Mihai Mieilă Affiliation
    ; Silvia Ghiță-Mitrescu   Affiliation
    ; Margareta Ilie   Affiliation
    ; Anda Ileana Necula Affiliation

Abstract

Lately, the global banking services industry has faced numerous challenges: the digitalization, increased competition, the instability of monetary and foreign exchange markets, and the volatility of exchange rates. However, at present, banks are facing the greatest challenge of all that is, placing the customers at the centre of business and the systematic follow-up of customer satisfaction. The present paper aims at assessing the influence of a series of determinants and socio-demographic factors on customer satisfaction with banking services in Romania, using the probit and logit models. The research focused on the Romanian banking market due to its distinctiveness within the European context – performance indicators above the European average during the past five years and a concentration level that discloses a significant growth potential. The results of the two models employed revealed similar results, with the most influential variables on customer satisfaction being convenience, e-banking, quality, and revenues.


First published online 14 March 2022

Keyword : customer satisfaction, banking industry development, banking services, satisfaction determinants, socio-demographic factors, probit and logit models

How to Cite
Moraru, A.-D., Duhnea, C., Mieilă, M., Ghiță-Mitrescu, S., Ilie, M., & Necula, A. I. (2022). The challenge of banking services development – giving its rightful place to customer satisfaction. Journal of Business Economics and Management, 23(3), 626–649. https://doi.org/10.3846/jbem.2022.16442
Published in Issue
May 12, 2022
Abstract Views
173
PDF Downloads
202
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Abdullah, M. A., Manaf, N. H., Yusuf, M.-B. O., Ahsan, K., & Azam, F. (2014). Determinants of customer satisfaction on retail banks in New Zealand: An empirical analysis using structural equation modelling. Global Economy and Finance Journal, 7(1), 63–82. https://doi.org/10.21102/gefj.2014.03.71.04

Afzal, N. (2013). Impact of customer satisfaction and demographic factors on customer’s loyalty in banking sector of Pakistan. Middle East Journal of Scientific Research, 18(5), 721–727.

Al‐Eisa, A. S., & Alhemoud, A. M. (2009). Using a multiple‐attribute approach for measuring customer satisfaction with retail banking services in Kuwait. International Journal of Bank Marketing, 27(4), 294–314. https://doi.org/10.1108/02652320910968368

Ali, M., & Raza, S. A. (2015). Service quality perception and customer satisfaction in Islamic banks of Pakistan: The modified SERVQUAL model. Total Quality Management & Business Excellence, 28(5–6), 559–577. https://doi.org/10.1080/14783363.2015.1100517

Amin, H. J., Onyeukwu, P. E., & Osuagwu, H. I. (2018). E-banking, service quality and customer satisfaction in selected Nigerian Banks. Journal of International Business Research and Marketing, 4(2), 51–57. https://doi.org/10.18775/ijied.1849-7551-7020.2015.42.2004

Anderson, E. W., & Sullivan, M. W. (1993). The antecedents and consequences of customer satisfaction for firms. Marketing Science, 12(2), 125–143. https://doi.org/10.1287/mksc.12.2.125

Antohi, I. (2016). The high performance working practices in Romanian companies – an empirical study. „Ovidius” University of Constanta Annals, Economic Sciences Series, 16(1), 264–268.

Bahia, K., & Nantel, J. (2000). A reliable and valid measurement scale for the perceived service quality of banks. International Journal of Bank Marketing, 18(2), 84–91. https://doi.org/10.1108/02652320010322994

Baltagi, B. H. (2008). Econometrics (4th ed.). Springer-Verlag.

Bank Governance Leadership Network. (2018). The future of talent in banking: Workforce evolution in the digital era. https://www.tapestrynetworks.com/sites/default/files/publication_pdf/BGLN%20ViewPoints%20-%20Future%20of%20talent%20in%20banking%20-%20Final%20-%2020%20April%202018%20-%20web_0.pdf

Baskar, S., & Ramemesh, M. (2010). Linkage between online banking service quality and customers. Perspectives of Innovations, Economics & Business, 6(3), 45–51. https://doi.org/10.22004/ag.econ.125807

Beckett, A., Hewer, P., & Howcroft, B. (2000). An exposition of consumer behavior in the financial services industry. International Journal of Bank Marketing, 18(1), 15–26. https://doi.org/10.1108/02652320010315325

Belás, J., & Gabčová, L. (2014). Reasons for satisfaction and dissatisfaction of bank customers. study from Slovakia and the Czech Republic. International Journal of Entrepreneurial Knowledge, 2(1), 4–13. https://doi.org/10.15759/ijek/2014/v2i1/53759

Belás, J., & Gabčová, L. (2016). The relationship among customer satisfaction, loyalty and financial performance of commercial banks. Ekonomie a Management, 2(1), 132–144. https://doi.org/10.15240/tul/001/2016-1-010

Bitner, M. J. (1990). Evaluating service encounters: The effects of physical surroundings and employee responses. Journal of Marketing, 54(4), 69–82. https://doi.org/10.1177/002224299005400206

Bolton, R., & Drew, J. A. (1991). Longitudinal analysis of the impact of service changes on customer attitudes. Journal of Marketing, 55(1), 1–10. https://doi.org/10.1177/002224299105500101

Cameron, A. C., & Triverdi, P. K. (2005). Microeconometrics – methods and applications. Cambridge University Press. https://doi.org/10.1017/CBO9780511811241

Cardozo, R. (1965). An experimental study of customer effort, expectation, and satisfaction. Journal of Marketing Research, 2(3), 244–249. https://www.jstor.org/stable/3150182?seq=6#page_scan_tab_contents

Carman, J. (1990). Consumer perceptions of service quality: An assessment of the SERVQUAL dimension. Journal of Retailing, 66(1), 33–55.

Caruana, A., Money, A., & Berthon, P. (2000). Service quality and satisfaction – the moderating role of value. European Journal of Marketing, 34(11–12), 1338–1353. https://doi.org/10.1108/03090560010764432

Chavan, J., & Ahmad, F. (2013). Factors affecting on customer satisfaction in retail banking: An empirical study. International Journal of Business and Management Invention, 2(1), 55–62.

Chochol’áková, A., Gabcová, L., Belás, J., & Sipko, J. (2015). Bank customers’ satisfaction, customers’ loyalty and additional purchases of banking products and services. A case study from the Czech Republic. Economics & Sociology, 8(3), 82–94. https://doi.org/10.14254/2071-789X.2015/8-3/6

Churchill, G. A. Jr., & Surprenant, C. (1982). An investigation into the determinants of customer satisfaction. Journal of Marketing Research, 19(4), 491–504. https://doi.org/10.1177/002224378201900410

Constanta County Statistics Directorate. (n.d.). Interactive database. https://constanta.insse.ro/

Cronin, J. J., & Taylor, S. A. (1992). Measuring service quality: A re-examination and extension. Journal of Marketing, 56(3), 55–68. https://doi.org/10.1177/002224299205600304

Cronin J. J., & Taylor, S. A. (1994). Servperf vs. Servqual: Reconciling performance based and perceptions-minus-expectations measurement of service quality. Journal of Marketing, 58(1), 125–131. https://doi.org/10.1177/002224299405800110

Daniel, W. W., & Cross, C. L. (2013). Biostatistics: A foundation for analysis in the health sciences (10 ed.). Wiley.

European Central Bank. (n.d.). Statistical Data Warehouse. https://sdw.ecb.europa.eu/

Firdous, S., & Farooqi, R. (2017). Impact of internet banking service quality on customer satisfaction. Journal of Internet Banking and Commerce, 22(1), 1–17.

Fornell, C. (1992). National satisfaction barometer: The Swedish experience. Journal of Marketing, 56(1), 6–21. https://doi.org/10.1177/002224299205600103

Gan, C., Clemes, M., Wei, J., & Kao, B. (2011). An empirical analysis of New Zealand bank customers’ satisfaction. Banks and Bank Systems, 6(3), 63–77.

Global Alliance for Banking on Values. (2012). Strong, straightforward and sustainable banking (A Report on Financial Capital and Impact Metrics of Values Based Banking). www.gabv.org/wp-content/uploads/Full-Report-GABV-v9d.pdf

Greene, W. H. (2011). Econométrie (7 ed.). Pearson Education France.

Hammoud, J., Bizri, R. M., & El Baba, I. (2018). The impact of E-Banking service quality on customer satisfaction: Evidence from the Lebanese banking sector. SAGE Open, 8(3), 1–12. https://doi.org/10.1177/2158244018790633

Hossain, M., & Leo, S. (2009). Customer perception on service quality in retail banking in Middle East: The case of Qatar. International Journal of Islamic and Middle Eastern Finance and Management, 2(4), 338–350. https://doi.org/10.1108/17538390911006386

Hunt, K. H. (1977). CS/D: Overview and future research direction. In H. K. Hunt (Ed.), Conceptualization and measurement of consumer satisfaction and dissatisfaction (pp. 455–488). Marketing Science Institute.

Ilie, M., Moraru, A.-D., & Ghita-Mitrescu, S. (2017). The hierarchical determination of customer satisfaction with banking services using an artificial neural network. Transformations in Business & Economics, 16(2A), 401–420.

Jamal, A., & Naser, K. (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. https://doi.org/10.1108/02652320210432936

Keisidou, E., Sarigiannidis, L., Maditinos, D. I., & Thalassinos, E. I. (2013). Customer satisfaction, loyalty and financial performance: A holistic approach of the Greek banking sector. International Journal of Bank Marketing, 31(4), 259–288. https://doi.org/10.1108/IJBM-11-2012-0114

Khatoon, S., Zhengliang, X., & Hussain, H. (2020). The mediating effect of customer satisfaction on the relationship between electronic banking service quality and customer purchase intention: Evidence from the Qatar banking sector. SAGE Open, 10(2), 1–12. https://doi.org/10.1177/2158244020935887

Kombo, F. (2015). Customer satisfaction in the Kenyan banking industry. Journal of International Studies, 8(2), 174–186. https://doi.org/10.14254/2071-8330.2015/8-2/15

Kotler, P. (2000). Marketing management millenium edition (10 ed.). Pearson Prentice Hall.

Ladhari, R., Souiden, N., & Ladhari, I. (2011). Determinants of loyalty and recommendation: The role of perceived service quality, emotional satisfaction and image. Journal of Financial Services Marketing, 16(2), 111–124. https://doi.org/10.1057/fsm.2011.10

Li, F., Lu, H., Hou, M., Cui, K., & Darbandi, M. (2021). Customer satisfaction with bank services: The role of cloud services, security, e-learning and service quality. Technology in Society, 64, 101487. https://doi.org/10.1016/j.techsoc.2020.101487

Liang, C.-C., & Pei-Ching, W. (2014). Internet-banking customer analysis based on perceptions of service quality in Taiwan. Total Quality Management & Business Excellence, 26(5–6), 550–568. https://doi.org/10.1080/14783363.2013.856546

Moraru, A.-D., & Duhnea, C. (2018a). E-banking and customer satisfaction with banking services. Strategic Management, 23(3), 3–9. https://doi.org/10.5937/StraMan1803003M

Moraru, A.-D., & Duhnea, C. (2018b). Assessing customer satisfaction with banking services using 3D mathematical representation. In B. Krstic (Ed.), Strengthening the competitiveness of enterprises and national economies. Thematic collection of papers of international significance (pp. 19–37). University of Nis, Serbia.

Musiime, A., & Ramadhan, M. (2011). Internet banking, consumer adoption and customer satisfaction. African Journal of Marketing Management, 3(10), 261–269.

Mylonakis, J. (2009). Bank satisfaction factors and loyalty: A survey of the Greek bank customers. Innovative Marketing, 5(1), 16–25.

Narteh, B., & Kuada, J. (2014). Customer satisfaction with retail banking services in Ghana. Thunderbird International Business Review, 56(4), 353–371. https://doi.org/10.1002/tie.21626

National Bank of Romania. (2020, June). Financial stability report. https://www.bnr.ro/Publicatii-periodice-204.aspx

National Bank of Romania. (n.d.). Statistics Interactive Database. www.bnr.ro

OECD. (2020). Digital disruption in banking and its impact on competition. http://www.oecd.org/daf/competition/digital-disruption-in-financial-markets.htm

Oliver, R. L. (1980). A cognitive model of the antecedents and consequences of satisfaction decisions. Journal of Marketing Research, 17(4), 460–469. https://doi.org/10.1177/002224378001700405

Ozatac, N., Saner, T., & Sen, Z. (2016). Customer satisfaction in the banking sector: The case of North Cyprus. Procedia Economics and Finance, 39, 870–878. https://doi.org/10.1016/S2212-5671(16)30247-7

Quayson, P., Chen, Y., Nti, T., & Sarfo, B. F. (2019). The impact of service quality on customer satisfaction and loyalty in the banking industry of Ghana. International Journal of Management Sciences and Business Research, 8(8), 57–67.

Pakurár, M., Haddad, H., Nagy, J., Popp, J., & Oláh, J. (2019). The service quality dimensions that affect customer satisfaction in the Jordanian Banking Sector. Sustainability, 11(4), 1–24. https://doi.org/10.3390/su11041113

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality and its implications for future research. Journal of Marketing, 49(4), 41–50. https://doi.org/10.1177/002224298504900403

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). ServQual: A multi-item scale for measuring consumer perceptions of quality. Journal of Retailing, 64(1), 12–40.

Parasuraman, A., Berry, L. L., & Zeithaml, V. A. (1991). Perceived service quality as a customer-based performance measure: An empirical examination of organizational barriers to using an extended service quality model. Human Resource Management, 30(3), 335–364. https://doi.org/10.1002/hrm.3930300304

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1994). Alternative scales for measuring service quality: A comparative assessment based on psychometric and diagnostic criteria. Journal of Retailing, 70(3), 201–230. https://doi.org/10.1016/0022-4359(94)90033-7

Peel, M. J., Goode, M. M. H., & Moutinho, L. (1998). Estimating consumer satisfaction: OLS versus ordered probability models. International Journal of Commerce and Management, 8(2), 75–93. https://doi.org/10.1108/eb047369

Pooya, A., Abed Khorasani, M., & Gholamian Ghouzhdi, S. (2020). Investigating the effect of perceived quality of self-service banking on customer satisfaction. International Journal of Islamic and Middle Eastern Finance and Management, 13(2), 263–280. https://doi.org/10.1108/IMEFM-12-2018-0440

Romanian National Institute of Statistics. (n.d.). Statistical database. http://statistici.insse.ro:8077/tempo-online/

Romānova, I., & Kudinska, M. (2016). Banking and fintech: A challenge or opportunity? In Contemporary Studies in Economic and Financial Analysis: Vol. 98. Contemporary issues in finance: Current challenges from across Europe (pp. 21–35). Emerald Group Publishing Limited. https://doi.org/10.1108/S1569-375920160000098002

Sabir, R. I., Ghafoor, O., Akhtar, I., Hafeez, N., & Rehman, A. (2014). Factors affecting customer satisfaction in banking sector of Pakistan. International Review of Management and Business Research, 3(2), 1014–1025.

Seiler, V., Rudolf, M., & Krume, T. (2013). The influence of socio‐demographic variables on customer satisfaction and loyalty in the private banking industry. International Journal of Bank Marketing, 31(4), 235–258. https://doi.org/10.1108/IJBM-10-2012-0101

Seyal, A., & Rahim, M. (2011). Customer satisfaction with internet banking in Brunei Darussalam: Evaluating the role of demographic factors. E-Service Journal, 7(3), 47–68. https://doi.org/10.2979/eservicej.7.3.47

Siek, M., & Sutanto, A. (2019, August 19–20). Impact analysis of fintech on banking industry. In 2019 International Conference on Information Management and Technology (ICIMTech) (pp. 356–361). Jakarta/Bali, Indonesia. IEEE. https://doi.org/10.1109/ICIMTech.2019.8843778

Supriyanto, A., Wiyono, B. B., & Burhanuddin, B. (2021). Effects of service quality and customer satisfaction on loyalty of bank customers. Cogent Business & Management, 8(1), 1937847. https://doi.org/10.1080/23311975.2021.1937847

Tse, D. K., & Wilton, P. C. (1988). Models of consumer satisfaction: An extension. Journal of Marketing Research, 25(2), 204–212. https://doi.org/10.1177/002224378802500209

Verbeek, M. (2008). A guide to modern econometrics (3rd ed.). Wiley.

Westbrook, R. A., & Oliver, R. L. (1981). Developing better measures of consumer satisfaction: Some preliminary results. In K. B. Monroe & A. Arbor (Eds.), Advances in consumer research (Vol. 8, pp. 94–99). Association for Consumer Research.

Yi, Y. (1990). A critical review of consumer satisfaction. In V. A. Zeithaml (Ed.), Review of marketing (pp. 68–123). American Marketing Association, Chicago.