Service Quality and Customer Satisfaction in the Banking Sector in Kenya
Abstract
As the service industry becomes increasingly competitive, firms continuously look for ways to
distinguish themselves from competitors. Service quality has attracted major attention from
academic researches as well as marketers over the recent years due to its significant role in
business performance and maintenance of customer loyalty. Recent growth in the service sector,
banking included, has necessitated the need for service providers to understand customers’ view
of quality of service offered. Only then can they effectively optimize their returns from the
service and stay ahead of competitors. This study sought to answer the following question; what
are the customers’ views, thoughts and feeling on the quality of service offered by commercial
Banks in Kenya? The study identified the possible expectations that customers have on the
quality of service. The study adopted descriptive design with population of interest being
customers of commercial banks in Nairobi CBD. Questionnaires were administered to customers
from a total of 44 commercial banks located within Nairobi CBD. The findings from the study
established a positive relationship between service quality and customer satisfaction in Kenyan
banks. The conclusion from this study is that Customer satisfaction can lead to higher rates of
retention of the Kenyan bank customers. Recommendations based on the findings were made to
the Kenyan banks which if implemented will enhance the satisfaction of the bank customers as
well as improve customer retention rates.
Citation
Master of business administrationPublisher
University of Nairobi