dc.description.abstract | The study intended to establish the relationship between financial performance and
customer satisfaction in Kenyan banks. Financial performance was measured by use of
Return on Asset that is net profit after tab divided by total current asset obtained from
audited statements of comprehensive income while Customer satisfaction was measured
by numbers of customers. For uniformity purposes, net profits before taxes was chosen
since some commercial banks had treated expenses on CSR as tax exempt while others
had not. Commercial institutions that did not participate in customer satisfaction activities
or that had not kept data pertaining to financial performance were excluded. Secondary
data from the year 2010 to 2014 was used for analysis. Using descriptive research design,
the study tested for linear relationship between financial performance and customer
satisfaction. The study used regression analysis and the five years secondary data to
analyze the relationship between financial performance and customer satisfaction.
Financial performance was the independent variable while customer satisfaction was the
dependent variables in the linear regression. The study revealed that not all commercial
banks report their customer satisfaction involvement. Out of the 44 commercial banks
studied, only five provided the necessary and complete data that was appropriate for the
study. The study finding implies that change in customer satisfaction is negatively
attributable to financial performance. of commercial banks in Kenya. The independent
variables studied explain only (10.2%) on the relationship between of financial
performance and customer satisfaction in commercial banks in Kenya as represented by
R². This means that the other variables not studied in this research contributed (89.8%)
and thus further research should be conducted to investigate these other factors affecting
financial performance in commercial banks in Kenya. | en_US |