Customer Satisfaction and its Relation with Demographic Characteristics and Loyalty in the Banking Industry. By Eslam Al-Yahya
Eslam A. Al-Yahya
2003
Abstract
This study attempts to examine the relationship of satisfaction with loyalty and some demographic characteristics such as level of education, monthly income, and number of years doing business with the company in the banking industry.
Recent studies have demonstrated mixed results in analyzing the relationship between satisfaction and loyalty. Several studies have indeed found satisfaction to be a leading factor in determining loyalty. Other studies, however, suggest satisfied customers may not be sufficient to create loyal customers.
This study is based on a convenience sample (N = 109) survey conducted in the Riyadh region in the Kingdom of Saudi Arabia Saudi Arabia
The result of the study shows that satisfaction is positively related to loyalty as well as some demographic characteristics such as level of education, monthly income, age, and number of years doing business with the bank.
This paper Addresses two important managerial issues that have received increased attention over the last decade. These two issues are customer satisfaction and customer loyalty.
Much has been written in the past few years on customer satisfaction (Abddullah, Al-Nasser & Husain, 2000; Reichheld 1996; Vikas & Wagner, 2000; Naumann & Giel, 1995; Goldfield, Pine & Pine, 1992). Traditional approaches to customer satisfaction, however, have been too narrow in scope in the way satisfaction is measured. Most instruments to measure customer satisfaction are not sensitive to the fact that a customer's voice has a wide spectrum and goes beyond the single note of satisfaction or happiness. Most approaches fail to link customer satisfaction to loyalty. This research will investigate the relationship of satisfaction with loyalty. This research also attempts to look at closely the relationship of satisfaction with some demographic characteristics such as level of education, monthly income, age, and number of years doing business with the company in the banking industry.
Statement of the Problem
The first goal of this research is to determine the relationship between satisfaction and loyalty. Since establishing a link between satisfaction ratings and loyalty has not been easy for most firms. Some have even labeled satisfaction measurement a "trap" and argued for curtailing satisfaction measurement efforts (Reichheld, 1996). The second goal of this research is to examine the relationship between customer satisfaction and customer demographic characteristics such as: level of education, level of income, and number of years doing business with the company.
Significance of The Research
The significance of this research stems from number of different aspects. In spit of the theoretical development in the area of customer satisfaction and loyalty, the empirical research linking customer satisfaction with loyalty generated only weak support and contradictory theories regarding the relation between them. This research will investigate this relation. To my knowledge a few empirical researches exist today that clearly support the hypothesis of positive or negative interaction between the level of customer satisfaction and some customer characteristics such as: customers level of education; customer level of income; and customer number of years doing business with the company.
This research also will investigate these relations. This research also provides insights information and creates opportunities for future studies on the satisfaction and loyalty. In addition to the previous significances, the result of this research will provide new consideration to the way manager’s measure and manage customer satisfaction such as designing the appropriate customer satisfaction programs for customers with different characteristics.
Review of The Literature
Customer Satisfaction
Most researchers and managers agree that customer satisfaction is an important measure of quality and that the survey is a useful tool for gauging such satisfaction. When it comes to identifying the perspectives of customers, the survey is capable of providing data that augments and complements information received from other sources of consumer feedback (Goldfield, Pine, & Pine, 1992). Accordingly, consumer surveys are considered a part of total quality management and continuous quality improvement (Kritchevsky & Simmons, 1991).
Nevertheless, there must be sense of what constitutes customer satisfaction. A prevailing model of customer satisfaction in the literature is known as the gap model (Taylor Taylor
According to the gap model, satisfaction occurs in two stages. During the first stage, truthful information regarding realistic expectations of a transaction or relationship and an accurate description of the performance must be communicated. The second stage consists of a performance that either equals or exceeds expected performance (Spreng, Mackenzie & Olshavsky, 1996). During this stage, judgments are made regarding the actual performance based on a comparison with the expectations that have developed based on the information conveyed prior to the exchange (Oliver, 1993).
The foregoing stages indicate that there are three ways in which the customer may become dissatisfied. First, information provided prior to the transaction or relationship can either be misleading or absent and involve issues of honesty and integrity. Second, there can be differences in how the parties perceive the extent to which compliance corresponds with expectations and involves issues of timeliness and empathy. These two outcomes involve managerial communication and assessment. Third, there is clear failure to meet clearly understood customer expectations and involves actual performance and the making of an honest mistake. Only this outcome relates specifically to performance.
Thus, according to the gap model of customer satisfaction, customers utilize information acquired prior to a transaction in order to construct their expectations and to make a decision. Customers will then develop a perception of performance after the transaction has taken place and compare that performance to their expectations. When there is a significant gap between actual and expected outcomes, the upshot will be customer dissatisfaction. Such dissatisfaction may be the result of information or performance failures.
Customer Satisfaction and Loyalty
“Loyalty is a behavior. If I purchase a product 10 times in one year, and I purchase the same brand all 10 times, I am 100% loyal. If I purchase the brand only five out of 10 times, I am 50% loyal. It's that simple. It doesn't matter whether I am exhibiting that loyalty because I'm truly dedicated to the brand, or it has some performance characteristic that I want or need, or whether I don't have a choice in the matter. I exhibit behavioral loyalty. And that’s the point-loyalty is a behavior”(William, 2000, p.20).
Leonard Combs, head of the Customer Solution Center for Excellence, Eastman Chemical Co., Kingsport , Tenn.
Not all researchers embrace the premise that customer satisfaction is a key indicator of the success of a business or organization or of marketing effectiveness. Indeed, questions have been raised regarding the ultimate profitability of customer-based efforts. Reichheld (1996), for example, has held that merely satisfying customer needs, particularly on basic quality issues, simply consists of doing the very least that customers expect. That is, there is a minimum level of quality that is expected by all customers. As such, satisfying basic quality issues do not result in long-term customer loyalty.
Moreover, customer satisfaction and customer loyalty represent different relationships between the customer and the service or product provider. The former generally is a passive condition while the latter is an active or proactive relationship with the provider. Accordingly, the supplier should seek to genuinely customer needs, develop direct measures of loyalty, retention, and attraction based on such needs, and linking those measures to internal processes and financial outcomes (Reichheld, 1996).
Although customer loyalty may be a relatively more important factor in determining a firm’s profitability than customer satisfaction in a competitive market, customer satisfaction may be a more important factor in determining the success of an organization where profit is not the measure of success and competition is not an issue. For customer, loyalty is an indicator of repeat business, whereas customer satisfaction is more of an indicator of whether or not a firm is adequately fulfilling its mandate. Still, the issue of quality remains, for even organizations must be sensitive to issues that extent beyond service issues and take into account other issues that affect the customer-provider relationship, issues such as ease or difficulty of engaging the provider.
Recent studies have demonstrated mixed results in analyzing the relationship between satisfaction and loyalty. Several studies have indeed found satisfaction to be a leading factor in determining loyalty (Olive, 1981). Other studies, however, suggest satisfied customers may not be sufficient to create loyal customers (Cronin & Taylor, 1992). These studies tend to support Reichheld's (1993) argument that customer satisfaction is not a surrogate for customer loyalty, and thus increasing customer satisfaction does not necessarily lead to increased customer loyalty to a product, service or organization (Abddullah et al., 2000).
Overall Customer Satisfaction
Overall satisfaction is determined by the degree to which customer value expectations are met. Customer value is composed of three major elements: overall product and service quality, price, and corporate image. These three elements all influence the customer's perception of value. The impact of each of these three elements is unique to every business unit, product, service, or industry.
The first element of customer value is overall quality, which is a combination of product and service quality. Product and service quality often have the greatest influence on perception of customer value. The measures of quality capture top-of-mind perception of the overall quality provided, which includes issues such as the customer's time and the ease, or hassle, of doing business with you as well as the specific product and service attributes (Naumann & Giel, 1995).
Price is the second element of customer value. Measuring a customer's perception of the price charged is important and also difficult to measure. If customers' perceptions of benefits exactly match price, customers will be satisfied, but not extremely so (Naumann & Giel, 1995). If the benefits are viewed to be less than the price, then customers will feel they are not getting their money's worth and will indicate very low levels of satisfaction.
Corporate image is the third element of customer value. Corporate image could include the attributes of general business practices, ethics, and social responsibility. Perceptions about corporate image are derived from many areas. A customer can develop perceptions about the corporation from the corporation products and services, from business interaction with the corporation employees, articles in popular magazines, print and television advertising, public relations and marketing materials. The impact of corporate image on customer value varies with differing business units and tends to generate issues that need to be addressed by senior management.
Corporate image is important because customers may use image as a surrogate cue in their decision-making processes. For example, customers may be unable to accurately evaluate the product and service attributes. But the customer can evaluate the image of the firm and transfer that image to a specific product. So the real value of corporate image is chat it serves as an indicator of what a customer might expect. A positive corporate image creates positive expectations. A negative image creates uncertainty and risk for the customer (Naumann & Giel, 1995).
Customer Satisfaction and Customer Characteristics
It is well documented that in commercial satisfaction surveys, satisfaction ratings vary on the basis of customer characteristics, though the variance explained is typically small (in the range of 10%-15%). For example, Bryant and Cha (1996) analyzed data from the American Customer Satisfaction Index (University of Michigan
Limitation of The Research
Because service organizations produce outputs that are often intangible, and because service operations are performed in the presence of the customer, the definition and measurement of satisfaction and loyalty may be different from what they are in manufacturing. Note that, though important for commercial studies, issues regarding customer-specific variability in satisfaction ratings might not apply to studies with an academic orientation. Academic studies use relatively homogeneous samples designed to minimize error variance. Also, academic studies typically use multi-item scales to measure customer satisfaction, thus controlling for response bias (e.g., by combining items with negative and positive connotations) and providing an assessment of measurement error (Vikas & Wagner, 2001).
Definitions
Loyalty is a feeling of devoted attachment and affection. From a business prospective it is commitment to repurchase.
Satisfaction: Consumers are said to be satisfied when actual outcomes exceed expectations, dissatisfied when expectations exceed outcomes, and just satisfied when outcomes match expectations (Oliver, 1993).
Demographic Characteristics such as nationality, age, education, monthly income, type of work, and type of residence.
Hypotheses
Through my experience, as a branch manager in the banking industry, I found out that many customers who are generally dissatisfied with a bank, remain coming back to the same bank for executing there financial transactions. Thus, drawn directly from my experience and prior research, the first hypothesis of this study is as follows:
H1: Customer satisfaction and loyalty are negatively related.
Through my experience, as a branch manager in the banking industry, I noticed that individuals with high level of education receive high salaries. Therefore, they usually are wealthy. This type of customers gets more attention from the bank employees than those with low income. This is for the purpose of satisfying them to maintain the relation with them and to keep them from leaving the bank to other competitors. Thus, drawn directly from my experience, the second and third hypothesis of this study is as follows:
H2: Customer satisfaction and customer monthly income are positively related.
H3: Customer satisfaction and customer level of education are positively related.
Through my experience, as a branch manager in the banking industry, I noticed that customers who are doing business with the bank for a long time are either highly income or wealthy individuals. Therefore, the bank gives them great attention to satisfy them to keep them from leaving the bank to other competitors. Thus, drawn directly from my experience, the fourth hypothesis of this study is as follows:
H4: Customer satisfaction and customer number of years doing business with the
company are positively related.
Data Collection and Methodology
The study is based on a convenience sample survey conducted in the Riyadh region in the Kingdom of Saudi Arabia Saudi Arabia
The research questionnaire was structured into five parts. Part one asks general questions such as number of years of conducting business with the bank and other banks, number of products acquired from the bank and other banks, number of services acquired from the bank and other banks, and number of visits to the bank and other banks. Part two was designed to assess the loyalty level of the customer to the bank. This part has four questions (see Appendix A, questions 11-14).
Part three was designed to assess the satisfaction level of the customer. This part has nine questions (see Appendix A, questions 15-23). Part four was designed to measure various variables that may affect satisfaction. It is consisted of six questions (see Appendix A, questions 24-29). This part is outside the scope of this study and its hypotheses. Therefore it will not be used in this study.
The last part of the questionnaire was designed to obtain some information on the demographic background of the respondents. It includes questions such as nationality, age, education, monthly income, type of work, and type of residence. Table 1 presents descriptive statistics for the measures used in this study along with reliabilities using cronbach’s alpha coefficient for loyalty and satisfaction.
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Results
Factor Analysis Results
Factor analysis was used in this study to identify underlying variables. It is been used in data redaction to identify the number of factors that explain most of the variance observed in the lager number of manifest variables. The factor extraction method used was Principal Component; the rotation method used was Varimax.
1- Loyalty: Table 2 shows that the first four variables (variables from 1 to 4) have a strong relation with the second component. The high weights shows that the variables are determined by a common factor. This supports the dimension of loyalty measure (Eigenvalue = 2.266 % of variance explained = 17.43).
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2- Satisfaction: Table 2 also shows that the last nine variables (variables from 5 to 13) have a strong relation with the first component. The high weights shows that the variables are determined by a common factor. This supports the dimension of satisfaction measure (Eigenvalue = 8.46 % of variance explained = 65.04).
General Trends
The results as given in Table 3 shows that a high majority of respondent (61 %) held accounts with the bank for more than 5 years, (44 %) held accounts with the bank for more than 15 years. Table 3 also show that (85 %) did not acquired more than 2 products from the bank, (90 %) did not acquired more than 2 services from the bank, and (67 %) of the respondents also held accounts with other banks.
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Demographic Profile
The demographic profile of the respondents, all males, is also provided in Table 3. As the table show (50 %) of the respondents choose to conduct business with the bank because of its location closeness, and (26 %) because of the variety of products the bank offers.
Table 3 also show that (34 %) of the respondents are in the age category of 25-35, and (27 %) are in the age category of 35-45. The table also shows that (42 %) of the sample hold university degrees, and (58 %) has a monthly income that is more than SR. 8,000. The high percentage of respondents with high income was because of the high level of education and age that comprised the sample. Among the respondent, customers who own their residence represented the most with (59 %) of the sample.
Relationship Between Loyalty and Satisfaction (H1):
The correlation (i.e. based on the raw scores which are Person bivariate) between loyalty and satisfaction is presented in Table 4. The correlation is significant (r = .55 p< .01). This disconfirms the relationship presented in the first hypothesis, which states that loyalty and satisfaction are negatively related.
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Relationship Between Satisfaction and Monthly Income (H2):
The correlation (i.e. based on the raw scores which are Person bivariate) between satisfaction and monthly income is presented in Table 4. The correlation is significant (r = .58 p< .01). This confirms the relationship presented in the second hypothesis, which states that satisfaction and monthly income are positively related.
Relationship Between Satisfaction and Level of Education (H3):
The correlation (i.e. based on the raw scores which are Person bivariate) between satisfaction and level of education is presented in Table 4. The correlation is significant (r = .26 p< .01). This confirms the relationship presented in the third hypothesis, which states that satisfaction and level of education are positively related.
Relationship Between Satisfaction and Number of Years of Doing Business with the company (H4):
The correlation (i.e. based on the raw scores which are Person bivariate) between satisfaction and number of years of doing business with the company is presented in Table 4. The correlation is significant (r = .66 p< .01). This confirms the relationship presented in the forth hypothesis, which states that satisfaction and number of years doing business with the company are positively related.
Extra Results
Table 4 shows that there is a significant correlation between loyalty and the following variables:
1- Number of products acquired from the bank (r = .23 p< .05).
2- Number of services acquired from the bank (r = .37 p< .01).
Table 4 also shows that there is a significant correlation between satisfaction and following variables:
1- Number of products acquired from the bank (r = .34 p< .01).
2- Number of services acquired from the bank (r = .48 p< .01).
3- Age (r = .64 p< .01).
These extra results are outside the scope of this study. However, stating it will provide insights information and creates opportunities for future studies on the satisfaction and loyalty. In addition to the previous importance, these results may provide new consideration to the way manager’s measure and manage customer satisfaction such as designing the appropriate customer satisfaction and loyalty programs for customers with different characteristics.
Discussion
In general the results support hypotheses (H2, H3, and H4), However, do not support ( H1). The result of this study does not support the negative relationship between loyalty and satisfaction (H1). The result shows that there is a strong positive relationship between the tow variables (r = .55 p<.01) . As I mentioned earlier, the expected negative relationship between loyalty and satisfaction drawn from the point that, through my experience, as a branch manager in the banking industry, I found out that many customers who are generally dissatisfied with a bank, remain coming back to the same bank for executing there financial transactions.
As anticipated in the second hypothesis (H2), the result of this study supports the positive relation between customer satisfaction and his monthly income (r = .58 p<.01). This relation may be explained by the great attention banks offer to those individuals with high incomes who are usually wealthy peoples. This relation may be explained more by following logic: High-income individuals are wealthy people and get more attention from the bank, therefore, are more satisfied customer. This study supports this interpretation. Using the variable (type of residence) as a measure of wealth. The results in table 4 shows that high income and wealth are positively related (r = .20 p<.05).
The results of this study also support the expected positive relationship between satisfaction and level of education (H3). The result shows that there is a strong (r = .26 p<.01) positive relationship between the two variable. This may be explained by this logic: Individuals with High level of education usually receives high income, and being wealthy people they get more attention from the bank, therefore, are more satisfied customer. This study supports this interpretation. The results in table 4 shows that level of education and high income are positively related (r = .20 p<.05).
As anticipated in the fourth hypothesis (H4), the result of this study supports the positive relation between customer satisfaction and the number of years of conducting business with the bank. This may be explained by this logic: Customers who are doing business with the bank for a long time are either highly income or wealthy individuals and get more attention from the bank, therefore, are more satisfied customer. This study supports this interpretation. The results in table 4 shows that number of years of conducting business with the bank and monthly income are positively related (r = .58 p<.01).
In other words, the results of this study indicates that satisfied customers are more likely to increase their future reliance on the company products and services and are likely to remain loyal customers. This study also indicates that satisfaction ratings vary on the basis of customer demographic characteristics.
Recommendation
The results of this study have implications for researchers as well as bank managers. For researchers, three implications can be drawn from the current research findings. First, studying the relationships between satisfaction and loyalty, in industries other than banking, using this study as a foundation could prove insightful.
Second, Using this study as a foundation for further studies into the effects of satisfaction on loyalty and modeling satisfaction at an attribute level (e.g. the role of satisfaction with some attribute in overall satisfaction judgment). Finally, examining the relationship between customer satisfaction and customer demographic characteristics is important for advancing understanding. One avenue for advancing understanding is the quantitative synthesis of the satisfaction-demographic characteristics relationships literature reported here.
Equally important, the results of this study have implications for managers in organizations. Three implications can be drawn from the current research findings. First, this study proved that there is a strong positive relationship between satisfaction and loyalty, therefore, designing, implementing, and utilizing customer satisfaction programs are more likely to increase customer future reliance on the company products and services and are likely to remain loyal customers.
Second, since the study proved that customers with different demographic characteristics have different level of satisfaction, it became clear that a single customer satisfaction program might not be useful for all customers. Customers with different characteristics may need different customer satisfaction programs. Finally, it is important that managers identify the appropriate mix of elements (e.g. product, service, quality, company image) when designing strategies to augment customer satisfaction. The appropriate mix of elements determines the efficiency and effectiveness of the strategies, and crucial for it success.
Summary
This study attempts to examine the relationship of satisfaction with loyalty and some demographic characteristics such as level of education, monthly income, and number of years doing business with the company in the banking industry.
Recent studies have demonstrated mixed results in analyzing the relationship between satisfaction and loyalty. Several studies have indeed found satisfaction to be a leading factor in determining loyalty. Other studies, however, suggest satisfied customers may not be sufficient to create loyal customers.
This study is based on a convenience sample (N = 109) survey conducted in the Riyadh region in the Kingdom of Saudi Arabia Saudi Arabia
The study used (SPSS) program to processes the data. Descriptive statistics and correlation (i.e. based on the raw scores which are Person bivariate) for the measures used in this study along with reliabilities using cronbach’s alpha coefficient for loyalty and satisfaction. The factor analysis results shows that it support the dimension of satisfaction and loyalty.
In general the results support hypotheses (H2, H3, and H4), However, do not support ( H1). The result of the study shows that satisfaction is positively related to loyalty as well as some demographic characteristics such as level of education, monthly income, age, and number of years doing business with the bank.
Descriptive Statistics a
Variable | Mean | Std. Dev. | (Cronbach’s Alfa) | Min | Max | Number of Items |
Loyalty | 2.6 | .66 | .96 | .80 | 4.00 | 4 |
Satisfaction | 3.67 | .84 | .96 | 2.11 | 5.00 | 9 |
Years of conducting business with the bank | 3.43 | 1.82 | NA | 1 | 6 | 1 |
Number of products acquired from the bank | 1.66 | .72 | NA | 1 | 3 | 1 |
Number of services acquired from the bank | 1.54 | .81 | NA | 0 | 5 | 1 |
Age | 2.70 | 1.26 | NA | 1 | 5 | 1 |
Level of education | 4.35 | 1.27 | NA | 2 | 7 | 1 |
Monthly income | 3.29 | 1.46 | NA | 1 | 7 | 1 |
Other monthly income | 2.25 | 1.88 | NA | 1 | 7 | 1 |
a NA: not applicable
Factor Analysis (Loyalty & Satisfaction)
Component 1 | Component 2 | ||
1 | The bank as the best bank in | .25 | .91 |
2 | Recommending the bank to a friend | .20 | .91 |
3 | Acquiring a new product or service from the bank | .12 | .91 |
4 | Complimenting the bank | .31 | .87 |
5 | General satisfaction with the bank | .79 | .46 |
6 | Satisfaction with the bank products | .81 | .47 |
7 | Satisfaction with the bank services | .83 | .46 |
8 | Satisfaction with the quality of services of the bank | .87 | .37 |
9 | Satisfaction with the bank fees | .70 | .30 |
10 | Satisfaction with The bank furniture | .92 | .08 |
11 | Satisfaction with the bank building | .93 | .13 |
12 | Satisfaction with the bank locations | .83 | .03 |
13 | Satisfaction with bank employees contacts | .85 | .22 |
% of Variance explained =65.04 Eigenvalue = 8.455 | % of Variance explained =17.43 Eigenvalue = 2.266 |
Profile of Respondents
Variable | Value Frequency Per Cent |
Years of conducting business with the bank | Less than a year 18 16.5 From a year to less than 5 years 30 27.5 From 5 to less than 10 years 11 10.1 From 10 to less than 15 years 6 5.5 From 15 to less than 20 years 25 22.9 More than 20 years 19 17.4 |
Number of products acquired from the bank | 1 53 48.6 2 40 36.7 3 16 14.7 |
Number of services acquired from the bank | 0 2 1.8 1 61 56.0 2 35 32.1 3 8 7.3 4 2 1.8 5 1 .9 |
The bank as the best bank in Saudi Arabia | Totally not convinced 2 1.8 Not convinced 17 15.6 Neither convinced nor not convinced 50 45.9 Convinced 27 24.8 Totally convinced 13 11.9 |
Recommending the bank to a friend | Totally not convinced 2 1.8 Not convinced 4 3.7 Neither convinced nor not convinced 60 55.0 Convinced 34 31.2 Totally convinced 9 8.3 |
Acquiring a new product or service from THE BANK | Totally not convinced 3 2.8 Not convinced 10 9.2 Neither convinced nor not convinced 62 56.9 Convinced 26 23.9 Totally convinced 8 7.3 |
Complimenting THE BANK | Totally not convinced 7 6.4 Not convinced 20 18.3 Neither convinced nor not convinced 51 46.8 Convinced 22 20.2 Totally convinced 9 8.3 |
General satisfaction with THE BANK | Very dissatisfied 2 1.8 Somewhat dissatisfied 7 6.4 Neither satisfied nor dissatisfied 33 30.3 Somewhat satisfied 39 35.8 Very satisfied 28 25.7 |
Satisfaction with THE BANK products | Very dissatisfied 2 1.8 Somewhat dissatisfied 15 18.3 Neither satisfied nor dissatisfied 25 22.9 Somewhat satisfied 44 40.4 Very satisfied 23 21.1 |
Satisfaction with THE BANK services | Very dissatisfied 2 1.8 Somewhat dissatisfied 14 12.8 Neither satisfied nor dissatisfied 27 24.8 Somewhat satisfied 41 37.6 Very satisfied 25 22.9 |
Satisfaction with the quality of services of THE BANK | Very dissatisfied 3 2.8 Somewhat dissatisfied 17 15.6 Neither satisfied nor dissatisfied 24 22 Somewhat satisfied 30 27.5 Very satisfied 35 32.1 |
Satisfaction with THE BANK fees | Very dissatisfied 14 12.8 Somewhat dissatisfied 33 30.3 Neither satisfied nor dissatisfied 46 42.2 Somewhat satisfied 6 5.5 Very satisfied 10 9.2 |
Satisfaction with THE BANK furniture | Very dissatisfied 0 0 Somewhat dissatisfied 1 .9 Neither satisfied nor dissatisfied 39 35.8 Somewhat satisfied 41 37.6 Very satisfied 28 25.7 |
Satisfaction with THE BANK building | Very dissatisfied 0 0 Somewhat dissatisfied 0 0 Neither satisfied nor dissatisfied 41 37.6 Somewhat satisfied 50 45.9 Very satisfied 18 16.5 |
Satisfaction with THE BANK locations | Very dissatisfied 0 0 Somewhat dissatisfied 0 0 Neither satisfied nor dissatisfied 34 31.2 Somewhat satisfied 37 33.9 Very satisfied 38 34.9 |
Satisfaction with the bank employees contacts | Very dissatisfied 1 .9 Somewhat dissatisfied 11 10.1 Neither satisfied nor dissatisfied 29 26.6 Somewhat satisfied 33 30.3 Very satisfied 35 32.1 |
The most important reason for choosing the bank to conduct business with | Variety of products 26 23.9 Less fees 14 12.8 Friendly employees 50 45.9 Location closeness 5 4.6 Bank image 14 12.8 Building and furniture newness 0 0 Other reasons 14 12.8 |
The most important reason for business continuation with the bank | Location closeness 7 6.4 Variety of products 25 22.9 Bank image 7 6.4 Less fees 1 .9 Friendly employees 39 35.8 Building and furniture newness 0 0 Other reasons 30 27.5 |
Nationality | Saudi 107 98.2 Non Saudi 2 1.8 |
Age | Less than 25 years 20 18.3 From 25 to less than 35 34 31.2 From 35 to less than 45 27 24.8 From 45 to less than 55 15 13.8 55 and more 13 11.9 |
Level of education | Elementary 0 0 Intermediary 27 24.8 Secondary 14 12.8 High diploma 42 38.5 Master's degree 15 13.8 Doctorate or PHD 3 2.8 |
Type of work | Civilian 37 33.9 Military 15 13.8 Private sector employee 23 21.1 Businessman 31 28.4 |
Type of residence | Palace 6 5.5 Villa 77 70.6 One floor Villa 4 3.7 Suite or room 0 0 |
Customer relation to his residence | Owner 59 54.1 Tenant 23 21.1 Provided by my family 20 18.3 Provided by my company 7 6.4 |
Monthly income | From 0 to 3,999 8 7.3 From 4,000 to 7,999 34 31.2 From 8,000 to 11,999 17 15.6 From 12,000 to 15,999 31 28.4 From 16,000 to 19,999 7 6.4 From 20,000 and more 11 10.1 |
Other monthly income | From 0 to 3,999 64 58.7 From 4,000 to 7,999 14 12.8 From 8,000 to 11,999 8 7.3 From 12,000 to 15,999 4 3.7 From 16,000 to 19,999 2 1.8 From 20,000 and more 16 14.7 |
Correlation Matrix of Loyalty, Satisfaction, and Some Demographic Characteristics Used in This Study
(1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | |
)1( Loyalty | 1 | |||||||||
(2) Satisfaction | .55** | 1 | ||||||||
(3) Years of conducting business with THE BANK | .14 | .66** | 1 | |||||||
(4) Number of products acquired from THE BANK | .23* | .34** | .11 | 1 | ||||||
(5) Number of services acquired from THE BANK | .37** | .48** | .38** | .46** | 1 | |||||
(6) Age | .17 | .64** | .83** | .18 | .27** | 1 | ||||
(7) Level of education | .10 | .26** | .10 | .63** | .26** | -.04 | 1 | |||
(8) Monthly income | .19** | .58** | .75** | .28** | .37** | .75** | .20* | 1 | ||
(9) Other monthly income | .21* | .40** | .56** | .09 | .33** | .59** | -.13 | .71** | 1 | |
(10) Type of residence | -.14 | .11 | .23* | .02 | .15 | .11 | .05 | .20* | .14 | 1 |
* P< 0.05 (2-tailed)
** P<0.01 (2-tailed)
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A
The Questionnaire in English
1- Holding accounts with the bank
Yes
No
2- Years of conducting business with the bank
Less than a year
From a year to less than 5 years
From 5 to less than 10 years
From 10 to less than 15 years
From 15 to less than 20 years
More than 20 years
3-Number of products acquired from the bank _____________
4-Number of services acquired from the bank __________
5- Visits to the bank
Daily
Almost daily
Weekly
Almost weekly
Monthly
Every 3 months
Every 6 months
Once a year
6- Holding accounts with other banks
yes
no
7-Years of conducting business with other banks
Less than a year
From a year to less than 5 years
From 5 to less than 10 years
From 10 to less than 15 years
From 15 to less than 20 years
More than 20 years
8-Number of products acquired from other banks _____________
9-Number of services acquired from other banks __________
10- Visits to other banks
Daily
Almost daily
Weekly
Almost weekly
Monthly
Every 3 months
Every 6 months
Once a year
11-The bank as the best bank in Saudi Arabia
Totally not convinced
Not convinced
Neither convinced nor not convinced
Convinced
Totally convinced
12-Recommending the bank to a friend
Totally not convinced
Not convinced
Neither convinced nor not convinced
Convinced
Totally convinced
13-Acquiring a new product or service from the bank
Totally not convinced
Not convinced
Neither convinced nor not convinced
Convinced
Totally convinced
14-Complimenting the bank
Totally not convinced
Not convinced
Neither convinced nor not convinced
Convinced
Totally convinced
15-General satisfaction with the bank
Very dissatisfied
Somewhat dissatisfied
Neither satisfied nor dissatisfied
Somewhat satisfied
Very satisfied
16-Satisfaction with the bank products
Very dissatisfied
Somewhat dissatisfied
Neither satisfied nor dissatisfied
Somewhat satisfied
Very satisfied
17-Satisfaction with the bank services
Very dissatisfied
Somewhat dissatisfied
Neither satisfied nor dissatisfied
Somewhat satisfied
Very satisfied
18-Satisfaction with the quality of services of the bank
Very dissatisfied
Somewhat dissatisfied
Neither satisfied nor dissatisfied
Somewhat satisfied
Very satisfied
19-Satisfaction with the bank fees
Very dissatisfied
Somewhat dissatisfied
Neither satisfied nor dissatisfied
Somewhat satisfied
Very satisfied
20-Satisfaction with the bank furniture
Very dissatisfied
Somewhat dissatisfied
Neither satisfied nor dissatisfied
Somewhat satisfied
Very satisfied
21-Satisfaction with the bank building
Very dissatisfied
Somewhat dissatisfied
Neither satisfied nor dissatisfied
Somewhat satisfied
Very satisfied
22-Satisfaction with the bank locations
Very dissatisfied
Somewhat dissatisfied
Neither satisfied nor dissatisfied
Somewhat satisfied
Very satisfied
23-Satisfaction with THE BANK employees contacts
Very dissatisfied
Somewhat dissatisfied
Neither satisfied nor dissatisfied
Somewhat satisfied
Very satisfied
24- Level of services received compare with expectation
Higher
Equal
Lower
Not sure
25- Level of products received compare with expectation
Higher
Equal
Lower
Not sure
26- Level of service received from the bank compare to other banks
Higher
Equal
Lower
Not sure
27- Level of the bank fees compare to other banks
Higher
Equal
Lower
Not sure
28- Level of the bank technology compare to other banks
Higher
Equal
Lower
Not sure
29- Level of prestige or esteem provided by the bank compare to other banks
Higher
Equal
Lower
Not sure
30-The most important reason for choosing the bank to conduct business with
Location closeness
Variety of products
Bank image
Less fees
Friendly employees
Building and furniture newness
Other reasons
31-The most important reason for business continuation with the bank
Location closeness
Variety of products
Bank image
Less fees
Friendly employees
Building and furniture newness
Other reasons
32-Nationality
Saudi
Non Saudi
33-Age
Less than 25 years
From 25 to less than 35
From 35 to less than 45
From 45 to less than 55
55 and more
34-Level of education
Elementary
Intermediary
Secondary
High diploma
Master's degree
Doctorate or PHD
35-Type of work
Civilian
Military
Private sector employee
Businessman
36- Type of residence
Palace
Villa
One floor Villa
Apartment
Suite or room
37-Customer relation to his residence
Owner
Tenant
Provided by my family
Provided by my company
38-Monthly income
From 0 to 3,999
From 4,000 to 7,999
From 8,000 to 11,999
From 12,000 to 15,999
From 16,000 to 19,999
From 20,000 and more
39-Other monthly income
From 0 to 3,999
From 4,000 to 7,999
From 8,000 to 11,999
From 12,000 to 15,999
From 16,000 to 19,999
From 20,000 and more
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