The relationships of customer satisfaction & customer loyalty, context of Bangladesh Commerce Bank limited

Name:RokonuzzamanID:1120455

Semester:Autumn,2015

Independent University ,Bangladesh

Company Profile

Name: Bangladesh Commerce Bank Limited Legal Status: A public limited company incorporated

in Bangladesh on June 01, 1998 under the Companies Act 1994, the Bank Company Act 1991 and Act 12 of 1997

Authorized Capital: BDT 10,000 Million Paid up Capital: BDT 1,989 Million Face Value per Share: BDT 100 per share

Mission Statement

BCBL is committed to fulfill its customer's needs and become their first choice in banking so that a sustainable growth, reasonable return and contribution to the socio-economic development of the country can be ensured with a motivated and professional work-force.

Organogram

Managing Director

Deputy Managing Director

Executive Vice President

Vice President

Senior Assistant Vice President

Assistant Vice President

First Assistant Vice President

Junior Assistant Vice President

Senior Excutive Officer

Excutive Officer

Junior Officer

Assistant Officer

Branch Employee Hierarchy

Internship Outcome

Duties and responsibility Assist customer to fill out the account opening

form correctly and also obtain all necessary document.

Issue of check book .Prepare Bank statement: Income Statement,

Balance Sheet, Expenditure Statement, Monthly Salary Statement, Withdrawal Statement.

Giving remittances to the customer

Problem Statement

In order to bank service industry to have a smooth run, it must obtain loyal customers. And The statement of the problem for this study is; “increase customer satisfaction level to having loyal customer”

Purpose Of The Sturdy

The purpose of this study is to find what factor can satisfy customers and make an ordinary customer in to a loyal customer

Conceptual Framework

Research Question

Is there any significant relationship between Customer Satisfaction and Customer loyalty of a bank context of Bangladesh Commerce Bank Limited?

  Is there any significant relationship between Responsiveness and Customer loyalty of a bank context

of Bangladesh Commerce Bank Limited? Is there any significant relationship between Reliability and Customer Satisfaction of a bank context

of Bangladesh Commerce Bank Limited? Is there any significant relationship between Convenience and Customer Satisfaction of a bank

context of Bangladesh Commerce Bank Limited? Is there any significant relationship between Assurance and Customer Satisfaction of a bank context

of Bangladesh Commerce Bank Limited? Is there any significant relationship between Tangibles and Customer Satisfaction of a bank context of

Bangladesh Commerce Bank Limited? Is there any significant relationship between Service Quality and Customer Satisfaction of a bank

context of Bangladesh Commerce Bank Limited? Is there any significant relationship between Image and Customer Satisfaction of a bank context of

Bangladesh Commerce Bank Limited?

Hypothesis

Ha1: Customer satisfaction has a positive effect on customer loyalty of a bank context of Bangladesh Commerce Bank Limited.

Hø1: Customer satisfaction has no positive effect on customer loyalty of a bank context of Bangladesh Commerce Bank Limited.

 

Hb1.Responsiveness has a positive effect on customer satisfaction of a bank context of Bangladesh Commerce Bank Limited.

Hø1.Responsiveness has no positive effect on customer satisfaction of a bank context of Bangladesh Commerce Bank Limited.

Hb2. Reliability has a positive effect on customer satisfaction of a bank context of Bangladesh Commerce Bank Limited.

Hø2. Reliability has no positive effect on customer satisfaction of a bank context of Bangladesh Commerce Bank Limited.

 

Hb3. Convenience has a positive effect on customer satisfaction of a bank context of Bangladesh Commerce Bank Limited.

Hø3. Convenience has no positive effect on customer satisfaction of a bank context of Bangladesh Commerce Bank Limited. 

Hypothesis

Hb4. Tangibility has a positive effect on customer satisfaction of a bank context of Bangladesh Commerce Bank Limited.

Hø4. Tangibility has no positive effect on customer satisfaction of a bank context of Bangladesh Commerce Bank Limited

Hb5. Assurance has a positive effect on customer satisfaction of a bank context of Bangladesh Commerce Bank Limited.

Hø5. Assurance has no positive effect on customer satisfaction of a bank context of Bangladesh Commerce Bank Limited.

 

Hb6. Image has a positive effect on customer satisfaction of a bank context of Bangladesh Commerce Bank Limited

Hø6. Image has no positive effect on customer satisfaction of a bank context of Bangladesh Commerce Bank Limited

 

Hb7. Service quality has a positive effect on customer satisfaction of a bank context of Bangladesh Commerce Bank Limited.

Hø7. Service quality has no positive effect on customer satisfaction of a bank context of Bangladesh Commerce Bank Limited.

 Research Methodology

Research Type: Descriptive Sample Size: 50 Data Collection  Primary Sources: Conversations with the people who are working in Bank and customers of Bangladesh Commerce Bank Limited. Questionnaires used in interview. Secondary Sources: Various articles.

Data Analysis

Reliability AnalysisA commonly accepted rule that describing internal consistency using cronbach'salpha (http://en.wikipedia.org/wiki/Cronbach's_alpha#cite_note-Cortina-8) is as follows- α ≥ 0.9 Excellent 0.7 ≤ α < 0.9 Good 0.6 ≤ α < 0.7 Acceptable 0.5 ≤ α < 0.6 Poor α < 0.5 Unacceptable

Reliability AnalysisCustomer Satisfaction 0.865 Good and reliable

Responsiveness 0.711 Good and reliable

Reliability 0.422 Unacceptable and not reliable

Convenience 0.708 Good and reliable

Assurance 0.757 Good and reliable

Tangible 0.819 Good and reliable

Service quality 0.622 Acceptable and reliable

Image 0.633 Acceptable and reliable

Customer Loyalty 0.881 Good and reliable

Correlation analysis

Correlation analysisCustomer Satisfaction and responsiveness

0.496 moderate Positive

Customer Satisfaction and reliability

-.061 weak Negative

Customer Satisfaction and convenience

-0.58 moderate Negative

Customer Satisfaction and assurance

0.738 moderate Positive

Customer Satisfaction and tangible

0.684 moderate Positive

Customer Satisfaction and service quality

0.794 moderate Positive

Customer Satisfaction and image

.014 weak Positive

Customer Loyalty and Customer Satisfaction

0.896 Strong Positive

Regression Analysis

The r2 value = 0.806

(Constant), Image , Tangibles, Convenience, Reliability, Responsiveness, Assurance , Service quality

The r2 value = 0.802

(Constant), Customer Satisfaction

Recommendation

There are few adjustments they might consider taking in terms of reliability and responsiveness. BCBL can constantly remind clients about how its transactions are done, so that the customers feel a lot safer. Employees of BCBL have of first to respond customer problem, they have to fulfill customer demand in a quick possible time .In order to do this they can let customers know how their information is safe through using the best software. They should reduce charges to prevent the loss of customers