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EXECUTIVE SUMMARY

Banking system of Bangladesh has gone through three phase of development.

Nationalization, Privatization, Financial Sector Reform. Bangladesh Commerce Bank

Limited is a commercial Bank Established in June 01, 1998 with new hopes and promises to

serve the countrymen.

BCBL always remains dedicated to meet up with the ever growing expectations of the

customers, customers is always at the center. BCBL try to meet up the customer satisfaction.

That being customer retains and make them loyal customer. Customer satisfaction is a

measure of how products and services supplied by a company meet or surpass customer

expectation. It is seen as a key performance indicator within a business. So, assessing the

level of customer satisfaction that help to make loyal customer actually helps to measure an

organization‘s position in business. In this report “The relationships of customer satisfaction

& customer loyalty, context of Bangladesh Commerce Bank limited”. I will focus on various

aspects of this Bank. Since they are standing at good position among the private banks, their

financial position, market shares, marketing mechanisms, overall strengths and weakness,

objectives, goals will be cross examined for analyzing the fact that how they were and how

they will be in future. Various types of analysis will help us to understand the comparative

position and a transparent picture of this Bank that will help us to draw any comment at a

glance.

There are five chapter of the report. First chapter is consisting of the Introduction of the whole report. Second chapter of the report is consisting of the company profile. In the third chapter there is the review of literature and the conceptual frame work of the study which indicate the research question and hypothesis. The forth chapter of the report is consist of the research methodology. The fifth chapter is consisting of conclusion and recommendation about the study.

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CHAPTER 1

Introduction

1.1 Introduction of the study

The financial sector relies on the maintenance of a long-term relationship with its customers,

due to the nature of the products and services it provides, and the loss of a client is viewed

with concern (Sweeney and Swait, 2008). The importance of customer satisfaction in

financial services has been studied extensively in the existing literature (Arbore and Busacca,

2009) and the marketing activity of many companies has focused on achieving customer

loyalty (Vesel and Zabkar, 2009). The studies that recognize the significance of customer loss

regarding the profitability of an industry are abundant (Sweeney and Swait, 2008; Chi and

Gursoy, 2009; Fathollahzadeh et al., 2011; Akhter et al., 2011).

It has been stated that the antecedents of customer satisfaction and loyalty are intricate,

developing over time and dynamic ( Johnson et al., 2006) and the full extent of the

interrelations among the factors that affect them have not been completely understood

(Taylor et al., 2006). The main objective of the present study is to determine the factors that

affect customer satisfaction, as well as the factors that influence customer loyalty. And then

both of these constructs are tested in order to underline their importance towards the

profitability of banks. This study is in a position to provide managers with a more complete

view of which factors determine customer’s satisfaction and loyalty and furthermore, the

extent to which they affect the financial performance of banks.

1.2Objective

I have determined my objectives behind preparing the report on the topic “The relationships

of customer & satisfaction, customer loyalty, context of Bangladesh Commerce Bank

limited”. This study is aimed at providing me invaluable practical knowledge about banking

operation system in Bangladesh. It will also help me to develop my concept of banking and

its performance.

1.3 STATEMENT OF THE PROBLEM

In this competitive banking service industry, customer satisfaction & loyalty are of the most

important factors for the banks in order to sustain in this market. It has been found that many

customers switch their banks frequently because banks are fail to satisfy their customer.

So in order for 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”.

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1.4 PURPOSE OF THE STUDY

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

customer in to a loyal customer

1.5 Methodology of the study I have got all the relevant information from my working experience in Bangladesh

Commerce Bank Limited, their annual report, Bangladesh Commerce Bank Limited web site

and such. There are two sources from which I have collected data, Primary source and

Secondary source.

Primary Data

1. The information, which is gathered from BCBL Gulshan Branch while I worked with them.

2. Personal observation. 3. Face to face conversation with the officers. 4. Face to face conversation with the clients.

Secondary data

The secondary data of this report are collected from BCBL Annual report, internet sources, official documents and some reports from which I got idea about the way of writing a report.

1.6 Limitations of my working report

Limited access to the information has been the major constraint of the report. BCBL has a very rigid policy of not letting interns get too deep within the

operations of the bank. They did not disclose such information that hampers the organizational confidentiality.

The website was not operating properly time to time, which caused a great amount of trouble.

Since bank officials had to remain very busy, they could provide me only a little time and attention.

Time period for the report is not sufficient. Moreover I have a very low accessibility in the banking operations since I’ve

only worked in the general banking and foreign exchange division very limitedly. Thus I have a very low knowledge about other banking activities.

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A Working Report On Bangladesh Commerce Bank Limited

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CHAPTER 2

Company Profile

2.1 Introduction

Bangladesh Commerce Bank Limited is one of the potential commercial bank of Bangladesh

with Private-Government share. BCBL is consistently supporting the economic activates of

the country since its inception in 1998. The bank covers all the areas of

corporate/commercial, retail/personal and SME banking business.

Bangladesh Commerce Bank Limited (BCBL) was established by the act no. I2 of 1997,

passed by the Parliament of the People‟s Republic of Bangladesh. Subsequently on February

8, 1998 as per clause 7(7) of act 12 of 1997, the Government constituted an 11 member

Board of Directors to organize BCBL and administer the affairs of the Bank in accordance

with the Act. Bangladesh Commerce Bank Limited was incorporated on June 1, 1998 as a

public limited company under the company act 1994, Banking Companies act 1991 and in

accordance with the act no. 12 of 1997. The Bank formally started operation from September

16, 1999 with the slogan of “A People’s Bank with a Mission”.Having been registered with

the Registrar of Joint Stock Companies (RJSC) and Firms with the prior approval of

Securities and Exchange Commission (SEC) Bangladesh Commerce Bank Limited

commenced banking operation with the opening of its Principal Branch at 19, Rajuk Avenue,

Motijheel Commercial Area, the financial hub of the capital city Dhaka on September 16,

1999. By the end of the accounting year1999, the other 23 branches in Dhaka, Chittagong,

Khulna, Sylhet metropolitan area and Bogra, Naogaon, Narayangonj started functioning. At

present BCBL is successfully running operation in 38 branches with its last branch opened in

Comilla. Export/Import/Foreign Exchange business is being done through our A/D Branches.

BCBL is also member of SWIFT. Import-Export, Foreign exchange, remittance related

activities are performed with SWIFT.

2.2 Capital

The Authorized and the Paid-up capital of the Bank is Tk.2000 million and Tk.920 million

respectively. Out of Tk.920 million, the Government contributed Tk.300 million and the

depositors of former BCI contributed Tk.520 million as their equity share. The balance

Tk.100 million is subscribed by 3 nationalized Bank.

2.3 Vision & Mission

Vision Become a bank of first choice by the customers with meaningful contributions to the society.

Mission Bangladesh Commerce Bank Limited is committed to fulfill its customer‟s needs and become

their first choice in banking so that a sustainable growth, reasonable return and contribution

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to the socio-economic development of the country can be ensured with a motivated and

professional work-force.

2.4 Board of Directors

The Board of Directors is constituted with 11 members, 7 of them nominated by the

Government & other 4 members from private equity holders as per the memorandum and

article of association & as a public-private partnership. The Board of Directors meets at least

once in a month to consider and review various important policy matters relating to its

operation and management

Name & Address

Designation

1 Mr. Md. Yousuf Ali Hawlader Chairman

2 Mr. Md. Farhad Uddin Director

3 Mr. A.T.M Murtozaa Reza Chowdhury ndc Director

4 Mr. Tapan Kumar Karmaker Director

5 Mr. Rana Kaiser Director

6 Mr. Manowar Hossain Director

7 Mr. Anis Ahmed Director

8 Mr. Abbas Uddin Ahmed Director

9 PRADIP KUMAR DUTTA Director

10 Dr. Md. Zillur Rahman Director

11 Dr. Muhammad Asaduzzaman Managing Director (C.C)

2.5 Operational Network: Organogram Management Hierarchy

Bangladesh Commere Bank limited is a hundred percent government scheduled bank. The

shareholders are the proprietors of the banks. There are 11 members of the Board of Director

who are managing the total management & Human Resources of the bank. At present, Mr.

Md. Yousuf Ali Howlader, Chairman is the chairperson of Bangladesh Commerce Bank &

the Managing Director of this bank is Mr. Abu Sadek Md. Sohel The chairperson &

Managing Director both are the members of this bank. The chairman of the bank is the head

of the Board of Directors. The main function of the Board of Directors is to formulate policy.

From the top to the bottom management body of Bangladesh Commerce Bank Limited can be

divided into four levels:

Top Level Management

Executive Level Management

Mid-Level Management

Junior Level

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Figure-1: Management Hierarchy

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

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Figure-2: Branch Employee Hierarchy (Gulshan Branch)

2.6 Branch Information Currently BCBL Has 38 branches around the country. By 2013, BCBL has a target to open 8

more branches at the prime locations of the country. List of brunch information are given

below:

01. Principal Branch 02. Dilkusha Branch

03. Bangshal Branch 04. Moulvi Bazar Branch

05. Dholaikhal Branch 06. Banglabazar Branch

07. Zigatola Branch 08. Green Road Branch

09. Mouchak Branch 10. Mirpur Branch

11. Gulshan Branch 12. Khilgaon Branch

13. Dhamrai Branch 14. Tanbazar Branch

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15. Agrabad Branch 16. Jubilee Road Branch

17. Khatungonj Branch 18. Chaktai Branch

19. Dewanhat Branch 20. Khulna Branch

21. Doulatpur Branch 22. Sylhet Branch

23. Bogra Branch 24. Naogaon Branch

25. Comilla Branch 26. Seedstore Bazar Branch

27. Uttara Branch 28. Feni Branch

29. Bijoynagar Branch 30. Muradpur Branch

31. Mandari Bazar Branch 32. Bandura Branch

33. Jessore Branch 34. Dinajpur Branch

35. Foreign Exchange Branch 36. Juri Branch

37. Batajor Branch 38. Savar Branch

2.7 Profile Of Bangladesh Commerce Bank Limited

Name Bangladesh Commerce Bank Ltd. (BCB)

Date of Incorporation 1 June 1998

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.

Our Core Business

Bangladesh Commerce Bank Limited is known as a commercial

bank. Like all commercial banks BCBL’s core business is

obtaining deposit and providing loans. It is a financial institution

providing services for businesses, organizations and individuals.

Service includes offering different types of deposit account such

as current deposit accounts, saving deposit accounts and other

scheme accounts as well as giving out loans to businesses and

individuals.

BCB make its profit by taking small, short-term, relatively liquid

deposits and transforming these into small, medium, larger loans

for short, medium and longer maturity loans. These processes of

asset transformation generate net income for BCB. BCB also

does investment banking though it is not considered its main

business area.

However, BCB is primarily engaged in deposit and lending

activities to private and corporate clients in wholesale and retail

banking. Other services typically include credit cards, mobile

banking, custodial service and guarantees, cash management and

settlement as well as trade finance.

Authorized Capital BDT 10,000 Million

Paid up Capital BDT 1,989 Million

Face Value per Share BDT 100 per share

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Company Registration

Number C-35510(2286)/98

Bangladesh Bank

License Number BRPD(P)744(KHA)/99-2842

Registered Head Office Eunoos Trade Center (Level-22), 52-53 Dilkusha, C/A. Dhaka –

1000, PABX: 9559831, Fax: 9568218

2.8 Services of BCBL

BCBL concentrates the following categories of banking services-

1. General banking,

2. Loans and Advances,

SME (Small & Medium Enterprises)

Corporate loan

CC Hypothecation

Car loan

Home loan

Agricultural loan

3. International Trade and Foreign Exchange,

Export

Import

Remittance

4. Online Banking Services,

5. Consumer’s Credit Scheme

2.8Interest rate of BCBL

A savings account at BCBL will provide customer with healthy returns on their savings at the

same time as they help support project bringing lasting benefits to communities and the

environment.

BCBL‟s range of personal savings accounts has been designed to offer something for

everyone. So whether customer wants to invest a lump sum, put by a little every month or

they simply want to move their savings to a bank with a uniquely ethical approach, there is a

BCBL savings account to suit customers‟ needs.

Rates of interest are as follows:

Savings Deposit (SD)

i) Special rate for General Savings 6.50%

ii) Special rate for Nondita (Only for

Housewife)

8.50%

iii) Special rate for Srizoni (Only for Worker 8.50%

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Women)

iv) Special rate for Students Savings 7.50%

Fixed Deposit Receipt (FDR)

i) 1 month to 12 months tenure (Any amount) 12.50%

Pension Savings Scheme 9.00%

Scheme Deposits:

SL

Scheme Deposit

Tenure Installment

Amount

Amount Payable

at Maturity

Nominal

Interest Rate

(Monthly)

1.Double

Benefit Scheme

6 Years Any Amount Double 9.28%

2.Triple Benefit

Scheme

10 Years Any Amount Triple 9.45%

5 Years 1,320.00 1,00,000.00 9.17%

3.Lakhpati

Deposit Scheme

10 Years 515.00 1,00,000.00 9.06%

10 Years 5,085.00 10,00,000.00 9.29%

4.Millionaire

Deposit Scheme

15 Years 2,530.00 10,00,000.00 9.49%

15 Years 25,960.00 1,00,00,000.00 9.20%

5.Kotipoti

Deposit Scheme

20 Years 14,230.00 1,00,00,000.00 9.40%

12 Years 1,000.00 2,60,410.00 9.15%

6.Marriage

Deposit Scheme

18 Years 1,000.00 5,57,860.00 9.35%

8 Years 500.00

69,620.00 8.90%

7.Education

Savings Scheme

12 Years 500.00 1,28,855.00 9.00%

Special Notice Deposit (SND)

i) Below 1.00 crore 4.00%

ii) From 1.00 crore to 25.00 crores 4.25%

iii) From 25.00 crore s to 50.00 crores 8.00%

iv) From 50.00 crores to 100.00 crores 9.00%

v) 100.00 crores and above 10.00%

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Loans & Advances:

1. Commercial Loan:

1.CC (Hypo) 17.50%

2.CC (Pledge) 17.50%

3.SOD (RE) 17.50%

4.SME 17.50%

5.LTR/LIM/PAD 17.50% (Other than food items)

6.Forced/Demand Loan 18.00%

2.Term Loan:

Large & Medium Scale Industries 15.00%-15.50%

Small Scale Enterprise (Secured) 17.00%

Small Scale Enterprise (Unsecured) 17.00%

3.Working Capital Loan:

Large & Medium Scale Industries 15.50%

Small Scale Enterprise (Secured) 17.00%

Small Scale Enterprise (Unsecured) 17.00%

4.Agricultural Loans 13.00%

5.House Building:

1.Residential 18.00%

2.Commercial 18.00%

6.Transport Loan (Private use/Commercial

use)

18.00%

7.Non-Banking Financial Institution (NBFI) 16.00% – 16.50%

8.Lease Finance 17.00%

9.Syndicate/Club Finance 15.50% – 16.00%

10.Loan Against FDR Above 3.00% over own FDR Rate

Above 3.00% over other Bank FDR

11.Loan against Special Schemes 17.00%

12.Export Loan 7.00%

13.Trade Finance (For rice, wheat, edible

oil, pulse, peas, onion, dates & sugar)

16.00%

14.Staff Loan:

Car Bank Rate (5.00%)

Provident Fund 9.50%

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House Building 8.00%

15.Bill purchase / Loan against Share (SODS) 17.00%

16.Consumer Credit Scheme (CCS) 18.00%

17.Special Scheme for Service Holders 18.00%

18.Special Loan for unemployed women 16.00%

19.Women Entrepreneurs with Govt. Re-fiancé 10.00%

20.Prime Customer 16.00%

2.9 My experience in Bangladesh Commerce Bank Limited

Nature of job

I have done my internship in Bangladesh Commerce Bank Limited. It was a great experience

for me because I have achieved lot of practical and professional knowledge. During the

period of internship at BCBL, the interne was cooperatively guided by all the staffs for

gaining in-depth banking knowledge. The major lessons that are learned during internship

can be listed as under:

1. This is the first time I got opportunity to work in a corporate world, so by working in

this environment I got to know about banking corporate culture practically.

2. I got to know the account opening procedure.

3. Assist customer to fill out the account opening form correctly and also obtain all

necessary document.

4. Dealing with customer

5. Issue of check book .

6. Prepare Bank statement: Income Statement, Balance Sheet, Expenditure Statement,

Monthly Salary Statement, Withdrawal Statement.

7. I learned how keep all the data in the register especially for Pay Order, fixed deposit

scheme, cheque book there is a specific register book which I had to maintain.

8. Filing pay order form

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9. Providing information about different banking product and services

10. I was also responsible to update daily voucher. I had to count debit and credit voucher

of different account such as- Current Account, Savings Account, FDR/STD Account,

SOD Account, Income and Expenditure Account, Bills payable, Foreign Exchange

Account and others. I had count the debited and credited voucher of these following

accounts.

11. Giving remittances to the customer.

2.10 Different aspects of job performance

During my entire internship program, I have learnt so many things that obviously added some

value for my future career. I could able to develop myself in many areas. They are concisely

discussed below:

During my internship, I have acquired some knowledge how to behave proper manner

in corporate level.

Practical knowledge is the more required to build up people’s career. Apart from my

academic knowledge, I have acquired some practical knowledge.

All bankers need to lead a discipline life because their job demands high discipline.

Punctuality always highly appreciated for the bankers. I had to past three months for

my internship in Bangladesh Commerce Bank Limited where most of employees are

very sincere and always emphasize on discipline. So these things also encourage me

to do so.

My internship program gave me opportunities to take responsibilities that are assigned

on me. So my small experience taught me how to take responsibilities.

After completing my internship now I know how to cope with pressure situation and

how to get out from this pressure with positive way. Its help me to learn mental stress

breaking.

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The relationships of customer satisfaction & customer

loyalty, context of Bangladesh Commerce Bank limited

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CHAPTER 3

REVIEW OF THE LITERATURE

3.1Literature View

The literature which studies the relationships among customer satisfaction, customer loyalty

and the financial performance has been divided into two groups. The first, involves the

service management literature, where customer satisfaction affects customer loyalty which in

turn influences profitability (Hallowell, 1996). Chi andGursoy (2009) have stated that a

satisfied customer turns into a loyal one and a loyal customer, in time, will lead to higher

sales and therefore higher financial returns for the company. Zeithaml et al. (1990), Reicheld

and Sasser (1990), Anderson and Fornell (1994), Heskett et al. (1994), Storbacka et al.

(1994), Rust et al. (1995) and Schneider and Bowen (1995) are all supporters of this theory.

According to Hallowell (1996) the study of the way the above factors interact was initiated

by Nelson et al. (1992), who tested the relationship of customer satisfaction to customer

profitability in the context of hospitals.

The service management literature argues that customer satisfaction results from the

perceptions of customers about the value they receive when making a transaction or when

being part of a relationship, compared to the value provided by the competition. In this

context, value is defined as the perceived service quality relative to price and customer

acquisition costs (Hallowell, 1996). It is believed that customers recognise and value

remarkable services when offered to them and over time they will exhibit loyalty behaviours

(Chi and Gursoy, 2009).

The second group, the marketing literature, studies the impact of customer satisfaction on

customer loyalty and suggests that customer loyalty can be defined in two different ways, as

attitude and as behaviour( Jacoby and Kyner, 1973). According to the attitudinal definition,

different feelings create an individual’s attachment to an organisation, product or service.

These feelings state the individual’s degree of loyalty (Hallowell, 1996). Examples of the

behavioural definition include the continuing purchase of services from the same supplier,

which increases the level of relationship (Yi, 1990).

Nowadays, a considerable amount of banks direct their strategies towards customer

satisfaction (Arbore and Busacca, 2009). Researchers such as Winstanley (1997), Ehigie

(2006) and Ndubisi (2006), have proven that customer satisfaction is a link between critical

customer behaviours and the tendency of an individual to consider his/her bank as one that

he/she has a relationship with. Liang et al. (2009) stated that loyalty is the most important

factor in predicting customers’ repetitive purchasing intentions.

Over time, researchers have identified many other factors that influence customer satisfaction

and loyalty. For example, service quality has been viewed as a factor that has a strong link to

satisfaction (Taylor and Baker, 1994; Levesque and McDougall, 1996; Johnston, 1997;

Lassar et al., 2000; Oppewal and Vriens, 2000; Jamal and Naser, 2002; Ndubisi, 2006;

Arbore and Busacca, 2009; Culiberg and Rojsˇek, 2010). Parasuraman et al. (1985) claimed

that service quality consists of five dimensions: reliability, tangibles, responsiveness,

assurance and empathy, which are widely known as the SERVQUAL model.

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Culiberg and Rojsˇek (2010) employed six factors (the five of the traditional SERVQUAL

instrument and access) to measure service quality and its effect on customer satisfaction but

after the factor analysis they were reduced to four. Assurance was considered one factor and

so did reliability and responsiveness. All three factors were found to have a positive effect on

customer satisfaction with the assurance factor being the strongest (Culiberg and Rojsˇek,

2010).

Others stated that there are two dimensions that affect customer satisfaction: the quality of the

core service which is provided by the bank and the quality of the relationship with the bank.

The first dimension consists of reliability, security, functionality, accuracy and speed, while

the second includes responsiveness, competences, assurance, trust, friendliness, courtesy

availability, commitment, flexibility and communication (Levesque and McDougall, 1996;

Johnston, 1997; Winstanley, 1997; Jamal and Naser, 2002).

Arasli et al. (2005) found that service quality has a positive effect on customer satisfaction in

the Greek-Cypriot banking sector. Ehigie (2006) carried out a research in Nigeria and found

that service quality and satisfaction were strongly related to customer loyalty. Bloemer et al.

(1998) found that service quality had both a direct and an indirect effect, through customer

satisfaction, on customer loyalty.

Akhtar et al. (2011) tested the effect of service quality of Islamic banking on customer

satisfaction in terms of assurance, compliance, empathy and representativeness and

concluded that their relationship is positive. Ladhari et al. (2011) compared the differences in

perceptions of service quality in the banking sector, using the SERVQUAL instrument,

between Tunisians and Canadians and found that tangibles had no significant effect in both

countries. Empathy was found to be the most important factor that affected both satisfaction

and loyalty in Canada while in Tunisia reliability and responsiveness were found to be the

most influential factors (Ladhari et al., 2011). Baumann et al. (2007) found that empathy,

overall satisfaction and affective attitude can help predict customer loyalty.

Furthermore, Hossain and Leo’s (2009) findings in Qatar, Sohail and Shaikh’s (2008)

findings in Saudi Arabia and Jamal and Ananstasiadou’s (2009) findings in Greece, suggest

that the tangibles factor is a significant predictor of customer satisfaction. On the other hand,

Kheng et al. (2010) tested the SERVQUAL model on customer satisfaction and loyalty and

found that tangibles affected neither satisfaction, nor loyalty. Also, responsiveness was found

to be insignificant regarding loyalty, while reliability was found not to contribute in the

creation of customer satisfaction.

Korda and Snoj (2010) examined the relations among service quality, value and satisfaction

and found that both service quality and value strongly affect satisfaction. Arun Kumar et al.

(2010) examined the effect of overall service quality on loyalty in the context of private

banking and found positive results. Lai et al. (2009) examined the various interrelationships

among service quality, value, satisfaction, image and loyalty in the context of

telecommunications. Their results showed customer satisfaction and perceived value have a

direct positive effect on loyalty.

Regarding loyalty, apart from customer satisfaction and service quality that were mentioned

earlier, image is another factor that is thought to have a direct effect on it (Mazursky and

Jacoby, 1986; Bloemer et al., 1998). In a research carried out by Akhter et al. (2011), it was

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found that customer loyalty is directly and positively affected by customer satisfaction,

product image, trustworthiness and customer relationship. Fathollahzadeh et al. (2011)

studied the effects of customer value on customer loyalty in terms of satisfaction, co-

operation, trust, commitment, service quality, complaint handling, image and communication

in the banking sector and found that all eight variables were significant. Ogba and Tan (2009)

found that brand image has a positive effect on customer loyalty, commitment, perceived

quality and satisfaction, regarding the telecommunication sector. In addition Sweeney and

Swait (2008) studied the role of brand credibility as a construct that influences both loyalty

and satisfaction.

Varki and Colgate (2001) studied another factor, the cost and especially the price-quality

ratio and the price fairness. Matos et al. (2009) found that switching costs have a direct effect

on loyalty and act as mediators in the satisfaction-loyalty relationship. Oppewal and Vriens

introduced the location factor, both in terms of accessibility and convenience. Wu (2011a)

found that locational convenience hasneither a direct effect nor an indirect effect through

satisfaction, on loyalty.

Moreover, some researchers pointed out the positive impact of problem-solving skills on

customer satisfaction (Levesque and McDougall, 1996; Ndubisi, 2006). Vesel and Zabkar

(2009) found that personal interaction quality affects customer satisfaction and customer

satisfaction influences customer loyalty. No relation was found between personal interaction

quality and loyalty. Thuy and Hau (2010) examined the effect of service personal values

towards customer satisfaction and loyalty and their hypotheses were verified. Al-Wugayan

and Pleshko (2010) examined customer loyalty and satisfaction and the effect they have on

the market share of banks that offer mutual funds investment services. They found that only

loyalty has a strong linkage to the market share of the bank. Chi and Gursoy (2009) in their

study examined and verified that employee satisfaction and customer satisfaction lead to

better financial performance in the hospitality industry.

As it can be seen, in recent years many studies have focused on satisfaction and loyalty, the

factors that affect them and how they result in positive financial benefits. Service quality is

among the most widely studied factor in the existing literature. Those studies usually neglect

the effects of others factors on both satisfaction and loyalty. Wanting to fill this gap and after

examining all the aforementioned studies, in the following section a more complete research

model and the hypotheses that were formed, are stated.

Customer Satisfiction

Satisfaction has been defined and measured in different ways over the years (Oliver, 1997).

Johnson et al. (1996) describe two basic conceptualizations of satisfaction: transaction-

specific and cumulative. Transaction-specific satisfaction is a customer's transient evaluation

of a particular product or service experience, while cumulative satisfaction describes the total

consumption experience of a product to date (Cronin and Taylor, 1992). An important

advantage of the cumulative satisfaction construct over a more transaction-specific viewpoint

is that it is better able to predict subsequent behaviors and economic performance (Johnson et

al., 2001). One of the latest formal definitions of satisfaction as a composite construct has

been developed by Oliver (1997), who proposed it to be ―the consumer's fulfillment

response, the degree to which the level of fulfillment is pleasant or unpleasant‖ (p. 28). This

study integrates these two approaches and defines individual satisfaction as a consumer's

personal overall evaluation of satisfaction and pleasure with a given product category – and

as a cumulative rather than a transaction-specific construct (Olsen, 2007). Customer

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satisfaction is a complex construct and has been defined in various ways (Besterfield, 1994;

Barsky, 1995; Kanji and Moura, 2002; Fecikova, 2004). Recently, researchers have argued

that there is a distinction between customer satisfaction as related to tangible products and as

related to service experiences. This distinction is due to the inherent intangibility and

perishability of services, as well as the inability to separate production and consumption.

Hence, customer satisfaction with services and with goods may derive from, and may be

influenced by, different factors and therefore should be treated as separate and distinct

(Veloutsou et al., 2005). Two additional issues that need to be clarified when researching

customer satisfaction in services is whether satisfaction is conceptualized as facet

(attributespecific) or as overall (aggregate); and whether it is viewed as transaction-specific

(encounter satisfaction) or as cumulative (satisfaction over time) (Hoest and Knie- Andersen,

2004). In the present paper, satisfaction is conceptualized as an overall, customer attitude

towards a service provider (Levesque and McDougall, 1996).

Customer loyalty

Three conceptual perspectives have been suggested to define customer loyalty: the behavioral

perspective, the attitudinal perspective and the composite perspective (Bowen and Chen,

2001; Zins, 2001). The behavioral perspective, ‘‘purchase loyalty’’, strictly looks at repeat

purchase behavior and is based on the customer’s purchase history. Here, the emphasis is on

past -rather than on- future actions. Moreover, no other loyal behavioral actions such as price

tolerance, word of mouth, or complaint behavior can be interpreted (Zins, 2001).

Concentrating on the behavioral aspect of loyalty could overestimate true loyalty (Zins,

2001). The attitudinal perspective, in contrast, allows gain in supplemental understanding of

loyal behavior (Zins, 2001). Here, customer loyalty is approached as an attitudinal construct.

Attitude denotes the degree to which a consumer’s disposition towards a service is favorably

inclined. This inclintion is reflected by activities such as the customers recommending.

service providers to other consumers or their commitment to repatronize a preferred service

provider (Gremler and Brown, 1996). Based on a favorable attitude towards a service

provider, customers may develop ‘‘preference loyalty’’ (De Ruyter et al., 1998). Lastly, the

composite perspective combines attitudinal and behavioral definitions of loyalty. The

composite perspective might be considered as an alternative to affective loyalty since using

both attitude and behavior in a loyalty definition arguably increases the predictive power of

loyalty (Pritchard and Howard, 1997). In the present study ‘‘loyal’’ are defined those

customers who hold favorable attitudes toward an organization, recommend the organization

to other consumers and exhibit repurchase behavior.

Service Quality

Service quality has become an issue that businesses have focused up onwith e-services that

enable electronic communication; information gathering, transaction processing and data

interchange between online vendors and customers across time and space (Featherman and

Pavlou, 2002). In online environments, service quality is defined as the extent to which a

website facilitates efficient and effective shopping, purchasing, and delivery of product and

services (Zeithaml et al., 2002). Santos (2003) described e-service quality in terms of overall

Page | 20

customer evaluations and judgments regarding the excellence and the quality of e-service

delivery in the virtual marketplace. A study by Parasuraman et al. (2005) on the Internet

service quality of online shopping websites resulted in the development of a service quality

scale, the e-SQ scale, consisting of seven dimensions: efficiency, system availability,

fulfillment, privacy, responsiveness, compensation and contact. It is slightly different from

the e-SQ scale developed by Zeithaml et al. (2001) which has 11 dimensions: reliability,

responsibility, access, flexibility, and ease of navigation, efficiency, assurance, security, price

knowledge, site aesthetics and customization / personalization. Furthermore, a study by

Ribbink et al. (2004) in an e-commerce context (online book and CD stores) the service

quality dimensions consisted of: ease of use, escape, responsiveness and customization.

Cristobal et al. (2007) further developed a service quality scale which consists of

multidimensional constructs of web design, customer service, assurance and order

management.

Responsiveness

Responsiveness “is the willingness to help customers and provide Prompt service” (Zeithaml

et al, 2006). This dimension is concerned with dealing with the customer‟s requests,

questions and complaints promptly and attentively. Handling of problems and returns through

the site. A Bank is known to be responsive when it communicates to its customers how long

it would take to get answers or have their problems dealt with. To be successful, companies

need to look at responsiveness from the view point of the customer rather than the company‟s

perspective (Zeithaml et al., 2006). Responsiveness also captures the notion of flexibility and

ability to customize the service to customers need. Standard for speed and promptness

that‟srefects the company’s view of process requirement may be very different from the

customer requirement. Responsiveness concerns the willingness or eagerness of employees

for service provision. It involves turnaround time of service actions like timely dispatch of a

receipt or quickly calling back the customer (Zethaml et al., 2002).

Assurance

Assurance refers to the ability the internet banking convey trust and confidence to their

consumers. Madu and Madu argued that the online banking must ensure that their employees

are knowledgeable about their operation, and courteous in their responses to the customers.

Schneider and Perry suggested some web features that help promote the assurance to

consumers. For instances, providing detailed banks information (e.g. background, mission

statement, announcement, banks handling private data, a direct relationship might be

established among the three concepts. Assurance is defined as “the employees‟ knowledge

and courtesy and the service provider‟s ability to inspire trust and confidence” (Zeithaml et

al., 2006). According to Andaleeb and Conway (2006), assurance may not be so important

relative to other industries where the risk is higher and the outcome of using the service is

uncertain. The trust and confidence may be represented in the personnel who link the

customer to the organization (Zeithaml et al., 2006. Assurance is a set of courtesy and

knowledge of employees along their ability to instill confidence. The assurance dimension is

taken from an integrated Assurance is a set of courtesy and knowledge of employees along

their ability to instill confidence. The assurance dimension is taken from an integrated.

Reliability

Page | 21

Reliability means the quality of being dependable or reliable on something (Linand Chin

2007). Reliability is defined as “the ability to perform the promised service dependably and

accurately” or “delivering on its promises” (Zeithaml et al, 2006, p. 117).Regarding to

service quality dimension of reliability the internet has big effect on it. Madu2002. Santos

2002 defines reliability as the ability to perform the promise service accurately and frequently

updating the website. Since most of the online customers are really concerned about the

reliability of virtual service providers. (Yant and fand 2004).( Gilly2002) sate reliability as

the product that came was represent accurately by the website, you get what you ordered

from the site the product was delivered in time promise by the bank. Based on the theoretical

review in this study it is found that reliability is one of the most highly frequently mention

dimension in e service quality. (Parasyraman 1985, Johnston 1988). Reliability is found as

important in banking perspective however it’s different from customer perspective. For

internet banking reliability is mostly based on physical bank. It is important for the bank to

conduct business both online and offline. It is also suggest that technical function and

accurate record provided by internet should be focused on by banking service provider in on

line services. Madu2002. Reliability involves dependability and uniformity in performance. It

means the firm honors the commitments it makes. Specifically, billing accuracy, proper

record maintenance and delivering the service within acceptable time limit describes the

reliability of online services (Saha and Zhao, 2005).

Tangibles

Tangible property in law is, literally, anything which can be touched, and includes both real

property and personal property (or moveable property), and stands in distinction to intangible

property. Hon. Giles, J. (May 1, 2008). Tangible assets are those that have a physical

substance, such as currencies, buildings, real estate, vehicles, inventories, equipment, and

precious metals (J. Downes, J.E. Goodman, "Dictionary of Finance & Investment Terms",

Baron's Financial Guides, 2003).

Image

According to the marketing dictionary the term Brand Image refers to Qualities that

consumers associate with a specific brand, expressed in terms of human behavior and desires,

but also related to price, quality, and situational use of the brand. Brand image can be positive

as well as negative. On the basis of characteristics which the consumer associates with the

brand, a competitive advantage for a brand can be build.

Page | 22

3.2 Fame work Model

Ind

epen

den

t V

aria

ble Responsiveness

Reliability

Convenience

Assurance

Tangibles

Service Quality

Image

Med

iati

ng

vari

able Customer

Satisfaction

Dep

end

ent

Var

iab

le Customer Loyalty

Page | 23

3.3Research 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


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


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?

Page | 24

3.4 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


Hb1.Responsiveness has a positive effect on customer satisfaction of a bank context of


Hø1.Responsiveness has no positive effect on customer satisfaction of a bank context of


Hb2. Reliability has a positive effect on customer satisfaction of a bank context of


Hø2. Reliability has no positive effect on customer satisfaction of a bank context of


Hb3. Convenience has a positive effect on customer satisfaction of a bank context of


Hø3. Convenience has no positive effect on customer satisfaction of a bank context of


Hb4. Tangibility has a positive effect on customer satisfaction of a bank context of


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


Hø5. Assurance has no positive effect on customer satisfaction of a bank context of


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

Commerce Bank Limited

Page | 25

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


Hø7. Service quality has no positive effect on customer satisfaction of a bank context of


Page | 26

CHAPTER 4

Research Methodology

4.1 Research Design

To categorize the research questions and analysis its hypotheses, a relational study intend has

been chosen as suitable for this study. The illustration of the theoretical framework described

the example and construction of relationships among the set of calculated variables. The

research issues and hypotheses clearly carry this representation. Consequently, the purpose of

the study was to determine correlations among variables.

4.2 Research Type

This research is Descriptive in nature. Under descriptive research it will be a causal study.

Because the type of study that will be carried out to test the hypothesis and to answer the

research questions will be a causal study. This type of study will show a cause and effect

relationship of the independent and dependent variables.

4.3 Sampling Method

The researcher used a convenience sampling method to gather data as of the sample of this

research. The convenience sample for this study is measured as the customer of Bangladesh

Commerce Bank Ltd. The sources to fill this sample were Gulshan branch of the particular

Bank working in the country. In this research, the researcher has used a sample size of 50

because of the time restriction and also for restricted access over the bank.

4.4 Survey Instrument

To assemble data for this lessons the researcher used questionnaire method since this method

was suitable for this study because of some reason. The reasons were as follows: The samples

can fill up the questionnaire without any hesitation. The sample size was 50 in this study. So,

it was not possible to make a personal interview with the large number of sample, as the time

for this study was limited. The researcher found that most of the previous research with large

number of sample size has done by questionnaire method. A structured questionnaire used in

this research to collect data from the respondents.

4.5 Data Collection Procedure

The study will be accomplished at Gulshan branch of Bangladesh Commerce Bank Ltd in

Dhaka. Therefore, the question will be scattered via a convenience and it is a probability

sampling method. The sample size was 50 in this case. In order to collect primary data, the

researcher had conducted a questionnaire survey. This approach is commonly used in this

Page | 27

type of research and got secondary source of data the annual report of the Bangladesh

Commerce bank ltd.

Data Collection

For collecting the data both primary and secondary sources are used.

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 Publications and articles.

Page | 28

4.6 Data Analysis

For data analysis purpose, SPSS software have used as it provides in-depth investigation in

data analysis and visualization. Reliability analysis, regression analysis and co-relation

Analysis have used to analysis of the data. Stepwise regression analysis can be carried out to

test hypotheses to find which independent variables individually and collectively provide a

meaningful contribution towards the explanation of the dependent variable.

4.7 Frequency Table

The sample size of the research consists of 50 customers participates in this survey which is

shown at below.

Statistics

Gender Age Martial Income

N Valid 50 50 50 50

Missing 0 0 0 0

Among the responding 2 customers age was between 15-25 years, 28 customer’s age was

between 26-35 years, 14 customers age was between 36-45 years and 6 customers age was

between 46 and above which is shown below.

Age

Frequency Percent Valid Percent

Cumulative

Percent

Valid 15-25 2 4.0 4.0 4.0

26-35 28 56.0 56.0 60.0

36-45 14 28.0 28.0 88.0

46 and above 6 12.0 12.0 100.0

Total 50 100.0 100.0

Among the responding 33 customers married which is 66% and 17 customers are unmarried

which is 34% which is shown below.

Page | 29

Martial


Cumulative

Percent

Valid Married 33 66.0 66.0 66.0

Unmarried 17 34.0 34.0 100.0

Total 50 100.0 100.0

Among the responding 6 customers monthly income range tk 21000-30000 which is 12% 17

customers monthly income range tk 31000-40000 which is 34% and 27 customers monthly

income range tk 41000 and above which is 54%. Which is shown below.

Income


Cumulative

Percent

Valid 21000-30000 6 12.0 12.0 12.0

31000-40000 17 34.0 34.0 46.0

41000 and above 27 54.0 54.0 100.0

Total 50 100.0 100.0

Page | 30

4.8 Reliability Analysis

The Most highly recommended measure of internal consistency is provided by co-efficient

alpha or Cronbach's Alpha as it is provided a good reliability estimates in most situations. .

A commonly accepted rule of thumb for 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

Over all Cronbach’s alphas of all variables in our study are more than acceptable and

recommended values of 0.50 by Nunnally (1970). Cronbach's Alpha value should be .50-.60

which is sufficient;.7 or above is desirable.(p-131, N.Jahangir).

In our study, we calculated Cronbach's alpha for each variable under each sample group

which has been shown Below ---.

Customer Satisfaction

Reliability Statistics

Cronbach's

Alpha N of Items

.865 3

Interpretation: Here the alpha value is 0.865, which is more than 0.5. So, we can say that

these three questions are good and reliable to measure the variable.

Responsiveness


Cronbach's

Alpha N of Items

.711 5


these five questions are good and reliable to measure the variable.

Reliability


Page | 31

Cronbach's

Alpha N of Items

.422 5

Interpretation: Here the alpha value is 0.422, which is less than 0.5. So, so, we can say that

these five questions are unacceptable and not reliable to measure the variable.

Convenience


Cronbach's

Alpha N of Items

.708 3



Assurance


Cronbach's

Alpha N of Items

.757 5


these five questions are good and reliable to measure the variable.

Tangible


Cronbach's

Alpha N of Items

.819 4

Interpretation: Here the alpha value is 0.819, which is more than 0.5. So, , we can say that

these four questions are good and reliable to measure the variable.

Service quality

Page | 32


Cronbach's

Alpha N of Items

.622 3

Interpretation: Here the alpha value is 0.622, which is more than 0.5. So, So, we can say

that these three questions are acceptable and reliable to measure the variable.

Image


Cronbach's

Alpha N of Items

.633 3

Interpretation: Here the alpha value is 0.633, which is more than 0.5. So, So, we can say

that these three questions are acceptable and reliable to measure the variable.

Customer Loyalty


Cronbach's

Alpha N of Items

.881 3



Page | 33

4.9 Correlation analysis

Correlation analysis was conducted on all variables to explore the relationship between

variables. The bivariate correlation procedure was subject to a two tailed of statistical

significance at two different levels highly significant (p<.01) and significant (p<.05).

Hypothesis testing:

Ho: null hypothesis = no relationship

Ha: alternative hypothesis = relationship

Correlations

Customer

Satisfaction

Responsivene

ss

Customer

Satisfaction

Pearson Correlation 1 .496**

Sig. (2-tailed) .000

N 50 50

Responsiveness Pearson Correlation .496** 1


N 50 50

**. Correlation is significant at the 0.01 level (2-tailed).

Interpretation: There is a strong moderate relationship between customer Satisfaction and

responsiveness.

Page | 34

Correlations

Customer

Satisfaction Reliability

Customer

Satisfaction

Pearson Correlation 1 -.061


N 50 50

Reliability Pearson Correlation -.061 1


N 50 50

Interpretation: As we know if value is -1 to .00 then it would be negative relationship and

here we can see our value is -.061 then it is also a negative relationship. There is a week

relationship between customer Satisfaction and reliability.

Correlations

Customer

Satisfaction Convenience

Customer

Satisfaction

Pearson Correlation 1 -.584**


N 50 50

Convenience Pearson Correlation -.584** 1


N 50 50


Interpretation: As we know if value is -1 to .00 then it would be negative relationship and

here we can see our value is -.548 then it is also a negative relationship. There is a moderate

relationship between customer Satisfaction and convenience.

Page | 35

Correlations

Customer

Satisfaction Assurance

Customer

Satisfaction



N 50 50

Assurance Pearson Correlation .738** 1


N 50 50


Interpretation: There is a strong relationship between customer Satisfaction and assurance.

Correlations

Customer

Satisfaction Tangibles

Customer

Satisfaction



N 50 50

Tangibles Pearson Correlation .684** 1


N 50 50


Interpretation: There is a moderate relationship between customers Satisfaction and

tangibles.

Page | 36

Correlations

customer

preference service quality

Customer

satisfaction



N 50 50

service quality Pearson Correlation .794** 1


N 50 50


Interpretation: There is a strong significant relationship between customer loyalty and

customer satisfaction.

Correlations

Customer

Satisfaction Image

Customer

Satisfaction

Pearson Correlation 1 .014


N 50 50

Image Pearson Correlation .014 1


N 50 50

Interpretation: There is a week relationship between customer satisfaction and image.

Page | 37

Correlations

Customer

Satisfaction

Customer

Loyalty

Customer Loyalty Pearson Correlation 1 .896**


N 50 50

Customer

Satisfaction

Pearson Correlation .896** 1


N 50 50


Interpretation: There is a strong significant relationship between customer loyalty and

customer satisfaction.

Decision Statement

In hypotheses Ha1 According to Pearson’s correlation coefficient theory we can see that the

value of customer loyalty and customer satisfaction is .896**. So there is a strong

relationship between them. As we know if value is .00 to +1 then it would be positive

relationship and here we can see our value is +.896** then it is also a positive strong

relationship. There is a moderate relationship between them. so, I reject null hypothesis and

accept alternative.

In hypotheses Hb1 According to Pearson’s correlation coefficient theory we can see that the

value of customer satisfaction and responsiveness is .496**. So there is a moderate


relationship and here we can see our value is +.496** then it is also a positive relationship.

There is a moderate relationship between them. Here, p ≤ 0.05, reject null hypothesis and

accept alternative.


value of customer satisfaction and reliability is - .061**. So there is a week relationship

between them. As we know if value is -1 to .00 then it would be negative relationship and

here we can see our value is -.061** then it is also a negative week relationship. There is

week relationship between them. So, I reject positive hypothesis and accept alternative. As

negative hypothesis measure the no relationship between variables.


value of customer satisfaction and convenience is - .548**. So there is a moderate

relationship between them. As we know if value is -1 to .00 then it would be negative

relationship and here we can see our value is -.548** then it is also a negative moderate

Page | 38

relationship. There is moderate relationship between them. So, I reject positive hypothesis

and accept alternative. As negative hypothesis measure the no relationship between variables.


value of customer satisfaction and tangibles is .684**. So there is a moderate relationship

between them. As we know if value is .00 to +1 then it would be positive relationship and

here we can see our value is +.684** then it is also a positive relationship. There is a

moderate relationship between them. So, I reject null hypothesis and accept alternative.


value of customer satisfaction and assurance is .738**. So there is a strong relationship

between them. As we know if value is .00 to +1 then it would be positive relationship and

here we can see our value is +.738** then it is also a strong positive relationship. There is a

strong relationship between them. So, I reject null hypothesis and accept alternative.


value of customer satisfaction and image is .014**. So there is a week relationship between

them. As we know if value is .00 to +1 then it would be positive relationship and here we can

see our value is +.014** then it is also a positive relationship. There is a week relationship

between them. Here, So, I reject null hypothesis and accept alternative.


value of customer satisfaction and service quality is .794**. So there is a moderate


relationship and here we can see our value is +.794** then it is also a positive relationship.

There is a moderate relationship between them. So, I reject null hypothesis and accept

alternative.

Page | 39

4.10 Regression Analysis

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of

the Estimate

1 .898a .806 .774 .37243

a. Predictors: (Constant), Image , Tangibles, Convenience,

Reliability, Responsiveness, Assurance , Service quality

Interpretation: Here the value of 𝑅2 is .806 means 80.6%. That’s mean the effect of

independent variables on mediating variable is 80.6%.Here Customer satisfaction is

dependent variable.

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of

the Estimate

1 .896a .802 .798 .42914

a. Predictors: (Constant), Customer Satisfaction

Interpretation: Here the value of 𝑅2 is .802 means 80.2%. That’s mean the effect of

mediating variable on dependent variable is 80.2%.Here Customer loyalty is dependent

variable.

Page | 40

CHAPTER 5

Recommendation & Conclusion

5.1 Recommendation

From the survey, it is seen that BCBL is in a good position, most of the customers are

satisfied with their services except very few. During my internship I seen many loyal

customers which I believe is strength of BCBL. 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. Customers who have good track records must get privileged from BCBL in terms

of charges. This will make the customers become more loyal to the bank.

5.2 Conclusion

It has been a memorable experience to carry out this particular research. This internship

report was prepared just after starting my internship at BCBL. So, it was very hard for me to

accommodate time for preparing this report. Mostly, our office timing at BCBL is from early

morning till 9:00 pm. During office hours it is simply hard to manage tine for working with

the report. And, working with the report after regular office hors was quite hectic. With all

the above constraints, I believe I have prepared a research that would help BCBL to

understand its customers better and provide significant help to future researches on the

similar topic.

Page | 41

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Web Site: http://bcblbd.com/products/deposit-products/

http://en.wikipedia.org/w/index.php?search=cash+credit+hypothecation&button=&title=Special%3A

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http://en.wikipedia.org/wiki/Hypothecation

Page | 44

Appendix 1

Survey Question

Part-A

Personal Information:

Name:

Date:

1. Male Female

2. Age:

15-25

26-35

36-45

46 and above

3. Marital status:

Married Unmarried

4. Income:

10,000-20,000 Taka

21,000-30,000 Taka

31,000-40,000 Taka

41,000 and above

Signature

Page | 45

Part B

Level of Acceptability

Totally

dissatisfied

Dissatisfied Slightly

Dissatisfied

Neutral Slightly

Satisfied

Satisfied Perfectly

Satisfied

1 2 3 4 5 6 7

Customer loyalty

1 Do you consider BCBL to be your primary bank

1 2 3 4 5 6 7

2 How likely are you to recommend BCBL to a friend or

relative?

1 2 3 4 5 6 7

3 How likely are you to repurchase services from BCBL? 1 2 3 4 5 6 7

Customer satisfaction

1 You are satisfied with the staff of BCBL

1 2 3 4 5 6 7

2 You are satisfied with the physical surrounding of BCBL

1 2 3 4 5 6 7

3 BCBL fees are satisfactory 1 2 3 4 5 6 7

4 BCBL delivery service process meets your needs.

1 2 3 4 5 6 7

Responsiveness

1 Employees in BCBL tell you exactly when services will be

performed.

1 2 3 4 5 6 7

Page | 46

2 Employees in BCBL give you prompt service.

1 2 3 4 5 6 7

3 Employees in BCBL are always willing to help you.

1 2 3 4 5 6 7

4 Employees in BCBL are never too busy to respond to your

request.

1 2 3 4 5 6 7

5 BCBL employees are willingly helps their customers and gives

the best services both types of banking

1 2 3 4 5 6 7

Reliability

1 When BCBL promises to do something by a certain time, it

does so.

1 2 3 4 5 6 7

2 BCBL provides its service at the time it promises to do so.

1 2 3 4 5 6 7

3 When you have a problem, BCBL shows a sincere interest in

solving it.

1 2 3 4 5 6 7

4 BCBL performs the service right the first time.

1 2 3 4 5 6 7

5 BCBL insists on error free records

1 2 3 4 5 6 7

Convenience

1 The behavior of employees in BCBL instills confidence in

you.

1 2 3 4 5 6 7

Page | 47

2 Employees in BCBL have the knowledge to answer your

questions.

1 2 3 4 5 6 7

3 Employees in BCBL have the knowledge to answer your

questions.

1 2 3 4 5 6 7

Assurance

1 The transaction process work rapidly and correctly

1 2 3 4 5 6 7

2 Bank sent you information about transaction within in a certain

period of time promises to its customers about their Service.

1 2 3 4 5 6 7

3 Bank provides adequate and accurate information’s to you.

1 2 3 4 5 6 7

4 The information context and texts are user-friendly which

provides by the bank

1 2 3 4 5 6 7

5 You feel safe in your transactions with BCBL.

1 2 3 4 5 6 7

Tangibles

1 BCBL has modern looking equipment.

1 2 3 4 5 6 7

2 BCBL‘s physical facilities are visually appealing.

1 2 3 4 5 6 7

3 BCBL‘s reception desk employees are neat appearing. 1 2 3 4 5 6 7

Page | 48

4

Materials associated with the service are visually appealing at

BCBL.

1

2

3

4

5

6

7

Service quality

1 BCBL provides wide range of services.

1 2 3 4 5 6 7

2 BCBL has most of the service options are available

1 2 3 4 5 6 7

3 BCBL follows the most advanced technology.

1 2 3 4 5 6 7

Image

1 You are glad about the decision to select this BCBL because of

its environmental image.

1 2 3 4 5 6 7

2 You are Satisfied the image of BCBL.

1 2 3 4 5 6 7

3 You think that it is a right decision to purchase BCBL service

because of its image.

1 2 3 4 5 6 7

Page | 49

Appendix 2

Spss works:

Statistics

Gender Age Martial Income

N Valid 50 50 50 50

Missing 0 0 0 0

Age


Cumulative

Percent

Valid 15-25 2 4.0 4.0 4.0

26-35 28 56.0 56.0 60.0

36-45 14 28.0 28.0 88.0

46 and above 6 12.0 12.0 100.0

Total 50 100.0 100.0

Martial


Cumulative

Percent

Valid Married 33 66.0 66.0 66.0

Unmarried 17 34.0 34.0 100.0

Total 50 100.0 100.0

Income


Cumulative

Percent

Valid 21000-30000 6 12.0 12.0 12.0

31000-40000 17 34.0 34.0 46.0

41000 and above 27 54.0 54.0 100.0

Total 50 100.0 100.0

Page | 50

Customer Satisfaction


Cronbach's Alpha N of Items

.865 3

Responsiveness



.711 5

Reliability



.422 5

Convenience



.708 3

Assurance



.757 5

Tangible



Page | 51



.819 4

Service quality



.622 3

Image



.633 3

Customer Loyalty



.881 3

Correlations

Customer

Satisfaction Responsiveness

Customer Satisfaction Pearson Correlation 1 .496**


N 50 50

Responsiveness Pearson Correlation .496** 1


Page | 52

N 50 50


Correlations

Customer

Satisfaction Reliability

Customer Satisfaction Pearson Correlation 1 -.061


N 50 50

Reliability Pearson Correlation -.061 1


N 50 50

Correlations

Customer

Satisfaction Convenience

Customer Satisfaction Pearson Correlation 1 -.584**


N 50 50

Convenience Pearson Correlation -.584** 1


N 50 50


Correlations

Customer Satisfaction Assurance

Customer Satisfaction Pearson Correlation 1 .738**


N 50 50

Assurance Pearson Correlation .738** 1


N 50 50


Page | 53

Correlations

Customer

Satisfaction Tangibles

Spearman's rho Customer Satisfaction Correlation Coefficient 1.000 .482**

Sig. (2-tailed) . .000

N 50 50

Tangibles Correlation Coefficient .482** 1.000

Sig. (2-tailed) .000 .

N 50 50


Correlations

Customer

Satisfaction Customer Loyalty

Spearman's rho Customer Satisfaction Correlation Coefficient 1.000 .809**

Sig. (2-tailed) . .000

N 50 50

Customer Loyalty Correlation Coefficient .809** 1.000

Sig. (2-tailed) .000 .

N 50 50


Model Summary

Model R R Square Adjusted R Square

Std. Error of the

Estimate

1 .898a .806 .774 .37243

Page | 54

Model Summary


Std. Error of the

Estimate

1 .898a .806 .774 .37243

a. Predictors: (Constant), Image , Tangibles, Convenience, Reliability,

Responsiveness, Assurance , Service quality

Model Summary


Std. Error of the

Estimate

1 .896a .802 .798 .42914

a. Predictors: (Constant), Customer Satisfaction

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