Customer Services and Customer Satisfaction in the Banking Industry: A Case Study of Barclays Bank UK (Borough High Street Branch)

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TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION1

1.1Background of the Research1

1.2Significance of the Study1

1.3Rationale of the Study3

1.4Organisational Context: Barclays Bank- Borough High Street Branch3

1.5Research Objectives4

1.6Brief Methodology5

1.7Structure of the Dissertation5

1.7.1Chapter One5

1.7.2Chapter Two5

1.7.3Chapter Three5

1.7.4Chapter Four6

1.7.5Chapter Five6

CHAPTER 2: LITERATURE REVIEW7

2.1Overview of UK Banking Industry7

2.2Customer Satisfaction8

2.3Customer Perceived Value10

2.4Customer Satisfaction in Banking Industry of United Kingdom12

2.5Customer Satisfaction and Perceived Value13

2.6Role and Importance of Customer Satisfaction in the Corporate World13

2.6.1Assimilation Contrast Theory14

2.6.2Contrast Theory14

2.6.3Dissonance Theory14

2.7Customer Services15

2.8Service Quality16

2.9Customer Loyalty17

CHAPTER 3: METHODOLOGY19

3.1Research Design19

3.1.1Research Philosophy19

3.1.2Research Approach20

3.1.3Research Strategy: Case Study20

3.1.4Time Horizon22

3.1.5Sampling23

3.2Ethics Consideration23

3.3Data source for Investigation24

3.3.1Secondary Data24

3.3.2Primary Data25

3.4Research Instrument25

3.4.1Instrument Justification25

3.4.2The “Pilot” Run26

3.4.3Instrument Design26

3.5Data Analysis Methods Employed27

3.5.1Data Preparation and Presentation27

3.5.2Analytical Method Used27

3.6Reliability and Validity28

3.6.1Reliability28

3.6.2Validity28

REFERENCES29

APPENDIX32

CHAPTER 1: INTRODUCTION

Background of the Research

The development of banking sectors has the long history in the world. Banks have been playing primitive role in the economic development and business expansion. Now, banks not only expand their operation within the country, but also it operates globally and participates in the development programme of the societies and communities in health, education and public awareness (Churchill & Suprenant, 2003, 125). Banking sector plays an important role in the economic development by forming the foundations of the money market in any country.

With an increase in globalisation, the competition is becoming fierce day by day. Thus, the banks are not only competing with each other, but they are also getting into competition with non-banking and other financial institutions. Most of the products provided by banks are easy to copy and, therefore, banks end up providing almost identical products. The only thing that distinguishes them from other is the quality and prices. Since, the competition is so fierce and strong, the only thing that can help banks to sustain in the banking industry is Customer Satisfaction.

Significance of the Study

During the recent year, increase in competition and influx of various products, banks and financial institutions in the banking sectors have diverted the attention of the marketers and managers of the banking industry towards customer satisfaction (Anderson, 2008, 17). Customer satisfaction is the only that can help a company in succeeding, achieving its objective effectively and sustaining in this competitive banking world. Therefore, it is important for the banking managers to implement strategies that would satisfy its customers and enhance the bank's customer loyalty. Like numerous other financial service providing industries, banking sector is also facing rapid changes in the market, economical uncertainties, fierce competition, technological interventions, continuously changing climatic conditions and an increasing number of demanding customers, has brought a new set of challenges for the banking industry. Since, banking activities are customer oriented, thus; customer is considered to be the main focus, and the level of customer's satisfaction and customer services is the differentiating factor for them (Cassey & Warlin, 2001, 27).

This research will provide an idea about the extent to which customers services is important for the banking industry. It will help the banking managers to devise steps and strategies for increasing their customer satisfaction by enhancing their customers ...