MEASUREMENT OF CUSTOMER PERCEPTION

Measurement of customer perception of service quality in the Ghanaian banking industry a study of selected banks

Table of Contents

CHATPER I3

Introduction3

Background of the study4

Purpose5

Practical implications6

Originality/value7

CHAPTER II8

Literature Review8

Information on Ghana's banking sector10

Transaction and relationship marketing in financial services12

Financial services marketing and determinants of quality service provision15

Ghana Banking19

Individual customers' attitudes towards Islamic finance23

Business firms' attitudes towards Islamic finance29

Financial institutions' attitudes towards Islamic finance32

CHAPTER III34

Research methodology34

Data Collection35

Measurement36

CHAPTER IV38

Analysis and findings38

Factors pertaining to the characteristics of Ghanaian banks43

Chapter V46

Conclusion and implications46

References68

CHATPER I

Introduction

The phenomenal acceleration of alterations in the environment of economic organisations over the last two decades in Africa has conceived unparalleled trials for more productive trading administration of the economic services on offer. According to Joseph and York (1989), Lewis (1991) and McGoldrick et al. (1994) the alterations in economic services have been conveyed about to a larger or lesser stage by the increasing economic sophistication of clients, the larger and more effective use of data expertise, and the application of new hard-hitting competitors in the marketplace. In response to these and other challenges confronting the financial services industry, the Ghanaian banking environment has undergone major changes over the last decade. For example, high costs, squeezed profit margins, volatility in the domestic economies and the establishment of stock exchange have all forced Ghanaian banks to consider consumer needs and wants. It has been suggested that in the developing countries, only those commercial banks that are best able to apply effective consumer oriented marketing management capabilities will grow and prosper (Shook and Hassan, 1988). However, in order to adopt such an approach, an understanding of consumers and their needs is essential; furthermore, a developing country cannot simply assume that customers needs will be the same as those for a developed country.

The current study is focused on this process of understanding consumers in a developing country context. Specifically, the research is concerned to determine the demographic and socio-economic composition of Ghanaian banks' clientele, to determine how customers perceive the services of banks offered, the choice criteria for bank selection and finally to determine respondents' preferred period for investment and how they learn about the various banks available. The results of this study will be of relevance to academics interested in consumer differences across country contexts. Equally, the findings should be of value to practitioners in developing country contexts because they will enhance understanding of consumer choice and consumer expectations of banks.

Background of the study

Ghana lies on the West African coast and has a population of over 18 million. In an effort to ensure systematic development of the banking system, the Central Bank (Bank of Ghana),in addition to its traditional functions (i.e. formulation of monetary policy), also has the responsibility of ensuring that banking is responsive to the needs of the public. The Central Bank pursues a liberal policy with regard to entry into the banking system, and is actively involved in the promotion of development and rural banking as well as in the establishment of discount ...