CUSTOMER SERVICE AND SALES PERFORMANCE OF BANKS IN RIVERS STATE

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Abstract

This research examines the relationship between customer service and sales performance of banks in Rivers State. The survey design was employed. The population of this study  constitutes all commercial banks in Port Harcourt, Rivers State, which was unknown. The judgmental sampling technique was adopted for this study. The sample size of this study is judgmental sample of 65 respondents. Both the primary and secondary data were used. Questionnaire on customer service and sales performance was used and administered for the collection of data from the respondents. The data collected were processed electronically using Statistical Packages for Social Sciences (SPSS Version 22). The statistical test used in the testing of the hypotheses was Pearson Product Moment Correlation Coefficient. The study found a significant positive relationship between the three dimensions of customer service and sales performance of commercial banks in Rivers State. Based on the findings of the study, we recommended that the banking sector should adopt advanced technological methods such as self-inquiry facility for inquiries and view of transactions in the account and remote banking should be adopted to enable customers to make inquiries regarding their account on-line, without having to move. This will in turn lead to tremendous performance in the banking sector.

Table of Contents

Cover Page i

Title Page    ii

Declaration iii

Certification         iv

Dedication  v

Acknowledgement         vi

Abstract      vii

Table of Contents viii

List of Tables       x

List of Figures      xi

CHAPTER 1        1

INTRODUCTION         1

1.1 Background of the Study  1

1.2 Statement of the Problem  2

1.3 Objectives of the Study     3

1.4 Research Questions 3

1.5 Research Hypothesis         4

1.6 Significance of the Study   4

1.7 Scope of the Study  5

1.8 Limitations of the Study    5

1.9 Definition of Key Concepts /Terms      5

CHAPTER 2        7

REVIEW OF RELATED LITERATURES 7

2.1 Conceptual Review  7

2.1.1 Customer Service  7

2.1.2 Dimensions of Customer Service       10

2.1.3 Concept of Sales performance 14

2.1.4 Measures of Sales performance         16

2.1.5 Customer Service and Sales Performance   20

2.2 Theoretical Framework     22

2.3 Review of Related Empirical Studies    23

2.4 Summary of Review of Related Empirical Studies  25

CHAPTER 3        26

RESEARCH METHODOLOGY      26

3.1 Research Design:     26

3.2 Population of the Study    26

3.3 Sampling Techniques Used         26

3.4 Sample Size    26

3.5 Sources of Data       26

3.5.1 Primary Source (s) of Data      27

3.5.2 Secondary Sources of Data      27

3.6 Research Instrument for Data Collection       27

3.7 Validity and Reliability of Instrument  27

3.8 Techniques for Data Analysis/Test of Hypotheses  28

CHAPTER 4        29

DATA PRESENTATION AND ANALYSIS       29

4.1 Questionnaire Distribution and Retrieval       29

4.2 Data Analysis and Presentation  30

4.4 Hypotheses Testing 35

4.5 Discussion of Findings      37

CHAPTER 5        40

SUMMARY, CONCLUSION AND RECOMMENDATIONS         40

5.1 Summary       40

5.2 Conclusion     40

5.3 Recommendations   41

References  43

Appendix I 48

Appendix II          49

Questionnaire       49

List of Tables

Table 4.1: Questionnaire Administration and Retrieval 29

Table 4.2: Age of respondents 30

Table 4.3: Sex of Respondents         30

Table 4.4: Academic Qualification of respondents        30

Table 4.5: Dependability and Sales Performance 31

Table 4.6: Time and Sales Performance      32

Table 4.7: Communication and Sales Performance        33

Table 4.8: Convenience and Sales Performance   34

List of Figures

Fig 2.1: A Conceptual framework showing the relationship between Customer Service and Sales Performance.        7

CHAPTER 1

INTRODUCTION

1.1 Background of the Study

An organization is into business only and onlyto fulfill the yearnings and aspirations of the user of theirproduct (Olatunji &Amuni, 2013). Sales performance is a term used by marketing scholars to describe the efficiency and effectiveness of marketing strategy (Maclayton & Nwoka, 2012). Despite this definition and many others, no unanimous measure of sales performance has been adopted. According to Brudan (2010), sales performance measurement represents a component of performance management dealing with the identification, monitoring and communication of performance result with the use of performance indicators. Lamberti & Noci, (2010) measured performance in terms of marketing budget, marketing asset and marketing unit behavior.Sales outcomes have always been seen by performance oriented sales people as evidence to their behavioral performance and consequently a positive relationship has been found to exist between job involvement component of commitment and sales performance. In other words, committed sales people are expected to extend greater efforts on the job there by having a direct effect on job performance (Silva, 2006). Richard (2009) defines performance measures as the vital signs of the organization, which “quantify how well the activities within a process or the outputs of a process achieve a specified goal”. Without being told, it is obvious thatorganization that focuses on quality customer service tendto grow faster, sometimes twice as fast as the competitorswithin the same market. As a result, customer service isfast becoming the factor which helps sustaincompetitiveness in the market.It must be noted thatcompetitiveness is not trying to rub shoulder or knowingwho can produce better. It is strongly based on how bestthe product produced will satisfy the yearnings andaspiration of their customers both the real and potentialcustomers.

Customer service is the provision of service to customers before, during and after apurchase. It also means serving the customer, and involves all contact with the customer, be it face-to-face, or indirect contact (i.e. dealing with complaint letters).

Kurtenbach (2000) explains that those who are successful in customer service rank their customers experience as the top priority.

Ettore (2001) is of the view that, concentrating on current customer’s information can and should be obtained to better understand their view of the service provided. The quality of service provided determines the level of satisfaction of the customer even though what is seen as quality by one customer may not necessarily be quality to another. Customers who are satisfied tend to return for futurebusiness and sometimes assist in marketing a serviceorganisation through word-of-mouth (Rucci, Kim, &Quinn, 1998).

According to Goofin and Price (1996) customer service is important because it ends in increasingproduct quality, gaining competitive advantage, gaining profitable opportunities, and as a result increasingsales and income. Hence, this study examines the relationship between customer service and sales performance of Banks in Rivers State.

1.2 Statement of the Problem

Quality customer service hasbecome very paramount in businessestoday, but as important as this seems,we still see organizations around performing below expectation despite the keen competitionprevailing around.Many factors are responsible for poor customer service which may includenonchalant attitude of employees of the organization as aresult of the bad recruitment process used in recruiting intothe organization, poor communication, poor timeliness, poor remuneration, inadequate trainingfor the staff of the organization and many more.Some ofthese factors responsible for the poor customer serviceare what this research work will want to evaluateand bring into the open their consequential effect on theorganizational sales performance. It must be noted by everyorganization today including the Nigerian banks of the needs tomaintain a cordial relationship with their customers. Hence, the study seeks to examine the relationship between customer service and sales performance of banks in Rivers State.

1.3 Objectives of the Study

          The main objective of the study is to examine the relationship between customer service and sales performance of banks in Rivers State. The specific objectives are as follows;

1.       To examine the relationship between dependability and sales performance of banks in Rivers State.

2.       To examine the relationship between time and sales performance of banks in Rivers State.

3.       To examine the relationship between communication and sales performance of banks in Rivers State.

4.       To examine the relationship between convenience and sales performance of banks in Rivers State.

1.4 Research Questions

1.       What is the relationship between dependability and sales performance of banks in Rivers State?

2.       What is the relationship between time andsales performance of banks in Rivers State?

3.       What is the relationship between communication andsales performance of banks in Rivers State?

4.       What is the relationship between convenience and sales performance of banks in Rivers State?

1.5 Research Hypothesis

H01: There is no significant relationship between dependability and sales performance of banks in Rivers State.

H02: There is no significant relationship between time and sales performance of banks in Rivers State.

H03: There is no significant relationship between communication and sales performance of banks in Rivers State.

H04: There is no significant relationship between convenience and sales performance of banks in Rivers State.

1.6 Significance of the Study

          This work will therefore provide information regarding excellent customer service and its effects on sales performanceof banks in the Nigerian context. This study will be beneficial to the banking sector of the economy to enable improve another customer service which will lead to increase in sales performance. It will also benefit other businesses and service providers to make informed decisions as far as service is concerned. Educational institutions, corporate entities, business policy makers and other researchers will also benefit from this research in making informed decisions when it comes to quality customer service to satisfy the customers.

1.7 Scope of the Study

The study is delimited under the following heading: content scope, geographical scope and unit of analysis.

Content Scope: The content scope of this study involves an investigation to ascertain the customer service and sales performance of banks in Rivers State. The dependent variable is sales performance; measured by Profitability, market share and sales volume, while independent variable is customer service measured by dependability, time, communication and convenience.

Geographical Scope:This study is delimited toPort Harcourt with reference to selected commercial banks including First Bank Garrison Junction, Fidelity Bank Garrison Junction and GTB Trans Amadi.

Unit of Analysis:The unit of analysis in this research involves both senior and junior staff of the selected commercial Banks, Port Harcourt, Rivers State at the time of the Study.

1.8 Limitations of the Study

Because of time constraints, the research was limited only to branch of First Bank Garrison Junction, Fidelity Bank Garrison Junction and GTBank in Trans-Amadi for that matter, which could not allow a comprehensive research on a large scale.

Another limitation was that, the entire questionnaire given out could not be retrieved for data analysis.

1.9 Definition of Key Concepts /Terms

Market share: It is the percent of total sales in an industry generated by a particular company.

Profitability: It is the degree to which a business or activity yields profit or financial gain.

Sales growth: It is the percent growth in the net sales of a business from one fiscal period to another.

Dependability:It is the quality of being trustworthy and reliable.

Time:It is the indefinite continued progress of existence and events that occur in an apparently irreversible succession from the past, through the present, into the future.

Communication: It is a means of sending or receiving information, such as phone lines or computers.

Sales Performance: It is the measurement of sales activity against the goals outlined in your sales plan.

Convenience: The state of being able to proceed with something without difficulty.

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