Relationship and customer satisfaction but it does not have

Relationship
between Tangibles and Customer Satisfaction

Jayaraman Munusamy, Shankar Chelliah and Hor Wai Munshows
(2010) stated that tangibles has positive correlation and high significant with
customer service in banking sector. They explain that it is because the banks
operating hours had been reduced down to five days per week, people had found
difficult going to banks for settling their manner. As a result, machines are
used to assist the banks to provide faster and better services to their
customers.

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Tangibility has a significant positive influence on
customer satisfaction are also supported by Mei Mei Lau, Ronnie Cheung, Aris Y.
C. Lam & Yuen Ting Chu (2013). Customers may assess bank facilities and
designs, sufficiency and visibility of its equipment, as well as the appearance
of the employees in banks. However, Abbas N, Albarq (2013) observed a changing
trend, and respondents no longer viewed tangibles as an important factor because
of the availability of self-service terminals and found that tangibles were not
significant for customer satisfaction and bank customers do not consider tangibles
as an important measurement.

H1: Tangibles has positive relationship with
Customer Satisfaction.

H1a: Tangibles has positive relationship with Customer
Satisfaction among Local Banks.

H1b: Tangibles has positive relationship with
Customer Satisfaction among Foreign Banks.

 

Relationship
between Reliability and Customer Satisfaction

Jayaraman Munusamy et al. (2010) indicate there is a
positive relationship between reliability and customer satisfaction but it does
not have any significant impact in banking industry. This might be caused by
the growth of the mobile banking and internet banking. Bank customers do not view
about the human reliability level in customer service since they have better
alternative to turn into, thus, they have higher demand in the machine
reliability rather than human reliability when dealing with banks.

According to Abbas N. Albarq (2013), the result also
found that reliability had a positive relationship with customer satisfaction
with non-significant affect. This is in line with the finding that customers may
remain with a company even though they are dissatisfied as they feel they have limited
or no choices. Furthermore, reliability can positively affect customer satisfaction
in the banking sector also supported by Ghalib Sanjuq (2014). The finding is
supported by the previous researchers including Nguyen & Leblanc (2001) and
Bellini, Lunardi & Henrique (2005). Customers are confident if banks can
realize the promised services, so that they can consume products and services
with trust (Mei Mei Lau et al., 2010).

H2: Reliability has positive relationship with
Customer Satisfaction.

H2a: Reliability has positive relationship with
Customer Satisfaction among Local Banks.

H2b: Reliability has positive relationship with
Customer Satisfaction among Foreign Banks.

 

Relationship
between Responsiveness and Customer Satisfaction

Jayaraman Munusamy et al. (2010), Abbas N. Albarq (2013)
and Ghalib Sanjuq (2014) stated that responsiveness has positive relationship
but no significant effect on customer satisfaction which is contrary to
findings of other studies (Minjoon Jun & Shaohan Cai, 2001; Ana B. Casado
Diaz, Francisco J. Mas Ruiz, 2002; Niki Glaveli, Eugenia Petridou, Chris
Liassides, Charalambos Spathis, 2006). Nevertheless, Mesay Sata Shanka (2012)
indicated that the improvements in employees’ customer satisfaction levels were
significant.

Ghalib Sanjuq (2014) shows that the banks’ customers
are preferred to deal with the machines rather than human being because
machines generally have shorter response times and can be improved and enhanced
upon constantly. Nevertheless, human responsiveness can be affected by emotion,
hence their productivity will be reduced. According to Mei Mei Lau et al. (2010),
the result found that responsiveness has a positive influence with significant
effect on customer satisfaction and the research stated that customers are quite
satisfied with the personal services provided by the banks and service
personnel who understand their needs. It can be concluded that responsiveness
is a need when the banks are providing quality service, but not a must.

H3: Responsiveness has positive relationship with
Customer Satisfaction.

H3a: Responsiveness has positive relationship with
Customer Satisfaction among Local Banks.

H3b: Responsiveness has positive relationship with
Customer Satisfaction among Foreign Banks.

Relationship
between Assurance and Customer Satisfaction

Assurance, which means the customer’s feeling of
safety, has a positive relationship with customer satisfaction, but no
significant effect on it in banking industry (Ghalib Sanjuq, 2014; Jayaraman
Munusamy et al. 2010; Munusamy, Chelliah & Hor, 2010). Customers do not treat
assurance to be an important factor of the service quality. Many customers have
reported security breaches, either in internet banking or mobile banking, and
this is normally because of customers’ carelessness.

According to Mei Mei Lau et al. (2010), assurance
has a significant positive impact on customer satisfaction. This result can be further
explained by the excellent and competent services that the bank staff provide
to the customers. Bank customers feel that the banks can honor their
commitments, therefore, they are confident in using bank products. Abbas N.
Albarq (2013) also found assurance to be a significant prediction of customer
satisfaction, which is in line with Nelson Oly Ndubisi (2006) argument that
communication is a strong indicator of overall satisfaction and an important factor
of customer satisfaction in the Malaysian banking sector.

H4: Assurance has positive relationship with
Customer Satisfaction.

H4a: Assurance has positive relationship with
Customer Satisfaction among Local Banks.

H4b: Assurance has positive relationship with
Customer Satisfaction among Foreign Banks.