SAMPLE - Janet Poh Project Paper (M60105130003)

DETERMINANTS OF CUSTOMERS SATISFACTION IN
BANKING SERVICES AND FACILITIES AT

HONG LEONG BANK BERHAD, MIRI BRANCH
JANET POH SIEW PHING

M60105130003
MASTER OF BUSINESS ADMINISTRATION
ASIA e UNIVERSITY
Determinants of Customers Satisfaction In Banking Services

and Facilities at Hong Leong Bank Berhad, Miri Branch
Janet Poh Siew Phing

M60105130003
A research project submitted in partial fulfillment of the

requirement for the
Master of Business Administration
Asia e University
(January 2015)
ABSTRACT
The main objective of this study is to identify the determinants of customers

satisfaction in both banking service as well as in self service banking facilities by
using questionnaires as research instrument. Approximately 80 sets of questionnaires
were distributed at the subject premise during banking hours and off banking hours on
a random basis for duration of two weeks.
As a banking service provider, SERVQUAL is adopted to measure and

manage service quality by deploying questionnaires as research instrument to measure
customers satisfaction thru their expectations and perception of the level of services
received, management perception and service quality specification, service quality
specification, service delivery and external communication, as well as expected
service and experienced service.
The study result reviewed that different groups of customers have different
needs towards banking services and banking facilities provided. Grouping of
customers are segmented according to demographic factors, frequency of visits and
purpose of visits. Generally, service quality, perceived value, price of services,
relationship marketing and cleanliness and ambience has significant relationships with
customers satisfaction. This study also assesses the impact of customer satisfaction
on customer loyalty and retention in banking with Hong Leong Bank Berhad, Jalan
Merbau, Miri Branch.
ACKNOWLEDGEMENT
I would like to express my sincere gratitude to all who had one way or another
in lending me a helping hand in completing this project paper. Not forgetting Cik
Jeniza and Cik Ros Azihan from AeU for providing me assistance and advice in
submitting this project paper. To Mr Rupert Hii, my branch manager and fellow
colleagues, I would like to thank them for their kind support and understanding.
I also would like to thank my husband, Cyril and my two lovely children,
Mark and Amanda for their kind understanding, love and support during my course of
study. To my supportive parents, especially my father who is battling with his cancer,
you have been my greatest motivation to complete this degree.
Lastly, to the cooperative respondents who sincerely participate in the survey, I

would like to express my gratitude to you for your time spent. Without all of you, this
project will not be accomplished.
ii
TABLE OF CONTENT
CONTENT
PAGE
ABSTRACT
i - ii
ACKNOWLEDGEMENT
iii
CHAPTER 1: INTRODUCTION
1-2
Background of the study
2-4
1.2
Statement of the problem
4-6
1.3
Conceptual Definition
1.0
Overview
1.1
1.3.1
Retail Banking
1.3.2
Service Quality
1.3.3
Perceived Value
1.3.4
Price of Service
7-8
1.3.5
Relationship Marketing
1.3.6
Customer Satisfaction
1.3.7
Customer Loyalty
....
1.4
Research Questions
1.5
Research Objectives
1.6
Conceptual Framework
1.7
Hypotheses
1.8
Significance of the study
12 - 13
1.9
Limitations of the study
13 - 14
1.10
Definition of terms
10
10 - 11
12
14
1.10.2 Self Service Banking
15
1.10.3 Customers
15
1.10.4 TOUCH
15 - 16
Chapter Layout
16 - 18
1.10.1 HLB, MYY
1.11
9 - 10
iii
CHAPTER 2: REVIEW OF LITERATURE
2.0
Introduction
2.1
Service Quality
19
19 - 21
2.1.1
Service Quality in Customer Service
21 - 22
2.1.2
Service Quality in Self Service Banking
22
2.2
Perceived Value
23
2.3
Price of Service
24
2.4
25 - 26
2.5
27 - 28
2.5.1
28 - 30
2.6
Customer Loyalty
Hypotheses Development
2.6.1
Relationship between service quality and customer

satisfaction
2.6.2
35 - 36
Relationship among customer satisfaction and
36 - 37
38 - 39
customer loyalty and customer retention

2.7
34 - 35
Relationship between cleanliness and ambience and

customer satisfaction
2.6.6
33 - 34
Relationship between relationship marketing and

customer satisfaction
2.6.5
32 - 33
Relationship between price of services and customer

satisfaction
2.6.4
31 - 32
Relationship between perceived value and customer

satisfaction
2.6.3
...........
Theoretical Framework Proposed
CHAPTER 3: METHODOLOGY
3.0
Introduction
39
3.1
Research Design
39 - 40
3.2
Data Collection
40 - 42
3.3
Sampling Design and Population
iv
42
3.4
Research Instrument
3.4.1
Questionnaire Design
..
43 - 44
3.4.2
Data Scale of Measurement ..
44 - 45
3.4.3
Pilot Study
..
45 - 46
3.5
Data Processing
..
46 - 47
3.6
Data Analysis
..
47 - 48
3.7
Conclusion
..
49
CHAPTER 4 : FINDINGS
...
4.0
Introduction
49
4.1
Analysis of demographic data
50 - 51
4.2
Analysis of Counter Service
52 - 55
4.3
Analysis of Self Service Banking
56 - 57
4.4
Descriptive Analysis
58 - 62
4.5
Reliability Analysis
62 - 64
4.6
Factor Analysis
64 - 66
CHAPTER 5: SUMMARY, CONCLUSION AND

IMPLICATIONS
5.0
Introduction
67
5.1
Summary
67 - 70
5.2
Conclusion
71
5.3
Recommendation
5.4
Implications
72 - 73
73 - 74
REFERENCES
75 86
APPENDICES
Appendix A: Questionnaire
87 - 90
Appendix B: Permission letter to conduct survey
...
91
Appendix C: Approval letter to conduct survey
...
92
LIST OF TABLES
Page
Table 1: Current counter services offered
..
..
Table 2: Current self service banking machines offered

Table 3: Respondents by Gender
50
Table 4: Respondents by Age
50
Table 5: Respondents by Employment Type .
51
Table 6: Respondents with or without Facility
51
Table 7: Respondents by Transaction Frequency
51
Table 8: Respondents by Transaction Type .
51
60
Table 9: Descriptive Analysis on Counter Service
Table 10: Descriptive Analysis on Service Service Banking

Terminal
60
Table 11: Customer Satisfaction Statistics
60 - 61
Table 12: Summary of Hypothesis Tested
61 - 62
Table 13: Reliability Analysis on Counter Service
Table 14: Reliability Analysis on Self Service Banking Machines .

Table 15: Correlation Test on Counter Service
63 - 64
65
66
Table 16: Correlation Test on Self Service Banking Terminal
vi
63
LIST OF FIGURES
Page
Figure 1: Application of TQM
Figure 2: Conceptual Framework of research study
11
21
Figure 4: Customer Loyalty
29
32
Figure 6: Theoretical Framework Proposed
38
Figure 7: Waiting Time for Counter Service
54
55
55
Figure 3: SERVQUAL Model
Figure 5: Customer Satisfaction and contributors
Figure 8: Types of Transaction Performed At Counter

Figure 9: Service Quality on Counter Service
Figure 10: Type of Self Service Banking facility used by

Respondents
57
Figure 11: Service Quality on Self Service Banking
57
vii
CHAPTER 1: INTRODUCTION
1.0
Overview
Hong Leong Bank Berhad is operating under Hong Leong Financial Group
that provides a spectrum of financial services that comprise of commercial banking,
treasury, insurance, investment banking, capital markets, stock broking and asset
management throughout Malaysia, Singapore, Vietnam, China, Hong Kong and
Cambodia.
Zooming into Hong Leong Bank Berhad, individuals and corporate alike can
enjoy comprehensive services in personal financial services, business banking,
treasury, transaction banking, wealth management and Islamic financial services.
Started back in year 1905 in Kuching, Sarawak under the name of Kwong Lee
Mortgage and Remittance Company and was incorporated as Kwong Lee Bank
Limited in 1934. Then, in year 1989, it was renamed as MUI Bank with 35 operating
branches. In January 1994, Hong Leong Credit Berhad (now known as Hong Leong
Financial Group Berhad) acquired MUI Bank. This marked the milestone of Hong
Leong Bank Berhad and was listed in Kuala Lumpur Stock Exchange (now known as
Bursa Malaysia) in October 1994. Seventeen year later, in year 2011, Hong Leong
Bank Berhad completed the merger with EON Bank Group with an asset size of more
than RM145 billion and 329 branches nationwide.
Page 1 of 92
In year 2012, Hong Leong Bank launched Mach, a sub-brand that brings
together bricks and clicks to offer products and services that caters for the need of
Gen-Y community.
Currently technological changes are causing banks to rethink their strategies

for services offered to both commercial and individual customers (Hossain and
Shirely, 2010).
1.1
Background of the study
After Hong Leong Bank Berhad successfully merged with EON Bank Group,
the sole Hong Leong Bank Berhad Miri branch located at Jalan Merpati has shifted
operation to Jalan Merbau where the existing old EON Bank Berhad was. The
population of bank staffs and customers grew overnight after the mergers and
computer systems were interrupted due to re-programming as some were running on
two different platforms. Bank is worried of losing both present and potential
customers during this transition period, perhaps the most damaging to the
organization is the tendency for an unsatisfied customer to engage in negative wordof-mouth communication (Richins, 1983).
Banks understand that customers will be loyal if they receive greater value
than from competitors (Dawes and Swailes, 1999) and on the other hand, bank can
Page 2 of 92
earn high profits if they are able to position themselves better than their competitors
within a specific market (Davies et al., 1995.
The purpose of this study is to examine the different needs of customers and
the service level of customer satisfaction in transactional retail banking and the
facilities provided at HLB MYY branch. The findings of this study will be used to
study the formulation of customer retention program in HLB MYY as well as to
expand market share. Table 1 depicts the current counter services offered to
customers while Table 2 shows the current self service banking machines available.
Table 1: Current counter services offered

Counter Number
Type of Service
1, 2, 3
Remittances [Inter Bank GIRO, Telegraphic transfer (T.T),

Western Union]
Fixed Deposit (placement, withdrawal, renewal)
4, 5, 6
Cash Deposit and Withdrawal

Account closing
8, 9
Priority Banking
Account opening
Products enquiry
Other miscellaneous matter
Page 3 of 92
Table 2: Current self service banking machines offered

No
Type of Machine
Quantity
ATM (Automated Teller Machine)
CDM (Cash Deposit Machine)
CQM (Cheque Deposit Machine)
Internet Banking kiosk
Primary data will be collected from questionnaires and interviews done with
customers at the banking hall and self service banking lobby during banking and nonbanking hours on selected days while secondary data will be obtained from
observations at surrounding premise.
1.2
Statement of the problem

Customer satisfaction is the necessary foundation for a company to
retain the existing customers (Guo, Xiao & Tang, 2009). Satisfaction of customer is
used for indication of future possible revenue (Hauser, Simester & Wernerfelt, 1994).
Ever since after the merger, customer retention became a major challenge not only to
HLB MYY branch, but to the whole banking group. For developing customer
satisfaction, reliability in the provision of services and commitment to service
relationships, a company must attempt to increase customers future expectations (Lin
& Wu, 2011). According to Rust and Zahorik (1993), customer satisfaction has direct
Page 4 of 92
impact on loyalty. It is believed that customer satisfaction could lead to customer

loyalty (Wang, 2011).
Banks are always restrained by the paradigm that customer satisfaction is

solely determined by their employees attitudes and service quality (Hallowell, 1996).
The failure of banking services and facilities, poor staff attitude and environment are
factors leading to poor level of customer satisfaction. Realizing the importance of
customer satisfaction, HLB MYY branch is playing an aggressive role in identifying
factors contributing to customer satisfaction though study and survey. Poor customer
service, price of fees and charges, long waiting time, and technical problem such as
machines and system failure are among few common problems encountered regularly.
Since bank is depending very much on customer satisfaction and customer

loyalty for survival, Total Quality Management (TQM) came into picture and this
would help bank to intensity their effort to ensure customers are happy. TQM is
equally important not only to other service industry but to banks as well. In general,
banks are regarded as finance industry and this fact is no longer applicable in todays
era.
Figure 1 below show how TQM can be applied in HLB MYY branch. Without
the presence of TQM, the objective to achieve customer satisfaction and business
growth is rather impossible.
Page 5 of 92
Figure 1: Application of TQM
Participating
Customer
Focus
Improving
Planning
Managing
1.3
Conceptual Definition
1.3.1
Retail Banking
Retail banking is defined as the direct execution of transactions between a

bank and its customers, rather than with corporations or other banks. Services offered
include savings and transactional accounts, mortgages, personal loans, debit cards,
and credit cards. The term is generally used to distinguish these banking services from
investment banking, commercial banking or wholesale banking. It may also be used to
refer to a division of a bank dealing with retail customers and can also be termed as
Personal Banking services. (2015, April 7 In Wikipedia, The Free Encyclopedia).
Page 6 of 92
1.3.2
Service Quality
Service quality could be further expanded as the overall assessment of a

specific service form that results from comparing that firms performance with the
customers general expectations of how firms in that industry should perform (Lo,
Osman, Ramayah & Rahim, 2010). Service quality extends to not only bank staff
service and attitudes but also the functionality of the self service machines available.
1.3.3
Perceived Value
Perceived value is defined as compression between price paid by customers

for products or services and utility derived by perception (Kumbhar, 2011).
1.3.4. Price of Service
Price is defined as the value determined by the willingness of buyer to pay in

exchange for the services offered by seller at various prices set.
The level of acceptance of price can be defined as the maximum price which a
buyer is ready or decide to pay for the products and services (Saeed, Niazi, Arif &
Jehan, 2011).
Page 7 of 92
Price perception directly influences customer satisfaction, with the likelihood

of switching and also the likelihood of recommendation to others in banking industry
(Varki & Colgate, 2001). In HLB MYY context, price of service include fees and
charges related to overall retail banking products.
1.3.5
Kotler (2007) defines relationship marketing as the process in which the

construction, cultivation and strengthening of strong value laden relationships with
customers and other stakeholders occur.
The whole idea of relationship marketing is to focus on customer loyalty by

managing trust and building long term relationship with customers.
Relationship marketing as defined by (Grnroos, in Harker, 1999, p.16) is to

identify and establish, maintain and enhance and when necessary also to terminate
relationships with customers and other stakeholders, at a profit, so that the objectives
of all parties are met, and that this is done by a mutual exchange and fulfillment of
promises.
Page 8 of 92
1.3.6
Customer satisfaction is considered one of the key determinants for evaluating

the effectiveness of a business operation. Customer characteristics such as age,
gender, income and education level are said to affect customer satisfaction level.
Customer satisfaction can be seen as an essential measure used to oversee business
outcomes, decide on limited resource allocation, and provide rewards to management
(Anderson Fornell & Lehmann 1994).
1.3.7
Customer Loyalty
Oliver R.L (1997) defines customer loyalty as a deeply held commitment to

re-buy or re-patronize a preferred product or service consistently in the future, despite
situation influences and marketing efforts having the potential to cause switching
behavior. When customer loyalty is achieved, bank is able to reduce cost due to
reduced customer acquisition cost and strong indication on customer retention.
1.4
Research Questions
This study attempts to find out the determinants of customer satisfaction level
in HLB MYY using the following research questions:

a)
Does service quality affect customer satisfaction level?
b)
Does perceived value affect customer satisfaction level?
c)
Does price of service affect customer satisfaction level?
Page 9 of 92
d)
Does relationship marketing affect customer satisfaction?
e)
Does cleanliness and ambience affect customer satisfaction?
f)
Does customer customer satisfaction affect customer loyalty and retention?
1.5
Research Objectives
The aim of this study is to identify the determinants of customer satisfaction in
banking services provided by both bank staff and self service machines. The research
objectives of the study are established as follow:
a)
To access the impact of service quality, perceived value, price of services and
relationship marketing on customer satisfaction in HLB MYY
b)
To access the impact of cleanliness and ambience on customer satisfaction in

HLB MYY.
c)
To access the impact of customer satisfaction on customer loyalty and

retention.
1.6
Conceptual Framework
Figure 2 illustrate a conceptual framework of this research with the purpose to

find out the effect of the relationship of independent variables contributing to
customer satisfaction which consist of service quality, perceived value, relationship
marketing, price of services and cleanliness and ambience which ultimately linked to
customer loyalty and customer retention.
Page 10 of 92
Figure 2: Conceptual Framework of research study
Cleanliness
&
Ambience
Relationship
Marketing
Service
quality
Perceived
value
Perceived
value
Customer Loyalty
Customer Retention
Page 11 of 92
1.7
Hypotheses
The combination of service quality, perceived value, relationship marketing,

price of services and cleanliness and ambience will yield customer satisfaction, hence
the higher the independent variables, the higher are the resultant of customer
satisfaction. Therefore, customer satisfaction will have a positive impact on customer
loyalty.
In line with the research objective, the following hypotheses are formulated
and to be tested to find out the positive connection:
H01:
The relationship between service quality and customer satisfaction
H02:
The relationship between perceived value and customer satisfaction
H03:
The relationship between price of services and customer satisfaction
H04:
The relationship between relationship marketing and customer satisfaction
H05:
The relationship between cleanliness and ambience and customer satisfaction
H06:
The relationship of customer satisfaction and customer retention
1.8
Significance of the Study
The aim of this study is to find out what factors contribute to customer
satisfaction for different groups of customers in both services and facilities in HLB
Page 12 of 92
MYY that will ultimately influence customer loyalty. In general, a good customer
service determines customer satisfaction and eventually relate to customer loyalty and
corporate image of the bank. Customers tend not to switch to other banks when they
get satisfaction with the services provided. Hence, relationship marketing comes into
play as this method creates values in customers depending on respective preference,
needs and wants. This is one of the methods adopted by banks in order to keep
competitors away and to secure sustainable competitive advantage.
The management of the bank is playing a major role in improving the

competency and efficiency level of staff by providing TOUCH training to all level of
staff apart from training, management also invest in banking system platform such as
internet banking to cater for the needs of younger generation customers.
The information gathered from the study will be used by HLB MYY to seek
improvement on weak areas as well as for customer retention that has high correlation
with customer loyalty.
1.9
Limitations of the study
During the course of this study, certain limitations encountered. The main
constraint encountered is the time spent in carrying out this research as the findings
Page 13 of 92
can be more accurate and verifiable should more time is invested in the study. Survey
was carried out at random time of the day during peak and non peak hours at HLB
MYY banking hall and self service banking lobby during working days. Therefore,
sample data during weekends and public holidays were not collected.
Secondly, the findings collected may not be correlated with the needs of other
HLB branches in Malaysia due to demographic and other external factors.
Lastly, the willingness of respondent on the questionnaires is another factor

contributing to the limitation during the course of study. The groups of respondents
involved are made up of self-employed, employed as well as non- employed
individuals. Some findings collected may not
be related in the study, hence may affect the accuracy of the data.
1.10 Definition of terms
1.10.1 HLB, MYY
This is an acronym for Hong Leong Bank Berhad, Jalan Merbau branch. This
branch is formed after merger between Hong Leong Bank sole Miri branch and EON
Bank, Merbau branch. This branch is located in the heart of Miri City with
competitors, Maybank, CIMB, RHB and UOB located approximately 200 meters
away.
Page 14 of 92
1.10.2 Self Service Banking Machines
Self Service Banking Machines include ATM (Automated Teller Machine),

CDM (Cash Deposit Machine), CQM (Cheque Deposit Machine) and Internet
Banking (Hong Leong Connect) where customers are required to perform banking
transaction at their own accord and convenient.
1.10.3 Customers
Customers are individuals who may or may not have banking relationship with
the bank. Customers are made up of both internal and external, whereby internal
customers involve mainly bank staff while external customers refer to non bank staff.
Customers are deemed as stakeholders of the bank.
1.10.4 TOUCH
TOUCH is an enrichment program adopted to enhance bank staff competency

and efficiency level in ensuring customer satisfaction is achieved. The acronym of
TOUCH is as follow:
Page 15 of 92
Touch
On Time
Understand
Connect
Happy
The word Touch simply means to touch the customers heart with the extra
mile services provided. On time means feedback and request are process on a timely
manner within the promised time frame. Understand and Connect means to anticipate
the customers need by reaching out to customers. Once customer satisfaction is
achieved, this will leave a rewarding and Happy experience to customer.
Ideas and experiences on customer handling are often published in TOUCH on

monthly basis is to be shared amongst staff nationwide via printed material and
Intranet.
1.11 Chapter Layout

Chapter 1: Introduction
This chapter covers a general background on the research topic, problem

statements, research questions and objectives. Other subjects covered include
Page 16 of 92
conceptual framework, hypotheses, significance and limitation of the study as well as

definition of terms used.
Chapter 2 : Review of Literature
This chapter discusses about customer satisfaction and the independent

variables such as price of services, service quality, perceived value and cleanliness
and ambience that determines customer satisfaction. Apart from this, this literature
also identifies the conceptual framework proposed to support the relationship of the
independent variables, customer satisfaction and customer loyalty. The determinant
affecting customer satisfaction and the relationship between customer satisfaction and
customer loyalty are also discussed.
Chapter 3 : Methodology
In this chapter, an overview on the research methodology and design used in

carrying out the study is provided. The data collection method and data analysis
techniques are also well explained here.
Chapter 4 : Findings
This chapter will cover the findings of the research study, analysis and
interpretation of data and summary on the outcome of the questionnaires conducted.
Page 17 of 92
Conclusion of the test on the hypothesis and the relevant relationship of variable are
also drawn in this chapter.
Chapter 5 : Summary, Conclusion and Implications
This chapter provides a summary of the research based on the findings and
outcome of the analysis using the methodology discussed earlier. Conclusion will be
drawn based on the analysis of the findings whether the hypothesis tested is positive
or otherwise and if the objectivity of the research study is met. Any possible
implications and recommendations of the findings are also discussed in this chapter.
Page 18 of 92
CHAPTER 2: REVIEW OF LITERATURE
2.0
Introduction
Every customer has different needs, hence the satisfaction level also differs.
This chapter defines in-depth about the independents variables that determine
customer satisfaction. In this literature review, customers different needs towards the
banking services and facilities provided will be investigated based on the hypothesis
formulated thru the conceptual framework proposed.
2.1
Service Quality
According to Valarie Zeithaml, A. Parasuraman (1990), services are

intangible as it involves performances and experiences rather than tangible objects
and customers evaluate way may be complex and difficult to capture in a precise
manner. In general view point, when customers evaluate service quality, process of
service delivery such as treatment received when consuming a service is taken into
consideration.
Page 19 of 92
Production and consumption of many services are inseparable as quality in

service often occurs during service delivery, usually in an interaction between the
customer and the service provider.
Siddique, Karim & Rahman (2011) defined quality as consumers overall

impression of the relative inferiority or superiority of the companies and its services.
Culiberg & Rojsek (2010) postulated service quality is a customers judgment about a
service.
According to (Stafford, 1996), he mentioned that service quality has become

the key indicator for banks to perform differently from other competitors in offering
products and services.
Perceived service quality exists when customers make comparison between

their expectations and perceptions of the service actually provided by vendors
(Siddique, Karim & Rahman, 2011). There are few factors influencing customers
expectation according to Valarie Zeithaml, A. Parasuraman (1990).
Refer
to
Figure
(SERVQUAL
Model),
firstly,
word-of-mouth
communications is recommendations customers heard from people around them.

Secondly, customers expectations somehow depend on individual characteristics and
circumstances, suggesting that personal needs might moderate their expectation to a
certain degree. Thirdly, extend of past experience consuming a service influences a
customers expectation level. Next, external communication such as advertisement
Page 20 of 92
also plays an important role in contributing to customer expectation. Other factor such
as price is also likely to influence customers choice on the superiority of service.
Figure 3: SERVQUAL Model
2.1.1
Service Quality in Customer Service
When a customer first walked into HLB MYY, he would expect a friendly
staff to greet and attend to his banking needs over-the-counter professionally within
an expected time frame. The attitude of staff, the reliability of service and response
period play an important role in shaping customers perceived service quality.
However, if customers expectation is unfulfilled, the perceived service quality will
Page 21 of 92
be rated as poor. The factors that influences customers expectation discussed earlier
comes into play and this will greatly impact the customer satisfaction level.
2.1.2
Service Quality in Self Service Banking
The availability of machines at the self service banking lobby during and after
banking hours also play an important role contributing to service quality. As banks are
moving into the electronic banking era, customers are encouraged to learn up to
interact with electronic machines to perform their banking needs, for example, Hong
Leong Connect for retail banking customers.
The friendliness of the menu and instruction would intensify the usage of
machines among users. In the banks point of view, this measure would help to
reduce operational cost and attract more customers due to flexibility and convenience
at their finger tips.
Page 22 of 92
2.2
Perceived Value
In economics term, value is defined as the worth of all benefits and rights
arising from ownership. Riding on the definition term of value, perceived value is the
worth of products or services have in the mind of customers. Perceived value of a
good or service affects the price a customer willing to pay for. In other words,
customers make assessment on benefits they gained relative to the total costs (Bontis,
Booker & Serenko, 2007).
According to Zeithaml (1983), the pattern of responses from the exploratory

study can be grouped into four consumer definitions of value: (1) value is low price,
(2) value is whatever I want in a product, (3) value is the quality I get for the price I
pay, and (4) value is what I get for what I pay. These four consumer expressions of
value can be captured in one overall definition: perceived value is the consumers
overall assessment of the utility of a product based on perceptions of what is received
and what is given. Though what is received varies across consumers (i.e. some may
want volume, others high quality, some others seek convenience) and what is given
varies (i.e. some are concerned only with money expended, others with time and
effort), value represents a tradeoff of the salient give and get components. (Zeithaml,
1983)
Page 23 of 92
2.3
Price of Service
According to Zeithaml (1988), from the consumers perspective, the monetary
cost of something is what is given up or sacrificed in order to obtain a product or

service. Thus Anderson, Fornell and Lehmann (1994) quoted that price has often been
conceptualized and defined as a sacrifice.
Zeithaml (1988) added that there are three components to the concept of price:
objective price, perceived non-monetary price, and sacrifice. As customers do not
know or remember the actual price paid, it is agreed that is not equivalent to the
perceived price, instead, they encode the price in a way that it is meaningful to them.
Anderson, Fornell, and Lehmann (1994) explained that whenever customers

were asked to value the service provided, they usually consider the price that is being
charged. (Zeithaml and Bitner 2000) clarified that in cases whereby when consumers
lacked of reference price, they do not consider price in their judgments but the quality
of service because they ranked price as an important factor when it came to their
overall satisfaction.
Page 24 of 92
2.4
Rapp & Collins (1990) explained that the purpose of relationship marketing is
to build and maintain lasting relationship between an organization and customers

which eventually benefited both parties.
Due to rapid changes in both economic and business environment, Berry
(1982) also suggested that bank should redirect focus from product marketing to
relationship marketing by attracting, maintaining and enhancing customers
relationship.
There are five strategy that can put into practice to secure customer retention:
(1) developing a core service around which to build a customer relationship, (2)
customizing the relationship to the individual customer, (3) augmenting the core
service with extra benefits, (4) pricing services to encourage customer loyalty and (5)
marketing to employees so, in turn, will perform well for customers (Berry 1983).
According to Morgan and Hunt (1994), trust and commitment are important
in building a relationship, whereby trust is termed as belief and having faith or
confidence on the commitment of service provider in exchange of the expected value
by customers. Sullivan and Peterson (1982) defined trust by measuring sincerity,
caution, effort in establishing a relationship, equality, goal congruence, consistency,
and expectations of cooperation. Therefore, building and maintaining relationship to
retain existing customers gave more economic beneficial sense rather than creating
new customers (Gronroos, 1995; Storbacka, Strandvik & Gronroos, 1994).
Page 25 of 92
Moorman, Deshpande & Zaltman (1993) mentioned that interpersonal factors

are the most predictive of trust and other factors include integrity, sincerity,
tactfulness and timeliness.
Once trust is broken, customers will feel dissatisfied and lack of confidence,
hence affecting the performance of an organization.
However, Mattsson, (1997) argued that relationship marketing is within the

development of transactional marketing and a network-based theme as it did not form
a general theory because traditional marketing do not consider relationship as a factor
in exchange process. According to (Christopher et al, 1993), transactional marketing
relied heavily on gimmicks and focused on single transaction and (Gronroos, 1994)
added that transactional marketing ignored quality of interactions with customer and
focused on market share.
Generally, better relationship and interaction with customers can lead to

customer loyalty, whereby they are less price sensitive, hence optimizing economic
gain.
Page 26 of 92
2.5
As paradigm shift from transactional marketing to relationship marketing in

recent years, customer satisfaction has become the keyword in service provider
industry. (Gronroos, 1994; Sheth & Parvatiyar,1994).
Johnson and Fornell (1991) defined customer satisfaction as customers

overall evaluation on the performance of service or product offered.
The
physiological effect of satisfaction derived from product quality, service quality and
price or payment impartial to loyalty (Bolton and Lemon, 1999; Fornell et al., 1996).
This statement is also supported by Boulding et al. (1993) whereby the evaluation
effect will influence customer behavior which in return helps to promote the
organization thru word of mouth and return purchases.
According to Rust & Zahorik (1993), satisfaction is regarded highly in

customer retention and has been adopted widely in relationship marketing. Kotler
(1994) summarized that customer satisfaction is the key to customer retention. Oliver
(1997) defined in detail that satisfaction is a customers fulfillment response on the
judgment on the level of consumption-related fulfillment, whether over or under
fulfillment. He also explained that over-fulfillment provides additional unexpected
pleasure while under-fulfillment does not provide expected treatment, hence creating
dissatisfaction.
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Whenever customers transacting with banks, they will judge the level of
service provided to determine their satisfaction. Price of products or service is one of
the factors determining customers satisfaction level and if price offered does not
commensurate to accommodate their needs, dissatisfaction will arise. (Afsar, Rehman,
Qureshi & Shahjehan, 2010).
Churchill and Surprenant (1982) postulated banks should apply the concept of
customer satisfaction when selling to customers as in return, satisfied customers yield
higher profits. However, when satisfaction is not achieved before or during purchase,
customer may divert or switch to other competitors. (Roos, 1999).
2.5.1
Customer Loyalty
A loyal customer is not necessarily a satisfied customer, but a satisfied

customer tends to be a loyal customer. This statement as quoted by Fornell (1992)
also suggested that market share and customer satisfaction contribute to profitability
and these two contributors have strong connection.
The key determinant of customer loyalty is customer satisfaction. (Stone,

Woodcock et al. 2000). Kracklauer, Mills et al. (2004) further commented customer
loyalty is a combination of customer satisfaction and customer trust. Due to major change
Page 28 of 92
in banking sector, (Gremler, 1995) mentioned that customer loyalty has become an
important area for research in service study.
According to Dick and Basu (1994), loyalty is a complicated construction that

involved attitude and behavioral components. They also suggested that the interaction
of repeated purchase behavior and relative attitude towards a brand or store will create
loyalty.
Figure 4: Customer Loyalty
Source: Dick and Basu (1994) Customer Loyalty: Toward an integrated conceptual
framework
Figure 4 as shown above illustrates four groups of loyalty, where Dick and
Basu (1994) summarized that with the assumption of classification on the four types
of loyalty groups, the prediction on retention and defection can be done.
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Garland and Gendall (2004) supported Dick and Basus loyalty typology in
retail banking sector by saying loyal customers perform banking with few banks and
the possibility of increasing business with main banker is high and the chances of
defection is low. Palmer et al (2007) also mentioned that other than measuring
repurchase, it is also important to look at the willingness of customers recommending
or promoting an organizations product or service offered to other customers.
Levesque and McDougall (1996) also shared their point of view that a retail
bank can increase customer loyalty by reducing the cost of servicing, increase
customer satisfaction and cross-selling opportunities.
According to OMalley (1998), loyal customers are rewarded through loyalty

program and at the same time generating information and manipulating customers
behavior. Uncles Dowling & Hammond, (2003) stated that the idea of customer
loyalty program is to increase sales through increasing purchases and building
bonds between brand and existing customers in order to maintain existing customer
base. Therefore, customer loyalty is the key factor to determine a bank's future
success.
Page 30 of 92
2.6
Hypotheses Development
2.6.1
The Relationship between Service Quality and Customer Satisfaction
Service quality is a judgment on the superiority of a service and satisfaction is

related to transaction performed (Parasuraman et al., 1988). According to Beerli et al
(2004), both service quality and customer satisfaction have positive relationship. He
also supported a finding done by Bolton and Drew (1991) that customer satisfaction is
the antecedent of service quality.
However, scholars who contrasted the above finding mentioned that service
quality is antecedent of customer satisfaction is (Bedi, 2010; Kassim and Abdullah,
2010; Kumar et al., 2010; Naeem and Saif, 2009; Balaji, 2009; Lee and Hwan, 2005;
Athanassopoulos and Iliakopoulos, 2003; Parasuraman et al 1988).
Stafford (1996) conducted a research to find out the core elements of BSQ
(Bank Service quality) and identified seven attributes in assessing BSQ which are as
follows:
a) Bank environment including staffs attitude
b) Relationship with bank employees
c) Rates and charges such as low cost/price of products and high interest rates.
d) Available services and convenient services which are easily accessible.
e) The availability of ATMs, CQMs, CDMs and Internet Banking kiosks.
f) Reliability and honesty on bank ratings and bank staff.
g) Enough and accessible tellers at counters.
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Therefore, service quality has positive influence on customer satisfaction (Yee

et al, 2010) and the first hypothesis stated:
H1:
Service quality is a determinant of customer satisfaction in banking services
and
facilities in HLB, MYY
2.6.2
The Relationship between Perceived Value and Customer Satisfaction
Perceived value occur during purchase but satisfaction occur during post
purchase behavior (Woodruff, 1997). McDougall & Levesque (2000) postulated that
service quality and perceived value are basic determinant of customer satisfaction and
supported by Cronin, Brady & Hult (2000), hence perceived value has positive impact
on customer satisfaction.
Figure 5: Customer Satisfaction and contributors
Source :McDougall & Levesque (2000-p393)
Page 32 of 92
Above model (Figure 5) presented by Mcdougall and Levesque describes

customer satisfaction and the main contribution of this model is the inclusion of perceived
value with service quality and satisfaction will leads to future intensions.
Therefore, the second hypothesis stated:
H2:
Perceived value is a determinant of customer satisfaction in banking
services and facilities in HLB, MYY
2.6.3
The relationship between price of services and customer satisfaction
Price is the substitute of what we get in value which can be tangible goods or
intangible service (Butt, 2011).
According to Varki &Colgate (2001), price of services charged play a major

role in determining customer satisfaction. Anderson et al (1994) stressed that
whenever consumers judge the value of a service, they will usually think of the price.
However, Oliver (1997) argued that consumers judge price and service quality
through the concept of equity to generate their satisfaction or dissatisfaction level.
The lower the price or perceived price does not guarantee a high satisfaction in
consumers.
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However, price fairness is the judgment of customers on the selling price

whether price is reasonable, acceptable or justifiable (Xia et al., 2004; Kukar-Kinney
et al., 2007). Customer satisfaction and loyalty can be developed through price
fairness.
Therefore, the third hypothesis stated:
H3:
Price of services is not a determinant of customer satisfaction in banking
2.6.4
The
relationship
between
relationship
marketing
and
customer
satisfaction
Gwinner, Gremler and Bitner (1988) proposed that relationship marketing has
substantial impact on customer satisfaction. Anderson & Narus, 1990 added that trust
will influence the degree of satisfaction.
Customers satisfaction level will increase when they receive additional

benefits derived from good relationship with the bank (Beatty, Mayer, Coleman,
Reynolds & Lee, 1996).
Aaltonen (2004) indicated that as customers become more loyal when their
satisfaction level is high. Service industry today emphasize very much on relationship
Page 34 of 92
marketing as it has become an essential ingredient for business to survive in such a

competitive market. (Berry, 1995).
Therefore, the fourth hypothesis stated:
H4: Relationship marketing is a determinant of customer satisfaction in banking

2.6.5
The relationship between cleanliness and ambience and customer
satisfaction
A pleasant atmosphere of the bank is one of the most desired elements sought
by customers nowadays. Srinivasan & Srivastava (2010) postulated an attractive and
impressive atmosphere able to create an enjoyable experience among customers,
which directly affects their purchasing power and decision making process.
Cleanliness is the appearance that improves the atmosphere which affects

customers feeling towards a bank. It also creates positive impression among
customers and makes them stay longer and participative. According to Gajanayake &
Surangi (2011), cleanliness can improve the atmosphere.
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Apart from cleanliness, room temperature which is very cold or too warm can
create negative feelings among customers. Lam (2001) mentioned that this will leads
to dissatisfaction among customers, hence customers will spend less time in the bank.
Hence, the fifth hypothesis stated:
H5: Cleanliness and ambience is a determinant of customer satisfaction in banking

servicesand facilities in HLB, MYY
2.6.6
The relationship among customer satisfaction, customer loyalty and
customer retention
Keaveney (1995) postulated that customers tend to switch to other service

provider due to high or unfair pricing, inconvenient location, service failure, poor
response to service failure, better service offer elsewhere, ethical problem and
involuntary switching due to service provider has moved or close down. Berli et al.
(2004) confirmed that customer satisfaction has significant positive impact on
customer loyalty through a study on customer loyalty in retail banking market.
According to a study by Yee et al. (2010), the relationship between customer

loyalty and customer satisfaction is weak when customer satisfaction is low, medium
when customer satisfaction is intermediate and strong when customer satisfaction is
high, therefore both variables are correlated.
Page 36 of 92
Kotler (1994) summarized that the key to customer retention is customer

satisfaction. Saeed et al., (2005) mentioned that after-sales service is an important
contributor to customer retention.
According to Lin & Wu (2011), retention is influenced by the future use of a

product, therefore there is a significant relationship among quality commitment, trust
and satisfaction. They added that there is a solid relationship between customer
retention and quality of service or product.
Rust and Zahorik (1993) supported that there is a significant relationship

between customer retention and customer loyalty. Other scholars like Hallowell
(1996) and Bolton et al.
(2000) also shared the same conclusion.
The earlier hypothesis stated that there is a positive relationship between

service quality and customer satisfaction, hence the final hypothesis stated:
H6:
Customer satisfaction is a determinant of customer loyalty and customer
retention in
banking services and facilities in HLB, MYY
Page 37 of 92
2.7
Theoretical Framework Proposed
Figure 6: Theoretical Framework Proposed

Independent variables
Dependent variables
Customer Loyalty
ustomer L
Service Quality
H1
Perceived Value
H6
H2
Price of Services
H3
H6
H4
Customer Retention
Cleanliness and
Ambience
H5
The theoretical framework proposed, as per Figure 6, consist of five

independent variables, namely service quality, perceived value, price of services,
relationship marketing and cleanliness and ambience while two dependent variables,
namely, customer loyalty and customer retention. Customer satisfaction is the
mediator of the two variables.
Page 38 of 92
This model that proposes independent factors influence customer satisfaction

while customer loyalty and customer retention are impacted by customer satisfaction.
CHAPTER 3: METHODOLOGY
3.0
Introduction
In this chapter, the details of methodology used to conduct research are

discussed, which cover the research method or design, data sampling and population,
data collection and data analysis techniques.
3.1
Research Design
According to Zikmund et al (2010), research design specifies the methods and

procedures for collecting and analyzing information to provide a framework for a
study.
Qualitative and quantitative approach is used when conducting a research.

According to Creswell (1994), qualitative approach interprets and collects data by
studying peoples behavior and response and is non-statistical. Newman & Benz
(1998) stratified that this approach requires researcher to study things in their natural
Page 39 of 92
settings, attempting to make sense of, or interpret, phenomena in terms of the

meanings people bring to them.
However, for quantitative approach, the main focus is to examine the theories
related to the study by analyzing and collecting data. (Bryman and Bell, 2007).
Creswell (2003) explained that this approach uses strategies such as experiments and
surveys to collect data using predetermined instruments that will generate statistical
data.
In this study, quantitative approach is deemed more suitable as this approach

is usually referred to as hypothesis or testing research. Statements of theory from
hypothesis are derived and experimental design is established, whereby the dependent
variables are measured and at the same time controlling the effects of independent
variables. Hence, quantitative approach is used to study the determinants of
customers satisfaction in banking services and facilities at Hong Leong Bank, MYY
branch.
3.2
Data Collection
Zikmund et al (2010) defined data collection as the process of gathering

information and is a crucial stage.
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There are two parts of data collection, namely primary data and secondary
data. The first part consist of data collection from respondents selected randomly to
test the hypothesis and secondary data are in the form of publication and reading
materials obtained from the organization to support this study.
Questionnaire survey is a method of data collection based on the response of

option chosen by respondent during interview. This data collection method and
chosen due to efficiency, accuracy and incur low cost.
A total of 80 sets of questionnaires were distributed on weekday during and

after banking hours at the location premise on random basis on 03rd to 05th June 2015
(first week), 15th to 16th June 2015 (mid month) and 26th, 29th and 30th June 2015
(final week). The month of June 2015 is chosen to carry out survey because on 01st,
02nd and 06th June were public holidays, namely Gawai Dayak Day followed Yang diPertuan Agong's Birthday and high usage of self-service banking machines are
expected because bank closes for transactions from 30th May 2015 until 02nd June
2015 (4 calendar days).
Usually in conjunction with public holidays and the first week of the month,
high level of crowd is expected to perform banking transactions. Then, during mid
month, lesser number of customers will perform banking transaction and towards final
week of the month, the number of customers will more compare to mid month as
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payday usually fall at the final week of the month. Each respondent is given an
approximate ten minutes to complete the questionnaires.
3.3
Sampling Design and Population
The ultimate objective of this research is to assess the determinants of

customers satisfaction in banking services and facilities in Hong Leong Bank, MYY
branch. Therefore, the population targeted for this research consists of both customers
and non customers of the bank with different demographic backgrounds to ensure
equality in data collection.
The sampling technique used in this research is nonprobability sampling.

According to Zikmund et al (2010), the sample is solely based on personal
judgment and the probability of the sample is unknown. Nonprobability sampling is
more economical and allows questionnaires to be completed in a short period of time.
Since this research seeks the convenience of customers present at the premise,
convenience sampling is used. Convenience sampling is one of main type of
nonprobability sampling methods.
Page 42 of 92
3.4
Research Instrument
3.4.1
Questionnaire Design
Research instrument is one of the facts finding strategy and data collection
method which includes questionnaire, interview, observation and reading. In this
survey, researcher uses questionnaire to collect data.
The medium used in the questionnaires is English as this language is widely

used and accepted by all. The questionnaires consist of four parts, namely Part A, B,
C and D. The questions are made up of structured forms (close ended), ratings and
unstructured forms (open ended).
Part A is made up of dichotomous questions which address the information on

demographic values and usage pattern of respondents. The aim is to study in depth the
category of specific users needing either counter service or self service banking.
Part B & C consists of dichotomous questions and interval scales ratings with
the aim to collect data on both independent and dependent variables. The questions
focus on service quality, perceived value, price of services, relationship marketing,
customer satisfaction and customer loyalty.
Researcher is able to gather data
pertaining to hypothesis to be tested under both Part B & C.
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Lastly, Part D ended with unstructured forms (open ended) whereby

researcher realized the questionnaires presented may not be able to cover all other
factors relating to independent and dependent variables which determine customers
satisfaction in both banking service and facilities.
3.4.2
Data Scale of Measurement
There are two types of scale used in the questionnaires, namely five-point Likert
scales and dichotomous scales. The final part of the questionnaire is an unstructured
form or open-ended.
Likert scales are measurement units used to assess the level of needs based on
feelings (Likert, 1932) and the five-point choices are:
[1] Poor
[2] Fair
[3] Average
[4] Good
[5] Excellent
Five-point Likert scales are used as more accurate measurement of perception

or opinion can be obtained from respondents. Respondents are not given choice of
Page 44 of 92
neutral or indifferent response, hence opinion based on sensitivity level can only be
based on the scales provided.
Dichotomous scale will reflect a choice of either Yes or No in respondents

answer. The questions directed are straight forward and researcher is able to collect
accurate information during data collection.
Lastly, the unstructured form will give respondents a more authentic response
apart from what the questionnaires have covered earlier on. This will give researcher
additional information whereby different respondents will give different comments
based on their needs or concerns.
3.4.3
Pilot Study
Pilot study is carried out to ascertain on the degree of clarity of questions, to

identify problem areas and mistakes that need to be addressed according to Borg &
Gall (1997). Sometimes, pilot study is also known as pre-test that act as a useful guide
to examine specific aspects of a research to determine of the selected procedures or
methodology work as pre-planned (Zikmund et al, 2010).
Page 45 of 92
Prior to actual distribution of questionnaires at Hong Leong Bank, MYY

branch premise, a pilot study has been conducted on eight colleagues of researcher
who are also working in Hong Leong Bank, Jalan Merbau branch on 11th May 2015.
The purpose of this pilot test is to solicit any constructive feedback, to identify
any ambiguous or confusing questions and to seek any amendment on choice of
wording used in the questionnaires. According to Cooper and Schindler (2001),
mentioned that pre-test is necessary to discover the respondents reaction to
questionnaires and also helps to discover repetitiveness or redundancy.
Respondents voiced that some questions are confusing and irrelevant and
researcher has re-examined all the questions and made necessary changes to ensure
the objective of gathering the intended data was fully achieved.
3.5
Data Processing
Raw data are data and information collected via questionnaires and required to
go through editing, coding and filing before being transformed for data analysis.
According to Zikmund et al (2010), editing and coding is important because when
error presented in the data, the process of transforming the raw data into useful
information will be risky and difficult.
Page 46 of 92
Editing is the process of vetting through completeness and legibility of data to

ensure data are ready for next stage, that is coding and storage purposes.
Questionnaires returned are checked to ensure completeness and no omission occurs.
In this study, all questionnaires returned are complete and no omission found.
Coding is the process of assigning numerical score or character to the edited

data. Zikmund et al (2010) postulated that the numerical symbols assigned allow the
transfer of data from questionnaires to computer. Under Part A, question 1 to 6, Part
B, question 7 to 10 and Part C, question 16 to 18, the answer () was coded as yes and
no ticked as no. Numerical score of 1 is assigned to yes while score 2 is assigned to
no.
Lastly, data filing is done by storing the data using SPSS (Statistical Project
for Social Science) version 18.0, whereby rows represent sampling units and columns
represent variables. (Zikmund et al, 2010).
3.6
Data Analysis
IBM SPSS Statistics version 21.0 is used to analyze data through different
types of analysis such as Descriptive Analysis, Factor Analysis and Reliability
Analysis. According to Zikmund et al (2010), analysis involves determining
consistent patterns and summarizing relevant detail found in research.
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Descriptive Analysis is the elementary transformation of raw data that

describe the basic characteristics such as central tendency, distribution and variability.
(Zikmund et al 2010). Central tendency consist of means, modes and medians that are
used to make interferences about characteristics of the whole population. Zikmund et
al (2010) stated that means is the arithmetic average, median being midpoint and
modes are the value that repeatedly appears most often.
Factor analysis is used to identify underlying variables that explain the

correlations within a set of variables stipulated. It is also used to generate hypothesis
or to screen variables for subsequent analysis. Statements used in survey are tested for
appropriateness under common factor thought factor analysis.
Reliability Analysis is used to study the properties of measurement scales and

according to Sekaran (2003), the analysis procedure calculates a number of commonly
used measures of scale reliability. In this study, Cronbachs Alpha of reliability test
was used to test independent variables such as service quality, perceived value, prices
of services, relationship marketing, cleanliness and ambience with customer
satisfaction. Sekaran (2003) postulated that for Cronbachs Alpha below 0.6, the
instrument used is said to have low reliability while for value 0.7 and above, the
instrument used is considered acceptable. However, if value is closer to 1, the
consistency will be higher and more reliable.
Page 48 of 92
3.7
Conclusion
In this chapter, research design, data collection, sampling design and

population, research instrument, data processing and data analysis are discussed and
elaborated to enable a better understanding. In the next chapter, research data and
finding will be discussed in detail.
CHAPTER 4: FINDINGS
4.0
Introduction
A letter has been submitted to the Branch Manager of Hong Leong Bank,
Jalan Merbau branch on 13th April 2015 to seek permission to conduct a survey in the
said branch. Approval was granted on 15th April 2015 and survey was carried out on
03rd June 2015 onwards. The research result, analysis and interpretation of the data
will be discussed in this chapter.
Page 49 of 92
4.1
Analysis of demographic data
A total of 80 sets questionnaires were distributed and participation rate was

100%. Table 3 summarized that 65% were male respondents while female
respondents stood at 35% while Table 4 shows the breakdown of respondents in
accordance of their age. Table 5 illustrates the respondents under employed sector
stood at 42.50% followed by self-employed at 35% and the rest by housewife, student
and retiree. Study also showed that 70% of the respondents have facilities with the
bank while 30% do not have facility with the bank as per Table 6. Table 7 shows that
40% respondents visited bank daily to perform transactions, while 20% respondents
visited bank once a month, 25% occasionally and 15% whenever necessary. Lastly,
Table 8 summarized that 40% of respondents visited counter to perform transactions
while 60% perform transactions via self-service banking.
Table 3: Respondents by Gender

Gender
Male
Female
Total
No. Of Respondents
52
28
80
Respondents In %
65.00
35.00
100.00
Table 4: Respondents by Age

Age
18 to 25 years
26 to 35 years
36 to 45 years
46 to 65 years
> 65 years
Total
No. of Respondents
8
19
22
20
11
80
Page 50 of 92
Respondents in %
10.00
23.75
27.50
25.00
13.75
100.00
Table 5: Respondents by Employment Type

Employment Type
Self-Employed
Employed
Student
Housewife
Retiree
Others
Total
No. of Respondents
28
34
2
8
7
1
80
Respondents in %
35.00
42.50
2.50
10.00
8.75
1.25
100.00
Table 6: Respondents with or without Facility

Facility with bank
Yes
No
Total
No. of Respondents
56
24
80
Respondents in %
70.00
30.00
100.00
Table 7: Respondents by Transaction Frequency

Transaction Frequency
Everyday
Once a month
Occasionally
Whenever necessary
Total
No. of Respondents
32
16
20
12
80
Respondents in %
40.00
20.00
25.00
15.00
100.00
Table 8: Respondents by Transaction Type

Transaction Type
Counter
Self-Service Banking
Total
No. of Respondents
32
48
80
Page 51 of 92
Respondents in %
40.00
60.00
100.00
4.2
Analysis of Counter Service
Figure 7 illustrates the average waiting time for counter service. 14% of
respondents were served within 5 minutes while 17% were served within 6 to 10
minutes and 46% were served within 11 to 15 minutes. 12% were served within 16 to
20 minutes and 11% were served over 20 minutes.
Figure 8 summarizes the types of transaction performed by respondents over

the counter. 32% of respondents performed deposit/withdrawal followed by account
opening at 25%, remittances at 17%, product enquiry/application at 15%, card
replacement at 8% and other services at 3%.
Service quality of counter service is shown in Figure 9 with 78% respondents

voted bank staff handled them in a professional manner while 22% said no. As for
product information, 92% of respondents said bank staffs are knowledgeable and able
to convey clear and precise information while 8% of respondents were dissatisfied
with this. 88% of respondents said they will recommend their friends and families to
bank with this bank while 12% would not.
Findings showed that the higher the number of customer present to perform
transaction in the bank, the longer the waiting time especially after festive holidays
during the survey carried out on 30th June till 05th June 2015. Large number of
Page 52 of 92
deposits and withdrawals were seen as business owners depositing the end of day
earnings while some performed withdrawals for employees salary purposes.
Facilities such as loans and credit card payments were also done by some respondents
during the same week.
Apart from deposits/withdrawals, account opening procedure is slightly longer

with average consumption time of approximately 15 minutes per customer. This is
because after account opening, the relevant staff will issue a debit card with
temporary PIN (Personal Identification Number) and assist customer to change to
their own PIN. Once done, staff will assist customer to register for Internet Banking at
the kiosk provided. Companies nowadays signed up for payroll account service, and
their employees are expected to visit bank to open account for salary purposes.
Therefore, bank will experience an increase in the number of customers opening
accounts.
Remittances accounted for 17%, whereby foreigners, mostly workers will

perform Western Union to remit money overseas. As this transaction involves detailed
information, counter staff averagely takes 10 minutes to handle a transaction. A high
number of customers performing such transaction can be seen at the same week due to
workers just received their salary.
The number of customers performing product inquiry or application such as

Personal Loans, Mortgage Loans, Hire Purchase, credit cards and other deposits
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products stood at 15%. Researcher noted that the customers involved in such
transaction are not impacted by time, unlike deposits or withdrawal and remittances.
Card replacement which accounted for 8% of respondents also is not impacted

by time. Card replacement is done when card such as credit card or debit card is lost
or damaged.
Figure 7: Waiting Time for Counter Service
Waiting time
Within 5 mins
Within 6 to 10 mins
Within 16 to 20 mins
Over 20 mins
11%
Within 11 to 15 mins
14%
12%
17%
46%
Page 54 of 92
Figure 8: Types of Transaction Performed At Counter
Types of Transaction
Other services
3%
25%
Open Account
15%
Product Enquiry/Application
Card Replacement
8%
17%
Remittances
32%
Deposit/withdrawal
Figure 9 : Service Quality on Counter Service
Counter Service
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Professionality
Product Information
Recommend
Yes
78%
92%
88%
No
22%
8%
12%
Page 55 of 92
4.3
Analysis of Self Service Banking
Figure 10 shows the type of self service banking facilities used by respondents
during the course of study, with the highest accounted for ATM usage at 40%,
followed by Cash Deposit Machine at 33%. Cheque Deposit Machine at 20% and
Internet Banking at 7%.
Figure 11 shows the number of respondents voicing on the service quality of

the self service banking machines. 67.50% of respondents stated that machines are in
service most of the time while 32.50% stated machines breakdown most of the time.
As for machines user friendliness, 82.50% of respondents agreed while 17.50%
disagree and find complexity using the machines. As for staff level of attentiveness in
resolving issue at self service banking machines, 92.50% respondents responded yes
while 7.50% responded staff are not attentive enough. Lastly, 80% of respondents
would recommend their friends and relatives to use the self service banking machines
while 20% do not recommend.
Page 56 of 92
Figure 10: Type of Self Service Banking facility used by Respondents
Self Service Banking

7%
20%
40%
ATM
Cash Deposit Machine
Cheque Deposit Machine
Internet Banking
33%
Figure 11: Service Quality on Self Service Banking
Self Service Banking

100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Machine in service
User friendly
machine
Attentive staff
Recommend
Yes
67.50%
82.50%
92.50%
80.00%
No
32.50%
17.50%
7.50%
20.00%
Page 57 of 92
4.4
Descriptive Analysis
Means reading recorded 3.0 and above show independent variable tested has
high significant impact on customer satisfaction, while reading below 3.0 is said to
have low or little impact on customer satisfaction.
Referring to Table 9 under Q7 regarding waiting time to be serve at counter

and Q12 concerning staff service level, means recorded a reading of 3.06 and standard
deviation of 1.04 and 3.81 and standard deviation of 0.82 respectively.
Table 10 under Q22 regarding friendliness level shows a means reading of

3.23 and standard deviation of 0.90. Same time, Q23 discusses about the confidence
level of customer using self service banking machines and reading shows means of
3.48 and standard deviation of 1.07. This has significant impact on customer
satisfaction, hence hypothesis H1: Service quality is a determinant of customer
satisfaction in banking services and facilities in HLB, MYY is valid.
Q7 recorded a means reading of 3.06 and standard deviation of 1.04 for the
waiting time to be served while Q13 examine the importance of bank information
provided recorded means reading of 3.78 and standard deviation of 0.83. Q24
discussed about the confidence level when using self service banking machine
recorded means of 3.48 and standard deviation of 1.07. Q25 on the printing quality of
acknowledgement receipt recorded means 3.50 and standard deviation of 0.99.
Page 58 of 92
Therefore, the hypothesis H2: Perceived value is a determinant of customer

satisfaction in banking services and facilities in HLB, MYY is valid.
Q14 under price of services charged recorded a means reading of 2.78 with
standard deviation of 0.71, explaining that price does not impact customer
satisfaction. Therefore, hypothesis H3: Price of services is not a determinant of
customer satisfaction in banking services and facilities in HLB, MYY is not valid.
Q15 examines the relationship between personalized service offered and

customer satisfaction and means recorded a reading of 3.63. Standard deviation stands
at 0.79, therefore, the hypothesis H4: Relationship marketing is a determinant of
customer satisfaction in banking services and facilities in HLB, MYY is valid.
Q16 on cleanliness and ambience in the banking hall records the highest
reading with means of 4.28 and standard deviation of 0.58. This is the strongest needs
recorded in the survey which has great impact on customer satisfaction that would
affect customer retention. Same time, Q25 discusses on the cleanliness and ambience
at self service banking lobby show some impact on customer satisfaction with means
reading of 3.08 and standard deviation of 0.89. Therefore, hypothesis H5:
Cleanliness and ambience is a determinant of customer satisfaction in HLB, MYY
is valid.
Page 59 of 92
Table 9: Descriptive Analysis on Counter Service
No.
Q7
Q12
Question Type
Waiting time to serve
Staff service level in terms of response and efficiency
Availability of banks printed materials and information
leaflets
Price of the services charged
Personalized service offered
Cleanliness and ambience in the banking hall
Q13
Q14
Q15
Q16
Means
3.06
3.81
Standard
Deviation
1.04
0.82
3.78
2.78
3.63
4.28
0.83
0.71
0.79
0.58
Table 10: Descriptive Analysis on Service Service Banking Terminal
No.
Q22
Q23
Q24
Q25
Q26
Question Type
Friendliness level of the self service banking machines
Response and efficiency of the self service banking
machines
Confidence level when using the machines
Quality of printing of acknowledgement receipt from
ATM, Cash Deposit and Cheque Deposit Machine
Cleanliness and ambience of the self service banking
lobby
Means
3.23
Standard
Deviation
0.90
3.62
3.48
0.84
1.07
3.50
0.99
3.08
0.89
Table 11: Customer Satisfaction Statistics

recommend_counter
Frequency
Percent
Valid Percent
Cumulative
Percent
Valid
Missing
Total
yes
28
35.0
87.5
87.5
no
5.0
12.5
100.0
Total
32
40.0
100.0
System
48
60.0
80
100.0
Page 60 of 92
recommend_SST
Frequency
Percent
Valid Percent
Cumulative
Percent
Valid
Missing
Total
yes
38
47.5
79.2
79.2
no
10
12.5
20.8
100.0
Total
48
60.0
100.0
System
32
40.0
80
100.0
Based on statistical data collected, 87.5% and 79.2% of customers will

recommend their friends and families to use HLB banking services and facilities.
When customers experience satisfaction, they will repeatedly visit HLB MYY to
perform their banking transactions, hence customer loyalty will be created. Therefore,
the final hypothesis H6: Customer satisfaction is a determinant of customer loyalty
and customer retention in banking services and facilities in HLB, MYY is valid.
Table 12: Summary of Hypothesis Tested
No.
Service Quality
Q12 Staff service level in terms of response and efficiency
Q22 Friendliness level of the self service banking machines
Response and efficiency of the self service banking
Q23 machines
Page 61 of 92
Means
3.81
3.23
Result of H1
Tested
Valid
Valid
3.62
Valid
No.
Q7
Q13
Q24
Q25
No.
Q14
Perceived Value
Waiting time to be served
Availability of banks printed materials and
information leaflets
Confidence level when using the machines
Quality of printing of acknowledgement receipt from
ATM, Cash Deposit and Cheque Deposit Machine
Price of Services
Price of the services charged
Means
3.06
Result of H2
Tested
Valid
3.78
3.48
Valid
Valid
3.50
Valid
Means
2.78
Result of H3
Tested
Not Valid
No.
Q15
Personalized service offered
Means
3.63
Result of H4
Tested
Valid
No.
Q16
Cleanliness and Ambience

Cleanliness and ambience in the banking hall
Cleanliness and ambience of the self service banking
lobby
Means
4.28
Result of H5
Tested
Valid
3.08
Valid
Q26
4.5
Reliability Analysis
Cronbachs Alpha is used to test the reliability of the Likert scale used in the
questionnaires on service quality, reliability of bank information provided and receipt
quality, prices of services, personalized service, cleanliness and ambience
with
dependent variable, customer satisfaction, customer loyalty and customer retention.

Table 13 & 14 show Cronbachs Alpha reading of 0.812 & 0.712, which has been
Page 62 of 92
well explained under Chapter 3 that the instrument used is acceptable with standard
reading of > 0.7.
Table 13: Reliability Analysis on Counter Service

Reliability Statistics
Cronbach's
N of Items
Alpha
.812
Item-Total Statistics
Scale Mean
Scale
Corrected Item-
Squared
Cronbach's
if Item
Variance if
Total
Multiple
Alpha if Item
Deleted
Item Deleted
Correlation
Correlation
Deleted
staff_service_level
14.4688
4.644
.781
.619
.714
printed_material
14.5000
5.484
.488
.408
.813
counter_prices
15.5000
5.677
.565
.466
.786
personalized_service
14.6563
4.684
.806
.676
.706
cleanliness_ambience
14.0000
6.581
.390
.237
.828
Table 14: Reliability Analysis on Self Service Banking Machines

Reliability Statistics
Cronbach's
Cronbach's
Alpha
Alpha Based on
N of Items
Standardized
Items
.712
.627
Page 63 of 92
Item-Total Statistics
Scale Mean
Scale Variance
Corrected
Squared
Cronbach's
if Item
if Item Deleted
Item-Total
Multiple
Alpha if Item
Correlation
Correlation
Deleted
Deleted
machine_in_service
10.2083
6.637
-.023
.073
.834
SST_friendliness
8.3125
4.390
.422
.319
.696
machine_confidence
8.0625
2.698
.841
.859
.375
receipt_quality
8.0417
3.062
.799
.843
.425
4.6
Factor Analysis
Refer to Table 15 and 16, the KMO and Barletts Test result show reading of
0.743 and 0.570 respectively, which indicates the factor analysis is useful to the data
and sufficient correlations exist among the measuring tool in each variable. However,
if value is < 0.5, the result of the factor analysis is said to be not useful and no
correlation exist.
As for the factor loadings, ideal reading should be greater than 0.5 to be
accepted as common factor. Noted under Table 15, all loading are over 0.5, therefore
the measurement item
used are correlated and considered valid.
However, under Table 16, most loadings are within the range of over 0.9, with
one loading recorded reading of below 0.5. Therefore, the measurement item used for
Page 64 of 92
self service banking terminal cleanliness and ambience is treated as not correlated and
consider invalid.
Table 15: Correlation Test on Counter Service

KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.

Approx. Chi-Square
Bartlett's Test of Sphericity
df
.743
59.870
10
Sig.
.000
a. Based on correlations
Communalities
Initial
Extraction
staff_service_level
1.000
.783
printed_material
1.000
.433
counter_prices
1.000
.550
1.000
.815
1.000
.312
Extraction Method: Principal Component Analysis.
Component Matrix
Component
1
staff_service_level
.885
printed_material
.658
counter_prices
.742
.903
.559
Extraction Method: Principal Component

Analysis.
a. 1 components extracted.
Page 65 of 92
Table 16: Correlation Test on Self Service Banking Terminal

KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Approx. Chi-Square
Bartlett's Test of Sphericity
df
96.537
6
Sig.
.000
Communalities
Initial
Extraction
SST_friendliness
1.000
.484
machine_confidence
1.000
.914
receipt_quality
1.000
.849
SST_cleanliness_Ambience
1.000
.034
Extraction Method: Principal Component Analysis.
Component Matrix
.570
Component
1
SST_friendliness
.696
machine_confidence
.956
receipt_quality
.921
SST_cleanliness_Ambience
.183
Extraction Method: Principal Component

Analysis.
a. 1 components extracted.
Page 66 of 92
CHAPTER 5: SUMMARY, CONCLUSION AND

IMPLICATIONS
5.0
Introduction
This final chapter discusses on the research objectives and conclusion of the
overall study. Recommendations are also provided to help achieve the determinants of
customer satisfaction efficiently.
5.1
Summary
The main objective conducting this research is to find out the determinants of
customers satisfaction in HLB, MYY branch. Besides that, this study also attempts to
examine if customer satisfaction have any positive impact on customer loyalty and
customer retention.
The outcomes of the findings reveal that service quality, importance of bank
information, personalized service and cleanliness and ambience are determinants of
customers satisfaction, except price of services.
Hypothesis 1 (H1) revealed that service quality has significant impact on

customers satisfaction. Issues such as long waiting time due to high volume of
customers and transactions performed especially after public holidays and weekends,
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staff inefficiency due to poor product knowledge or slow response due to low
manpower during lunch time, poor personalized service as staff unable handle
multiple enquiries or task at a same time, complicated self service banking machines
menu, poor response time of self service banking machine due to maintenance, low
confidence level when using machine due to fear of cash being retained at Cash
Deposit Machines or cash not dispense at ATMs and poor printing quality of
acknowledgement receipt by self service banking machines will all result in poor
customer satisfaction. Scholars such as Cronin et al (2000) and Anderson and Sullivan
(1993) postulated that service quality is an antecedent to customer satisfaction.
Hypothesis 2 (H2) tested on perceived value in terms of waiting time to be

served, the availability of bank information provided such as printed materials and
information leaflets. Customers who came to bank to make inquiries on bank products
expected to be given printed leaflets for easy reference and understanding. Apart
from that, long waiting time to be served is also a critical point to be examined.
Findings show that the longer customers waited to be served, the less satisfied they
become. They will justify the time spent waiting for their turn and the worthiness of
their transaction performed. Customers confidence level will be high for self service
banking machines that are user friendly and reliable, with friendly display menu and
functioning machines. The quality of the acknowledgement receipt printout from self
service banking machines also play an important role in determining customers
confidence level, hence affecting customers satisfaction. Blur or poor quality printing
would result in complaints from customers.
Page 68 of 92
Hypothesis 3 (H3) tested on whether price of services is a determinant of

customers satisfaction. Findings show that price or services is not a determining
factor as postulated by scholars, Varki &Colgate (2001) and Anderson et al (1994).
However, Oliver (1997) argued that consumers judge price and service quality
through the concept of equity to generate their satisfaction or dissatisfaction level.
The lower the price or perceived price does not guarantee a high satisfaction in
consumers. Xia et al., 2004; Kukar-Kinney et al., 2007 mentioned that price fairness
is the judgment of customers on the selling price whether price is reasonable,
acceptable or justifiable, hence Customer satisfaction and loyalty can be developed
through price fairness.
In this study, respondents do not show significant interest on the price of

services. As the price of services are mainly governed and standardized by Bank
Negara Malaysia (BNM), most customers would agree and follow the pricing policy
stipulated by bank.
Hypothesis 4 (H4) tested on the personalized service and whether it is one of

the determinant of customers satisfaction. Result from findings show that
personalized service play a major role in influencing customers satisfaction.
Relationship marketing is build from the personalized service offered by staff to their
valued customers over a period of time. This will increase the confidence and trust
level by customers to staff. However, if staff is busy handling multiple transactions
Page 69 of 92
with high traffic of customers, customers will not be able to experience the personal
touch rendered.
Like wise, if bank do not anticipate the needs of customers but offer them with
products such as loans or credit card through cross selling, the objective of
relationship marketing is thus not met. Therefore, relationship marketing has
significant impact on customer satisfaction.
Hypothesis 5 (H5) tested on the cleanliness an ambience of HLB MYY

overall. Findings show that customers want a clean and comfortable banking
environment. At the same time, lighting must be bright enough and room temperature
must be just right, neither too cold nor too warm with ample seats and spacious
waiting area. A warm and overcrowded environment will caused discomfort and poor
image, hence customers would not return for their next banking needs.
In summary, customers satisfaction plays a major role in determining

customer loyalty and customer retention. Generally, a satisfied customer will become
a loyalty customer, however customer retention might be difficult due to other
external factors such as poor bank location and lack of parking space for cars.
Page 70 of 92
5.2
Conclusion
In conclusion, the findings from the study revealed that service quality,
perceived value, relationship marketing and cleanliness and ambience are
determinants of customer satisfaction. Under the summary of hypothesis tested table,
noted that Q12 probing on Staff service level in terms of response and efficiency
recorded the second highest means of 3.81 among all. This shows that service quality
is the main determinant of customer satisfaction.
Apart from service quality, cleanliness and ambience in the banking hall is
also a main determinant of customer satisfaction. This can be witnessed form the
summary of hypothesis tested table under Q16 with highest means record of 4.28. The
clean and comfortable environment in a bank is an indicator of healthy image because
this will be the first impression and experience to customers when entering a bank.
However, price of services is not a determinant of customer satisfaction at

means reading recorded the lowest at 2.78. Researcher concluded that the price of
services for bank products and transactions are governed by Bank Negara Malaysia
(BNM), hence customers do not make drastic comparison, hence have no significant
impact on customer satisfaction.
Page 71 of 92
5.3
Recommendations
During the course of research, noted that the number of respondents

performing banking transaction everyday accounted for 40% and performing
transaction at Self Service Banking Machine stood at 60%. This number indicates the
importance of staff manpower and availability of functioning self service banking
machines to cater for the different needs of customers. A high number of crowds will
visit bank during final week of the month and first week of the month as well as after
public holidays. This is because most customers receive salary during final week until
first week of each month and the needs to loan installment and other bill payments
arise.
During this critical period, issue such as long waiting time can be resolved by
increasing manpower at transaction counters. Apart from this, bank should station few
staff at banking hall to educate and assist customers especially accountholders to use
online banking or ATM to effect bill payments and loan installment. Constant
maintenance on self service banking machines is also important to avoid malfunction
or breakdown to encourage migration of usage from transaction counter to reduce
waiting time. Simple transaction such as updating of passbook or checking of account
balances can be directed to service counters. With these implementation, customer
will feel the worthiness coming to bank for their banking needs.
Page 72 of 92
The appointment of service ambassador is also important to help doubtful

customers that are seeking for attention. First timers or literature elderly who are
doubtful on how to satisfy their banking needs may turn to busy staff that are in the
midst of attending other customers may feel belittled.
5.4
Implications
The resultant implications from findings must be addressed immediately to

ensure customer retention. Over the long run, with sufficient manpower to man
transaction counter may not be a permanent solution to reduce long waiting time.
This is because the trend of customers using self service banking machines is
increasing. Therefore, the excess manpower should be equipped with product
knowledge to assist customers in every aspect.
Customers nowadays are seeking for individual attention, hence excess

manpower can be stationed at self service banking lobby to assist customers and even
do product cross selling to increase customer base.
The poor performance of self service banking machines is also a major

problem faced by bank. Poor response time, cash retained, being rejected at cash
deposit machines as well as machines out of order would result in poor customer
Page 73 of 92
satisfaction. Management should consult expertise to resolve issue immediately to

avoid customers feeling disappointed.
Page 74 of 92
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Appendices
Appendix A: Questionnaire
CUSTOMER SATISFACTION FEEDBACK FORM

Thank you for participating in this survey. The purpose of this survey is to
examine the determinants of customers satisfaction in banking services and
facilities provided at Hong Leong Bank Berhad, Jalan Merbau, Miri branch.
The information gathered will be STRICTLY CONFIDENTIAL and be used for
the purpose of this study.
Any questions pertaining to this survey shall be directed to Ms Janet Poh

(staff of Hong Leong Bank Berhad, Jalan Merbau, Miri branch), who is
currently doing Master of Business Administration (MBA) with AeU
(AsiaeUniversity) for further information. Please be informed that your kind
participation in this survey is on voluntary basis and any feedback provided
will be presented as grouped data. Your kind participation is greatly
appreciated.
Page 87 of 92
PART A : GENERAL
INSTRUCTION: Please mark ( ) at relevant boxes to indicate your
answer.
1.
2.
3.
My gender is:
Male
Female
My age group is between:

18 - 25
46 65
26 35
> 65
36 45
Employed
Others
I am:
Self-employed
4.
Do you have any account or facility with us?

Yes
No
5.
How often do you perform your transaction(s)?

Everyday
Once a month
Occassionally
Whenever necessary
6.
Where do you usually perform your banking needs?

Counter
Self service machines
PART B: COUNTER SERVICE

answer.
7.
How long have you waited to be served? (answer in minutes)

Within 5
Within 6 - to10
Within 16 to 20
Over 20
Within 11 - 15
8.
What type of transaction do you perform at the counter?

Deposit / Withdrawal
Remittances
Card Replacement
Product Enquiry / Application
Open Account
Other services
9.
Did the staff smile, greet and handle your request professionally?
Yes
No (Please provide comment in Part D)
10.
Are you well informed of the banks products, prices and promotions by bank
staff?
Yes
11.
Would you recommend your families and friends?

Yes
Page 88 of 92
Please circle ONLY one answer for the following questions to indicate your
satisfaction level:
12.
How do you rate the staff service level in terms of response and efficiency?
[1] Poor
[2] Fair
[3] Average
[4] Good
[5] Excellent
13.
How do you rate the availability of banks printed materials and information
leaflets?
[1] Poor
[2] Fair
[3] Average
[4] Good
[5] Excellent
14.
How do you rate the price of the services charged over the counter?
[1] Poor
[2] Fair
[3] Average
[4] Good
[5] Excellent
15.
How do you rate the personalized service offered to you?

[1] Poor
[2] Fair
[3] Average
[4] Good
16.
[5] Excellent
How do you rate the cleanliness and ambience in the banking hall?
[1] Poor
[2] Fair
[3] Average
[4] Good
[5] Excellent
PART C: SELF SERVICE BANKING

answer.
17.
Which machine do you use most often?

ATM
Cash Deposit
Cheque Deposit
Internet Banking
18.
Are the machines in service all the time?

Yes
19.
Are the machines user friendly?

Yes
20.
Are bank staff attentive to my problems encountered by resolving it fast?

Yes
21.
Would you recommend your families and friends to use the self service
banking?
Yes
Page 89 of 92
Please circle ONLY one answer for the following questions:

22.
How do you rate the level of friendliness of the self service banking
machines?
[1] Poor
[2] Fair
[3] Average
[4] Good
[5] Excellent
23.
How do you rate the response and efficiency of the self service banking
machines?
[1] Poor
[2] Fair
[3] Average
[4] Good
[5] Excellent
24.
How do you rate your confidence level when using the machines?
[1] Poor
[2] Fair
[3] Average
[4] Good
[5] Excellent
25.
How do you rate the printing quality of acknowledgement receipt from ATM,
Cash Deposit and Cheque Deposit Machine?
[1] Poor
[2] Fair
[3] Average
[4] Good
[5] Excellent
26.
How do you rate the cleanliness and ambience of the self service banking
lobby?
[1] Poor
[2] Fair
[3] Average
[4] Good
[5] Excellent
PART D: COMMENTS/SUGGESTIONS
.Comments/suggestions to help us improve in order to serve you better.
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
THANK YOU
Page 90 of 92
AppendixB: Permission letter to conduct survey
Page 91 of 92
Appendix C: Approval letter to conduct survey
Page 92 of 92

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DETERMINANTS OF CUSTOMERS SATISFACTION IN

BANKING SERVICES AND FACILITIES AT

JANET POH SIEW PHING

MASTER OF BUSINESS ADMINISTRATION

Determinants of Customers Satisfaction In Banking Services

Janet Poh Siew Phing

A research project submitted in partial fulfillment of the

The main objective of this study is to identify the determinants of customers

As a banking service provider, SERVQUAL is adopted to measure and

Lastly, to the cooperative respondents who sincerely participate in the survey, I

Background of the study

Statement of the problem

Significance of the study

Limitations of the study

1.10.2 Self Service Banking

1.10.1 HLB, MYY

CHAPTER 2: REVIEW OF LITERATURE

Service Quality in Customer Service

Service Quality in Self Service Banking

Relationship between service quality and customer

Relationship among customer satisfaction and

customer loyalty and customer retention

Relationship between cleanliness and ambience and

Relationship between relationship marketing and

Relationship between price of services and customer

Relationship between perceived value and customer

Theoretical Framework Proposed

Sampling Design and Population

Data Scale of Measurement ..

Analysis of demographic data

Analysis of Counter Service

Analysis of Self Service Banking

CHAPTER 5: SUMMARY, CONCLUSION AND

Appendix B: Permission letter to conduct survey

Appendix C: Approval letter to conduct survey

Table 2: Current self service banking machines offered

Table 4: Respondents by Age

Table 5: Respondents by Employment Type .

Table 6: Respondents with or without Facility

Table 7: Respondents by Transaction Frequency

Table 8: Respondents by Transaction Type .

Table 9: Descriptive Analysis on Counter Service

Table 10: Descriptive Analysis on Service Service Banking

Table 11: Customer Satisfaction Statistics

Table 12: Summary of Hypothesis Tested

Table 13: Reliability Analysis on Counter Service

Table 14: Reliability Analysis on Self Service Banking Machines .

Table 16: Correlation Test on Self Service Banking Terminal

Figure 2: Conceptual Framework of research study

Figure 4: Customer Loyalty

Figure 6: Theoretical Framework Proposed

Figure 7: Waiting Time for Counter Service

Figure 3: SERVQUAL Model

Figure 5: Customer Satisfaction and contributors

Figure 8: Types of Transaction Performed At Counter

Figure 10: Type of Self Service Banking facility used by

Figure 11: Service Quality on Self Service Banking

Currently technological changes are causing banks to rethink their strategies