ALTERNATIVE DELIVERY CHANNELS OF BANK SERVICES AND CUSTOMER LOYALTY IN SELECTED BANKS IN ASABA DELTA STATE

Author: NDUGBE Emeka

Abstract

The alternative service delivery channels that were focused on in this study are; automated teller machine, online banking, point of sales and mobile banking as it influences customer loyalty. This study examined the effect of alternative service delivery channels on customer loyalty in the Nigerian banking industry. Stratified random sampling technique was applied at picking the sample. The study made use of a sample size of 242 employees from selected banks operating in Asaba metropolis Delta State, Nigeria. Cross sectional survey research design method was adopted for this study. Data were analyzed using descriptive statistics and multiple regression analysis. In all four hypothesis tested in this study, the p-value were less than 0.05 thus the null hypothesis were rejected. This implies that there exists a very significant relationship between the availability of alternative delivery channels of bank services and customer loyalty. The study concluded that; customers will use different service delivery systems depending on their assessment of each channel and how it contributes to the overall service offering. Therefore, banks can tap into this opportunity by making ATM’s, online platforms, POS and mobile banking applications available at all time, so as to reduce queue time in the banking hall and give customers convenience and control over banking services. The study therefore, recommend that effective co-operation should be developed among banks as the value of internet banking is increased by linking one activity with other both within and outside suppliers, channels and customers. Furthermore, a better collaboration and integration between the Internet Service Providers (ISP) and the banks is advised to achieve better quality control and accessibility.

Supervisor: Dr. A.P. Olannye