EFFECT OF THE DETERMINANTS OF CUSTOMERS’ SATISFACTION ON RETAIL BANKING IN DEVELOPING ECONOMIES: A STUDY OF UNITED BANK FOR AFRICA

Abstract

 Understanding the requirements of customers and striving to achieve their satisfaction is not an end in its self since it is only one side of the coin and working to maintain and retain them for continuous loyalty is another issue, as such, the objective of this study is to critically assessed the determinants of customers’ satisfaction and patronage in financial retail banking, with particular reference to United Bank of Africa, Mozambique. A targeted sample size of 334 respondents was sampled using the stratified sampling technique. The statistical methods of measurements used in this research were frequency distributions, percentages, while multiple regression analysis was used to test for the hypothesis. The findings of the study are that: there are significant factors that can influence customer patronage in retail banking; there are significant variables that can affects customer satisfaction in retail banking products. We also found that competitive environment will not significantly affects customer satisfaction in retail banking products and the nature of patronage in terms of seasonality significantly influences customer satisfaction in retail banking product. the study recommended that due to increasing stiffer competition within the bank in Mozambique. Banks should adopt better strategies through gathering market intelligence reports in other to increase their volume of patronage and that it is imperative that UBA Mozambique should maintains the high effective service on how to reduce transactions cost in other to have a good Return on Investment (ROI) which would be the ultimate indicator to remain competitive. The bank will also require effective training in excellent service delivery as a life style. Also develop the right attitude necessary for excellent service delivery.