Project Abstract

Project Overview

<p> </p><p><b>ONE</b></p><p><b></b></p><b><p><b>1.0<br>INTRODUCTION</b></p><p><b></b></p><b><p><b>1.1<br>BACKGROUND OF STUDY</b></p><p><b></b></p><b><p>In<br>the business environment today, loyal customers are considered to be the pivot<br>behind the success of many service businesses especially the banking sector of<br>Nigeria; this goes to other organization under the service sector like the<br>insurance, hospitality industry etc.</p><p>The<br>assumption is that with customer satisfaction; loyalty, retention and<br>profitability will automatically follow. The current thinking is that the<br>relationship between satisfaction and loyalty is more complex than was<br>originally proposed, however. As commoditization of many service offerings<br>continues, new sources of competitive differentiation/advantage will come from<br>focusing on the management of customer experiences. Because loyalty is so very<br>important to the survival and profitable growth of a company, measuring it<br>becomes all the more important. Existing approaches to the measurement of<br>loyalty have not proved to be very effective in this &nbsp; task.</p><p>For any organization, loyalty is considered as the key of<br>success and which ultimately becomes the reason for the survival of that<br>organization (Pullman. and Gross, 2003;Rahman, 2006). And a minor change in the<br>number of loyal customers affects the growth and the over-all profitability of<br>the organization ( Heskett et al., 2000;Rahman, 2006)</p><p>&nbsp;The ultimate outcome of creating the loyalty is something<br>that is to develop the brand, advocates that brand and repeat patronage for the<br>brand. It has been generally identified that customer achieves low level of<br>satisfaction in this sector. Hence the quality of service and customer<br>satisfaction can become frontier to attain the competitive advantage in the<br>banking sector (Rayport et al. (2004); Jones and Farquhar (2003); Knights et<br>al. (2004);Rahman (2006)</p><p>Realizing customers<br>as experience creators, organizations should find out various ways to enhance<br>customer experience. Knowing about customer experiences, whether favourable or<br>otherwise, could help the firms in achieving customer satisfaction, and with<br>satisfaction come loyalty, retention and profitability (Rahman,<br>2006). The customer as<br>an experience creator could also assist the firm in developing and customising<br>its offerings; tailored according to the nature of the customer.</p><p>Satisfied and loyal<br>customers tend to spend more money and purchase repeatedly, are less price<br>sensitive, have higher intention to refer others, and are more economical to<br>maintain (Duncan and Moriaty, 2008;Reichheld and Sasser, 2000;Yin, 2009).</p><p>Hence, loyal<br>customers are vital to the survival and success of many service industries,<br>especially in the hospitality, insurance, and financial sectors (Rahman,<br>2005). A slight change in<br>the percentage of loyal customers is said to bring about a huge change in<br>profits and also the overall value of the company (Rahman, 2005). </p><p>Hence, loyal customers<br>are vital to the survival and success of many service industries, especially in<br>the hospitality, insurance, and financial sectors (Rahman, 2005). A slight<br>change in the percentage of loyal customers is said to bring about a huge<br>change in profits and also the overall value of the company (Rahman,<br>2005). Marketers are<br>hence eager to understand the key to building strong, long-lasting customer<br>relationships. </p><p><b>1.2 &nbsp; STATEMENT OF THE PROBLEM:</b></p><p>The<br>study on customer experience management and loyalty in the banking industry came<br>about as a result of challenges and obstacle an organization face while trying<br>to impact on the delivery of a positive customer experience. &nbsp;Finally, most of the research has been carried<br>out on customer experience management but not even a single research has been<br>done on customer experience management and loyalty in the b banking industry.</p><p><b>1.3 &nbsp; &nbsp; <br></b><b>AIMS<br>AND OBJECTIVES OF STUDY</b></p><p><b></b></p><b><p>The<br>main aim of the research work is to determine customer experience management<br>and loyalty in the banking industry. Other specific objectives of the study<br>include:</p><p>1 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <br>to determine the challenges and obstacle<br>an organization face while trying to impact on the delivery of a positive<br>customer experience.</p><p>2 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <br>to determine the impact of current<br>customer effort.</p><p>3 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <br>to explore the result of customer<br>experience initiative measure.</p><p>4 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <br>to determine how financial institution prioritize<br>customer experience efforts within the organization.</p><p>5 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <br>to proffer possible solution on the<br>management and satisfaction of customers.</p><p><b>&nbsp;</b></p><p><b></b></p><b><p><b>1.4 &nbsp; &nbsp; &nbsp;</b><b>RESEARCH QUESTIONS</b></p><p><b></b></p><b><p>1 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <br>What are the challenges and obstacle an<br>organization face while trying to impact on the delivery of a positive customer<br>experience?</p><p>2 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <br>What is the impact of current customer<br>experience efforts?</p><p>3 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <br>How is the result of customer experience<br>initiatives measured?</p><p>4 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <br>Where does financial institution<br>priorotise customer experience efforts within the organization?</p><p>5 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <br>What are the solution to the management<br>and satisfaction of customers?</p><p><b>&nbsp; </b></p><p><b></b></p><b><p><b>&nbsp;</b></p><p><b></b></p><b><p><b>&nbsp;</b></p><p><b></b></p><b><p><b>&nbsp;</b></p><p><b></b></p><b><p><b>1.5 &nbsp; &nbsp; &nbsp;</b><b>STATEMENT OF RESEARCH HYPOTHESIS</b></p><p><b></b></p><b><p>H0: &nbsp; there is no significant relationship between customers’<br>experience management and customer loyalty in the banking industry.</p><p>H1: &nbsp; &nbsp; there is significant relationship<br>between customers’ experience management and customer loyalty in the banking<br>industry.<b></b></p><b><p><b></b></p><b><p><b>&nbsp;</b></p><p><b></b></p><b><p><b>1.6 &nbsp; &nbsp; &nbsp;</b><b>SIGNIFICANCE OF STUDY</b></p><p><b></b></p><b><p>The study on customer experience management and<br>loyalty in the banking industry will be an interesting one. The study will<br>enable the industry allow the consumer to engage with their bank on the<br>channels they prefer at the times they want to engage.</p><p><b>&nbsp;</b></p><p><b></b></p><b><p><b>1.7 &nbsp; &nbsp; &nbsp;</b><b>SCOPE OF STUDY</b></p><p><b></b></p><b><p>The study on customer experience management and<br>loyalty is limited to banking industry.</p><p><b>&nbsp;</b></p><p><b></b></p><b><p><b>1.8 &nbsp; &nbsp; &nbsp;</b><b>LIMITATION OF STUDY</b></p><p><b></b></p><b><p><b>Financial constraint</b>–<br>Insufficient fund tends to impede the efficiency of the researcher in sourcing<br>for the relevant materials, literature or information and in the process of<br>data collection (internet, questionnaire and interview).<b></b></p><b><p><b></b></p><b><p><b>Time constraint</b>–<br>The researcher will simultaneously engage in this study with other academic<br>work. This consequently will cut down on the time devoted for the research<br>work.</p><p><b>&nbsp;</b></p><p><b></b></p><b><p><b>1.9 &nbsp; &nbsp; &nbsp;</b><b>DEFINITION OF TERMS</b></p><p><b></b></p><b><p><b>Customer</b>A person who buys goods or services from a shop or<br>business.</p><p><b>Experience</b>knowledge or skill from doing,<br>seeing, or feeling things.</p><p><b>Management</b>The process of dealing with or<br>controlling things or people.</p><p><b>Loyalty</b>Faithfulness to commitments or<br>obligations. faithful adherence to a sovereign, government, leader, cause,<br>etc.</p><p><b>Banking Industry</b>This is financial intermediaries are party to a<br>transfer of funds from the ultimate saver to the ultimate user of funds.</p></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b> <br><p></p>