Impact of customer satisfaction on commercial banks in Nepal: Insights from a survey-based study

  • 189 Views
  • 76 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

This study investigates how various service quality dimensions affect customer satisfaction in commercial banks across Nepal. The objective of this study is to examine the impact of key service quality dimensions (responsiveness, empathy, assurance, communication, and overall service quality) on customer satisfaction in commercial banks in Nepal. A survey-based quantitative approach was employed, collecting data from 399 customers in Nepal. The study utilizes multiple linear regression analysis and hypothesis testing to determine the relationship between these factors and customer satisfaction. The results indicate that communication, assurance, and service quality positively influence customer satisfaction, with a moderate mean score of 2.317949 out of 5 and moderate variability (SD = 0.479612). These three factors are key contributors, accounting for 41.5% of the variation in satisfaction, whereas empathy and responsiveness have weaker or insignificant impacts. The study concludes that enhancing communication and service quality is crucial for improving customer satisfaction, which is essential for sustainable growth in Nepal’s financial sector.

view full abstract hide full abstract
    • Table 1. Customer satisfaction metrics and response distribution
    • Table 2. Service quality dimensions and customer responses
    • Table 3. Correlation matrix of customer satisfaction and service quality dimensions
    • Table 4. Descriptive statistics for customer satisfaction and service quality dimensions
    • Table 5. Regression analysis of factors influencing customer satisfaction
    • Conceptualization
      Yadav Mani Upadhyaya, Shiva Raj Ghimire, Nirdosh Agarwal, Khom Raj Kharel
    • Data curation
      Yadav Mani Upadhyaya, Shiva Raj Ghimire
    • Formal Analysis
      Yadav Mani Upadhyaya, Shiva Raj Ghimire, Khom Raj Kharel
    • Investigation
      Yadav Mani Upadhyaya, Nirdosh Agarwal
    • Methodology
      Yadav Mani Upadhyaya, Shiva Raj Ghimire
    • Project administration
      Yadav Mani Upadhyaya
    • Software
      Yadav Mani Upadhyaya, Nirdosh Agarwal, Khom Raj Kharel
    • Visualization
      Yadav Mani Upadhyaya, Nirdosh Agarwal, Khom Raj Kharel
    • Writing – original draft
      Yadav Mani Upadhyaya, Shiva Raj Ghimire, Nirdosh Agarwal, Khom Raj Kharel
    • Writing – review & editing
      Yadav Mani Upadhyaya, Shiva Raj Ghimire, Nirdosh Agarwal
    • Funding acquisition
      Shiva Raj Ghimire, Nirdosh Agarwal, Khom Raj Kharel
    • Resources
      Shiva Raj Ghimire, Nirdosh Agarwal, Khom Raj Kharel
    • Supervision
      Shiva Raj Ghimire, Nirdosh Agarwal, Khom Raj Kharel
    • Validation
      Shiva Raj Ghimire, Nirdosh Agarwal, Khom Raj Kharel