EVALUATION OF CUSTOMER ORIENTATION AS A STRATEGY FOR ACHIEVING COMPETITIVE EDGE IN THE BANKING SECTOR.
(A CASE STUDY OF UNYOGBA MICRO FINANCE BANK, EJULE).
ABSTRACT
The study was carried out to determine “evaluation of customer orientation as a strategy for achieving competitive edge in the banking sector”. The study was significant in ensuring customer orientation that lead to effective and efficient customers’ relationship to achieve the aim and objective of the topic/study and hypotheses was formulated. This research was carried out using Uyogba Micro Finance Bank, Ejule as a sample. The main instrument used in the data collection were questionnaires and observations. Some literature books and magazines were also used for reviewing with data collected. These were analyzed by using simple percentage and tables (chi-square X2). It was discovered that the bank that adopt customer orientation edge higher level of customers patronage. Therefore it is highly recommended that, the management of Unyogba Micro Finance bank should embrace and appraise customers orientation to ensure better relationship within the customers and the bank officials.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
1.2 Statement of the Problems
1.3 Objectives of the Study
1.4 Research Hypotheses
1.5 Significance of the Study
1.6 Scope and Limitations of the Study
1.7 Operational Definition of Terms
1.8 Organization of Work
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Introduction
2.2 History and Evolution of Uynogba Micro Finance Bank
2.3 The Concept of Customer Orientation
2.4 Theoretical Frame Work
2.5 Stages in Evolution of Customer Orientation
2.6 Benefits of Customer Orientation to The Bank
2.7 Consumer Behaviour
2.8 Micro Finance Bank Services to Customers
2.9 Publicity as a Tool for Customer Orientation
2.11 References
CHAPTER THREE
RESEARCH METHOD
3.1 Introduction
3.2 Research Design
3.3 Area of the Study
3.4 Sources and Method of Data Collection
3.5 Population of the Study
3.6 Sample And Sampling Techniques
3.7 Method of Data Analysis
CHAPTER FOUR
DATA PRESENTATION AND INTERPRETATION OF RESULTS
4.1 Introduction
4.2 Data Presentation and Analysis
4.3 Test of Hypotheses
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Findings
5.2 Summary of the Study
5.3 Conclusion
5.4 Suggestions for Further Research
5.5 Recommendations
Bibliography
Appendix
LIST OF TABLES
Table 4.1.1: What is your age bracket?
Table 4.2.2: What is your sex?
Table 4.2.3: What is your marital status?
Table 4.2.4: What is your educational qualification?
Table 4.2.5: What is your monthly income?
Table 4.2.6: Respondents type of account with the bank.
Table 4.2.7: What sort of relation do you maintain with bank officials?
Table 4.2.8: Do you agree that customer satisfaction makes you to patronize your bank?
Table 4.2.9: Do you adopt marketing orientation in operating their bank?
Table 4.2.10: Respondents assessment of banker’s attitude towards customer orientation and satisfaction.
Table 4.2.11: Would you agree that competition influence him to adopt customer’s orientation and satisfaction?
Table 4.2.12: Do you agree that illegal deduction of money and charges could influence customer patronage to his bank?
Table 4.2.13: Do you believe that, if the bank service breeds dissonance, customer could leave for another bank?
Table 4.2.14: Do you agree that agreement of counter level of paper work and commendation affects his patronage?
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Customer’s orientation is the philosophy of business that believes markets must connect with customers in forming, engaging and even energizing them in the process. Most financial institutions and companies today centred their focus on balding customer’s relationship and not just product. For instance, a well packaged product that is not well established will not penetrate the market the only value your company financial institutions will ever create is the value that comes from the customer, the ones you have known and the ones you will have inn sure.
Business succeeds by getting, keeping and growing customers. Customers are the only reason you build factories, hire employees, and schedule meeting, lay filter-optic line or engaging in any business activity. Without customers, you don’t have a business.
Customer orientation is informative and educative for its objective to be actualised. In other words, it is known as perceived value. The determinant of the customer orientation perceived is based on cost and benefit of a particular product for instance, when a customer derived high level of benefit from a product, such customer will not be the monetary value.
The study therefore focuses on customer orientation as a strategy for achieving competitive edge in the banking sector. The study selected Unyogba Micro Finance Bank that have network to provide quality service to its numerous customers. The secret is centered on providing adequate information about the banking operation to its customers and the benefit achieved towards operating an account with the bank. Although, the bank rendered most of it service to civil servant and business men and women, the benefit a depositor is quick credit facilities to its customers at the rate of ten percentage. At moment, Ungba Micro Finance Bank is listed on the Nigeria stock exchange, because it satisfied the capitalisation requirement of the Central Bank of Nigeria. Invest in the micro finance bank to ensure safety for your investment value.
1.2 Statement of the Problems
Customer orientation practiced in Unogba Micro Finance Bank is faced with difficulties that needs to be resolved. Customer orientation and satisfaction in Nigeria, misappropriation of fund by management, right personnel to the right job, insensitivity to competitive environment. Influence of the apex authority like the central bank of Nigeria and also faced with problems like national deposit insurance commission and security exchange commission.
The excess changed and deduction of money by the commercial bank. The method of clearing cheque is still very slow to meet with the customers demand.
1.3 Objectives of the Study
The objectives of the study are based on the following:
i. To identify the major attributes and benefits that customer’s value accesses the ban and competitors performance on the different customers value against their rated importance.
ii. To examine how customers in a specific segment rated the bank performance against a specific major competition on an individual attributes or benefit overtime.
iii. To ascertain customer data base
iv. To know the bank strategy in attracting and retaining customers
v. Finally, to identify the customer compliance and possible solutions applied.
1.4 Research Hypotheses
Hypothesis One
Ho: The delay in the clearing of customer’s cheque cannot cause low patronage of the micro finance bank in Nigeria.
Hi: The delay in the clearing of customer’s cheque can cause low patronage of the micro finance bank in Nigeria.
Hypothesis Two
Ho: The arrangement of counter level of paper work and computation can decrease the number of customers patronizing micro finance bank in Nigeria.
Hi: The arrangement of counter level of paper work and computation cannot decrease the number of customers patronizing micro finance bank in Nigeria.
Hypothesis Three
Ho: The rated importance of the performance b customers in a specific segment is low and causes low patronage of customers.
Hi: The rated importance of the performance b customers in a specific segment is high and increase patronage of customers.
1.5 Significance of the Study
The present micro finance banks call for effective and efficient application of customer orientation which serves as a marketing strategy towards goal relegation. The importance of the study is to ensure the following:
Customer’s orientation leads to effective customer relationship (i.e. one to one relationship).
It enables micro finance bank in Nigeria to be more result orientated in terms of thinking customer always.
It enables customers to have value in transacting with the banks.
It enables the management of the micro finance bank in Nigeria to improve business planning and build a customer perceived value.
It helps to identify the bank strength and weakness in terms of provision of survives.
Customers orientation leads to high level of patronage which in turn result to increase in the volume of profit.
1.6 Scope of Study
The scope of this study is purely aimed at working into customer’s orientation as a strategy for achieving competitive edge in the banking sector. Therefore, Unyogba micro finance bank was selected as a case study of research work.
1.7 Operational Definition of Terms
Marketing: Is defines as the planning process of creating customers is the primary objective with the aim of making profit as the secondary objective. Therefore all marketing activities are centred on the creation of customers and profitability.
Customers: A customer is any person whether incorporate or individual who has some sort of account with the bank.
Bank: A bank is a firm, incorporated companies or individual undertaking banking business.
Strategy: Is defines as the mode of plan of action for the allocation scarce resources to gain a competitive advantage and to achieve an objective at an acceptable level of risk.
Company: Is a legal person or entity created by an association of a member of person’s who contribute common capital in allowance with law of the land for the propose of carrying on business.
Business: Is defines as the total human activities with economic significance undertaken with the primary purpose of customers creation and making profit for the owner of resources.
Account: An account with the bank is the business relationship expressed or implied arising by agreement with the customer. It shows debit and credit reflection, increase and decreases in the subject of the account.
Public Relation: Is an attempt by which information persuasion and adjustment of engineer public support, course, movement or institution.
Clearing House: Is the institutional frame work established and supervised by the Central Bank of Nigeria. The representative of the local bank meet to clear there inter-bank.
Target Market: Is a group within the market segment towards which all marketing activities will be directed.
Management: Is the co-ordination of resources through the process of planning, organising and directing in order to attain a stated objective. These resources involve the eight Ms of management which include money, manpower morale, material, machine, method, maintenance and measurement. .
1.8 Organization of Work
The research work is divided into five chapters. Chapter one, talks about the information, background of the study, statement of the problems, objectives of the study and definition of key terms. Chapter two focuses on the review of the related literature of the study and end of chapter references while chapter three discuss research methodology and design. Chapter four tackle data presentation and analysis and chapter five summaries the summary of the study, conclusion and recommendations.
