SERVICE QUALITY AND CUSTOMER SATISFACTION IN THE BANKING SECTOR IN NIGERIA

As the service industry becomes increasingly competitive, firms continuously look for ways to distinguish themselves from competitors. Service quality has attracted major attention from academic researches as well as marketers over the recent years due to its significant role in business performance and maintenance of customer loyalty. Recent growth in the service sector, banking included, has necessitated the need for service providers to understand customers‟ view of quality of service offered. Only then can they effectively optimize their returns from the service and stay ahead of competitors. This study sought to answer the following question; what are the customers‟ views, thoughts and feeling on the quality of service offered by commercial Banks in Nigeria? The study identified the possible expectations that customers have on the quality of service. The study adopted descriptive design with population of interest being customers of commercial banks in Abuja. Questionnaires were administered to customers from a total of 21 commercial banks located within Abuja. The findings from the study established a positive relationship between service quality and customer satisfaction in Nigerian banks. The conclusion from this study is that Customer satisfaction can lead to higher rates of retention of the Nigerian bank customers. Recommendations based on the findings were made to the Nigerian banks which if implemented will enhance the satisfaction of the bank customers as well as improve customer retention rates.