IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 10 NO. 4 2024
DOI: 10.56201/ijbfr.v10.no4.2024.pg25.38

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Customers Satisfaction Costs and Performance of Listed Deposit Money Banks in Nigeria

Chinedu Samuel Okereke & Okezie Stella Ogechukwu

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Abstract

The study examined the effect of customers’ satisfaction costs on the performance of listed deposit money banks in Nigeria. The ex-post facto research design was employed. Fourteen (14) listed deposit money banks listed on the Nigeria Exchange Group (NGX) for the period 2013 to 2022 formed the population of the study, while the sample size comprised of ten (10) deposit money banks purposively selected. The data was sourced from annual report of the selected listed banks and Nigerian Exchange Group fact book and were analyzed using multiple regression analysis (Panel Least Squares Regression using random effects as the preferred model). The findings of the study revealed that customers satisfaction cost had a significant effect on performance of listed deposit money banks in Nigeria as measured by the; Resolved complaint cost, Received complaint cost and the Unresolved complaint escalated to CBN cost which significantly affected profit after tax (PAT) of listed deposit money banks in Nigeria. Pending complaint cost had no significant effect on profit after tax (PAT) of listed deposit money banks in Nigeria. Based on the findings, the study recommends that banks should consider as important these costs and should be regularly taken into consideration by boards of directors of banks when making policies on corporate relations, risk management and corporate governance in order to safeguard their reputation, goodwill and eventually enhance profit after tax having satisfied their customers.

keywords:

Customer’s satisfaction, Received complaint, Unresolved complaint, Resolved Complaint, Performance

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