TITLE PAGE                                                                                                             i

APPROVAL PAGE                                                                                                   ii

CERTIFICATION                                                                                                     iii

DEDICATION                                                                                                           iv

ACKNOWLEDGEMENTS                                                                                       v

TABLE OF CONTENTS                                                                                           vi

LIST OF TABLES                                                                                                     vii

LIST OF FIGURES                                                                                                   viii

ABSTRACT                                                                                                               ix

CHAPTER ONE: INTRODUCTION                                                                   

Background of the Study                                                                                           1

Statement of the Problem                                                                                           17

Purpose of the Study                                                                                                  18

Significance of the Study                                                                                           18

Research Questions                                                                                                     20

Hypotheses                                                                                                                 21

Scope of the Study                                                                                                     21


Conceptual Framework                                                                               23

Historical Development of Nigerian Banking System                                                23

Commercial banks in Nigeria                                                                                      29

Customer Relationship Management                                                                          31

Customers’ Satisfaction                                                                                              43

Demographic variables of Customers: Age; Gender; and Education                         49

Conceptual relationship among the variables                                                              54

Theoretical Framework                                                                               

The Stakeholders’ Theory by R. Edward Freeman (1983)                                         55

Disconfirmation theory by Szymanski and Henard (2001)                                        58

The Gap-model by Parasuraman, Berry & Zeithaml (1988)                                       59

Related Empirical Studies                                                                                         63

Studies on CRM and Customer Satisfaction                                                             63

Studies on Influence of Demographic variables and customer satisfaction              72

Summary of Literature Reviewed                                                               76

CHAPTER THREE:METHODOLOGY                                                 

Design of the Study                                                                                                    79

Area of the Study                                                                                                       79

Population for the Study                                                                                            80

Sample and Sampling Techniques                                                                              80

Instrument for Data Collection                                                                                   81

Validation of the Instrument                                                                                      82

Reliability of the Instrument                                                                                       82

Method of Data Collection                                                                                         82

Method of Data Analysis                                                                                           83

CHAPTER FOUR: RESULTS                                                                  

Presentation of Data Analysis                                                                        84

Findings of the Study                                                                                      97

Discussion of Findings                                                                                               100

CHAPTER FIVE: DISCUSSION OF FINDINGS                                  

Restatement of the Problem                                                                                       106

Summary of Procedure Used                                                                                      107

Major Findings of the Findings                                                                                  108

Implications of the Study                                                                                           109

Conclusion                                                                                                                  110

Recommendations                                                                                                      110

Limitations of the Study                                                                                             111

Suggestion for Further Studies                                                                                   112

REFERENCES                                                                                113     


A: Instrument for Data Collection                                                                              129

B: Reliability Estimates                                                                                              135

C: Output                                                                                                                    143



  1. Mean Ratings and Standard Deviations of Respondents on the influence of technology infrastructure on customer satisfaction. 85
  2. Mean Ratings and Standard Deviations of Respondents on the influence of human analytics on customer satisfaction towards banking services. 86


  1. Mean Ratings and Standard Deviations of Respondents on influence of business architecture on customer satisfaction towards banking services. 87


  1. Mean Ratings and Standard Deviations of Respondents on influence of age on customer satisfaction towards banking services 88


  1. Mean Ratings and Standard Deviations of Respondents on influence of Gender on customer satisfaction towards banking services 89


  1. Mean Ratings and Standard Deviations of Respondents on influence of Educational qualification on customer satisfaction towards banking services 91


  1. Paired Sample t-test Analysis of the Significant Influence of Technology Infrastructure on Customer Satisfaction towards Banking Services 92


  1. Paired Sample t-test Analysis of the Significant Influence of Human Analytics on Customer Satisfaction towards Banking Services 93


  1. Paired Sample t-test Analysis of the Significant Influence of Business Architecture on Customer Satisfaction towards Banking Services 93


  1. ANOVA of the significant difference in satisfaction towards banking services among customers from different age groups 94


  1. Post Hoc Test of the comparison between the mean responses of respondents on satisfaction towards banking services among customers from different age groups95


  1. t-test analysis of the significant difference between the mean ratings of male and female teachers on customers’ satisfaction towards banking services 96


  1. ANOVA of the significant difference in satisfaction towards banking services among customers from different educational background 97



  1. Customer Relationship Model by Ruth & Crina (2006)                     39
  2. Conceptual Relationship among the Variables                                   55
  3. Stakeholders’ Theory                                                                          57
  4. Disconfirmation Theory Framework                                                   59
  5. Service Quality (SERVQUAL) Model                                              63


The study investigated the influence of customer relationship management practices of commercial banks on customers satisfaction in Edo State, Nigeria. Influence of demographic variable such as age, gender and education attainment of the customers were also investigated. To achieve the purpose of the study, six research questions were posed and six null hypotheses were tested at 0.05 level of significance. The population of the study comprised of all the commercial banks’ customer in Edo State. A sample of 600 customers which consisted of 336 male and 264 female customers were used for the study. The sample also consisted of 36 SSCE holders, 166 OND/NCE holders, 398 BSc/HND holders and age range of 15-30 years = 262, 31-45years =212 and 46years and above = 126. The sample was obtained using multi-stage sampling procedure. Instruments used for data collection were structured questionnaire named Bank Customer Relationship Management Questionnaire (BCRMQ) and Customer Satisfaction Measurement Scale (CSMS). The instruments were validated by three experts: two from the Department of Business Education, University of Nigeria, Nsukka and one expert from Measurement and Evaluation Unit of the Department of Science Education, University of Nigeria, Nsukka. The instruments were trial tested on 50 bank customers from Delta state who were not part of the study but had the same characteristics with the target respondents. The scores obtained from the trial testing were used to test for reliability using Cronbach Alpha statistics. The internal consistency estimates of the instrument yielded 0.83 and 0.91 for BCRMQ and CSMS respectively. The data collected were analyzed using mean and standard deviation to answer the research questions, t-test was used to test null hypotheses 1, 2, and 3, t-test statistics was used to test hypothesis 5. Hypotheses 4 and 6 were tested using One Way Analysis of Variance (ANOVA). Findings of the study revealed the following: technology infrastructure, age, gender, education attainment and human analytics have influence on customer satisfaction towards banking services; business architecture has no significance influence on customer satisfaction towards banking services, while demographic variables such as age, gender and educational attainment have influence on customer satisfaction towards banking services. The finding of the study also show that technological infrastructure, human analytics and business architecture have significant influences on customer satisfaction towards banking services. Further findings of the study show that there was a significant difference in satisfaction towards banking services among customers from different age groups; male and female customers differ significantly in their opinions on customers’ satisfaction towards banking services; and there was no significant difference in satisfaction towards banking services among customers from different educational background. Based on the findings, it was recommended that banks should: establish a central data warehouse for new and old data in order to facilitate the decision making process; organize the bank around the CRM in which each employee should work effectively as a team member to support each other; set up an ongoing dialogue between the customers and the employees to learn more about the customers’ interests, needs and priorities in order to share information among employees; and provide conducive physical environment for its customers by providing parking space, ensuring that their air condition is functional, providing means of reducing long queues in the banking hall among others. Some educational implication, suggestions for further studies and limitations were also highlighted



Background of the Study

The financial market is a major engine of economic growth and development in any nation.The financial market impacts directly and positively on the economy of the nation by providing financial resources through its intermediation process, for the financing of short, medium and long term projects (AL-Faki, 2007). Finance is one of the basic organic functions through which every nation or organization revolves, be it a profit or non-profit seeking organizations. Therefore the way the finance of a nation or organization is manageddetermines to a very large extent their survival and growth(Ajayi &Kwesiga, 2003). To facilitate financial transactions therefore, banks are provided.

Banks refer to financial institutions which serve as a store of money and other valuable items (Olokoyo, 2011).  A broader definition of bank refers to itas a financial institution that receives, collects, transfers, pays exchanges, lends, invests, or safeguards money for its customers (Oladejo & Oladipupo, 2011). This definition includes many other financial institutions such as finance companies, investment companies, investment banks, insurance companies, pension funds, security brokers and dealers, mortgage companies, real estate investment trusts and commercial banks. Hence bank is operationally defined as the most important savings, mobilization and financial resource allocation institution. These services make bank an important phenomenon in economic growth and development. In performing this services, bank has the potential, scope and prospects for mobilizing financial resources andallocating them to productive investments.Banking services are extremely important in a free market economy such as that found inadvanced economics of the world, including Britain, Canada, and the United State. Banks offer financial services to supply customers’ medium of exchange such as cash, cheque, checkingaccounts, credit cards, and to accept funds from depositors and lend it out to borrowers (Afolabi, 2004).This implies that banking services serve two primary purposes, first by supplying customers with the basic media of exchange (cash checking accounts, and credit cards). Banks play a key role in the way goods and services are purchased without which, goods could only be exchanged by barter (trading one good for another) which is extremely time consuming and inefficient.Secondly, by accepting money deposits from savers and lending the money to borrowers, banks encourage the flow of money for productive use and investments which will in turn allow the economy to grow.

The four types of banks that specialize in offering these basic banking servicesare commercial Banks, merchant banks, mortgage banks, savings and loans association, saving banks and credit union (Kamau, 2012). But the present study will focus on commercial banks. Commercial Bank is a specialized type of financial institution that deals in loans to commercial and industrial business (Olokoyo, 2011). It is owned by private investors, called stockholders or by companies called holding companies with the objective of making profit. The profits can either be paid out to bank stockholders or to the holding company in the form of dividends of the profits or can be retained to build capital (net worth).  The Central Bank of Nigeria (CBN, 2006) has the following banksas approved or licensed commercial banks in Nigeria:Access bank, Citibank, Diamond Bank, Ecobank, Enterprise Bank, Fidelity Bank, First bank, First City Monument Bank, Guaranty Trust Bank (GTB), Heritage Banking Company Limited, Key Stone Bank Ltd, Mainstream Bank, Skye bank Plc, Stanbic IBTC Bank Ltd, Standard Chartered Bank Nigeria Ltd, Sterling Bank Plc, Spring Bank Plc, Union Bank of Nigeria Plc, United banks for Africa Plc (UBA), Unity Bank Plc, Wema Bank Plc and Zenith bank.The activities of these commercial banks are regulated and closely monitored by the Federal Government of Nigeria through the Central Bank and other agencies, to protect the interest of the public. Thus, commercial banks are defined in the context of this study as financial institutions that accept or demand deposit, give loans and provide other financial services to the public.

In all these banks, the issue of customer is a common feature. Bank customer is a person in the habit of dealing in regular banking business (Naureen & Sahiwal, 2013). A bank customer in this context refers to an individual or a corporate account holder with any of the commercial banks in Nigeria.Thus, from above information, banking business is based on satisfying customers’ needs owing to the emergence of the digital economy. Customers are increasingly demanding more value, 24 hours availability with goods customized to their exact needs at less cost and as quickly as possible (Edemivwaye, 2015). To meet these demands by customers, banks need to develop innovative ways of creating value.

However, Customer confidence in commercial banks has been dampened due to various crises in the banking sector in Nigeria (Ademola, Olusegun & Kehinde (2013). Among these crises are the introduction of Structural Adjustment Programme (SAP) which changed significantly the way banking business was conducted with the licensing of many banks (Bello, 2005). These licensed banks tagged “New Generation Banks” redefined the operations of banking system. Such that competition was redefined through aggressive marketing, increase in employees’ welfare especially in the area of emolument, introduction of information technology that led to online real time banking and aggressive establishment of branchesso as to meet the needs of their customers and to show to the generality of public that their services are unique and better than the others.However, Ezeoha (2007) maintained that these services or branches established have not translated to customer satisfaction as customers experience human traffic while trying to access these services. This could destabilize customers and thereafter force them to open more than one account across the banking industry in order to satisfy their financial need.

Secondly, liquidation of banks has become a commonfeature in Nigeria leading to customers losing their deposits (Ademola, Olusegun & Kehinde (2013).  It was reported in the Nigerian Television Authority (2002) that a prominent Nigerian footballer, Austin Okocha who played in the English Premier League with Bolton Football Club lost US1,000,000 (One Million United States Dollars) in Savannah Bank which was one of the banks that was liquidated in Nigeria (Okocha, 2002). Okocha at that time mentioned that he had lost confidence in commercial banks in Nigeria. Thirdly, Ekwueme (2008) and Onyike (2012) are of the view that Nigerian bank reform and government regulation have madebanking industries open to more foreign and local competition through consolidation and globalization.The consolidation exercise was found t, increased the customers’ portfolio of the surviving banks thereby increasing the level of competition (Melodi, Olufayo & Gbadamosi, 2012).

Under this dispensation, marketing of bank services only through advertising and market drive could no longer help banks to retain customers as they defect at the slightest prompt to competitors, as most banks are now embarking on marketing campaign more in the area of customer loyalty through various promotion strategies.In the same vein, Awolusi (2012) asserts that consolidation and government regulations has led banks to face further deregulation, increasing competition, and continuously evolving customer demand and expectations in the work services. This could be easily observed from slow pace of work services resulting in long queues, leaving the banking hall stuffy, untidy and choking as the air conditioners are rendered ineffective. Owing to the problem of long queues in banks, Khong and Mahendiran (2006) asserts that when a customer is allowed to be on the queue for many hours individual will be discouraged and will like to look out for where customer service is faster.

Commercial banks in Edo State are not immune from this ugly situation. For instance,Osunde(2014)is of the view that bank customers within the state are still being treated with laxity and in most cases, the workers exhibit poor attitude to work.Most banks in Edo State, rather than being customer oriented, are product or even profit oriented.The banks in Edo State are competing more on products rather than on customers, and the market was replete with different kinds of products because their basic competitive strategy then continued to be product differentiation (Ajayi, 2005). At the extreme, they tend to become a chameleon in nature thereby changing from one service provision to the other. They most times tend to combine many services together relocating or establishing another branch so as to meet the needs of their customers and to show to the generality of public that their services are unique and better than the others. However, these services or branches established have not translated to customer satisfaction as customers’ experienced human traffic while trying to access these services.


Leave a comment

Open chat
How may we assist you please?
× How can I help you?