Determining the Level of Service Quality Provided by Listed Commercial Banks in Kenya

Abstract

Marketing strategy remains a critical driver of customer satisfaction and competitiveness in the banking industry globally. Despite this, commercial banks in Kenya are yet to attain required customer satisfaction levels. This is evident in the low average customer satisfaction index (CSI) which dropped from 67% in 2011 with a downward trend to 60% in 2015 way below the Kenyan banking industry benchmark of 77%. The main purpose of this study was to determine the level of service quality provided by commercial banks in Kenya. The target population was 1,072,500 customers of commercial bank customers in Nairobi. A sample of 384 was drawn using proportionate stratified sampling technique to constitute 242 retail, 81 business and 61 corporate customers. The results revealed that the level of service quality was relatively good (M = 4.00, SD = 0.32) in a scale of 1 to 5 meaning banks provide good service quality levels. Study concludes that banks provide satisfactory levels of service quality. Study recommends that aspects related to empathy construct of service quality dimension should be improved