Since the customers' expectation form the bank products and services keep on varying, BML has strategized on product oriented to gain the actual satisfaction rather than the focused satisfaction. BML bank embraces product oriented since it has a promising customers' satisfaction trend. For the management to understand how their decision has influenced their customers' perception and satisfaction, research was conducted among 50 participants who are randomly selected BML customers. The digital questionnaires (see Appendix 1) were distributed through customers' emails together with a brief mail requesting them why and how to participate. The results gathered are then evaluated and presented using SPSS. The survey aims to determine the following hypothesis:
H1: The product orientation at BML has a positive effect on the bank's performance
Based on the survey conducted, the results collected shows that the customers were relatively satisfied with the services and products that they are being offered at the BML. Of all 50 participants, 20 of them were very satisfied, and 13 were somehow satisfied, this means that more than half of the customers get the full fulfillment of the services. The bank understands that customers require convenience on service delivery and flexibility (KALMAR, LUKACS, BARCZI, HAJOS, & ZEMAN, 2014), in that case, the BML have products that will satisfy the customers' expectation. The products orientation at BML is characterized by the latest application of technology and computerized operations which they apply all of their business processes to offer excellent customer services. BML banking product orientation is based on mobile banking, online electronics banking, and ATM service together with internet banking. Besides, BML has extensive market penetration through its 25 branches and 37 ATMs in the Maldives. The product orientation promotes accessibility and flexibility of the services to the customers who eventually promotes the positive performance of the bank.
H2: The customer satisfaction at BML has a positive effect on the bank's performance
The R score is .739 which shows that there is a high correlation between the two variables. There is a strong positive correlation which shows that customer bank performance rises with the satisfaction of customers. The R square score is 0.546 shows that customer satisfaction has a 54.6% effect on the bank performance. The linear regression line is as follows Bank performance = 2.441 + 1.238 (Customer satisfaction)
Through the research, it was established that the customer satisfaction had positive effects on BML bank. The notion is based on the high number of participants who expressed that they will refer someone to the BML, how the products meet their needs, the value of money based on the products and the overall rate of the products. Schellen (2014) and Schmundt (2018, May 30) acknowledge that, with the positive perceptions that the customer has towards the bank product orientation, they will tend to record high transaction rates that eventually stimulate the bank's performance.
H3: Management decision concerns retail files budget and default rates.
The product orientation at BML is based on the management decision to improve and introduce products and services that will make the bank counter its competitors. The clear and realistic decisions made on the products will influence the retail files budget and default rates. The management needs to make the decision that will ensure that the bank does not encounter bad debt and losses that will lead to its collapse. With products orientation, the customers will require flexible payment method and period that will ensure that they can oblige to their payments. Indeed, as added by Pilorge and Saiz (2010), having a proper technique to handle retail files budget and default rates, will promote the company financial position and therefore be able to sustain many of its operations and expand its scope of operations.
KALMAR, P., LUKACS, J., BARCZI, J., HAJOS, L., & ZEMAN, Z. (2014). Bank Services and Product Marketing Controlling: Applying Multivariate Method for Customer Satisfaction Variance Analysis. International Journal of Engineering.
Pilorge, P., & Saiz, B. (2010). Understanding Customer Behavior in Retail Banking: The Impact of Credit Crisis across Europe. ERNST & Young.
PWC. (2014). Retail Banking 2020 Evolution or Revolution? PWC Network.
Schellen, T. (2014). BANKING IN LEBANON (179). Executive Magazine.
Schmundt, W. (2018, May 30). Customer Loyalty in Retail Banking: Global Edition 2013. Retrieved from https://www.bain.com/insights/customer-loyalty-in-retail-banking-2013/
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