Customer Satisfaction of Islami Bank Bangladesh Limited– a Factor Analytic Approach

Thoughts on Economics
Vol. 20, No. 04

Customer Satisfaction of Islami Bank Bangladesh Limited– A Factor Analytic Approach

Muhammad Mahbubur Rahman(
Mohammad Yasir Rabbi((

[Abstract: With the opening-up of the economy, business activities are getting more and more competitive and consequently focusing more on the satisfaction of customers by providing tailor made products and rendering services. In the age of globalization and privatization, financial institutions, mainly banks, have been facing intense rivalry from both local and foreign COREs (Competitors, Opponents, Rivals and Enemies). To survive in this competitive environment, banks especially private banks realized the strategic importance of customer value and have been continuously structuring innovative and competitive products and services in order to enhance customer relationship. Private banks have been experiencing a phenomenal growth and have brought about a revolutionary change in the money market of Bangladesh. Among private commercial banks, Islami Bank Bangladesh Limited (IBBL) has been found to be the leader of the market with respect to the volume of transactions, profits, assets, market coverage etc. This dominance of IBBL in the market is attributed to the satisfaction of customers. In this context, the present study has been undertaken aiming at identifying the factors influencing the satisfaction of customers of IBBL by employing the sophisticated methodology – Factor Analysis. The study has considered 22 variables out of which, 12 variables are related to service quality, 5 variables to service features and 5 variables to future intentions. The study has finally found three most important successful factors such as personalized services, need based quality services and growth based competitive offers in order of their magnitudes, which are influencing Customer satisfaction of IBBL.]

Keywords: Customer Satisfaction, Banks, Services, Quality, Factor Analysis.

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