Page 102 - Contributed Paper Session (CPS) - Volume 8

CPS2205 Abdul Aziz A. Rahaman et al.
worldwide GNP from twenty first century (Kara et al., 2005). Within the huge
service sector, the banking sector is one of the most important entities. Quality
in service can be determined by the extent to which customers’ needs and
expectations can be satisfied (Banerjee, 2012). Moreover, the competitive
power and survival of a bank lies in the degree of its customer satisfaction
(Titko and Lace 2010). Banks therefore pay particular attention to customer
satisfaction, (Kattack and Rehman 2010). Similarly, Abdullah and Rozario
(2009) posit that the level of satisfaction may be influenced by various internal
and external factors.
Prabhakaran (2003) mentioned that the customer is the king. High
customer satisfaction is important in maintaining a loyal customer base. To
link the service quality, customer satisfaction and customer retention is
important (Kumar et al., 2009). Saif (2009) found that customer satisfaction is
the outcome of service quality. Researchers argued that service quality has
influence on customer satisfaction and generates customer retention (Chang
et al., 2009). Zeithaml et al., (2008) developed a conceptual model that
correlates Service Quality, Customer Satisfaction and Customer retention in
one frame. There is a positive relationship between the two constructs (Beerli
et al., 2004). The relationship between customer satisfaction and service
quality is debatable. Some researchers argued that service quality is the
antecedent of customer satisfaction, while others argued the opposite
relationship holds. This finding was further supported by Parasuraman et al.,
(1993). Most of the researchers found that service quality is the antecedent of
customer satisfaction (Athanassopoulos and Iliakopoulos, 2003; Lee and
Hwan, 2005; Naeem and Saif 2009; Balaji, 2009; Bedi, 2010; Kassim and
Abdullah, 2010; Kumar et al., 2010). Yee et al (2010) found that service quality
has a positive influence on customer satisfaction. A lot of factors that drive
customer retention, based on service quality in particular, need to be
examined in order to reliably measure it. Against this backdrop, this article
seeks to analyse customer among universal banks in Ghana using a
comparative analysis of both Structural Equation Modelling (SEM) and the
Ordinal logit model approaches.

2. Methodology
2.1 Sampling Technique and Sample Size
In selecting the sample of customers, stratified random sampling
technique was employed. The study sample consisted of 1,050 customers, of
twenty-nine (29) universal banks, drawn from across five cities of the various
regions comprising southern Ghana. Subsequently, a simple random sampling
technique was used to select customers. The study employed self-
administered questionnaires to collect data from the respondents. Moreover,
the variables in the questionnaire relating customer retention were in five

91 | I S I W S C 2 0 1 9