Importance of Customer Satisfaction in a Community Bank

2016 ◽  
Vol 7 (4) ◽  
pp. 56-73 ◽  
Author(s):  
Somjit Barat
Keyword(s):  
Customer Satisfaction ◽  
Economic Downturn ◽  
Target Market ◽  
Human Being ◽  
Community Banks ◽  
Community Bank ◽  
Financial Position ◽  
Service Areas ◽  
Better Than

It is sometimes argued that bigger is better. However, that is not always the case. Smaller, community banks are the lifeline of the towns that span the country. Community banks, where a customer is considered a ‘human being', understand their local target market better than their larger counterparts, where the customer is just a ‘number'. Moreover, the image of the larger banks has been considerably tarnished because of the recent economic downturn. This research can also help community banks compete with larger banks in niche service areas. In order to investigate whether the bank's customers 1) were satisfied with the bank's products and with the image of the bank 2) felt welcome and 3) had any concerns about the bank's (financial) position during difficult economic times, the author found that customer responses are mixed on these issues. Interesting implications and ideas for further research also emanate from the current study.

An Exploratory Study of Customer Satisfaction in a Community Bank

2012 ◽  
Vol 3 (3) ◽  
pp. 15-32
Author(s):  
Somjit Barat ◽  
John E. Spillan
Keyword(s):  
Customer Service ◽  
Consumer Satisfaction ◽  
Business Environment ◽  
Community Banks ◽  
Community Bank ◽  
Financial Position ◽  
Bank Deposits ◽  
Service Areas ◽  
Banking Business ◽  
High Level

In a competitive business environment, delivering high level of customer service is critical. Investigating this aspect further, this paper focuses on the physical and service attributes of consumer satisfaction in the banking business, and takes a fresh look at how community banks can compete with larger banks in niche service areas. The goal of the authors’ research is to find out whether the customers 1) were satisfied with every visit to the branch; 2) felt welcome when they came to the branch; 3.) considered the bank’s products substantial for their needs; 4) were satisfied with the image of the bank and 5) had any concerns about their bank deposits and about the bank’s (financial) position during difficult economic times. The findings indicate that customer responses are mixed on these issues, which make the banking industry strive to improve the service offerings. Interesting implications and ideas for further research also emanate from the current study.

scholarly journals Diversification and Community Bank Performance during a Financial Crisis

2016 ◽  
Vol 3 (4) ◽  
pp. 1 ◽  
Author(s):  
Kathy Estes
Keyword(s):  
Financial Crisis ◽  
Economies Of Scale ◽  
Economic Downturn ◽  
Community Banks ◽  
Community Bank ◽  
Diversification Strategies ◽  
Multiple Regression Models ◽  
Recent Financial Crisis ◽  
The Impact ◽  
The Relationship

<p><em>Many U.S. banks failed or performed poorly during the recent financial crisis.  Although the costliest failures were large institutions, the majority of failures were community banks (less than $1 billion in total assets).  Community banks, which are considered instrumental in small business lending and employment growth, face different risks and challenges than their larger counterparts, including a lack of economies of scale and scope and exclusion from “too-big-to-fail” status.  These challenges, coupled with the recent failures, motivate research into potential strategies managers can use to improve performance.  This study examined the relationship between three potential diversification strategies and community bank risk-adjusted performance from 2007 to 2011.  Understanding these relationships could improve management’s decision-making, allowing them to choose risk-mitigating strategies during a severe economic downturn.  Herfindahl-Hirschman Indexes (HHIs) were calculated as proxies for geographic, activity, and asset diversification.  Multiple regression models for each of the five years were used to calculate the impact of diversification variables on risk-adjusted ROA.  The results show that diversification in all areas is directly related to performance; however, only the asset diversification relationship is significant.  To the extent possible for community banks, diversification may improve risk-adjusted performance.</em></p>

scholarly journals Diversification and Community Bank Performance during a Financial Crisis

2014 ◽  
Vol 3 (4) ◽  
pp. 01-40
Author(s):  
Kathy Estes
Keyword(s):  
Financial Crisis ◽  
Economies Of Scale ◽  
Economic Downturn ◽  
Community Banks ◽  
Community Bank ◽  
Diversification Strategies ◽  
Multiple Regression Models ◽  
Recent Financial Crisis ◽  
The Impact ◽  
The Relationship

Many U.S. banks failed or performed poorly during the recent financial crisis.  Although the costliest failures were large institutions, the majority of failures were community banks (less than $1 billion in total assets).  Community banks, which are considered instrumental in small business lending and employment growth, face different risks and challenges than their larger counterparts, including a lack of economies of scale and scope and exclusion from “too-big-to-fail” status.  These challenges, coupled with the recent failures, motivate research into potential strategies managers can use to improve performance.  This study examined the relationship between three potential diversification strategies and community bank risk-adjusted performance from 2007 to 2011.  Understanding these relationships could improve management’s decision-making, allowing them to choose risk-mitigating strategies during a severe economic downturn.  Herfindahl-Hirschman Indexes (HHIs) were calculated as proxies for geographic, activity, and asset diversification.  Multiple regression models for each of the five years were used to calculate the impact of diversification variables on risk-adjusted ROA.  The results show that diversification in all areas is directly related to performance; however, only the asset diversification relationship is significant.  To the extent possible for community banks, diversification may improve risk-adjusted performance.

An Exploratory Study of Customer Satisfaction in a Community Bank

2014 ◽  
pp. 111-127
Author(s):  
Somjit Barat ◽  
John E. Spillan
Keyword(s):  
Customer Service ◽  
Exploratory Study ◽  
Consumer Satisfaction ◽  
Business Environment ◽  
Community Banks ◽  
Community Bank ◽  
Bank Deposits ◽  
Service Areas ◽  
Banking Business ◽  
High Level

In a competitive business environment, delivering high level of customer service is critical. Investigating this aspect further, the current chapter focuses on the physical and service attributes of consumer satisfaction in the banking business, and takes a fresh look at how community banks can compete with larger banks in niche service areas. The goal of the research is to find out whether the customers: 1) were satisfied with every visit to the branch; 2) felt welcome when they came to the branch; 3) considered the bank’s products substantial for their needs; 4) were satisfied with the image of the bank; and 5) had any concerns about their bank deposits and about the bank’s (financial) position during difficult economic times. The findings indicate that customer responses are mixed on these issues. Interesting implications and ideas for further research also emanate from the current study.

scholarly journals Customers’ perception of restaurant service quality : evidence from Malaysia

2009 ◽  
Vol 6 (1) ◽  
pp. 33
Author(s):  
Karen Meng Koon Kueh ◽  
Boo Ho Voon ◽  
Lois Unggah ◽  
Raymond Chali
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Local Food ◽  
Ethnic Background ◽  
Food Variety ◽  
Quality Evidence ◽  
Customer Satisfaction And Loyalty ◽  
Better Than

Restaurant plays a key role in attracting tourists and hence contributes significantly to a country’s economy. Restaurant service quality should therefore be well managed and sustained to ensure continuous and increased patronage. In this respect, the determinants and consequences of restaurant service quality need to be well understood. This paper presents the customers’ perception of restaurant service quality for a sample of 342 restaurant customers in Malaysia. The results showed that customers were generally satisfied with the service quality, price and variety of food. Reliability received the highest ratings followed by tangibles and responsiveness. Restaurants serving Western cuisine were rated better than the restaurants serving local food. Customer-perceived restaurant service quality was significantly correlated with the customer satisfaction and loyalty. Age and ethnic background did not affect perception of foodservice quality whereas gender influenced perceptions of food variety and overall satisfaction.

Developing Global Supply Chain Manager for Business Expansion

2018 ◽  
pp. 5327-5334
Author(s):  
Puspita Wulansari ◽  
Yudi Fernando
Keyword(s):  
Supply Chain ◽  
Customer Satisfaction ◽  
International Business ◽  
Cost Efficiency ◽  
Global Supply Chain ◽  
Global Competition ◽  
Supply Chain Performance ◽  
Chain Processes ◽  
Better Than

Global competition has forces companies to continuously innovate by frequently asses and improve their supply chain processes, flexibility and fast delivery as effectiveness required in each supply chain processes. This is to ensure cost efficiency, faster delivery and in the end would lead to customer satisfaction and perform better than competitors. To be able to perform better among competitors and improving firms supply chain performance, firms need the talents who able to manage global resources effectively and understand culture, suppliers/ workers attitude and comply with global regulations. Success implementation of global supply chain has linked with talents capability to maximize manage global resources. The aim of this chapter is to discuss the competency needed of global supply chain managers to support international business expansion.

scholarly journals Internal Customers and Internal Suppliers

1996 ◽  
Vol 33 (3) ◽  
pp. 268-280 ◽  
Author(s):  
John R. Hauser ◽  
Duncan I. Simester ◽  
Birger Wernerfelt
Keyword(s):  
Customer Satisfaction ◽  
Market Orientation ◽  
Target Market ◽  
Incentive System ◽  
Incentive Systems ◽  
Market Outcomes ◽  
Internal Customer ◽  
Internal Customers ◽  
Profit Centers

To push a customer and market orientation deep into the organization, many firms have adopted systems by which internal customers evaluate internal suppliers. The internal supplier receives a larger bonus for a higher evaluation. The authors examine two internal customer-internal supplier incentive systems. In one system, the internal customer provides the evaluation implicitly by selecting the percentage of its bonus that is based on market outcomes (e.g., a combination of net sales and customer satisfaction if these measures can be tied to incremental profits). The internal supplier's reward is based on the percentage that the internal customer chooses. In the second system, the internal customer selects target market outcomes, and the internal supplier is rewarded on the basis of the target. In each incentive system, some risk is transferred from the firm to the employees, and the firm must pay for this; but in return, the firm need not observe either the internal supplier's or the internal customer's actions. The incentive systems are robust even if the firm guesses wrongly about what employees perceive as costly and about how employee actions affect profit. The authors discuss how these systems relate to internal customer satisfaction systems and profit centers.

Realising Value from Absorptive Capacity

2018 ◽  
Vol 17 (01) ◽  
pp. 1850011
Author(s):  
Ronald Eastburn
Keyword(s):  
Absorptive Capacity ◽  
Dimensional Structure ◽  
Community Banks ◽  
Innovative Performance ◽  
Future Studies ◽  
Community Bank ◽  
Knowledge Based ◽  
Formal Mechanism ◽  
Improved Performance ◽  
Insight Into

To gain insight into how successful community banks are continuously “adaptive” to environmental challenges, we examined the role absorptive capacity (ACAP) plays in effecting improved performance. ACAP is the formal mechanism used for sensing and experimentation of knowledge — and as such is adopted to acquire, assimilate, transform and exploit knowledge so as to positively influence performance. Data obtained from a survey of 151 community bank CEOs confirmed that ACAP does indeed enhance performance. We also demonstrated the multi-dimensional structure of ACAP, the consequence of cultivating an active learning orientation and the relevance of potential cultural inhibitors on decision behaviour for innovative performance. Several directions for future studies utilising knowledge-based responses are proposed.

scholarly journals Fuzzy Optimization Modeling Approach for QFD-Based New Product Design

2014 ◽  
Vol 2014 ◽  
pp. 1-8 ◽  
Author(s):  
Zhihui Yang ◽  
Yizeng Chen
Keyword(s):  
Customer Satisfaction ◽  
Product Design ◽  
Quality Function Deployment ◽  
Programming Model ◽  
Fuzzy Optimization ◽  
New Product ◽  
Optimal Level ◽  
Fuzzy Linear Programming ◽  
Target Market ◽  
Functional Relationships

Quality function deployment (QFD) is a planning and problem-solving tool for translating customer requirements (CRs) into the engineering characteristics (ECs) of a product. Owing to the typical vagueness of functional relationships in a new product, product planning is becoming more difficult under uncertainties. To tackle the vagueness or imprecision in QFD, numerous scholars have applied the fuzzy set theory to QFD and proposed various fuzzy QFD models. In this study, a fuzzy linear programming model is developed to determine the optimal level of ECs, where the objective function is the overall customer satisfaction and the cost constraint is fuzzified. Finally, we use a software product design as a numerical example, which demonstrates that the proposed methodology can help the QFD team realize the overall customer satisfaction of new products catching up with or exceeding the competitors in the target market.

scholarly journals Social Currency and Technology: Analysis of Brazilian Social Currencies and the Palmas Case

2019 ◽  
Vol 17 (47) ◽  
pp. 136-155 ◽  
Author(s):  
Ariadne Scalfoni Rigo ◽  
Andréa Cardoso Ventura
Keyword(s):  
Local Development ◽  
Local Economy ◽  
Community Banks ◽  
Community Bank ◽  
Alternative Systems ◽  
The Social ◽  
Social Currency ◽  
Complementary Currencies ◽  
World Development ◽  
Development Crisis

There are plenty of organizations from private, public and nonpublic areas dealing with the current world development crisis. Some studies have shown alternative systems of use of social and complementary currencies. This paper aims to analyze the social currency used by one a development bank to improve local economy in a poor community in Brazil, using a specific social technology (ST) . We applied an ethnographic approach to the oldest and biggest Brazilian Community Bank (Banco Palmas) and highlight the Palmas social currency creation process and use. This research has allowed the identification of patterns that make possible the ST dissemination to other nonpublic organizations. The results have demonstrated that community banks and their social currencies can play a pervasive role regarding local development, as an effective economic solution technology to reach other disfavored groups. We argue that the reapplication process close social currency use to ST concept. 

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