Information Technology And Customer’s Loyalty In The Service Industry

Information Technology And Customer’s Loyalty In The Service Industry

Chapter One

Preface

Background To The Study

Information and Communication Technology has no mistrustfulness brought with it dramatic changes in the way businesses are conducted worldwide. In early 70’s, Smith had first noted that technological changes in form of new machines are always one of the three important causes of adding inflows. Neither has this notion changed, especially in the face of the recent infusion of technological advances nor electronic commerce into marketable conditioning( Abor, 2005).

The Banking assiduity of the 21st century operates in a complex and competitive terrain characterized by these changing conditions and largely changeable profitable climate. Information and Communication Technology is at the center of this global change for illustration, banks guests can pay for airline tickets and subscribe to original public immolations by transferring the plutocrat directly from their account, or pay for colorful goods and services by electronic transfers of credit to the merchandisers regard. As utmost people now enjoy phones, banks have also introduced mobile banking to feed for guests who are always on the move. Mobile banking allows individualities to check their account balances and make fund transfers using their mobile phones( Alu, 2000).

In a competitive, complex and dynamic terrain of the banking assiduity, the veritably slight differences which live in fiscal services and products together with an decreasingly demanding client have led to a great metamorphosis in the assiduity. The traditional product- acquainted bank is getting decreasingly client- acquainted in agreement with the introductory principles of relationship marketing, which focuses on client fidelity as its main thing. Bitner( 1990) considers that constant client- acquainted geste is a prerequisite for perfecting the perpetration of quality in services assiduity. Indeed, factors similar as fiscal products and distribution have attained analogous situations of development and technology and have therefore been relegated to a secondary part as reference points for distinguishing between one bank and another( Dowling and Uncle, 1997). Also, Easterby- smith, Thorper and Love( 2002) argued that, given that numerous fiscal offer original services. It can be stated that a client is doubtful to be over impressed by core product attributes when all companies are furnishing analogous immolations( Dabholker 1996).

Consequently, the agreement among scholars is that internet has unnaturally changed the rules of the game, with its impact felt across diligence( Acquah, 2006; Awad, 2000; Babaku and Boller, 1992). This raging surge is similar that banks are now being forced to introduce and snappily upgrade their front- end internet operations in order to be competitively applicable.

Bahia and Nantel( 2000), observed that indeed with the growing interest in the preface and development of internet banking, not important exploration seems to have been done on the perpetration of internet banking in the transition husbandry like Nigeria. For case, the banking assiduity in Nigeria has continued to suffer thorough complex changes in recent times, similar that banks now borrow several survival strategies in the face of keen competition. This arrival of Electronic Banking and its attendant myriads of product development have been prognosticated to bring about dramatic changes in both the distribution channel structure of retail banks and the general bank performance( Dulman, 2000).

Companies in utmost diligence assess and apply fidelity strategies and programs to make strong connections with their client. clearly, the proliferation and fragmentation of media make more delicate to attract and pierce new guests. This will encourage further companies to try to keep current guests( Bolton 1991; Dick and Base 1994; DeRuyter 1999).

Since guests aren’t frequently satisfied, the cost of attracting a new client is five times the cost of retaining an being client. Banks have to give client satisfaction, because it has advantages which are it keeps away guests from challengers; can give benefits of sustainability; reduce costs of blights and attracting new guests; increase positive word of mouth advertising and encourage uninterrupted fidelity and support to achieve this thing that’s only possible through proper marketing( Oliver, 1993; and Moore, 2001). client fidelity to association is subject that’s told terms and conditions of variety and diversity outside and outdoors of the association which the extent of their impacts vary according to type of association and from association to association( Zeithaml and Parasuraman, 2003).

fidelity can be defined as a client continuing to believe that your association’s product/ service offer is their stylish option. It stylish fulfills their value proposition whatever that may be. They take that offer whenever faced with that copping decision. client fidelity can be said to have passed if people choose to use a particular shop or buy one particular product, rather than use other shops or buy products made by other companies( Yi, 1990; Yoo and Donthy, 2001).

Grounded on the below discussion, it can be said that bank’s guests service online and maintaining client fidelity through Information Technology can be considered a relatively new miracle that has not yet entered important focus.

Statement Of The Problem

Information Technology has altered traditional marketing and deals conditioning by introducing and fostering directions between demand and force barring the need of interposers ’ intervention. Information technology has made it possible for association to establish a client relationship operation( CRM). It’s a strategy where guests can interact and maintain mutually connections with the purpose of introducing information technology into the banking assiduity to enhance client’s fidelity. It inversely bettered client satisfaction and insure client retention by aligning business processes with technology integration. Information technology brings together lots of information about client, client characteristics, deals deals, marketing effectiveness and marketing trends.

For all these benefits associated with Information and Communication Technology in the Banking sector, this study will substitute Ecobank of NigeriaPlc. and make recommendations according to the findings.

Objects Of The Study

The objects of the study are as follo

ws

To find out if there’s any significant relationship between Information Technology and service delivery.

To ascertain the influence of Automated Teller Machine on client fidelity in Ecobank of Nigeria Plc.

To examine how Electronic fund transfer affects client fidelity in the banking sector.

To find out how mobile Banking affects guests fidelity of Ecobank of Nigeria Plc branches in uyo.

Identify problems militating against quickteller perpetration in Ecobank.

To suggest measures on Information Technology perpetration.

Exploration Questions

To achieve the below objects, the following exploration questions were necessary

Is there any significant relationship between Information Technology and service delivery?

Does Automated Teller Machine have any influence on client fidelity in Ecobank of Nigeria Plc?

Does Electronic fund transfer have any significant relationship with client’s fidelity in Ecobank NigeriaPlc.?

Is there any significant relationship between mobile Banking and client’s fidelity of Ecobank of NigeriaPlc.

Does mobile banking have any impact on client’s fidelity?

Does Quickteller enhanced service delivery?

Exploration Suppositions

For the purpose of the study, the following suppositions were formulated.

Ho There’s no significant relationship between Information Technology and service delivery.

H1 There’s a significant relationship between Information Technology and service delivery.

Ho Automated Teller Machine has no influence on client fidelity in Ecobank of NigeriaPlc.

H1 Automated Teller Machine has influence on client fidelity in Ecobank of NigeriaPlc.

Ho Electronic fund transfer has no significant relationship with client’s fidelity in the banking sector.

H1 Electronic fund transfer has a significant relationship with client’s fidelity in the banking sector.

Ho There’s no significant relationship between mobile Banking and client’s fidelity of Ecobank of NigeriaPlc.

H1 There’s a significant relationship between mobile Banking and client’s fidelity of Ecobank of NigeriaPlc.

Significance Of The Study

This study will be significant in numerous ways

i) The outgrowth of the study will help the operation of Ecobank Nigeria Plc branches in uyo, as it’ll help them in the expression and perpetration of Information and Communication Technology programs.

ii) The study will be of a great backing to Information Technology druggies in banks.

iii) Incipiently, the study would be useful for marketing professionals as it would be a reference material for farther experimenters.

Compass And Limitation Of The Study

The study was Information Technology and guests fidelity in the service assiduity overing Ecobank Nigeria Plc, branches in Uyo. The study would have been more expansive but for the following limitations

Finance the experimenter didn’t have sufficient finances to cover a wider area.

Information source searching for secondary data in libraries, business journals, handbooks and magazines was duly equipped.

Time The time given to the experimenter to complete the study was too short.

LITERAL BACKGROUND OF ECOBANK OF NIGERIA PLC.

Ecobank international Incorporated, a public limited liability company, was established as a bank holding company in 1985 under a private sector action commanded by the Federation of West African Chambers of Commerce and Industry with the support of ECOWAS. In the early1980’s the banking assiduity in West Africa was dominated by foreign and state- possessed banks. There were hardly any marketable banks in West Africa possessed and managed by the African private sector. ETI was innovated with the ideal of filling this vacuum. The binary ideal of Ecobank international Incorporated( ETI) is to make a world- classpan-African bank and to contribute to the profitable and fiscal integration and development of the African mainland.

The Federation of West African Chambers of Commerce promoted and initiated a design for the creation of a private indigenous banking institution in West Africa. In 1984,Eco-promotionsS.A. was incorporated. Its founding shareholders raised the seed capital for the feasibility studies and the promotional conditioning leading to the creation of ETI.

In October 1985, ETI was incorporated with an sanctioned capital ofUS$ 100 million. The original paid up capital ofUS$ 32 million was raised from over 1,500 individualities and institutions from West African countries. The largest shareholder was the ECOWAS Fund for Cooperation, Compensation and Development( ECOWAS Fund), the development finance arm of ECOWAS.

A Headquarters ’ Agreement was inked with the government of Togo in 1985 which granted ETI the status of an transnational association with the rights and boons necessary for it to operate as a indigenous institution, including the status of anon-resident fiscal institution. ETI commenced operations with its first attachment in Togo in March 1988.

moment, Ecobank is the leadingpan-African bank with operations in 36 countries across the mainland, further than any other bank in the world. It presently operates in countries in West, Central, East and Southern Africa, videlicet Angola, Benin, Burkina Faso, Burundi, Cape Verde, Cameroon, Central African Republic, Chad, Congo Brazzaville, Democratic Republic of Congo, Côte d’Ivoire, Equatorial Guinea, Ethiopia, Gabon, Ghana, The Gambia, Guinea, Guinea Bissau, Kenya, Liberia, Malawi, Mali, Mozambique, Niger, Nigeria, Rwanda, Sao Tome & Principe, Senegal, Sierra Leone, South Africa, South Sudan, Tanzania, Togo, Uganda, Zambia and Zimbabwe. The Group also has a licenced operation in Paris and representative services in Beijing, Dubai, Johannesburg, London and Luanda.

The Ecobank Group is a full- service bank concentrated on Middle Africa. It provides noncommercial, retail, investment and transactional banking services to governments, fiscal institutions, chains, original companies, SMEs and individualities. Ecobank’s services are delivered by three client- concentrated business parts, Corporate Bank, Domestic Bank and Ecobank Capital all of which are supported by an Integrated IT platform operated bye-Process, the group’s technology attachment. Corporate Bank provides fiscal results to global and indigenous corporates, public corporates, fiscal institutions and transnational associations. Products concentrate onpan-African lending, trade services, cash operation, internet banking and value chain finance.

Domestic Bank provides accessible, accessible and dependable fiscal products and services to retail, original commercial, public sector and microfinance guests, leverages an expansive branch and ATM network as well as mobile, internet and remittances banking platforms. Ecobank Capital provides storeroom, commercial finance and investment banking, securities and asset operation results to commercial and governmental guests. Ecobank also operates within Ecobank Capital a Research platoon grounded on the ground in crucial requests, provides unique information support capabilities.

The Ecobank Group is a full- service bank concentrated on Middle Africa. It provides noncommercial, retail, investment and transactional banking services to governments, fiscal institutions, chains, original companies, SMEs and individualities. Ecobank’s services are delivered by three client- concentrated business parts, Corporate Bank, Domestic Bank and Ecobank Capital all of which are supported by an Integrated IT platform operated bye-Process, the group’s technology attachment. Corporate Bank provides fiscal results to global and indigenous corporates, public corporates, fiscal institutions and transnational associations. Products concentrate onpan-African lending, trade services, cash operation, internet banking and value chain finance.

Domestic Bank provides accessible, accessible and dependable fiscal products and services to retail, original commercial, public sector and microfinance guests, leverages an expansive branch and ATM network as well as mobile, internet and remittances banking platforms. Ecobank Capital provides storeroom, commercial finance and investment banking, securities and asset operation results to commercial and governmental guests. Ecobank also operates within Ecobank Capital a Research platoon grounded on the ground in crucial requests, provides unique information support capabilities.

Ecobank operates as “ One Bank ” with common branding, norms, programs, processes to give a harmonious and dependable service across its unique network of 1,305 branches, 2,426 ATMs, and 13,800 POS machines servicing over 10 million guests. We’ve an intertwined information technology platform, with all of our operations successfully migrated onto a single core banking operation Oracle FLEXCUBE. With 19,565 workers as at end of March 2014, the Group is the largest employer of labor in the fiscal sector assiduity in Middle Africa.

Sustainability is at the core of our charge and vision of erecting a world- classpan-African bank that contributes to the integration and socio- profitable development of the mainland. We take the view that the long- term success of Ecobank is intertwined with the sustainable development of the husbandry, societies and terrain that we operate in. In 2012, the Group espoused an intertwined and comprehensive approach to sustainability and created a common frame. The frame depicts sustainability similar that our business functional model ensures effective, effective and sustainable application of profitable, social, mortal and natural capital. This frame reflects our commitment to drive profitable metamorphosis in Africa while guarding our terrain by being a socially responsible fiscal institution with a world class professional. Each beachfront forms the structure block for our integrated sustainability( http//www.ecobank.com.history, 2015)

Description Of Terms

The following words are defined as they’re used in this study

Marketing marketing is the exertion, sets of institutions, and processes for creating, communicating, delivering, and swapping immolations that have value for guests, guests, mates, and society at large( Kotler and Keller, 2013).

request request is an arena for implicit exchanges( Anyanwu, 2000)

Computer is defined as a programmable electronic device that accepts data, process data into a meaningful form called information and store the performing information for unborn use( Essinger and Fisher, 2007).

client fidelity client fidelity is the result of successful marketing strategy that creates competitive value for consumers as well as business gests have shown mixed or unique results as to what determine successful client fidelity strategies.( Egan, 2004)

Products A product is anything able of satisfying a consumer’s want or need( Gould and Leow 1999).

Services is the product of an basically impalpable benefits, either in its own right or as a significant element of a palpable product, which through some form of exchange, satisfies an linked need( kotler 2005)

Information information is that which informs, i.e. an answer to a question, as well as that from which knowledge and data can be deduced as data represents values attributed to parameters, and knowledge signifies understanding of real effects or abstract generalities( Sannders and Gummerus, 1995).

Satisfaction it’s a good passions that client has when his/ her requirements or solicitations have been met( Schneider and Bowen 1993).

Technology technology is the manipulation of nature for mortal purpose( Gefan and Lin, 2003)

Information Technology is a technology which uses computers to gather, process, store, cover, and transfer information. moment, it’s common to use the term Information and dispatches technology because it’s unconceivable to work on a computer which isn’t connected to the network( Gefan and Lin, 2003).

Association Of The Study.

This study was arranged into five chapters. Chapter one has the background of the study, statement of the problem, objects of the study, exploration questions, exploration suppositions, significance of the study, compass and limitations of the study, literal background of Ecobank Nigeria Plc, Uyo branches, delineations of terms and association of the study.

Chapter two contains the review of affiliated literature, Meaning of information technology, part of information technology, History of information technology, factors of Information Technology, Earnings of Information Technology, The conception of internet, client fidelity, Service satisfaction, Information Technology and client fidelity in the Banking assiduity. Chapter three deals with the Research Methodology, Research design, the study area, Population of the study, Sample size and sample ways, Research instrument, Method for data collection and Decision rule.

In Chapter four data donation, analysis and interpretation were done. Eventually, chapter five deals with the summary of findings, conclusion and recommendations for the study.