Research Project on Natwest Bank
FINDINGS AND DISCUSSION
1. INTRODUCTION
This chapter presents the outcome of the research project. Data was analysed to determine consumer expectation of banks’ service quality and their perception of the quality of the service of Natwest bank. The calculation of any gap between expectations and perceptions was made by subtracting perception from expectation. The evaluation of service quality is based on five service quality dimensions: tangible factors, reliability, responsiveness, assurance and empathy. The chapter starts by giving an overview of data on demographics, then moves to customers’ expectations, customers’ perceptions, and the gap between expectations and perceptions.
2. DEMOGRAPHIC CHARACTERISTICS
The first set of questions in the questionnaire was designed to gain information on the general characteristics of respondents, such as gender and nationality. This information can help put the findings of the study into context. This is particularly so, given the different nationalities of respondents who have been studying at London School of Commerce.
a. GENDER
The statistic of gender is shown as table 1 below:
Table 2.1 - Gender
|
Gender |
Number of respondents |
Cumulative in percentage |
|
Male |
25 |
53.2% |
|
Female |
22 |
46.8% |
|
Total |
47 |
100% |
Chart 1 – Gender
Respondents were divided into two groups, 53.2% were Male (equal to 27 people) and 46.8% were Female (equal 22 people). The respondents were 47 in total.
b. NATIONALITY
Many nationalities were represented in the sample. Respondents came from Vietnam, Thailand, China, Colombia, India, Pakistan and Turkey. The table below shows the number and percentages of each nationality.
Table 2.2 - Nationality
|
|
Number of respondents come from |
Cumulative in percentage |
|
Vietnam |
15 |
32% |
|
Thailand |
8 |
17% |
|
India |
8 |
17% |
|
China |
5 |
11% |
|
Pakistan |
5 |
11% |
|
Shrilanka |
3 |
6% |
|
Colombia |
2 |
4% |
|
Turkey |
1 |
2% |
|
Total |
47 |
100% |
Chart 2 – Nationalities of respondents
Most respondents were Vietnamese (32% or 15 respondents), respondents from Thailand and India have similar number (17% or 8 people for each country), respondents from China and Pakistan equaled to 11%, Shrilanka equaled to 6%, Colombia with 4% or 2 respondents. The smallest number was Turkish with 2% or 1 person.
3. CONSUMER EXPECTATION OF BANKS’ SERVICE QUALITY
In the SERVQUAL instrument, the expectations of consumers of a Bank include five main factors: tangible factors, reliability, responsiveness, assurance and empathy. This part of the chapter discusses each factors individually.
Chart 3.1 – Tangible factors
Tangible factors refer to the banks’ facilities. In particular questions from number 1 to 4, the chart 3.1 shows that materials associated with the service (such as pamphlets or statements) received the lowest score (question 4). This means that respondents are not very interested in any bank’s leaflets. The highest score was given to the appearance of Banks’ employees (question 3). This means that consumers believe that employees appearance is important. Modern-looking equipment (question 1) and physical facilities (question 2) were also highly rated by respondents.
Chart 3.2 – Reliability factors
Looking at chart 3.2, the reliability factors (5 questions) were highly rated by respondents. The highest score was given to the promises of a Bank and services provided on time to customers. The lowest score was question number 9 with a bank insists on error-free records. When customers had problems (question 6) and the right services of a bank provided at the first time (question 7) were expected with highly scored.
Chart 3.3 – Responsiveness factors
Among 4 questions from 10 to 13 displayed on chart 3.3, the question number 11 was the highest rate. It refers to the expectation of prompt service which reflect the customer desire to be served as soon as possible. Question 10 received the lowest score with the meaning of notice when services will be performed. This fact indicates that the customers take a little care on bank’s announcement of when the service is fully finished. Question 12 regarding to the officer’s willingness was the second expectation. Following this is question 13 which shows the customer concern on how quickly the bank’s employees response to their request
Chart 3.4 – Assurance factors
Both question 17 and 15 receive the greatest concern from the customers. There were not much difference between expectation of customer in the safe feeling in their transactions and the knowledge of employees in a bank. This indicates that the qualification of bank officers and transaction securities is the top priority for the customer when they decide to use the bank’s services. The lowest expectation of customer was the consistently courteous from employees in a bank (question 16). This means that the bank employees’ posture does not draw much expectation from the customers. Question 14 - the behavior of employees is considered as the second importance by the customers.
Chart 3.5 – Empathy factors
Among 5 questions related to the empathy factors, personal attention of employees (question 20) has been given the highest appreciation by the bank’s customers. This reflects the fact that the customers really expect to receive personal attention from the bank’s employees. Following orders are questions 18, 19 and 22 aiming at individual attention, operating hour convenience and customer’s specific needs respectively. The customers’ lowest expectation were question 21 in term of customers’ interested at heart to a bank.
Chart 3.6 - Comparison of different dimensions expected by the customers
The chart showed that reliability was the most important factor as far as their expectations are concerned for customers. The second most important factor is tangible factor; followed by assurance factor. The responsiveness factor holds the fourth position. The lowest expectation of consumer to a bank was empathy factors. However, there is not much differences among five factors.
In general, all factors of the consumers’ expectation to a bank had high score, it means that customers had strongly agreed with the highly expectation to the service quality of a bank. This seemly was not only an obvious expectation of international students but also of all customers.
4. CONSUMER PERCEPTION OF NATWESTS’ QUALITY OF SERVICE
As introduced in chapter 4, Natwest bank is one of the most famous commercial banks in the UK. As a result, the quality of service at this bank is obviously paid most attention to meet the needs of customers. However, different customers have different knowledge or cultures, leading to different perceptions about quality of service. In this survey, the customers of Natwest which are given the evaluation questionnaire are mainly international students. They come from different countries with different economies and cultures. As a result, they might have different perceptions about Natwest’s service quality. This part will hence identify the factors affecting the customers’ perception of Natwest’s quality of service. They are tangible, assurance, reliability, responsiveness and empathy.
Chart 4.1 – Tangible factors
Regarding the tangible factors of the bank, customers’ perception was showed in chart 4.1. Question 3 asked whether employees had neat appearing and it was the most highly rated. It could be explained that consumer who had this transaction with Natwest branches are happy with the staff’s appearance. The lowest score showed in the chart falls on the modern-looking equipment of Natwest (question 1). Question 2 and 4 which refer to physical facilities and materials associated with the service at Natwest were not much visually appealing. It means that when the consumers do transactions with Natwest, they do not concern much about visually appealing.
Chart 4.2 – Reliability factors
This bar chart shows how respondents assess the reliability of Natwest’s services. All questions from 5 to 8 have more or less high scores. Question 5 indicates how customers think about the promises of Natwest had done at certain time. Question 6 refers to Natwest sincere interest in solving problems of customers. Quetion 7 and 8 provide the customers’ evaluation on the punctuality of the banking services in Natwest Branches such as how Nawest performs the service right the first time, or how its service are rendered at the time of it promises to do so. Question 9 received the lowest score, suggesting that respondents perceive that Natwest does not highly insist on error-free records.
Chart 4.3 – Responsiveness factors
The chart 4.3 indicates how consumers perceive Natwest’s responsiveness. Strikingly, respondents gave highest score for the question 13, that Natwest banks’ staffs never too busy to respond to their request. On the other hand, they gave lowest score of the promptness of services (question 11). In the same line with the speed of services, the respondents considered the willingness of employees at lowest level as well (question 12). How exactly employees in Natwest tell the customers when services will be performed was scored at the second highest rated (question 10).
Chart 4.4 – Assurance factors
Assurance seems as the most important factor of a bank and Natwest is not an exception. The behavior of employees in Natwest Bank instils confident in customers were not highly perceived by customers as shown on question 14 of the bar chart. The chart 4.4 also indicated that question 17 was rated at the highest score. This means that employees were perceived to be knowledgeable. Question 15 was high rated indicating that respondents perceive Natwest to be safe. At the Natwest bank area, employees consistently courteous towards customers were not got highly scored.
Chart 4.5 –Empathy factors
Respondents’ perception of Natwest’s empathy factors is presented in the bar chart above. Looking at this chart, the opening hour is remarkably the factor that satisfies the customers most. It is proved that the convenience of operating hours to all customers of Natwest bank obtains the highest score among others. Respondents perceived that Natwest does not give much individual attention to customers (question 18). Similarly, (question 20) personal attention of Natwests’ employees giving to customers stands at second lowest score. Question 21 received average scores represent for interest at heart of customers to Natwest. This means that customers perceived personal attentions of employees. The understanding of employees of Natwest Bank about the specific needs of customers was obtained from question 22, and stands at second highest score.
Basing on the customers’ perception to quality of services in Natwest Branches, Five different factors namely tangible, reliability, responsiveness, assurance, and empathy are weighed up. To identify the preference of customers to these factors, a comparison between those factors is made and summarised as follow
Chart 4.6 – Comparison between factors of consumers’ perception to quality of service in Natwest bank.
In looking at the overall perceptions of customers, the following comments can be made. Firstly, it seems that Natwest has achieved above average scores for all factors which is positive. Secondly, in looking at these scores further, it appears that assurance factors were the most positively perceived by respondents while empathy factors were the least positively perceived.
5. GAP BETWEEN EXPECTATIONS AND PERCEPTIONS OF CUSTOMERS
The research identifies any gap between customers’ expectation and their perceptions related to service quality in the UK banking industry in general, and Natwest in particular. Hence, this part of the chapter studied the gap between customers’ expectation to service quality of banking industry and their perception to quality of service of Natweast bank. The gap was described on charts.
Chart 5.1 – The gap of tangible factors
Chart 5.1 shows the gap between respondents expectations and perceptions of tangible factors. The highest gap can be seen on question one which concerned “the modern-looking equipment”. This means that although customers expect banks to have modern-looking equipment, Natwest does not closely meet these expectations.
Natwest does not seem to closely meet the respondents’ expectations of “visually appealing facilities” and “visually appealing employees”. However, the gap between perceptions and expectations is not very large.
Chart 5.2 – The gap of reliability factors
The largest gap was founded in the question 9 with highly expectation of a bank insists on error-free records but for the Natwest, customers had low perception. This means that than bank’s error-free records is below the customer expectation. The service performed right at the first time (question 7) has the smallest differences between expectation and perception. It seems that Natwest was highly appreciated in term of implementing their promise for the customers. Smaller gaps were seen in question 5 - customers’ perception of Natwests’ promised to do something by a certain time and question 6 - the sincere interested in solving problems. The spread between expectation and perception in the question 8 “Natwest provided its service on time” hold second position only behind the question 9.
Chart 5.3 – The gap of responsiveness factors
Telling exactly when service will be performed (question 10) and employees were always willing to help customer (question 13) had the lowest gap between expectation and perception of customers. These mean that the actual performance of the bank relatively satisfy the customers’ desire. For question 11 and 12 the gap became larger with the content of employees never too busy to respond and prompt service. The chart 5.3 indicated that two factors of question 11 and 12, customers had high expectation about service of the bank.
Chart 5.4 – The gap of assurance factors
There are not many differences between the customer perception and expectation related to the assurance factor. In particular, the lowest gaps have been recorded for question 15: feeling of customer to the safety in transaction with a bank, and question 17: knowledge of banking employees. These infer that customers almost satisfy with the bank officers’ qualification and prestige. Behavior of employees make customers confident (question 14) had the largest gap among 4 questions. This fact reflects that customer perception does not match with their expectation. For the question 16: employees in a bank area consistently courteous toward customers the disparity between expectation and perception is not too much smaller than that of question 14.
Chart 5.5 – The gaps of empathy factors
The gaps between perception and expectation change remarkably among the five questions. Two questions with the largest gap were 18 and 20. The fact shows difference in perception and expectation in term of customer to the individual attention of Natwest (question 18) and personal attention from Natwests’ employees (question 20) were recorded at very low level. Question 19: operating hours convenient and question 21: interest at heart of customers had a similar gap. But the ratio between expectation and perception in question 19 was higher than question 21. The last question was employees of a bank understood of customers’ specific needs. This question had higher expectation than perception as well.
Chart 5.6 – Comparing the gap between five factors
The five factors had different gap. The largest gap was founded in the reliability factor. This means that Natwest does not meet the expectations of customers as far as reliability is concerned. The responsiveness factor had the second largest gap. Following this is the gap belonging empathy factor. Tangible factor holds the fourth position in term of disparity between the customers’expectation and perception. The smallest gap was assurance factor with highly expectations and perceptions of customers.
The comparison of the gaps between factors indicated that most of customers’ perception at Natwest was lower than expectations of customers to service quality of banking industry.
6. CONCLUSION
Although Natwest is a famous bank in the UK, it appeared that customer expect more than the receive. Most respondents, however, were international students and came from developing countries. This may mean that the banking system in their own country were not developed at highest level. Their expectations and perceptions could be dependent on their knowledge or experiences to the transactions with a bank.
Irrespective of this limitation, this study demonstrated that Natwest needs to improve the perceptions of international students. Natwest may be supplied the best service already but they should find the way to convey those service to all customers in general and international student customer in particular. The weaknesses of Natwest could be focused on improving the reliability factor first because it showed largest gap between expectations and perceptions. Subsequently, it needs to improve responsiveness, empathy, tangible and assurance. This improment of those factors can contribute to gaining more success in the quality of service in the Natwest.
As many research projects about service quality before, the customers have many different kinds, that why this study concentrates on customers were international students. In conclusion, the improvement of service area at Natwest is very important to keep a largely customers from abroad, especially is international students who do not have many transactions but they can invest a largely amount of money for their course or their life in the UK. A better service quality can be implemented by trying to close the gap between expectations and perceptions of customers.
