The impact of customer service on customer patronage in banking–the mediating effect of ICT adoption

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September, 2016
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The study sought to assess the mediating effect of ICT adoption on the relationship between customer service and customer patronage in Access bank. The study was limited to the branches of Access bank in the Kumasi Metropolis and customers were the main objects. The study used a hierarchical linear multiple regression to assess the relation among the variables using three hundred and eighty six (386) questionnaires. The study proved the significance of customer services to ICT adoption as well as the significance of ICT adoption to customer patronage. Customers of Access bank were also found to be within a youthful age group which was seen as a positive factor for ICT adoption. The mediation analysis proved that ICT partially mediated the relationship between the dependent and independent variables indicating that there for other variables that mediate the relationship between the two variables. It was therefore recommended that the bank improves more of the content and delivery of their customer services. Also, since ICT adoption in a way accounts for the relationship between customer service and customer patronage, it was necessary for the bank to take of advantage of the youthful age of customers to increase the rate of adoption of ICT. The findings of the study brought a conclusion that, the content and delivery of customer service which include the various ways of handling complaints, education given on products and services among others positively influenced the perception and attitude of customers to ICT adoption in banking. The negative coefficient of the mediating variable as well as the coefficient of the Sobel test further implied that the effectiveness of Customer service on the average slightly affects customer patronage by increasing the level of ICT adoption in banking.
A Thesis submitted to the School of Business, Kwame Nkrumah University of Science and Technology, Kumasi in partial fulfillment of the requirements for the award of Master of Business Administration in Strategic Management and Consulting.