The effect of service customization on the satisfaction, trust and loyalty of customers of National Bank branches in Langrod city

Dissertation for Master of Business Administration degree

Orientation: International

Abstract

The aim of this research is the effect of service customization on customer satisfaction, trust and loyalty of National Bank branches in Langrod city. The statistical population of the research consists of all the customers of Bank Melli branches in Langrod city. Based on Cochran's formula for an unlimited population, 392 people were selected as a statistical sample from the statistical population. Simple random sampling was used to select the statistical sample. The above study is practical in terms of purpose and descriptive in terms of survey type. To collect, the standard questionnaire tool of Cole Ho and Hensler (2012) was used. To determine the reliability of the questionnaire, Cronbach's alpha coefficient was calculated as 0.866 using Spss 22 software, and the reliability of the questionnaire was confirmed. Also, in order to check the fit indices of the research conceptual model, the confirmation operating system was used by Smartpls software (partial least squares) and the desired fit index in the model was confirmed. For data analysis, path analysis test and t-tests were used by Smartpls software. The research results showed that service customization has a positive and direct effect on service quality (p < 0.335, ? = 0.335), satisfaction (p < 0.05, ? = 0.109), trust (p < 0.01, ? = 0.392) and customer loyalty (p < 0.194, ? = 0.194) of Langrod National Bank branches.

Key words: Service customization, customer loyalty, customer satisfaction, service quality

1-1- Introduction

Creating and maintaining customer loyalty is the main and key element in obtaining a sustainable competitive advantage for banks. This research intends to examine the result of customization of banking services on the satisfaction, trust and loyalty of the customers of Langrod National Bank. The structure of this study is arranged in five chapters. The main content in the first chapter is the introduction of the research, including the statement of the problem, goals and hypotheses of the research. In the second chapter, research literature has been examined, which includes three parts of theoretical literature, research background and conceptual model. The third chapter of the research also deals with the method of conducting the research, the research method, the statistical population, the method of data analysis, the validity and reliability of the research have been examined. The fourth chapter of the research deals with the research findings, which are divided into two parts: descriptive results and analytical results. Finally, the fifth chapter of the research examines the main results of the research and presents suggestions and limitations of the research.

1-2-Statement of the problem

One of the scenes that we always encounter in the bank is the confusion of customers between banking terminology and difficult language, as well as choosing a service from among the services provided by the bank. Therefore, banks should turn to customization to move towards customer orientation. The meaning of customization is to provide various banking services exclusively for each person. Customization promises that the bank already knows the needs and desires of the customer and offers its services according to them with a language that corresponds to the level of knowledge of the customer in the field of banking services (Cole Ho and Hensler, 2012). In this case, the customer can easily choose the most suitable service for him. Also, customization leads to creating and maintaining customer loyalty. For more than a few decades, management scholars have come to the conclusion that product and service differentiation is one of the factors of creating a competitive advantage. The central idea of ??segmentation is to recognize and identify profitable segments of the market and design products and services to optimize meeting the needs of target segments. These days, in competition with each other, banks add various services to their portfolio, but what percentage of people really use all these services or even know about them? Banks should be aware that not all of their customers are familiar with banking terms and not all of their services are suitable for one customer (Cutler, 2012). The top challenge for a manufacturer is always specific and customized requests. Production-to-order systems require higher flexibility than production-to-stock systems, so they have lower efficiency and higher costs. Production for stock has a lower variety than production according to order.A detailed study of the product matrix of the process and classification of Konjen Dejik shows two diversity-oriented approaches) producing diverse products and based on customer requests (and standard-oriented) producing identical and similar products with the ability to store in the warehouse. Over time and with the development of advanced technologies, FMS and JIT processes have been added to them, which simultaneously offer the characteristics of diversity and standardization (Vidal et al., 2012). Customization is a response to the changing nature of customer demand for more variety and higher quality products (Cutler, 2010). Product customization can help increase customer loyalty. Recent research indicates that most of the people who make their purchases through the Internet prefer websites that provide them with personal information and customized products. This clearly shows the importance of mass customization in building loyalty. Customization is the result of the active participation of the customer in the design of his favorite product. Dell, which is an active company in the computer industry, has used this concept well and allows its customers to order their computer with any feature they want. The active participation of the buyer in the design of the desired product will have a significant impact on the customer's satisfaction and loyalty. As a more extreme form of differentiation, the concept of service customization—that is, the extent to which a company's methods are adapted to meet the heterogeneous or different needs of customers—has spread significantly among companies (Cole-Ho and Hensler, 2012). Electronic customer relationship management is part of the concept of electronic business, which describes the use of electronic tools and platforms to guide companies' affairs and enables institutions to serve their customers faster and more accurately, in a wide time and place, and at a lower cost, and to customize and personalize goods and customer services. Creating and maintaining customer loyalty is the main and key element in obtaining a sustainable competitive advantage for organizations (Kotler, 2010), considering that customer loyalty reflects their satisfaction. But satisfaction does not necessarily lead to loyalty and what was mentioned in other topics, in this research we are looking for the question of what effect does customization of services have on customer satisfaction, trust and loyalty?

1-3- Necessity and importance of research

Despite the consensus on the importance of customization, there is still a difference of opinion about the implementation of customization and its reality, and it has been examined from different perspectives. is It can be seen that consumers prefer personalized services more than general services because they find this type of service compatible with their needs (Bell[1] et al., 2006). Fulfilling the order submitted by the customer and considering systems for quick delivery of the ordered product to him are as effective as other factors that were mentioned before in loyalty. An efficient logistics system that guarantees quick delivery of the product to the customer will increase customer satisfaction and loyalty. In addition to the speed of product delivery, the procurement system should provide the possibility of providing the product with different methods. Some customers prefer to receive the products they have ordered by mail, while others may prefer to visit a store in person and pick up the product they want after talking to the salesperson.

In customer strategy, loyalty is very important for any organization. Loyalty is a positive word. Today, customer satisfaction is no longer enough and companies should not be satisfied with customer satisfaction. They need to make sure that their satisfied customers are also loyal. In the last year, attention to customer loyalty has increased significantly, and customer loyalty day is considered as a guideline to increase income. But this is perhaps the first step in the evolution of customer orientation (Salari, 2014, 42). According to the mentioned contents and the importance of the issue of customizing services and investigating its impact on possible customer loyalty, it was necessary to investigate the above issue in a scientific and practical manner and the importance of this issue for the studied organization is considered very important.