The effect of customer satisfaction on customer loyalty in savings and loans companies in Ghana: case study of Multi Credit Savings and Loans Limited

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Modern business organizations are faced with huge challenges owing to the turbulent nature of the business terrain. This challenges call for organizations to discard the old marketing philosophies and strategies and concentrate more on customer-driven initiatives that seek to attract, retain and build intimate long term relationship with profitable customers. The study sought to assess the effects of customer satisfaction on customer loyalty in savings and loans companies in Ghana, with Multi Credit Savings and Loans Limited (MCSL) as the focus. The study administered 120 questionnaires to customers and interviewed 10 staffs of MCSL to obtain the primary data. The staffs were purposively sampled based on their academic qualification and job description, while the customers were conveniently sampled. The study reveals that ‘customer satisfaction indicators’ such as Visits or calls by management, Good attitude and professional conduct of staffs, Swift turnaround time for customers, Value for customers than goals of MCSL, Convenient location of the bank and High quality of services rendered by MCSL are factors that positively affect customer loyalty. The survey reviews that several or almost all the variables have high coefficients of variation which give an indication of greater dispersion of the individual values around the mean. A multiple correlation coefficient of (R) =0. 844 was derived which indicates a strong positive significant correlation between customer loyalty (dependent variable)and the predictor variables as earlier statedIt was also obtained that the independent variables can reliably be used to statistically predict the dependent variable. Thus, the overall significance test indicates that the independent or predictor variables when used together will have positive impact/influence on the loyalty of customers to the MCSL. Even though there are few barriers to customer service, this had not negatively affected the service provided by the Bank and so loyalty of customers was also not affected. It was concluded that an extremely satisfied customer is more likely to be a loyal customer.
A thesis submitted to the Department of Strategic Management and Consultancy, School of Business, Kwame Nkrumah University of Science and Technology, in partial fulfillment of the requirements for the degree of Master of Business Administration (Strategic Management and Consultancy),