DETERMINANTS OF CUSTOMER SATISFACTION TOWARDS BANKING INDUSTRY IN MONGOLIA

Abstract

This paper is examined to know determinants of customer satisfaction in Mongolian banking industry and know factors that influence on customer satisfaction in above sector. Customer satisfaction is crucial as for service company’s customers’ behaviours and their satisfaction affect company’s operation. Customer satisfaction has been one of the main concerns of banks of late. This has been necessitated by the stiff competition in the banking industry. Customers on the other hand, want the best value for their money so they are always combing around to het best services.

Mongolia has 13 commercial banks which have introduced modern banking technologies to their service. However, they lack to identify their behaviour of their customers’ satisfaction. Mongolian commercial banks conducted surveys to identify customers satisfaction level and which factors influence more that research few tomes in a year (Mongol bank, 2013). This research uses quantitative approach and independents variables which is Location, Information Security, Bank image and service quality that uses SERVQUAL measurement to determine customer satisfaction in Mongolian banking industry. Furthermore, the questionnaire of this research includes SERVQUAL measurements’ 14 questions based on its five dimensions, 16 questions based on other influencing factors and demographic questions and it was distributed to customers of Mongolian banks. Data analysis of this research of this research was conducted by SPSS. Based on results, the main factors affecting customer satisfaction in Mongolian banking industry.

Recommendations made also included the following bank should make conscious efforts to be reliable in Mongolian banks so that customers confidence and trust will increase. More banks should increase their reputation in society that helps attract to
more customer to their services.