CUSTOMER PATRONAGE DETERMINANTS IN NIGERIAN DEPOSIT MONEY BANKS: A FOCUS ON SERVICE QUALITY DELIVERY IN RIVERS STATE

Abstract

In the fiercely competitive Nigerian banking industry, delivering quality services to customers is essential for retaining them. Dissatisfied customers may switch to other banks with better service offerings, causing banks to lose out on patronage. This study aimed to determine the relationship between service quality delivery and customer patronage in the Nigerian banking industry, specifically in Port Harcourt. The study used the dimensions of service quality - service responsiveness and service reliability - as espoused by Zeithaml et al. (2006), and customer patronage was measured through customer loyalty and referral. The Social Exchange Theory was used as the theoretical framework to explain human communication, relationship formation, bonding, and community building. The study used a correlation survey research design and administered questionnaires to 22 registered deposit money banks in Rivers State. The data collected were analyzed using Spearman Rank Order Correlation, and the results showed a significant relationship between service responsiveness, service reliability, and customer patronage. The study's findings further support existing literature that customers' satisfaction with service delivery influences their patronage of financial institutions