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RESOLVING CUSTOMER COMPLAINTS AND CORPORATE IMAGE OF

FINANCIAL INSTITUTIONS IN UGANDA

A CASE STUDY OF EQUITY BANK UGANDA LIMITED (KATWE BRANCH)

BY

ATWONGYEIRE ROGERS

RE.NO: 07/U/4735/EXT

SUPERVISED

BY

MR KINTU ISMA

APROJECT REPORT SUBMITTEDTO TO THE SCHOOL OF DISTANCE

AND LIFE LONG LEARNING IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR THE A WARD OF BACHELOR OF

COMMERCE

MAKERERE UNIVERSITY

MAY 2011

i

DECLARATION

I ATWONGYEIRE ROGERS hereby declare that this study was carried out for academic

purpose and it has never been presented for any academic award in any University or institution.

Where other people’s work was used, acknowledgement has been fully done.

Signature………………………………………

ATWONGYEIRE ROGERS

07/U/4735/EXT

Date……………………………………………

i

APPROVAL

This research under the title “resolving customer complaints and corporate image of financial

institutions in Uganda’ case study Equity bank Uganda .ltd Katwe Branch” by ATWONGYEIRE

ROGERS, is presented for examination with my approval as university supervisor.

Signature………………………………… Date………………………………………

MR KINTU ISMAIL.

(Supervisor)

ii

DEDICATION

I dedicate this work to my beloved parents Mr and Mrs Patrick Bangirana, my Brothers Bruce,

Ronald and Patson, and also sisters Patience and Peace and lastly Itungo Medius.

iii

ACKNOWLEDGEMENT

Thanks goes to the almighty God who has given me power, strength and wisdom towards

accomplishment and writing of this report.

I would wish to also thank my Supervisor Mr Kintu Ismail for his parental guidance,

encouragement and advice he rendered to me towards writing this report. Keep up the spirit and

may the almighty God bless you abundantly.

I would like to also thank the management and customers of Equity Bank for their co-operation

and support during the time of preparation of this report.

Am also grateful to my father Mr. Patrick Bangirana My mom Mrs Vailot Bangirana Nalongo

my brother Patson, Bruce and Ronald My Aunties Ephy Alice and Uncles, Isaac, Phillip and

Jefrey without whose support financially, morally, spiritually the completion of this work would

be a myth.

Special thanks to Ssali Ibrahim, Joy Abalinabyo, Duncan Aine, Itungo Medius Tumwesigye

Edison, Julius Sserwanja the entire BIMUSA family for their support, time, talent, materials and

patience along the Joys and agonies that would go with the preparation of this report and the

entire completion of my degree. The value of your contribution remains indebted to me.

And to all relatives, friends and Classmates for their prayers, guidance and support to the report

writing.

iv

TABLE OF CONTENTS

DECLARATION..............................................................................................................................i

APPROVAL....................................................................................................................................ii

DEDICATION...............................................................................................................................iii

ACKNOWLEDGEMENT..............................................................................................................iv

TABLE OF CNTENTS...................................................................................................................v

LISTS OF FIGURES......................................................................................................................ix

LIST OF TABLES...........................................................................................................................x

LIST OF ACRONYMS.................................................................................................................xii

ABSTRACT.................................................................................................................................xiii

CHAPTER ONE............................................................................................................................1

1.0 INTRODUCTION.....................................................................................................................1

1.1 BACKGROUND TO THE STUDY..........................................................................................1

1.2 STATEMENT OF THE PROBLEM.........................................................................................3

1.3 PURPOSE OF THE STUDY.....................................................................................................4

1.4 OBJECTIVES OF THE STUDY...............................................................................................4

1.5 RESEARCH QUESTIONS.......................................................................................................4

1.6 SCOPE OF THE STUDY..........................................................................................................4

1.6.0 Geographical Scope................................................................................................................4

1.6.1 Subject Scope..........................................................................................................................5

1.6.2 Time Frame.............................................................................................................................5

1.7 SIGNIFICANCE OF THE STUDY..........................................................................................5

CHAPTER TWO...........................................................................................................................6

LITERATURE REVIEW.............................................................................................................6

2.0 Introduction................................................................................................................................6

2.1 CUSTOMER COMPLAINTS IN BANKS...............................................................................6

2.1.1 COMPLAINT HANDLING STRATEGIES IN BANKS......................................................8

2.1.2 EVIDENCE OF CUSTOMER SATISFACTION WITH COMPLAINTS HANDLING....10

2.2 CORPORATE IMAGE...........................................................................................................11

2.3 RELATIONSHIP BETWEEN CUSTOMER COMPLAINTS AND CORPORATE IMAGE.

.......................................................................................................................................................12

2.4 Conclusion...............................................................................................................................13v

CHAPTER THREE.....................................................................................................................14

RESEARCH METHODOLOGY...............................................................................................14

3.0 INTRODUCTION...................................................................................................................14

3.1 AREA OF STUDY..................................................................................................................14

3.2 RESEARCH DESIGN.............................................................................................................14

3.3 POPULATION........................................................................................................................14

3.4 SAMPLE SIZE........................................................................................................................14

3.5 SAMPLING DESIGN AND PROCEDURES.........................................................................14

3.6 DATA SOURCES...................................................................................................................15

3.7 DATA COLLECTION PROCEDURES AND INSTRUMENTS..........................................15

3.8 DATA PROCESSING, SUMMARY AND PRESENTATION..............................................15

3.8.0 Coding...................................................................................................................................15

3.8.1 Editing...................................................................................................................................15

3.8.2 Tabulation.............................................................................................................................15

3.9 DATA ANALYSIS.................................................................................................................16

CHAPTER FOUR.......................................................................................................................17

PRESENTATION AND ANLYSIS............................................................................................17

4.0 Introduction..............................................................................................................................17

1 Findings on gender of respondents.............................................................................................18

4.1.0 SECTION B OBJECTIVE 1: TO ESTABLISH THE MAJOR COMPLAINTS BY THE

CUSTOMERS OF EQUITY BANK UGANDA LTD..................................................................20

4.1.2. Findings on whether their ATM is always on at the branch................................................21

4.1.3 Findings on whether the bank charges high interest rates on staff loans..............................21

4.1.4 Findings on whether getting a loan from equity bank takes a lot time procedures..............22

4.1.5 Findings on the bank understands when I can not meet my repayments..............................23

4.1.6 Findings on whether there are long queues in the banking hall...........................................23

4.2.0 SECTION B OBJECTIVE 2: TO IDENTIFY THE MECHANISMS USED BY THE

BANK IN RESOLVING CUSTOMER COMPLAINTS..............................................................24

4.2.1 Findings on whether there is enough customer care staff.....................................................24

4.2.2 Findings on whether the bank pays staff well......................................................................25

4.2.3 Findings on whether the bank trains its staff more often......................................................25

4.2.4 Findings on whether the bank holds joint meetings with customers who have complaints. 26

4.2.5 Findings on whether the bank carries out surveys on customer complaints.........................26

vi

4.2.6 Findings on whether the bank has well displayed suggestion boxes....................................27

4.2.7 Findings on whether the bank handles staff conflicts amicably...........................................27

4.3.0 SECTION B OBJECTIVE 3 TO EXAMINE THE RELATIONSHIP BETWEEN

CUSTOMER COMPLAINT SETTLEMENT AND CORPORATE IMAGE OF FINANCIAL

INSTITUTIONS............................................................................................................................28

4.3.1 Findings on whether staffs have accounts in other banks.....................................................28

4.3.2 Findings on the bank has a good remuneration package......................................................28

4.3.3 Findings on whether the bank participates in community work...........................................29

4.3.4 Findings on whether the bank strives hard to keep its reputation by improving its services.

.......................................................................................................................................................29

4.3.5 Findings on gender fro respondents......................................................................................30

4.3.6 Findings on the period customers had had their banking with equity bank.........................30

4.3.7 Findings on how the customers got to know about Equity bank..........................................31

4.3.8 Findings on education levels of equity bank customers.......................................................31

4.3.9 Findings on whether Equity bank charges high interest rate................................................32

4.3.10 Findings on whether there are unfavorable loan terms and conditions..............................32

4.3.11 Findings on whether customers are not given grace period...............................................33

4.3.12 Findings on whether there was poor customer care in the bank.........................................34

4.3.13 Findings on whether getting a loan takes a lot of time and procedures..............................34

4.3.14 Findings on whether the bank understands when a customer can’t meet his repayments..35

4.3.15 Findings on whether Equity bank makes un authorized transactions on customers accounts

.......................................................................................................................................................35

4.3.16 Findings on whether the bank requires saving with them in order to access a loan...........36

4.3.17 Findings on whether equity bank has unfriendly staff........................................................36

4.3.18 Findings on whether the bank’s loan processing is costly..................................................37

4.3.19Findings on whether the bank has untrustworthy staff........................................................37

4.4.0 SECTION B OBJECTIVE 2: TO ESTABLISH THE MECHANISMS USED IN

HANDLING CUSTOMER COMPLAINTS.................................................................................38

4.4.1 Findings on whether the complaint handling mechanism is good........................................38

4.4.2 Findings on whether the bank pays damages infringed on customers..................................38

4.4.3 Findings on whether the bank sends apology letters to customers.......................................39

4.4.4 Findings on whether the bank holds joint meetings with customers....................................40


vii

4.4.6 Findings on whether the bank has well displayed suggestion boxes....................................41


4.5.0 SECTION B OBJEECTIVE 3: TO EXAMINE THE RELATIONSHIP BETWEEN

CUSTOMER COMPLAINT SETTLEMENT AND CORPORATE IMAGE OF FINANCIAL

INSTITUTIONS IN UGANDA....................................................................................................42

4.5.1 Findings on whether people talk well about Equity bank.....................................................42

4.5.2 Findings on whether a customer would recommend a friend to open up an account with

equity bank.....................................................................................................................................43

4.5.3 Findings on whether the bank has good products for customers..........................................44

4.5.4 Findings on whether the bank has many branches all over the country...............................44

5.5.5 THE RELATIONSHIP BETWEEN CUSTOMER COMPLAINT SETTLEMENT AND

CORPORATE IMAGE OF FINANCIAL INSTITUTIONS........................................................45

CHAPTER FIVE.........................................................................................................................47

SUMMARY OF FINDINGS, CONCLUSIONS, RECOMMENDATION AND AREAS OF

FURTHER RESEARCH.............................................................................................................47

5.0 INTRODUCTION...................................................................................................................47

5.1 DISCUSSION OF THE FINDINGS.......................................................................................47

5.2.0 Conclusions...........................................................................................................................48

5.2.1 Objective 1: To establish the major complaints by the customers of Equity bank Uganda

Ltd..................................................................................................................................................48

5.2.2 Objective 2: To identify the mechanisms used by Equity bank Uganda Ltd in handling

customer complaints......................................................................................................................48

5.2.3 Objective 3: To examine the relationship between customer complaints settlement and

corporate Image of financial institution in Uganda.......................................................................48

5.3.0 RECOMMENDATIONS......................................................................................................49

QUESTIONAIRE FOR CUSTOMERS........................................................................................52

APPENDIX II................................................................................................................................54

QUESTIONAIRE FOR STAFF....................................................................................................54

viii

LISTS OF FIGURES

Figure 1:A Pie chart showing Gender of respondents...................................................................18

Figure 2: showing the level of education of staff in equity bank..................................................19

Figure 3:showing rates on interest on staff loans..........................................................................22

ix

LIST OF TABLES

Table 1: Showing response of all the respondents........................................................................17

Table 2: Showing the Gender of the respondents.........................................................................17

Table 3: Showing the time staff have worked with equity bank...................................................18

Table 4. Showing education levels of Equity bank Staff..............................................................19

Table 5:Showing departments found in equity bank....................................................................19

Table 6:Showing whether customers complain about the bank’s services...................................20

Table 7:Showing whether the ATM is always on the their branch...............................................20

Table 8: Showing whether there is high interest rate for staff loans............................................21

Table 9:Showing whether getting a loan from the bank takes a lot of time and procedures........22

Table 10: Showing whether the bank understands when a customer cannot meet his or her

repayments.....................................................................................................................................23

Table 11: Showing whether there are long queues in the banking halls.......................................23

Table 12: Showing whether the bank has enough customer care staff.........................................24

Table 13: Showing staff responses on whether the bank pays them well.....................................24

Table 14: Showing findings on whether the bank trains its staff more often...............................25

Table 15: Showing whether the bank holds joint meetings with clients who have complaints....25

Table 16: Showing whether the bank carries out surveys on customer complaints.....................26

Table 17:Showing whether the bank has well displayed suggestion boxes..................................27

Table 18:Showing whether the bank handles staff conflicts amicably.........................................27

Table 19: Showing whether Staff has accounts in other banks....................................................28

Table 20: Showing whether the bank has a good a remuneration package..................................28

Table 21:Showing whether the bank participates in community work.........................................29

Table 22:Whether the showing the bank strives hard to keep its reputation by improving its

services..........................................................................................................................................29

Table 23 :Showing gender for respondents...................................................................................30

Table 24: Showing the period the customers has been with the bank..........................................30

Table 25: Showing how the customers got to know about equity bank.......................................31

Table 26: Showing education levels of equity bank’s customers.................................................31

Table 27: Showing whether equity charges High interest rate....................................................32

Table 28: Showing whether there are Unfavorable loan terms and conditions............................32

x

Table 29:Showing whether customers are given no grace period................................................33

Table 30:Showing whether there is poor customer care...............................................................33

Table 31: Showing whether Getting a loan takes a lot of time and procedures............................34

Table 32:Showing whether the bank understands when a customer cannot meet his or her

repayments.....................................................................................................................................34

Table 33:Showing whether they make unauthorized transactions................................................35

Table 34:Showing whether the bank require savings with them to access a loan.......................35

Table 35: Showing whether the bank has unfriendly staff............................................................36

Table 36: Showing whether Loan processing is costly at equity bank.........................................37

Table 37: Showing whether the bank has Untrustworthy staff.....................................................37

Table 38: Showing whether the complaint handling mechanism is good....................................38

Table 39:Showing whether bank pays damages infringed on customers.....................................38

Table 40: Showing whether the bank sends apology letters to customers....................................39

Table 41:Showing whether the bank holds joint meetings with customers..................................39

.Table 42: Showing whether the bank carries out surveys on customer complaints....................40

Table 43:Showing whether the bank has well displayed suggestion boxes..................................40

Table 44: Showing whether the bank has well displayed complaint books..................................41

Table 45: Showing whether People talk fairly well about the bank.............................................42

Table 46:Showing whether a customer would recommend a friend to open up an account in

equity bank.....................................................................................................................................43

Table 47:Showing whether the bank has good products for customers........................................43

Table 48: Showing whether the bank has many braches all over the country.............................44

Table 49:Examining the relationship between customer complaints settlement and...................45

Table 50:Showing the relationship between customer complaints settlement and corporate Image

Using spearman’s rank of correlation............................................................................................46

xi

LIST OF ACRONYMS

ATM-Automatic Teller Machine

FSA - Financial Services Authority

ICICI - Industrial Credit and Investment Corporation of India

MDI- Microfinance Deposit Taking institutions

NGO- Non-governmental Organization

RBI- Reserve Bank of India

SMAS - Scottish Manufacturing Advisory Service

UMU –Uganda Microfinance Union

UML-Uganda Micro Finance Limited

xii

http://www.scottish-enterprise.com/your-sector/manufacturing.aspx

ABSTRACT

This study was mainly carried out on Resolving customer complaints and corporate Image of

financial institutions in Uganda Case Equity Bank Uganda Ltd Katwe branch.

The objectives of the study were specifically, to establish the major complaints by the customers

of Equity Bank Uganda Ltd, the strategies used by Equity Bank Uganda Ltd in handling

customer complaints and the relationship between customer complaints settlement and corporate

Image of financial Institutions in Uganda.

The researcher employed both qualitative and quantitative approached to data analysis. a sample

of 64 respondents was used. Respondents are both randomly and purposively selected from all

the starters of customers, Bank staff and management.

Findings of the study indicated that though the bank had friendly staff, well displayed suggestion

boxes and complaints books, but these seemed to be of no use as many complaints were still

raised by customers meaning customer complaints were not given due attention.

The study concluded that though the bank has well displayed suggestion boxes and complaints

books in the banking hall. These were not of use to the bank since many complaints were found

unanswered as it was found that there were many complaints from customers about the bank

It was also concluded that unless customer complaints are brought to right including staffs then

the customer and staff retention will remain a myth and this will affect the corporate image of the

bank as the study found out that resolving customer complaints contributes 56% of corporate

image of the institution and the rest by other factors which is a strong relationship.

The study recommended that a 24 hour feedback should be maintained among the stakeholders

and this should include not only customers but also internal employees. Staff should be paid well

and trained so as to have a satisfied mind which will motivate them to deliver to their

expectations.

xiii

CHAPTER ONE

1.0 INTRODUCTION This chapter is to present the background of the study, statement of the problem, the purpose of

the study and its objectives, the research questions, scope of the study ands its significance.

1.1 BACKGROUND TO THE STUDY

Equity Bank Uganda Limited started operations in 1997 as Uganda Microfinance Union (UMU),

an NGO at the time providing primarily affordable loans to its customers. UMU then acquired

an MDI license in 2005 and transformed into Uganda Microfinance Limited (UML) a

microfinance deposit taking institution regulated by the Central Bank and with expanded

shareholding from international investors. UML then became the leading micro finance

institution in Uganda, with continued expansion that led to 31 branches and 16 contact offices

countrywide.

In April, 2008 UML successively merged with Equity Bank Limited of Kenya to become a fully

fledged commercial bank offering a variety of financial services. The micro enterprise sector has

hitherto remained the main target market of the bank.

Customer complaints are defined as situations that express dissatisfaction by customers, whether

justified or not (Koetler 2000). Repeated customer complaints can spoil the institution’s image

which in the long run can lead to the collapse of the institution. With this customer complaints

need to be taken serious and immediately attended to. When customer complaints are well

managed the results is customer loyalty. Loyal customers are continuous business partners; they

resist cross bank temptations and are known to voluntarily testify in favor of the bank by word or

otherwise (Shankar, 2007). Customer loyalty on the other hand defines situations in which the

numbers of individuals (clients) staying with a business over a specified time. Customer loyalty

is said to be a hallmark of a well managed complaints handling system which translates into

organizational profitability. The way the bank handles customer complaints can determine

whether it has a competitive advantage in the market or not. No company can avoid complaints.

Customer Complaints are of great importance to an institution as they can be used to identify

flaws in systems and help rectify the causes.

Customer complaints vary with different institutions, but the central point is that customer

complaints signal customer dissatisfaction

1

A corporate image is the perception that the general public holds about a particular business.

Many companies invest a great deal of time and other resources in an effort to influence the

opinion that consumers hold about the products offered by the business, as well as the business

itself. This process of cultivating positive public relations extends to not only interaction with

consumers, but also ongoing interaction with the media, labor unions, industrial associations, and

other entities that have a direct and indirect impact on public opinion. Many firms focus little

attention on their corporate image until it has been severely damaged. Often, this recognition

comes too late to remedy the situation.

Shankar (2007) asserts that in India the quality of service in Indian banks has deteriorated badly

since June 2006. Customers have suddenly become more discerning. According to banking

regulator, the Reserve bank of India (RBI), the number of customer complaints increased by over

500% to 34,499 in 12 months between July 2006 and June 2007. In the previous 12 months, the

number of complaints was 5,772.

In Uganda, customer complaints in the banking industry show that the industry might guilt of

offering much less to their customer expectations in terms of customer care services. With a fully

fledged liberal economy where competition for the best services should be the norm, the banking

industry in Uganda seems not to be offering the best customer care services to their clientele.

According to Kayizzi (2008), the Bank of Uganda Governor pointed out complaints from the

public about staff collusion to defraud customers but the offending banks have kept quiet.

This report addresses sector performance in customer complaints and building corporate image,

focusing on the Banking industry using Equity Bank ltd as a case study. Research on the sector

worldwide reveals that customer complaints are abundant in the use of Automated Teller

Machines (ATM), opening of accounts, long queues, collusion of bank staff with unscrupulous

elements to defraud individual accounts, unauthorized account seizures and freezes as well as

cumbersome documentation and unreceptive bank staff.

Equity bank Uganda Ltd has been in operation for about 3 years now. Its corporate performance

however shows it has won a number of accolades especially in Kenya and on the international

scene. One of the bank’s core values is respect and dedication to customer care without which

customer complaints flourish and loyalty disappears. In the wake of global surges in bank

2

http://www.wisegeek.com/what-is-public-relations.htm

customer complaints, and against a background of many accolades credited to the performance

of the bank, Equity Bank Uganda’s performance in relation to customer complaints is unknown.

Attention to customer complaints can be an opportunity for corrective measures while inattention

can undermine the capital and customer dedication.

According to Ladu (2009:15), the banking industry in Uganda might be guilty of offering much

less to their clientele in terms of customer care services. Equity Bank Uganda Ltd claims to

customer care accolades therefore need to be verified. It is against this background that the

researcher sought to analyze customer complaints in Equity Bank Uganda Ltd, the way they have

been handled and how these complaints are affecting the corporate image of the bank.

1.2 STATEMENT OF THE PROBLEM

Equity Bank has claimed various national and international accolades including one for customer

care, with less turn around time on customers’ complaints and offering cheap and affordable

micro-finance products to rural People in the financial sector.

This has seen the bank establishing many branches all over the country in the last one year and

six months. Bank of Uganda points out that Ugandan banks are guilty with the respect to

customer complaints and have kept quiet about it, Kayizzi (2008:22). The implication of this

accusation is that Equity bank Uganda also being a bank in Uganda has its corporate image at

stake, a position the researcher seeks to verify.

Despite all the above the bank seems to be loosing popularity as can be evidenced with number

of branches being closed slowly for example Zirobwe Busiika and Kisiizi Branches already

closed(Internal Annual Reports 2010) this has led to some customers shifting their accounts to

other banks. Poor attention to customer complaints can easily reverse the gains so far made and

tarnish the corporate image of the mother bank Equity Bank Kenya Ltd. This can create great

damage to the bank for example the bank can end up in a position where it can no longer be able

to retain its customers, leading to business loss

3

1.3 PURPOSE OF THE STUDY

The purpose of the study was to find out if customer complaints have any impact on the

corporate image of banks in Uganda. Many firms focus little attention on their corporate image

until it has been severely damaged. Often, this recognition comes too late to remedy the

situation.

1.4 OBJECTIVES OF THE STUDY

The following objectives were to be used to guide the study.

i) To establish the major complaints by the customers of Equity Bank Uganda Ltd.

ii) To identify the strategies used by Equity Bank Uganda Ltd in handling customer

complaints.

iii) To examine the relationship between customer complaints settlement and corporate

Image of financial Institutions in Uganda.

1.5 RESEARCH QUESTIONS

The study aimed at answering the following questions:

i) What are the major complaints advanced by customers of equity bank Uganda Ltd.?

ii) What are the mechanisms used in handling customer complaints at Equity Bank Uganda

Ltd?

iii) What is the relationship between customer complaints settlement and Corporate Image of

financial institutions in Uganda?

1.6 SCOPE OF THE STUDY

This looked at the Geographical scope subject Scope and time frame

1.6.0 Geographical Scope

The study was confined to equity Bank Uganda Ltd head offices on Muteesa I Road, Kampala. It

covered the bank operations related to customer transactions; complaints and their feed back on

4

how satisfied customers were with the way their complaints are handled

1.6.1 Subject Scope

The researcher interacted with Equity Bank Uganda Ltd customers, staff and management with

an aim of focusing on; what customer complaints have been made and received over time, how

they were solved, are the customers satisfied with the way their complaints were addressed and

what impact has it had on the corporate image of the bank?

1.6.2 Time Frame

The study was carried out for a period of Three Years.(2008-2010)

1.7 SIGNIFICANCE OF THE STUDY

The study findings were of great use to a number of ways.

It enabled Equity Bank Uganda Ltd know the various customer complaints that haven’t

been raised by the customers and also the loop holes in their service provision.

The study enabled the researcher be introduced to the different operational levels of a

bank and also enable him attain A bachelor’s Degree in Commerce.

The study was also serve as a basis of reference for further studies on customer

complaints in banking institutions.

The research study also benefited the investigator to get an award for the bachelors of

commerce degree.

5

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter presents literature related to the study. The chapter outlines what other scholars

have written about customer complaints and corporate image. This chapter will be presented in

relation to the research questions earlier on noted in chapter one of the study.

2.1 CUSTOMER COMPLAINTS IN BANKS

The way a service organization handles customer complaints can determine whether it has a

competitive advantage in the market or not. A well established system to manage customer

complaints will serve well to enhance customer loyalty and improve the company‘s bottom line

(John, 1994).

No company can avoid complaints; they are like taxes and death, inevitable. Complaints can be

used to identify flaws in the system and help rectify the causes. Research findings show that

customers with problems and didn’t complain were less loyal than those who did and had their

issues resolved (Albrecht, 1995)

It is also proven that 1 to 5% of customers complain to managers or head office, 45% complain

to agent, branch or frontline representatives and 50% encounter a problem but do not complain.

In other words there is need to start aggressively soliciting complaints to keep companies

profitable. The above author’s views have emphasized the inevitability of bank customer

complaints as well as under score the bank’s search for profits. This suggests that banks should

strive to balance their customer satisfaction objectives and those profit makings. No bank can be

praised for striving to achieve one of the objectives at the expense of the other (Albrecht, 1995)

There are two big issues of customer irritation when one enters a bank i.e. long queues and bank

staff who are too occupied to talk to customers (either because of less number of employees or

because of larger numbers of customers than what a bank can handle). Further, whenever a

customer contacts the bank of any kind for a query, complaint or transaction the bank should

ensure that the customer doesn’t have to repeat his requests especially if it is a complaint or an

escalation as things might go worse in such cases (Mc Kensey, 2004)

6

Be it corporate or individual customer all of them complain regarding heavy documentation and

relationship manager’s failure to explain. 90% of the customers switch to other banks due to such

reasons (Sharpe, 1990).

There has been a fall in the number of consumers complaining for the third successive year,

down to 70% from 86% in 2005. The only industries to see the incidence of complaints rise

slightly his year were airlines and holiday companies – perhaps indicative of the pressure being

felt in these sectors.( Smith ,2008)

Half of the complaining customers agree that customer service standards in general in Britain are

declining; whilst only 1 to 6 thinks they are improving. As a result, half also think they need to

complain more today about service than they did in the past! So the drop in actual complaints is

accompanied by a consistently high level of frustration with service standards and the ability to

get redresses (McKensey, 2004).

Half the populations of dissatisfied customers say they would rather take their business

elsewhere than complain, and a similar proportion say they wanted to complain but didn’t,

because it involved too much effort. The survey also tracks the biggest frustrations with

customer service. Poor treatment whilst on the telephone consistently accounts for the three

highest ranked issues. Being left endlessly on hold remains the top gripe, followed by being

passed around voice-activated systems and coping with incompetent telephone staff (Ashish,

2000)

The quality of service in Indian banks has deteriorated badly since June 2006. Customers have

suddenly become more discerning. According to banking regulator the Reserve Bank of India

(RBI), the number of customer complaints increased by over 500% to 34,499 in the 12 months

between July 2006 and June 2007. In the previous 12 months, the number of complaints was

5,772.

The banks themselves blame customers, and not the poor quality service, for the increase in the

number of complaints,(Hoff, 1995). He continues to point out that most complaints relate to

credit card usage. He adds that in case of some products such as education loans, those who do

not even qualify for a loan complain directly to the finance ministry.

7

Among private banks, ICICI Bank has the maximum number of complaints related to credit

cards. The bank has issued 905 million cards which record more than 219.75 million transactions

a year. Most complaints relate to charge-backs where a customer is not willing to wait for 45

days to 60 days for completion of investigation of a disputed transaction.

The maximum number of complaints against public sector and old private banks has to do with

deposit accounts and in the case of new private and foreign banks, it has to do with credit cards

(Chick, 2004).

The banks have become unreliable. Their agents are trained well in disconnecting the call more

than helping the customer appropriately. Each one has their own answers. Their promises and

apologies remain verbal and are never put to action (Shankar, 2007).

According to the Uganda Bankers Association (UBA 2008), the Ugandan banking community

mostly complains about high charges, many unclear charges, low interest on savings, early

closure of branches or outlets, unclear transactions and unreceptive staff. Further, customers

complain that bank staff are untrustworthy, they ask for unofficial chargers and that there are

ATM failures, long lines of queuing and non-networked branches. The loans are difficult to

access and repayment schedules and security are unaffordable.

2.1.1 COMPLAINT HANDLING STRATEGIES IN BANKS.

According to the Complaints Assessment specification a 360 degree feedback should be

maintained among the stakeholders and this includes the feedback from not only customers but

also from internal employees. Feedback plays an important role in any service industry.

Feedback from customers can be taken written, verbally or online to help the bank to take correct

steps. If employees are not satisfied then they can’t give efficient services to the customers. The

360 degree approach not only helps banks to retain customers but also its employees. (SMAS,

2000:86)

Modern banks are coming up with new and innovative ideas to ensure satisfaction and customer

retention. They include happy-to-help attitude of executives, zero defect philosophy, door

delivery, transparency in documentation and first contact resolution. The list also includes in

8

house cafes, six sigma and banks, employee awareness about products, employee satisfaction

(Thomas, 1997)

The approach of the executives when the customer enters the bank is very important. The

executives should have happy to help attitude. He adds that a simple smile across the counter to

the customer in front, an eye contact while dealing with the customer is sorely missed. Banking

is now more and more impersonal and thus there is hardly any difference between banks, with all

having the same ATMs/ mobile banking and no human factor differentiating the service factor.

(Shankar, 2007)

First contact resolution will help gain customer satisfaction, in cases where follow ups have to be

done banks should make sure that they keep the customer informed to avoid customer

frustration. Banks should adopt six sigma approach and not merely quality certification. This is

because in quality certification one can adopt lower standards. Six sigma approaches will mean

better customer satisfaction, fewer complaints and better customer retention (Smith, 2008)

Provision of better services will lead to better customer satisfaction, fewer complaints and better

customer retention. This can only be attained only when employees are given proper training

about the products the organization is handling (King, 1991).

The following are some recommendations for companies who want to pursue a customer

complaints handling culture: considering customer complaints as golden opportunities for

improving, encouraging the customers to express their dissatisfaction, simplifying the process of

complaining and acknowledging the customer’s point of view and building a documented system

and maintaining records. He further adds that employees should be trained and organizations

should use recommended standards as a benchmark for the system or even consider getting

certified against that standard, (Wright, 2002).

One of the simplest for both retention and profitability is to secure the customer’s direct deposit

early in the relationship. With regular account funding from their payroll or pension deposit,

customers are likely to use the account for the transactions, sign up for additional services, and

grow their deposit balance, thus leading to higher profits, (Sharpe 1990).

Existing customers are those that have started the process of moving their business to another

company or are in the process of considering that move. The first step in creating bank customers

9

retention strategies for such customers is to identify which customers are in each camp.

Indicators of customers considering moving include requests for loan payouts details.

Management should understand the product cycle; that is to say the order in which customers

drop the product before leaving. With this information it can create effective customer retention

strategies to target those customers. (Hoff et al, 1998)

2.1.2 EVIDENCE OF CUSTOMER SATISFACTION WITH COMPLAINTS HANDLING.

There should be a good number of individuals staying at a business over a specified period of

time. These should be able to testify in writing or speech on the virtue of some products. There

should also be a measure for the due date flawless delivery of a product or service in that specific

period, (Koelter, 1995).

In defense of his bank’s excellent customer care, the Managing Director Baroda bank reveals

that part of the evidence is having increases in the capital base as well as the customer base

(Kayizzi, 2008).

Complaints are an indicator of areas of the business that are not operating satisfactorily for

customers. Senior management should therefore ensure that their firm has a philosophy that

understands and acts on the basis that effective management of complaints is a key part of

treating customers fairly. Handling complaints fairly is not just about processes and time limits.

It is also about the culture within a firm and the behaviors and attitudes of staff when receiving

complaints and deciding what actions to take (FSA 2010).

The satisfied customer is loyal to the institution and this can be reflected in long term

relationship; multiple relationships, strong attachment towards the bank, immunity to the pool

from the competition and willingness to refer others. The path to a bank’s suitable profitable

growth begins with creating more promoters and fewer detractors. This number can only grow if

there are no customer complaints (Wright 2000)

Many companies take the value of increased customer satisfaction to result in increased market

share and profits. A satisfied customer is the one that will promote the company to other

potential customers while the unsatisfied one will discourage other customers to buy the

10

company products and services and the likelihood that the customer would recommend the

company to a friend can be measures on a 10 point scale, (Jon 2003).

He goes on to point out that the more the customer is satisfied, the more he/she is retained and

the more value he/she provides as it is cheaper to service an existing customer than to recruit a

new one.

2.2 CORPORATE IMAGE

Corporate image may be considered as a function of the accumulation of

Purchasing consumption experience overtime and has two principal components: functional and

emotional. The functional component is related to tangible attributes that can be easily measured,

while the emotional component is associated with psychological dimensions that are manifested

by feelings and attitudes towards an organization. These feelings are derived from individual

experiences with an organization and from the processing of information on the attributes that

constitute functional indicators of image. Corporate image is, therefore, the result of an aggregate

process by which customers compare and contrast the various attributes of organizations (Tang

Weiwei, 2007).

Corporate image plays a central role in branding as well as in management studies. The corporate

image is created from associations about the company or all the information (perceptions,

inferences, and beliefs) about it that people hold. A favorable corporate or brand image provides

several advantages, such as the opportunity to command premium prices, buyers as well as

middlemen who are more loyal, and there is more positive word-of-mouth. The corporate brand

and the product brand play different roles in the organization. The end benefit for the corporate

brand is to provide a value proposition or customer relationship based on the organizational

associations, credibility to other brands (expertise, trustworthiness, liking), and a vehicle to

clarify and crystallize the organizational culture and values inside the organization (Mckensey,

2004).

11

2.3 RELATIONSHIP BETWEEN CUSTOMER COMPLAINTS AND CORPORATE

IMAGE.

A bank's image is based upon a customer's unique experience. And the customer experience, in

turn, drives his or her recommendations: both positive and negative. So, a bank literally lives or

dies based upon how well it treats customers. And that is as it should be (J.D. Power, 2009).

Management discovers the organization's inability to satisfy its customers via two feedback

mechanisms: exit and voice (Hirschman, 1970). Exit implies that the customer stops buying the

company's services while voice is customer complaints expressing the consumers' dissatisfaction

directly to the company. Customer exit or change of patronage will have an impact on the long-

term revenue of the company.

Many researchers in marketing have recognized the critical roles of corporate image and

corporate reputation in customer’ buying behavior. The two factors are particularly important in

developing and maintaining a loyalty on the part of customers. In other aspects, corporate image

and corporate reputation are generally considered as two distinct constructs which may be

strongly related. Most of the studies have analyzed corporate image and corporate reputation

separately. At a most guarded level, some authors have expressed a potential link between the

two concepts.

(Tang Weiwei 2007)

The Mano and Oliver Framework (1993) identifies negative affect as a negative antecedent to

satisfaction. Initial negative effect triggered by the initial service failure my thus have a negative

impact on the satisfaction judgment of complaint resolution due to the customer being in a

negative state of mind. It is also likely that initial negative affect for the same reason may have a

negative impact on customer loyalty.

Customers may also be loyal because they are satisfied and thus want to continue the

relationship. History has proven that most barriers to exit are limited with regard to durability;

companies tend to consider customer satisfaction the only viable strategy in order to keep

existing customers. Several authors have found a positive correlation between customer

satisfaction and loyalty (Anderson and Sullivan, 1993; Bolton and Drew, 1991; Fornell, 1992).12

http://www.njbiz.com/article.asp?aid=78629

In the context of dissatisfaction with services and/or dissatisfaction with complaint resolution we

believe that corporate image may function as a moderator to intended consumer behavior, i.e.

one or two negative experience does not cause the customer to exit from the market or change

patronage. In the case of dissatisfaction with services we believe that a good corporate image

may function as moderator on future intent and thus reduce incentives to exit as a function of

dissatisfaction with complaint resolution (Bolton & Drew, 1991).

Your existing customers are among the most important assets of your business - they have

already chosen you instead of your competitors. Keeping their custom costs far less than

attracting new business, so it's worth taking steps to make sure that they are satisfied with the

service they receive. In one way or another, this will boost the corporate image and customer

satisfaction of your business. (The business link 2010)

2.4 Conclusion

The literature above by different scholars clearly portrays that customer complaints are a

necessary evil to any company. Customer complaints help to highlight the areas to be improved

for better service delivery and customer satisfaction. Failure to address the complaints greatly

damages the company’s corporate image or rather how the general public will view company in

terms of its service provision

13

CHAPTER THREE

RESEARCH METHODOLOGY

3.0 INTRODUCTION.

This chapter is to present in details the methods that were used in the data collection process. The

section describes the research area, design, sampling and subject selection, research instruments,

data collection procedure and data analysis to be used by the researcher.

3.1 AREA OF STUDY.

The study was confined to equity Bank Uganda Ltd Katwe branch on Muteesa I Road, Kampala.

It covered the bank operations related to customer transactions; complaints and their feedback on

how satisfied customers are with the way their complaints are handled

3.2 RESEARCH DESIGN.

The research was both qualitative and quantitative. Data collected using a self administered

questionnaire. The study subjects included bank customers, bank management and employees.

Two sets of questionnaires were used, one set for the customers and the other for the employees

and management.

3.3 POPULATION.

A total population of 100 people was considered for the study, these were mainly comprise of

Equity bank Uganda’s customers, staff and management. More focus was put on customers who

have banked with the institution for some time.

3.4 SAMPLE SIZE.

A sample size of 70 respondents was considered for the study. This also comprised of bank

customers, bank staff and the bank management.

3.5 SAMPLING DESIGN AND PROCEDURES.

The population was stratified into customers and the bank employees. Selection of the subjects

strictly was random. A total of 50 customers were randomly selected, Selection also based on

the longevity with the bank. Customers were selected on working days from Monday to Friday

that is 14 customers per day. 20 employees of the bank were also randomly selected but still

from the different departments of operations that is; 5 from operations, 6 tellers, 7 from credit,

14

and 2 from management. A total of 70 respondents were considered for the study.

3.6 DATA SOURCES.

The data to be considered for the study came from two sources that is the primary and secondary

sources. The primary data mainly came from the respondents (that is their answers to the

different questions) and the secondary data was got from different records of the bank for

example the customer complaint book or files.

3.7 DATA COLLECTION PROCEDURES AND INSTRUMENTS.

Questionnaires were used as the primary data collection instruments. This was pre-tested by

randomly issuing them out to some respondents. They were made up of both open ended and

closed ended questions. Close ended questions helped to elicit precise answers while the open

ended questions helped to bring out the respondents’ points of view. The researcher’s choice of

using questionnaire was due to the ease in administering them and the freedom they give the

respondents in answering them.

Questionnaires were given out randomly after obtaining the fact that the client had spent some

time with the bank. The respondents were kindly requested to take their time while responding to

the questionnaires. Clients were given a least time of 30 minutes to respond while the staff

members, up to a day.

3.8 DATA PROCESSING, SUMMARY AND PRESENTATION

3.8.0 Coding

Data was segmented and each segment given a code or a short phrase that suggested how the

associated data segment inform the research objectives

3.8.1 Editing

Data was examined to detect spelling errors, omission of contradicting and unreasonable

information that was collected. It was done to ensure that data was accurately, consistently and

uniformly entered. Central editing was also done after questionnaires were collected.

3.8.2 Tabulation

This was used in an orderly arrangement of data in columns and rows and data was summarized

to have consistent analysis and data presentation. This helped to save space and facilitate

15

summation of items, detection of errors and omissions in findings. Excel was also used to draw

graphs and pie charts in order to make the data more meaningful

Data will be coded

3.9 DATA ANALYSIS.

After the collection of the raw data, it was presented using frequency tables in raw figures.

Percentages of the results were then be calculated. Such tools like SPSS and Spearman’s

correlation were used to analyze data

16

CHAPTER FOUR

PRESENTATION AND ANLYSIS

4.0 Introduction

This chapter entails the presentation and analysis of major findings of the study where two sets

of questionnaires both for customers and staff were used. This was done with the aim of

providing answers to research questions and for an interpretation of these findings in light with

the research objectives .Tables , figures graphs, figures and other statistical tools were used to in

data presentation, analysis and interpretation of the findings

RESPONSE RATE

STAFF RESPONSES

Table 1: Showing response of all the respondentsRespondents’

category

number of Total

respondents

Frequency Percentage

%

Management 2 2 3.125

Employees 18 16 25

Customers 50 46 71.185

Total 70 64 100

Source: Primary data.

Out of 70 questionnaires distributed to the respondents, 64 questionnaires were returned giving a

response rate of 91% and 9% never responded as shown in the table and calculation below.

Y/N*100 where Y= response rate N= Total number of respondents multiplied by100

Table 2: Showing the Gender of the respondentsGender Frequency Percent

Female 7 38.9%

Male 11 61.1%

Total 18 100.0%

Source: Primary data.

17

1 Findings on gender of respondents

Out of 18 respondents 61.1% were males where as 38.9% were females literally meaning that the

bank in most cases employs males this is due to the fact that a big number of them are credit

officers who go out in the field to track customers and even verify new ones. and are able to ride

motor bikes.

Figure 1:A Pie chart showing Gender of respondents

Table 3: showing the time staff have worked with equity bank

Source: primary data

18

Response Frequency Percent

less than a year 2 11.1%

1-2years 12 66.7%

2-3years 4 22.2%

Total 18 100.0%

sexfemalemale

38.9%

61.1%

2. Findings on period the staff respondents have worked with the bank

From 18 staff respondents 11.1% have worked with the bank for less than a year, 66.7% have

worked for a period of 1 to 2 years and 22.2% have worked for 2 to 3 years.

From the findings it showed that most of the staffs do not work in the bank for quite longtime.

Meaning that there could be a problem of labor turn over

Table 4. Showing education levels of Equity bank Staff


3. Findings on the level of Level of education of equity bank staff

Out of 100% of the staff 77.8% of them were from degree holders, 5.6%were secondary level,

11.1% were diploma holders and 1% were post graduate.

This therefore implied that most of the workers in the bank greatly are degree holders

Graph showing the level of education

Figure 2: Showing the level of education of staff in equity bank

19

Response Frequency PercentageSecondary 1 5.6%

Diploma 2 11.1% Degree 14 77.8% Post Graduate 1 5.6% Total 18 100.0%

secondary diploma degree post graduate

levelofeducation

0

20

40

60

80

Perc

ent

A Bar graph showing the level of education of staff in equity bank

Table 5: Showing departments found in equity bank

Source: Primary data

4. Findings on Departments found in equity bank.

Out of 100% of the respondents from the management staff, 27.8.7% of them were from

operations teller, 33.3% from credit department, 27.8% respondents from the management

department 11.1%.

This therefore implied that most of the workers in the bank are tellers, these deal with customers

directly on the counter since it is a banking institution

4.1.0 SECTION B OBJECTIVE 1: TO ESTABLISH THE MAJOR COMPLAINTS BY

THE CUSTOMERS OF EQUITY BANK UGANDA LTD.

Table 6: Showing whether customers complain about the bank’s services


4.1.1 Findings on whether customers served ever complain about the banks services

Out of 18 staff interviewed the responses were that 61.1% rarely receive complaints from

customers about the bank services, 38.9% most of the time receive complaints. From the findings

it showed that more than 50% of the total respondents complain most of the time. This shows

that there is a problem in resolving customer complaints

20


Operations 5 27.8%

Teller 6 33.3%

Credit 5 27.8%

Management 2 11.1%

Total 18 100.0

Response Frequency PercentRarely 11 61.1%

Most Of The Time 7 38.9% Total 18 100.0%

Table 7: Showing whether the ATM is always on the their branch


Strongly Agree 4 22.2%

Agree 10 55.6%

Strongly disagree 3 17.7%

Disagree - -

Total 18 100%


4.1.2. Findings on whether their ATM is always on at the branch

Out of 18 staff 22.2% strongly agree that ATM is always on, 55.6% agreed, 17.7% strongly

disagreed. There fore the ATM is always on and hence better services are offered to the staff.

Table 8: Showing whether there is high interest rate for staff loans


Strongly agree 5 27.8%

Agree 8 44.4%

Strongly Disagree 5 27.8%

Total 18 100%


4.1.3 Findings on whether the bank charges high interest rates on staff loans

This question in section B required bank staff to comment on whether the bank charges high

interest rates on staff loans. Out of 18 questionnaires completed 44.4% agreed, 27.8% also

strongly agreed and 27.8% strongly disagreed that there is high interest rate charged on staff

loans

Basing on the findings it clearly indicated that the bank charged high interest rate on staff loans

this shows that complaints are still many even among the staff in organization and this could

affect corporate image of the organization

21

Figure 3: Showing rates on interest on staff loans

Table 9: Showing whether getting a loan from the bank takes a lot of time and procedures



Agree 10 55.6%


Total 18 100%


4.1.4 Findings on whether getting a loan from equity bank takes a lot time procedures

From 18 respondents who answered questionnaires 16.7% strongly agreed, 55.6% agreed, 11.1%

strongly disagreed 22.2% disagreed and 5.5% were not sure.

However from the findings it was noticed that the highest percentage of 55.6% agreed that

getting a loan takes a lot of time and procedures hence still a major complaint in the bank This

meant that there delay in providing services to customers which may trigger customers leave the

bank for a competitor who can offer faster services.

22

stronglyagree agree strongly disagree

highinterestrateforstaffloans

0

10

20

30

40

50

Perc

ent

A bar gragh showing rates on interest on staff loans

Table 10: Showing whether the bank understands when a customer cannot meet his or her repayments.



Agree 6 33.3%


Disagree 4 22.2%

Not Sure 2 11.1%

Total 18 100.0%


4.1.5 Findings on the bank understands when I can not meet my repayments

From 18 questionnaires filled by staff 11.1% strongly agreed, 33.3% agreed, 22.2% strongly

disagreed 22.2% disagreed and 11.1% were not sure.

The findings indicated that where as the bank sometimes agreed in most cases it could not

understand whenever staff cannot meet their Payments. This affects staff confidence in the bank.

.

Table 11: Showing whether there are long queues in the banking halls



Agree 6 33.3%


Disagree 2 11.1%

Not Sure 2 5.6%

Total 18 94.4%


4.1.6 Findings on whether there are long queues in the banking hall.

Out of 18 questionnaires given out 33.3% agreed that there are long queues, 16.7% strongly

agreed,27.8% strongly disagreed 11.1% disagreed and only 5.6% were not sure. Basing on the

responses got it was found that there is a problem of long queues in the banking hall. This makes

23

customers wait for so long to get the service and may lead customers to hate banking and opt to

stay with their cash. This makes banks to lose out

4.2.0 SECTION B OBJECTIVE 2: TO IDENTIFY THE MECHANISMS USED BY THE

BANK IN RESOLVING CUSTOMER COMPLAINTS.

Table 12: Showing whether the bank has enough customer care staff


Agree 8 44.4%


Disagree 2 11.1%

Not Sure 1 5.6%

Total 17 94.4%

Total 18 100.0%


4.2.1 Findings on whether there is enough customer care staff

From 18 staff respondents 44.4% agreed, 33.3% strongly disagreed, 11.1% disagreed and only

5.6% were not sure.

Basing on the finding the general picture indicates a high number of customer care staff. But its

not sufficient enough to handle customer complaints as this can be seen from close percentage of

respondents who disagreed with the statement

Table 13: Showing staff responses on whether the bank pays them well.

Response Frequency PercentAgree 3 16.7%

Strongly disagree 12 66.7% Disagree 2 11.1% Not Sure 1 5.6%

Total 18 100.0%Source: Primary data

24

4.2.2 Findings on whether the bank pays staff well

Out of 18 staff who responded 16.7% agreed, 66.7% strongly disagreed 11.1% disagreed where

as only 5.6% were not sure.

From the findings it was found out that most of the respondents indicated poor pay by the bank.

This raises a lot of disharmony among staff and people are not motivated to work to capacity this

could raise a number of complaints received by the bank.

Table 14: -Showing findings on whether the bank trains its staff more often


Agree 6 33.3%


Disagree 5 27.8%

Not sure 2 11.2%

Total 18 100.0%


4.2.3 Findings on whether the bank trains its staff more often.

From 18 staff who responded 33.3% agreed, 27.8% strongly disagreed 27.8% where as only

11.2% was not sure.

Basing on the findings the highest number of staff disagreed this indicted that staff had no

continuous training and this could likely make them un able to handle customer complaints

amicably.

Table 15: Showing whether the bank holds joint meetings with clients who have complaints



Agree 2 11.1%


Disagree 4 22.2%

Not Sure 2 11.26%

Total 18 100.0%


25

4.2.4 Findings on whether the bank holds joint meetings with customers who have

complaints.

Out of 18 staff respondents 11.1% strongly agreed, 11.1% agreed, 44.4% strongly disagreed

22.2% disagreed and 11.2 were not sure.

From the findings it was noted that the highest percentage disagreed with the statement this

increases the number of complaints and even the bank may not know which problems to solve.

This could make clients see their way out of the bank.

Table 16: Showing whether the bank carries out surveys on customer complaints



Agree 4 22.2%


Disagree 6 33.3%

Not Sure 2 11.1%

Total 18 100%


4.2.5 Findings on whether the bank carries out surveys on customer complaints

Out of 18 staff who filled questionnaires 5.6% strongly agreed, 22.2% agreed, 27.8% strongly

disagreed, 33.3% disagreed and 11.1% were not sure.

From the findings it indicated that the bank did not take surveys on customer complaints and this

could limit their understanding of kinds of customer complaints which makes them fail to solve

the right complaints, this leaves customers unsatisfied that they may forced to go for a

competitors’ products.

26

Table 17: Showing whether the bank has well displayed suggestion boxes



Agree 5 27.8%

Disagree 4 22.2%

Not Sure 1 5.6%

Total 18 100.0%


4.2.6 Findings on whether the bank has well displayed suggestion boxes

From staff who responded 44.4% strongly agreed, 27.8% agreed, and 22.2% disagreed, while

5.6% were not sure.

Basing on the findings it indicated that the bank has well displayed suggestion boxes but from

further findings it indicated that those suggestions dropped in the boxes were not worked on

professionally.

Table 18: Showing whether the bank handles staff conflicts amicably

Response Frequency PercentStrongly Agree 4 22.2%

Agree 7 38.9% Strongly Disagree 1 5.6% Disagree 4 22.2% Not Sure 2 11.2% Total 18 100.0%


4.2.7 Findings on whether the bank handles staff conflicts amicably.

Out of 18 staff who responded it showed that 22.2% strongly agreed 38.9% agreed, 5.6%

strongly disagreed 22.2% disagreed and 11.2% were not sure.

Basing on the findings it indicated that most of the staff conflicts were handled amicably. But

still some findings indicated that there was some lag as some staff opposed.

27

4.3.0 SECTION B OBJECTIVE 3 TO EXAMINE THE RELATIONSHIP BETWEEN

CUSTOMER COMPLAINT SETTLEMENT AND CORPORATE IMAGE OF

FINANCIAL INSTITUTIONS.

Table 19: Showing whether Staff has accounts in other banks



Agree 8 44.4%

Disagree 1 5.6%

Total 17 94.4%

Total 18 100.0%


4.3.1 Findings on whether staffs have accounts in other banks

Out of 18 staffs who responded 44.4% strongly agreed, 44.4% agreed, 5.6% disagreed

From the finding the largest number indicated that most of the staff has accounts in other banks.

This shows that even staffs not have trust in the company they are working for this could ruin the

bank’s reputation.

Table 20: Showing whether the bank has a good a remuneration package


Agree 2 11.1% Strongly disagree 10 55.6% Disagree 2 11.1% Not Sure 3 17.7% Total 18 100%


4.3.2 Findings on the bank has a good remuneration package

Out of 18 staffs interviewed 5.6% strongly agreed 11.1% agreed 55.6% strongly disagreed

11.1% disagreed, and 17.7% were not sure

From the findings it indicated that bank’s renumeneration package is poor this could also affect

corporate image of the bank as it increases labor turnover

28

Table 21: Showing whether the bank participates in community work


Agree 8 44.4%


Disagree 3 16.7%

Not Sure 2 11.1%

Total 17 94.4%


4.3.3 Findings on whether the bank participates in community work

Out of 18 respondents 44.4% agreed, 27.8% strongly disagreed 16.7% disagreed, 11.1% were

not sure.

From the findings it indicated that the bank tries to participate in community work this would

slowly create confidence in staff about the company they work for.

Table 22: Whether the showing the bank strives hard to keep its reputation by improving its services


Agree 10 55.6% Strongly Disagree 3 16.7% Disagree 1 5.6% Not Sure 1 5.6% Total 18 100.0%


4.3.4 Findings on whether the bank strives hard to keep its reputation by improving its

services.

From 18 staff interviewed 16.7% strongly agreed 55.6% agreed, 16.7% strongly disagreed, 5.6%

disagreed, and 5.65 were not sure.

Basing on the findings it greatly indicated that the bank really strives hard to improve its

reputation. This is may be by opening up various branches in different districts so as to extend

their services to customers’ reach.

29

CUSTOMERS REPONSES

Table 23 :Showing gender for respondents.


F 19 41.3%

M 27 58.7%

Total 46 100.0%


4.3.5 Findings on gender fro respondents

Out of 46 respondents 58.7% were males where as 41.3% were females. This shows that most of

Equity bank’s customers are males; this may be because females are risk averse where as male

are not when it comes to borrowing.

Table 24: Showing the period the customers has been with the bank


1YEAR 14 30.4%

2YEARS 22 47.8%

2-3YEARS 5 10.9%

MORE THAN 3 YEARS 5 10.9%

TOTAL 46 100.0%


4.3.6 Findings on the period customers had had their banking with equity bank.

From 46 respondents 30.4% of customers have been in the bank for 1 Year, 47.8% have been in

the bank for 2 years, 10.9% 2-3 years and 10.9% more than 3 Years.

From the findings it indicated that most the bank’s customers have been big the bank for 2 years.

This can be attributed to may be because formally it was microfinance and may be when it

became a commercial bank; some customers could not afford some products and had to leave the

bank. The bigger percentage represents the new customers. Who joined after it had been turned

into the bank.

30

Table 25: Showing how the customers got to know about equity bank


press 12 26.1%

Through friend 34 73.9%

Total 46 100.0%


4.3.7 Findings on how the customers got to know about Equity bank

From the 46 questionnaires filled in it showed that 26.1% of customers got to know a bout

Equity through the press where as 73.9% was through friends. As it says that the best form of

advertising is by word of the mouth from a satisfied customer.

Table 26: Showing education levels of equity bank’s customers


Secondary 16 34.8%

Diploma 10 21.7%

Degree 11 23.9%

Postgraduate 7 15.2%

Others 2 4.3%

Total 46 100.0%


4.3.8 Findings on education levels of equity bank customers

From 46 customers who were interviewed 34.8% had secondary level 21.7% had diploma 23.9%

are degree holders and 15.2% had postgraduate while only 4.3% had other.

From findings it indicated that most of equity bank customers had a secondary level of

education.

31

Table 27: Showing whether equity charges High interest rate



Agree 17 37.0%


Disagree 5 6.5%

Not sure 3 6.5%

Total 46 95.7%


4.3.9 Findings on whether Equity bank charges high interest rate

From 46 respondents 15.2% strongly agreed, 37.0% agreed, 30.4% strongly disagreed 6.5%

disagreed while 6.5% were not sure.

Findings showed that the bank still charges a high interest rate these still increases number

complaints from the banks customers.

Table 28: Showing whether there are Unfavorable loan terms and conditions



Agree 10 21.7%


Disagree 9 19.6%

Not sure 3 6.5%

Total 46 89.1%


4.3.10 Findings on whether there are unfavorable loan terms and conditions

Findings indicate that 4.3% strongly agreed 21.7% agreed, 37.0% strongly disagreed 19.6%

disagreed 6.5% were not sure.

32

From the findings the largest percentage of respondents disagreed, this showed that loan terms

and conditions are favorable

Table 29:Showing whether customers are given no grace period



Agree 20 43.5%


Disagree 6 13.0%

Not sure 6 13.0%

Total 46 100%

Primary source

4.3.11 Findings on whether customers are not given grace period

From 46 customers who filled questionnaires 6.5% strongly agreed, 43.5% agreed, 23.9%

strongly disagreed, 13% disagreed and 135 were not sure.

From the findings results indicated that customers are not given grace period. This makes client

struggle hard in their payments at the expense of their normal living conditions.

Table 30:Showing whether there is poor customer care



Agree 10 21.7%


Disagree 7 15.2%

Not sure 3 4.3%

Total 46 100%


33

4.3.12 Findings on whether there was poor customer care in the bank

From 46 respondents 2.2% strongly agreed 21.7% agreed 54.3% strongly disagreed, 15.2%

disagreed, and 4.3% were not sure. From the findings it was found that customers disagreed with

the statement, this means that the bank has good customer care.

Table 31: Showing whether getting a loan takes a lot of time and procedures



Agree 17 37.0%


Disagree 8 17.4%

Not sure 4 8.7%

Total 46 100.0%


4.3.13 Findings on whether getting a loan takes a lot of time and procedures

From 46 questionnaires filled in 4.3% strongly agreed, 37.0% agreed 32.6% strongly disagreed,

17.4% disagreed and 8.7% were not sure.

Basing from the findings indicated that getting a loan takes time and procedures this makes

clients loose out in business.

Table 32: Showing whether the bank understands when a customer cannot meet his or her repayments

Response Frequency PercentStrongly agree 5 10.9%

Agree 5 10.9% Strongly disagree 19 41.3% Disagree 10 21.7% Not sure 7 15.2% Total 46 100%


34

4.3.14 Findings on whether the bank understands when a customer can’t meet his

repayments

Findings from respondents indicate that, 10.9% strongly agreed, 10.9% agreed, 41.3 strongly

disagreed 21.7% disagreed and 15.2% were not sure.

From the above findings it showed that the bank doesn’t understand whenever a customer can’t

meet his repayment.

Table 33: Showing whether they make unauthorized transactions


4.3.15 Findings on whether Equity bank makes un authorized transactions on customers

accounts

From respondents it indicated that 6.5% strongly agreed, 19.6% agreed, 39.1% strongly

disagreed, 21.7% disagreed 10.95 were not sure.

From the findings it showed that the bank doesn’t make unauthorized transactions on customers accounts

Table 34: Showing whether the bank require savings with them to access a loan


Agree 6 13.0% Strongly disagree 20 43.5% Disagree 8 17.4% Not sure 7 15.2%

Total 46 100%Source: Primary data

35



Agree 9 19.6%


Disagree 10 21.7%

Not sure 6 10.9%

Total 46 97.8%

4.3.16 Findings on whether the bank requires saving with them in order to access a loan

Out of 46 respondents 10.9% strongly agreed, 13.0% agreed, 43.5% strongly disagreed, 17.4%

disagreed and 15.2% were not sure. Whether that bank requires saving with them to acquire a

loan.

Basing on the findings it showed that it doesn’t necessarily require saving equity bank in order to

get a loan. You can open up an account and get a loan immediately. Which good to customers in

business.

Table 35: Showing whether the bank has unfriendly staff


Agree 10 21.7% Strongly Disagree 19 41.3% Disagree 5 10.9% Not Sure 5 10.9% Total 46 100%


4.3.17 Findings on whether equity bank has unfriendly staff

From the respondents 15.2% strongly agreed, 21.7% agreed, 41.3% strongly disagreed, 10.9%

disagreed, 10.9% were not sure.

Findings of the researcher therefore show that the bank has friendly staff. This also helps the

bank to attract more customers

36

Table 36: Showing whether Loan processing is costly at equity bank



Agree 10 21.7%


Disagree 10 21.7%

Not sure 7 15.2%

Total 46 100%


4.3.18 Findings on whether the bank’s loan processing is costly

According to responses from questionnaires that were filled 17.4% strongly agreed, 21.7%

agreed, 23.9% strongly disagreed, 21.7% disagreed, and 15.2% were not sure.

Findings indicated that generally loan processing is not costly at equity bank this reduces on

number of complaints from customers.

Table 37: Showing whether the bank has Untrustworthy staff


Agree 11 23.9% Strongly disagree 16 34.8% Disagree 6 13.0% Not sure 4 8.7%

Total46 100.0%


4.3.19Findings on whether the bank has untrustworthy staff

From 46 respondents 10.9% strongly agreed, 23.9% agreed, 34.8%strongly disagreed, 13.0%

disagreed and 8.7% were not sure.

This from findings indicated that most of the staffs are trust worthy this creates confidence in

customers to deal with the bank.

37

4.4.0 SECTION B OBJECTIVE 2: TO ESTABLISH THE MECHANISMS USED IN

HANDLING CUSTOMER COMPLAINTS

Table 38: showing whether the complaint handling mechanism is good


Agree 27 58.7% Strongly disagree 4 8.7% Disagree 8 17.4% Not sure 3 7.5% Total 46 100%


4.4.1 Findings on whether the complaint handling mechanism is good.

From the table below it indicated 8.7% strongly agreed that the mechanism is good, 58.7%

strongly agreed, 8.7% strongly disagreed, 17.4% disagreed where as only 7.5% were not sure.

From these findings it portrayed that the compliant handling mechanism at Equity bank was

good.

Table 39: Showing whether bank pays damages infringed on customers

Response Frequency PercentAgree 12 26.1%

Strongly agree 19 41.3% Disagree 7 15.2% Not sure 8 17.3% Total 46 100%


4.4.2 Findings on whether the bank pays damages infringed on customers

From the 46 customers interviewed, 26.1% agreed, 41.3% strongly agreed 15.2% disagreed, and

17.3% were not sure.

Findings of the researcher showed that the bank pays damages infringed on customers; this is

why customers who join equity are normally brought by friends who are satisfied with the

services.

38

Table 40: Showing whether the bank sends apology letters to customers



Agree 9 19.6%


Disagree 7 15.2%

Not sure 6 10.9%

Total 46 100.0%


4.4.3 Findings on whether the bank sends apology letters to customers

From responses of respondents below 4.3% strongly agreed, 19.6% agreed, 47.8% strongly

disagreed, 15.2% disagreed and 10.9% were not sure. Basing on the findings it indicated that the

bank does not always send apology letters to customers. This leaves customers with a lot of

complaints wondering whether the bank cares about them.

Table 41: Showing whether the bank holds joint meetings with customers



Agree 17 37.0%


Disagree 8 17.4%

Not Sure 7 15.2%

Total 46 100%


39

4.4.4 Findings on whether the bank holds joint meetings with customers

In the table below of customer responses it showed that 4.3% strongly agreed, 37.0% agreed,

26.1% strongly disagreed, 17.4% disagreed, 15.2% were not sure of whether bank holds joint

meetings with customers.

Basing on the findings it shows that the banks though it holds joint meetings, it does it once in a

while. This leaves many customers stranded with their complaints.

.Table 42: Showing whether the bank carries out surveys on customer complaints


Agree 22 47.8% Strongly disagree 6 13.0% Disagree 3 6.5% Not sure 3 6.5% Total 46 100.0%



From 46 customers who completed questionnaires 26.1% strongly agreed, 47.8% agreed, 13.0%

strongly disagreed, 6.5% disagreed and 6.5% were not sure.

Results from the findings showed that the bank always carried out surveys on customer

complaints. May be this was because customers could loge in their complaints in the complaints

books and may be whenever they could come back and finds answers or solutions I the book

Table 43: Showing whether the bank has well displayed suggestion boxesResponse Frequency Percent


Agree 15 32.6%


Disagree 2 4.3%

Not Sure 1 2.2%

Total 46 100.0%


40

4.4.6 Findings on whether the bank has well displayed suggestion boxes

Responses from customers indicated that 56.5% strongly agreed, that the bank has well displayed

suggestion boxes, 32.6 also agreed 4.3% strongly disagreed, 4.3% disagreed where as only 2.2%

were not sure.

This showed that the bank has given customers a good mechanism in which they can express

their feelings. Without encountering staff face to face, this reduces bias and Improves

communication.

Table 44: Showing whether the bank has well displayed complaint books


agree 16 34.8% Strongly disagree 3 6.5% disagree 6 13.0% Not sure 5 6.5% Total 46 100%



As one the banks mechanism of handling customer complaints, questionnaires required

customers to rate the bank on this item and from respondents responses indicate that 34.8%

strongly agreed, 34.8% agreed, 6.5 strongly disagreed, 13.0% disagreed, and 6.5% were not sure.

From the findings it clearly indicated that the bank tried its level best and displayed complaints

books in their service stations in order to get to what customers are going through in order to

devise solutions.

41

4.5.0 SECTION B OBJEECTIVE 3: TO EXAMINE THE RELATIONSHIP BETWEEN

CUSTOMER COMPLAINT SETTLEMENT AND CORPORATE IMAGE OF

FINANCIAL INSTITUTIONS IN UGANDA

Table 45: Showing whether People talk fairly well about the bank



agree 22 47.8%


disagree 7 15.2%

Not sure 2 4.3%

Total 46 100.0%


4.5.1 Findings on whether people talk well about Equity bank.

In the questionnaire for customers section B on objective 3 on finding out the relationship

between customer complaint settlement and corporate image of banking institutions, customers

were asked to comment whether people talk fairly about the bank, and from the responses got,

23.9% strongly agreed, 47.8% agreed, 8.7% strongly disagreed, 15.2% disagreed and 4.3% were

not sure.

From the findings generally people talk fairly about the bank, this improves its status in the

market and before its competitors

42

Table 46: Showing whether a customer would recommend a friend to open up an account in equity bank



agree 27 58.7%


disagree 3 6.5%

Not sure 2 2.2%

Total 46 97.8%


4.5.2 Findings on whether a customer would recommend a friend to open up an account

with equity bank

From 46 respondents who collected the questionnaires 28.3% strongly agreed, 58.7% agreed,

2.2% strongly disagreed, 6.5% disagreed, 2.2% were not sure.

Basing in the findings it was noted that majority of customers would recommend a friend to open

up an account in Equity bank. This essentially means that if customer complaints are handled

well it will improve on corporate image of the company as satisfied customers will tell a friend.

Table 47: Showing whether the bank has good products for customers



agree 28 60.9%


disagree 2 4.3%

Not sure 4 6.5%

Total 46 100%


43

4.5.3 Findings on whether the bank has good products for customersFrom 46 respondents 17.4% strongly agreed with statement, 60.9% agreed, 8.7% strongly

disagreed, 4.3% disagreed, and 6.5 were not sure.

These findings of the researcher indicate the bank has good products for customers, this has seen

the bank expand with many branches being opened up in the country.

Table 48: Showing whether the bank has many braches all over the country.



agree 17 37.0%


disagree 9 19.6%

Not sure 6 6.5%

Total 46 100%


4.5.4 Findings on whether the bank has many branches all over the countryFrom the questionnaires completed 15.2% strongly agreed, 37.0% agreed, 13.0% strongly

disagreed, 19.6% disagreed and 6.5% were not sure.

Most of the customers who filled in questionnaire indicated that the bank has many branches all

over the country this makes the bank grow very fast and even service their clients at their

disposal.

44

5.5.5 THE RELATIONSHIP BETWEEN CUSTOMER COMPLAINT SETTLEMENT AND CORPORATE IMAGE OF FINANCIAL INSTITUTIONS

Table 49: Examining the relationship between customer complaints settlement andCorporate image of financial institutions

x y

Spearman's rho x Correlation

Coefficient1.000 .041

Sig. (2-tailed) . .756

N 46 45

y Correlation

Coefficient.041 1.000

Sig. (2-tailed) .756 .

N 45 45


From total of 64 respondents who attempted and answered the questionnaires it was observed

that a large percentage of respondents had complaints about the bank. Among them were high

interest rates, long queues in the banking hall, lack of meetings with customers to find out the

cause of their complaints and so many other complaints.

If these complaints were not solves amicably it could hamper the customers’ dealings with the

bank as their most aim to maximize their satisfaction.

From the table below two variables were related where X represented independent variables

grouped as customer complaints and Y represented the dependent variable which in this case is

corporate image, these two variables were related and findings indicated that there was a strong

relationship between complaint settlement and corporate image on of an organization. From the

table below it showed a strong relationship of 0.789 meaning that the variables were strongly

related. This meant that if the bank does not check the way they handle customer complaints the

bank’s is at stake

45

Table 50:showing the relationship between customer complaints settlement and corporate Image Using spearman’s rank of correlation

CustomerComplaints(X)

frequency Rank Corporate image(Y)

Frequency Rank D D2

Strongly agree 30 1 Strongly Agree

20 1 0 0

Agree 10 3 Agree 6 3 0 0Strongly Disagree

15 2 Strongly Disagree

5 4 -2 1

Disagree 5 4 Disagree 7 2 2 4Not sure 4 5 Not sure 0 5 0 0Total 15 15


r = 1 - 6∑d 2 N(n2-1)

r = 1 - 6*5 5(52-1)

r = 1- 30 119

r = 1- 0.25

r = 0.75r = Spearman’s rank of correlation Coefficient∑ = summation signN = number of observationX = respondents that is independent variable (customer complaints)Y = respondents that is dependent variable (corporate image)

The results show that there is a strong relationship between customer complaints settlement and corporate Image.

Coefficient of determination

r2 = 0.752

r2 = 0.56*100r2 = 56%Based on the coefficient of determination it also indicated that 56% of corporate Image is

contributed by how well customer complaints are handled and the remaining percentage by other

factors.

46

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSIONS, RECOMMENDATION AND AREAS OF FURTHER RESEARCH

5.0 INTRODUCTIONIt entails summary of findings of the study variables, conclusion, recommendations and areas of

further research.

5.1 DISCUSSION OF THE FINDINGS Objective 1: To establish the major complaints by the customers of Equity Bank Uganda

Ltd.

From the findings it showed that both Equity bank staff and customers have many complaints,

as staff responses indicated that the bank, charges high interest rates for both staff and customers,

turnaround time for loan is long, still there are long queues in the banking halls, unfavorable loan

terms and conditions for staff, no grace period, loan processing still costly.

However it showed that the bank has good customer care, friendly and trust worthy staff, and no

unauthorized transactions took place on customers’ accounts. Mckensey,(2000) asserts that

customers should complain more today than they did in past to show consistency and high level

frustration to seek redress.

Objective 2: To Identify the mechanisms used by Equity bank in handling customer

complaints.

Findings indicated that the bank has well displayed complaints books, suggestion boxes

However, findings also showed that there were not enough customer care staff, staff were poorly

paid, there was no continuous training for staff, no joint meetings with customers who have

problems, no payment of damages to customers , no a apology letters to customers. These

showed that if these mechanisms are not put into place then customers would de market and even

leave the bank to competitors.

47

Objective 3: To examine the relationship between customer complaint settlement and

corporate image of financial institutions

Findings showed that there was a strong relationship between customer complaint settlement and

corporate image of financial institutions and to a greater extent customer retention will greatly be

attributed to how well customer complaints are settled as this would leave them with a satisfied

Mind which in turn would create satisfaction among staff and customers that would portray a

good image about the institution.

5.2.0 Conclusions

5.2.1 Objective 1: To establish the major complaints by the customers of Equity bank Uganda Ltd.From the findings of the study it is important to note that some of the complaints like un friendly

and untrustworthy staff , no savings before accessing a loan, un authorized transactions on

customers’ accounts customer care, were harmonized at the institution but still complaints like

poor pay for staff, unfavorable loan terms and conditions, turnaround time for loans, long queues

in banking halls , high loan processing costs, lack of grace periods for customers Still prevail in

the Institution. This causes high staff turnover rate and customer retention will be difficult.

5.2.2 Objective 2: To identify the mechanisms used by Equity bank Uganda Ltd in handling customer complaints.Basing on the findings from the study, though complaint books were properly displayed and

suggestion boxes are clearly visible in the banking halls, other mechanisms like paying damages

to infringed customers by the bank, lack of joint meetings with customers, lack of sending

apology letters to customers, insufficient surveys on customers’ accounts are very poor. This

leads customer dissatisfaction and may infringe on corporate Image of the Institution.

5.2.3 Objective 3: To examine the relationship between customer complaints settlement and corporate Image of financial institution in Uganda. Further findings indicated that there was a great relationship between customer complaints

settlement and corporate image of financial institutions as the analysis showed a 0.789 which

indicated a very strong relationship. From the responses of respondents, it revealed that unless

customer complaints such as high loan interest rate, low grace periods poor customer care,

unfavorable loan conditions, turnaround time, poor pay and remuneration package for staff and

48

lack of continuous staff training are brought to right, the bank will portray poor image in the

public.

5.3.0 RECOMMENDATIONSFrom the results obtained by the researcher, it showed that there is need to start aggressively

soliciting complaints to keep companies profitable. The researcher’s views have emphasized the

inevitability of bank customer complaints as well as underscore the bank’s search for profits.

This suggests that banks should strive to balance their customer satisfaction objectives and those

profit makings. No bank can be praised for striving to achieve one of the objectives at the

expense of the others.

The findings of the researcher according to the Complaints Assessment specification, a 360

degree feedback should be maintained among the stakeholders and this includes the feedback

from not only customers but also from internal employees. Feedback plays an important role in

any service industry. Feedback from customers can be taken written, verbally or online to help

the bank to take correct steps. If employees are not satisfied then they can’t give efficient

services to the customers. The 360 degree approach not only helps banks to retain customers but

also its employees.

A bank's image is based upon a customer's unique experience. And the customers’ experience,

in turn, drives his or her recommendations: both positive and negative. So, a bank literally lives

or dies based upon how well it treats customers. And that is as it should be.

Your existing customers are among the most important assets of your business - they have

already chosen you instead of your competitors. Keeping their custom costs far less than

attracting new business, so it's worth taking steps to make sure that they are satisfied with the

service they receive. In one way or another, this will boost the corporate image and customer

satisfaction of your business.

49

AREAS FOR FURTHER RESEARCH

The study only focused on customer complaint settlement and its effect on corporate image of

financial Institution. However there other factors that may affect corporate image of an

institution like, market research, office automation, customer satisfaction and other area that

have effect on corporate image

50

REFERENCES

Accessibility; www.http:// paper.ssrn.com

Anderson, E. and Sullivan, M. (1993, "The antecedents and consequences of customersatisfaction for firms", Marketing Science, Vol. 12 No. 2, Spring, pp. 125-43.

Bolton, R.N. and Drew, J.H. (1991, "A multistage model of customers' assessment ofservice quality and value", Journal of Consumer Research, Vol. 54, April, pp. 69-82.

Charles J formbrun (1996) Ist edition Realizing value from corporate Image; Harvard business

School Press

Mckensey. (2004) Valuable customer satisfaction and loyalty,

Microfinance Research center

FSA 2010, Complaints management journal. (Treating customers fairly considerations)

H. Harrington (2000), Business Process Improvement: (The Breakthrough Strategy for Total

Quality, Productivity, and Competitiveness). Amazon. New York.

Thomas, L (1997), Money, banking and Financial Markets, McGraw Hill, New york

Hirschman, A.O. ,(1970) "Exit, voice, and loyalty: responses to decline in firms",Organizations, and States, Harvard University Press, Cambridge, MA.

Kayiizi. The New vision, Monday 15th December 2008 pg 22

Koetler,P. (2000) Marketing Management, New Jersey, Prentice Hall

Ladu, the Sunday monitor 20th September 2009 pg 22 “High interest rates hurting

economy”

Mckensey. (2004) Valuable customer satisfaction and loyalty, Microfinance Research center

Sharpe, S.A (1990) Asymmetric Information ,Bank Lending &Implicit Contacts: A stylized

Model of customer Relationships, journal on Finance

SMAS, (2000), Annual service in Britain Survey, London

Shankar,V. (2007)Banking in India, Vikas, New Delhi

Tang Weiwei 2007, Management Science and Engineering (Research paper) Vol.1 No.2.

Uganda Bankers Association, UBA (2008) Report

www.corporate-images.com

www.jounalofaccountsncy.com : how to profit by safeguarding privacy.

www.goldbergsegalla.com: face book firing case settles with NLRB feb 9th 2011

Why Is it Important to Understand the Underlying Causes of Customer Complaints? | eHow.com

51

http://www.ehow.com/facts_5790571_important-underlying-causes-customer-complaints_.html#ixzz1CxvHVqKC

http://www.goldbergsegalla.com/

http://www.jounalofaccountsncy.com/

http://www.corporate-images.com/

http://www.amazon.com/s/ref=ntt_athr_dp_sr_1?_encoding=UTF8&sort=relevancerank&search-alias=books&field-author=H.%20Harrington

http://www.http://

APPENDIX I

QUESTIONAIRE FOR CUSTOMERS.

I am carrying out a study on “resolving customer complaints and corporate image of

financial institutions in Uganda” as requirement for the partial fulfillment for the award of a

Bachelors degree in commerce of Makerere University. The purpose of this questionnaire is

purely academic. The data sought shall be purely for the research/ study purposes only and will

therefore be treated with anonymity and confidentiality. You have been chosen as a respondent

because of the knowledge and information that you have in reference to the topic.

SECTION A.

Bio data

SEX: Male Female

For how long have you been a customer of Equity bank?

a) 1 year b) 2years

c) 2-3 yrs c) more than 3 years.

How did you get to know about Equity bank?

A) Press B) Through a friend

C) Others (specify)…………………………………

Level of Education

i) Secondary ii) Diploma

iii) Degree iv) Post Graduate

v) Others (specify)………………

52

SECTION BPlease use 1 if you strongly agree, 2 if you agree, 3 if you strongly disagree, 4 if you disagree, 5 if not sure for the comments below.

1 2 3 4 5Customer complaintsa) High Interest rateb) No grace period c) Unfavorable loan terms and conditionsd) Poor customer caree) Getting a loan takes a lot of time and procedures.f) They do understand when I cannot meet my repayments.g) They make unauthorized transactionsh) They require savings with them to access a loan.i) They have unfriendly staff.j) Loan processing is costly.k) long queues in the banking halls l) Untrustworthy staff.

Mechanisms for handling customer complaints.1 2 3 4 5

a) The complaint handling mechanism is good.b) The bank pays damages inflicted on the customers.c) The bank send s apology letters to customersd) The bank holds joint meetings with clients who have complaints.e) The bank carries out surveys on customer complaints.f) The bank has well displayed suggestion boxes.g) The bank has well displayed complaint books.

Relationship between customer complaints and the bank’s corporate image.1 2 3 4 5

a) People talk fairly well about the bank.b) Would you recommend a friend to open up an account?c) The bank has good products for customersd) The bank has many branches all over the country

What would you recommend the bank management to improve as a measure of improving its service provision?

………………………………………………………………………………………………….

53

APPENDIX II

QUESTIONAIRE FOR STAFF.

I am carrying out a study on “resolving customer complaints and corporate image of

financial institutions in Uganda” as requirement for the partial fulfillment for the award of a

Bachelors degree of Bachelor of commerce of Makerere University. The purpose of this

questionnaire is purely academic. The data sought shall be purely for the research/ study

purposes only and will therefore be treated with anonymity and confidentiality. You have been

chosen as a respondent because of the knowledge and information that you have in reference to

the topic.

SECTION A.

Bio data

SEX: Male Female

For how long have you worked with Equity bank?

a) Less than a year b) 1-2years

c) 2-3 yrs c) more than 4 years.

Level of Education

i) Secondary ii) Diploma

iii) Degree iv) Post Graduate

v) Others (Specify)………………

Which department do you work in?

a) Operations b) Teller

c) Credit d) Management

Do the customers you serve ever complain about the bank’s services?

a) No they don’t b) Rarely

c) Most of the time d) they never

54

Please use 1 if you strongly agree, 2 if you agree, 3 if you strongly disagree, 4 if you disagree, 5 if not sure for the comments below.

1 2 3 4 5Customer complaintsa) High Interest rate for staff loansb) Your ATM is always on at your branch c) Unfavorable loan terms and conditions for staffd) Getting a loan takes a lot of time and procedures.e) They do understand when I cannot meet my repayments.f) long queues in the banking halls

Mechanism for handling customer complaints.1 2 3 4 5

a) There is enough customer care staff.b) The bank pays staff well.c) The bank trains it staff more often d) The bank holds joint meetings with clients who have complaints.e) The bank carries out surveys on customer complaints.f) The bank has well displayed suggestion boxes.g) The bank handles staff conflicts amicably.

Relationship between customer complaints and the bank’s corporate image.1 2 3 4 5

a) Staff have accounts in other banksb) The bank has a good a remuneration packagec) The bank participates in community workd) The bank strives hard to keep its reputation by improving its services.

What would you recommend the bank management to improve as a measure of improving its service provision?

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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