Customer's Satisfaction For Final Draft

BUCAS GRANDE FOUNDATION COLLEGE
Socorro, Surigao del Norte
LEVEL OF CUSTOMER SATISFACTION OFFERED BY THE SELECTED LENDING

INSTITUTIONS IN SOCORRO, SURIGAO DEL NORTE
An Undergraduate Thesis
Presented to The Faculty of College of Business Administration
Bucas Grande Foundation College
In Partial Fulfillment
Of the Requirements for the
Degree Bachelor of Science in Business Administration
Major in Financial Management
ALDINE B. ADLAO
KRIZA HAYLA Q. RAMIREZ
November 2017
CHAPTER I
THE PROBLEM AND A REVIEW OF RELATED LITERATURE
Banks play an important and active role in the financial and economic development in the
municipality of Socorro. However, increasing difficulties for loan acquisition pushed people to
acquire loans from lending institutions. This in turn, increased the number of money lending
organizations. The financial sector of the municipality of Socorro is now characterized by
increasing competition in the granting of loans to its customers and innovations because most of the
banks are employing cutting edge technology to improve the quality of their services and to roll out
new products including loans for their clients.
The purposes of loan acquisition are diverse. It has been observed that different people
acquire loan for different purposes. According to Ayeebo G. (2010), everybody has, at least once,
been encountered with a loan transaction before whether formal or informal. He further emphasized
that we take loans from friends, sisters, brothers, employers, and more especially the money-
lending financial institutions, i.e. the banks and other non-banking financial institutions. Many
formal loans are borrowed with the understanding of giving back the original loan taken together
with some form of interest on it, so that the lender could benefit for the opportunity lost in not
putting his/her money in another investment to earn them some return Boot WA, Thakor A.(2009).
Loan acquisition is a contractual promise between two parties where one party, the creditor, agrees
to provide a sum of money to a debtor, who promises to return the money to the creditor either in
one lump sum or in parts over a fixed period of time Ergungor S (2010). This agreement may
include providing additional payments of rental charges (interest) on the funds advanced to the
debtor for the time the funds are in the hands of the debtor.
Thousands of people are using loans to establish huge investments as well as very lucrative
businesses including investments in estates and are earning immense gains from these investments.
Brian G.(2012) emphasized that Bank loans are financial packages which help most individuals and
corporate entity to seal a deficit in their budget or help them establish a business or buy stock.
Loans, in fact, are monies lent to customers so that they can apply it to whatever they want to do,
then repay the bank after some specified period of time. Considering that many lending institution
offer undifferentiated products and services in a rival marketplace, customers are paying more
attention to service quality in order to gain a competitive advantage. Banks that master service
quality can gain a competitive edge in terms of higher revenue, customer loyalty and customer
retention (Kumar et al., 2010).
Nowadays, the incredible growth of the globalization and especially liberalization of
banking services, are changing the way banks conduct business with customers who are
increasingly expecting higher quality of services, becoming time saver and wanting more
conveniences. However, due to services intangibility, inseparability, heterogeneity and perishability
of production and consumption, service quality becomes hard to evaluate specifically, in the
municipality of Socorro wherein lending institutions are growing in number along with the private
banks. This is a critical area where private sector in particular, banks should focus on and thus,
catches up the level of customer satisfaction.
According to Gadais (2005), every customer is the foundation of any business' success.
Customer satisfaction can be defined in terms of meeting the expectations of the customers in terms
of parameters associated with satisfaction (Malik & Ghaffor, 2012). Service quality is not an easy
task to quantify and being evaluated, because it is not a product to quantify but it is customer’s
evaluation and subjective perception about something (George & Jones, 2009). Service quality is
evaluated when the user of service compare his perception with actual experience. Gronroos (2008)
Satisfaction is wide concept and is impacted by many factors and service quality is one of the major
determinants of customer satisfaction (Zeithaml & Bitner, 2013). To Phuc Hong Lu (2011),
customer satisfaction should be paramount for any firms‘marketing strategy. It is through
satisfaction of customers that firms remain afloat and prosper. Customers have become an
important part of any firm especially those in the bank sector and many researchers have also
placed emphasis on the importance of customers.
Service quality and customer satisfaction are very important concepts that companies must
understand if they want to remain competitive and grow according to Mark Keith Muhumuza
(2015). In today’s competitive environment delivering high quality service is the key for a
sustainable competitive advantage. And in money-lending business, customer satisfaction carries a
positive effect on an organization’s profitability. Satisfied customers form the foundation of any
successful business as customer satisfaction leads to repeat purchase, brand loyalty, and positive
word of mouth. Service quality is a vital strategy for success and survival in today’s aggressive
environment. It is very important for the employees to be reliable and dependable in order to gain
the trust of the public. They should render quality service and have a commitment to be
accountable to customers and compete for their satisfaction and loyalty. It can identify some issues
like meriting attention, understanding the concept and also analyzing how to measure service
quality. Employees must offer delivery services beneficial to their clienteles and the actions of the
service being provided, and then use that knowledge for planning purposes. The application of
service quality concepts encourages service improvements and reduces costs. Also, employees
must have interest to those clients who give information about their perceptions regarding the
service they receive so that the employees can establish personal contact with them and make a
long-term commitment or relationship to the clients. Clients should provide feedbacks to the
organizations and be reacted as opportunities for improvements and to raise overall customers
satisfaction (Parasuraman, et al., 2010).
In a study addressing the relationship between service quality and satisfaction, Spreng and
Mackoy (2007) suggested that perceived service quality was an antecedent to satisfaction.
Although the direction of the quality/satisfaction relationship (i.e. quality leads to satisfaction) is
fairly well understood for services, the question of whether or not (and how) this relationship varies
depending on particular settings and/or situations is not. Service quality and customer satisfaction
do exhibit independence and are indeed different constructs from the customer’s point of view. A
small step in unearthing and understanding the constructs of service quality and customer
satisfaction and their implications on competitive fruition has been put forward in a study on
banking services (Sureshchandar et al., 2002).
Sudesh (2007) revealed that poor service quality in public sector banks is mainly because of
deficiency in tangibility, lack of responsiveness and empathy. Private sector banks, on the other
hand, were found to be more reformed in this regards. Above all, the foreign banks were relatively
close to the expectations of their customers with regard to various dimensions of service quality.
Service quality in banking implies consistently anticipating and satisfying the needs and
expectations of customers.
Customers generally evaluate service quality before and after their use. According to
Kattack O, Rehman E. (2011) consumers evaluate services and products through three processes.
These are pre-purchase or search qualities, experience look out for before buying and are those that
they can see, feel or touch. On the other hand, experience qualities are post-purchase features that
customers assess during the post-purchase period. Lending services are of the experience and
credence types and are therefore difficult to assess by customers. Customers can not evaluate these
types because they do not have the required skills, expertise and knowledge to carry out the
evaluation. Customers’ therefore place a high premium on the image and reputation of the lending
institution before purchasing services. Owusu-Frimpong N. (2005) indicates that because services
of lending institutions are of the credence type, friends and other fellow customers constitute the
main sources of information for customers.
Lending institutions usually meet the customer expectations by having quality services,
convenience, and connectivity to online and mobile services anywhere, any time. Consumers also
rated lending institutions as performing significantly above expectations in digital payment options
for financial transactions. The researchers proceed from the idea that if customers value the service
they receive, the more they become satisfied. Thus, the researchers will assess the level of customer
satisfaction through the services offered by the selected lending institutions in Socorro, Surigao, del
Norte.
Review of Related Literature
Quality of service in any organization is very essential for growth and survival. In this
competitive environment each and every organization is striving to retain its customers in order to
earn profit. Most of the bank product’s developments are easy to duplicate and they can only
distinguish on the basis of price and quality. Therefore, customer’s perception over service quality
is gaining importance nowadays. Hence, the researcher thoroughly studied the importance of
service quality to the satisfaction of customers through the following literatures.
Akinyele, S.T. and Akinyele, F.A. (2008) presented an extensive review of the literature,
focusing on service quality and specifically discussed how the definition of quality differs
depending on whether it refers to a manufactured product or a service, and issues concerned with
the measurement of service quality. The researchers have taken an in-depth study on the evolution
and understanding of the management and marketing of services over the past several decades.
Tse & Wilton (2006) customer satisfaction or dissatisfaction is a response to the evaluation
of the perceived discrepancy between expectations and service performance. Customer satisfaction
is a function of expectations and service quality performance. Kotler (2003) explains that
satisfaction is the feeling of someone who described feeling happy or disappointed that the result
of comparing the perceived performance of a product with the expected product performance. If
performance fails to meet what is expected, then the customer will feel disappointed or
dissatisfied. If the performance is able to meet what is expected, then the customer will feel
satisfied. If the performance can exceed what is expected, then the customer will feel very
satisfied.
From the definitions above, it is believed that satisfaction transmits a personal assessment
of emotions. The end-result is a feeling of fulfillment (if satisfied) or disappointment (if not
satisfied). Relationship value, as well as trust and commitment, has been assessed differently by
many researchers, with some must engaged it to be an ancestor of overall satisfaction Norizan and
Salaheldin (2009). According to GourSaha (2009), giving trust and customer satisfaction at the
same balance will result to captivating relationship quality and service quality together to be
antecedents of behavioral intentions. On studying the literature, declare relationship quality to be
an importance of customer satisfaction as well as service meeting.
Giving excellent external customer service is only possible when there is excellent internal
customer service. Internal customer service refers to the wellbeing and positive group dynamics of
staff who can work together to help the customers. Service stems from service providers. If staffs
are truly happy, they will be motivated and committed to share the same joy with their clients.
Therefore, treating internal staff well promotes external customer service excellence. Lucas (2012)
claimed that enhancing customer satisfaction as a strategy for retaining customers is a big factor
for many customers in remaining loyal. In an own organization, efforts could be a deciding factor
in customer ratings for the quality of service rendered. Building good relationship in order to
increased customer satisfaction is valuable, because it can lead to repeat business – the key to
keeping a business productivity and profitable.
De Castro (2007) noted that the time it takes for an employee to response to a customer‘s
request is same as the promptness of the employee in entertaining request or help. Moreover,
Marasigan, et al., (2010) encouraged the employees of the company to be more consistent in their
behavior, attitude and performance in dealing with customers. In Hague‘s (2012) article on
Customer Satisfaction Surveys and Customer Satisfaction Research, he detailed the factors or
attributes of customer‘s points of view on staff and service of a company. It includes courtesy from
sales staff, representative‘s availability, representative‘s knowledge, reliability of returning calls,
friendliness of the sales staff, complaint resolution, responsiveness to enquiries, after sales service
and technical service.
According to Amudha, R. &Vijayabanu, C. (2012), service development performance of a
business should be restrained constantly to accomplish competitive advantage and this is possible
by giving outstanding service by any business. The quality of the products or the quality of
customer service defines the degree of customer satisfaction. The customer satisfaction is not only
by sustaining the customers but also customer retention in case of service failure.
The organization should solve the criticisms over several service retrieval strategies. It is
compulsory to classify the effect of service failure and customer feedback for the existence,
success and affluence of a business. The actual success of a business is created on the degree of
loyalty of the customers. The customer satisfaction concerning the services of a bank from five
different perspectives specifically, service encounters, waiting time of the customer to get the
service, role of intermediaries, quality of service provided and customer complaints towards the
bank. Fascination, retention and enrichment of the customer relationship are vital to preserve,
pleased and loyal customers who form the basis for the sustainable competitive position of the
bank. Though, customer loyalty is made by keeping touch with customers using email marketing,
thank you cards and more. Treating the employees well so they treat the customers well, presenting
that the organization cares and recalling what customers likes and dislikes, building it by satisfying
them for selecting the organization over the competitors and finally building it by truly giving an
attention about them and imagining out how to make them more successful, contented and
delighted (Kotler, 2000).
In order to raise customer loyalty, many banks have presented advanced products and
services. According to Gareth Cartman (2013), customer loyalty is more difficult to acquire rather
than satisfaction. Yes, you can see the behavior of your customers and sense their excitement to
avail your products and services because of its benefits but it is hard to tell who among those
customers will go back when competitors create similar offerings with similar prices. Customers
nowadays are not just contented to get what they want and need. Businesses should exceed their
expectation and make them loyal to build up a strong relationship and a positive word of mouth. It
is important to maintain and track customer satisfaction because it gives feedback to make an
adjustment and develop a strategy to the success of the business. The benefits of having customer
loyalty is increasing sales and due to the strong relationship between the company and clients
while satisfied customers are just purchasing your products and services in just a short period of
time. Trying to sell products and services without understanding your ideal customers is like
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driving with your eyes closed. Customer profiling would be a great help in knowing your target
market and understanding their needs, wants and demands.
Vinita Kaura (2013) analyzed the effect of service quality, perceived price and service
convenience on customer satisfaction. The author identified employee behaviour, tangibility,
information technology, access convenience, transaction convenience, decision convenience and
benefit convenience as the dimensions of service quality. The study revealed that except tangibility
all the other dimensions have positive impact on customer satisfaction in public sector banks and
in case of private sector banks benefit convenience and tangibility does not have a positive impact
on customer satisfaction. Sunny Bose and Nitin Gupta (2013) studied the difference in service
quality between public sector banks and new generation private sector banks in India based on
SERVQUAL scale. The results revealed that the new generation private banks provide better
quality of service when compared to the public sector banks.
From the above literatures it was found that how service quality leads to customer
satisfaction in banking industry. Most of the studies have revealed that service quality dimensions
are the main predictors of customer satisfaction and were found to be significant for measuring the
customer satisfaction.
From the above reviews, it is evident that quality of service plays a vital role in attaining
satisfaction. It is also clear that service quality has a direct and strong impact on customer
satisfaction. Only when the customer’s perception towards service quality is positive it leads to
customer satisfaction. Therefore, with the support of the above literatures, the researcher had made
an attempt to assess the level of customer‘s satisfaction selected lending institutions in Socorro,
Surigao del Norte.

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Conceptual Framework
The concept of satisfaction and the quality is often equated even though these two concepts
have a different understanding. In general, satisfaction is considered to have a broader concept
than service quality assessment, which specifically focuses only on the service dimension. Quality
of service is the focus of the assessment that reflects the customer's perception of the five specific
dimensions of service. Conversely, satisfaction is more inclusive, that is, satisfaction is determined
by the perception of service quality, product quality, price, situation factors, and personal factors
(Zeithaml & Bitner, 2001: 74).
Service stems from service providers. If staffs are truly happy, they will be motivated and
committed to share the same joy with their clients. Therefore, treating internal staff well promotes
external customer service excellence. Lucas (2012) claimed that enhancing customer satisfaction
as a strategy for retaining customers is a big factor for many customers in remaining loyal. In an
own organization, efforts could be a deciding factor in customer ratings for the quality of service
rendered. Building good relationship in order to increased customer satisfaction is valuable,
because it can lead to repeat business – the key to keeping a business productivity and profitable.
Thus, in Anderson’s study (2010) he proved that the increasing of customer satisfaction
leads to higher and more stable profitability, increased consumer willingness to pay price
premiums, recommendations of new potential customers, more usage of the product, higher
repurchase intentions (Reitchheld 2009), and higher levels of customer retention and loyalty
(Fornell 2010; Anderson & Sullivan 2011).
Hallowel (2012) assumed that there is a positive relationship between customer
satisfaction, service quality and loyalty which this survey acknowledges and which will try to
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confirm. The primary idea of this model was developed by Brown et al. (2011). Moutinho & Smith
(2000) argued that a respective number of researchers have found that service related factors like
speed, efficiency, access and services are ways of attracting, satisfying and retaining customers.
The overall lending customer perceived satisfaction is confirmed and reflected to switching
behavior and customer loyalty. So this study is anchored on the concept that quality service
satisfies the customers.
Figure 1 shows the paradigm of the study consisting three (3) boxes that represent as
variables namely; the first box shows the profile of the respondents as to their age, gender,
educational attainment, and clientele’s name. The second box reveals the independent variable of
the study which is the service quality. Third, is the independent variable which is the level of
customer’s satisfaction. The framework of the study emphasizes the concept that service quality is
the determinant of customer’s satisfaction.

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Profile of the
respondents
 age
 sex
 civil status
 years of transaction
The extent of service

quality:
 Responsiveness
 Access LEVEL OF
CUSTOMER’S
 Reliability SATISFACTION
 communication
Figure 1. Schematic Diagram of the Study

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Statement of the problem
This research aimed to determine the level of customer’s satisfaction offered by the
selected lending institutions in Socorro Surigao Del norte.
The study answered the following questions;
1. What is the profile of the respondents in terms of?

1.1 Age
1.2 Sex
1.3 civil status
1.4 years of transaction
2. What is the level of satisfaction of the customers in terms of the following services?
2.1 responsiveness
2.2 access
2.3 reliability
2,4 communication
3. Based on the findings what intervention may be proposed?
Significance of the Study

The prime purpose of this study was to provide information and to develop one’s ability in
influencing factors to attract customer in money-lending business industry. It is assured to give
benefits to the following:
Businessmen: The result of this research study would help to business firm facilitate their
employees to be aware on relative importance of the service quality.
Customers: The result of this research study would help customers identify the ideal
services to look for in engaging loan transactions.
Students: The results of this research study would help to students become aware on
business as well as help them to cope up some information about financial.
Future Researchers: The result of this research study will serve as basis or guide for
future researchers who would be interested to investigate this topic further or conduct a research in
related fields.
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Scope and Limitation of the Study
The study was conducted to assess the level of customer’s satisfaction offered by the
selected lending institution in the Municipality of Socorro. Customers and lending owners in
Socorro, Surigao del Norte was the respondents of the study. This was conducted on A.Y 2017-
2018.
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CHAPTER II
METHOD
Research Design
This type of research was classified as descriptive type of research. The purpose of
descriptive research is to; observe, describe, document aspects of a situation as it naturally occurs
(Polit 2010). This involves the collection of data that provide an account or description of
individuals, groups or situations. Instruments used to obtain data in descriptive studies included
questionnaire was be checked by the expert.
Sampling Design and Respondents
Purposive and convenient sampling technique was used in this study. Customers from the
selected lending institutions in Socorro, Surigao del norte are the target respondents of the study.
Instruments of the Study
This study used the researcher made questionnaire which was validated by the experts.
The researcher made questionnaire was used to determine the business profile of the participants
and to identify the level of customer’s satisfaction.
Gathering Data Procedure
The researchers personally asked permission from the lending owners to conduct the
study; the researchers approached the customers and owners for them to fill up the form. In
addition, the target group for the study was between the age of 18 and above. Respondents below
18 years are regarded as underage and are deemed incapable of taking good decisions on their
own.
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Statistical Analysis
To analyze the data the following statistical tools was used;
Percentage count – was used to analyse problem number 1.
Mean and standard deviation was used to analyse problem number 2.

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CHAPTER III
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
This chapter presents the analyses and interpretation of results of the data gathered from the
study to identify the demographic profile of the respondent and the extent of customer satisfaction
offered by the business organizations in Socorro, Surigao del Norte.
Problem 1. Profile of the respondents
The demographic characteristics of the respondents included in this study include gender,
civil status, and number of years operated.
Table 1. Frequency and Percent Distribution of the profile of the respondent
Profile f %
Gender
Male 4 16
Female 21 84
total 25 100%
civil status
married 24 96
single 0 0
widow 1 4
total 25 100%
No. of years in transaction
3- yrs 25 100
5 yrs 0 0
10 yrs 0 0
Total 25 100
The data on the table shows that 4 or 16% of the respondents are male while 21 or 84 % of
the total respondents are female. These result indicates that lending customers are usually women
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due to the fact that women play the active role in borrowing funds for some specific purposes.
Data also shows that 24 or 96% lending customers are married while only 1 or 4% is widow. It is
understood that married participants dominate lending customers in the sense that payment of the
borrowed money is mostly shouldered by the husband or both. Based on the data above, 25 or
100% of the total respondents have transactions for 3 years. This could mean that respondents
were in their early stage of transactions.
Table 2. Level of customer’s satisfaction as to reliability
Verbal Qualitative
No Reliability Mean Interpretation description
Customer service performs the Very satisfied
1 service right at first time 3.52 Strongly Agree
Customer service delivers the Very satisfied
2 service exactly as promised. 3.52 Strongly Agree
Provides information that fits satisfied
3 your needs 3.20 Agree
Services are consistently Very satisfied
4 efficient. 3.31 Strongly Agree
Employee and security Very satisfied
personnel are consistently
5 professional and courteous. 3.51 Strongly Agree
Average 3.41 Strongly Agree Very satisfied
Table 2.1 shows the level of customer’s satisfaction wherein at the total mean of (M=3.41)
revealed highly practiced customer’s satisfaction when it comes to reliability. Specifically, out of 5
indicators 4 were verbally interpreted as strongly agree which denotes highly practiced customer
service. The following were, ‘ Customer service performs the service right at first time ‘(M=3.52),
‘ Customer service delivers the service exactly as promised ‘(M=2.3), ‘ Services are consistently
efficient’ (M=3.31), ‘ Employee and security personnel are consistently professional and
courteous’ (M=3.51) While only one was verbally interpreted as agree which denotes practiced
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description which was the ‘Designs packaging to suit customer budget’ (M=2.3), ‘ Provides
information that fits your needs’ (M=3.20).
Table 2. Level of customer’s satisfaction as to responsiveness
Verbal Qualitative
Responsiveness Mean Interpretation description
Customer service is prompt in responding Very satisfied
6 your request 3.36 Strongly Agree
Customer service process problem fast Very satisfied
7 3.47 Strongly Agree
Remedying your complaints transparently Very satisfied
8 and effectively 3.31 Strongly Agree
Extent of cooperation extended by our Very satisfied
employees to give advice and support to
9 the customers 3.36 Strongly Agree
employee are responsive and answer Very satisfied
10 questions promptly and correctly 3.27 Strongly Agree
Very satisfied
Average 3.35 Strongly Agree
Table 2.2 shows the level of customer’s satisfaction wherein at the total mean of (M=3.35) which
is verbally interpreted as strongly which denotes highly practiced customer’s satisfaction when it
comes to responsiveness. Specifically, out of all indicators were verbally interpreted as strongly
agree which denotes highly practiced customer service.
Table 3. level of customer’s satisfaction as to accessibility
Verbal Qualitative
Accessibility Mean Interpretation description
Easy accessibility to information on the Very satisfied
11 services 3.48 Strongly Agree
Employee are never be too busy to Very satisfied
12 respond to customer’s requests. 3.79 Strongly Agree
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accessibility on information gives Very satisfied

13 individual attention 3.61 Strongly Agree
Employee have knowledge to answer Very satisfied
14 questions. 3.45 Strongly Agree
Easy of accessibility to the required Very satisfied
15 services 3.63 Strongly Agree
Very satisfied
Average 3.59 Strongly Agree
which is verbally interpreted as strongly agree which denotes highly practiced customer’s
satisfaction when it comes to accessibility. Specifically, out of all indicators were verbally
interpreted as strongly agree which denotes highly practiced customer service
Table 4. Level of customer’s satisfaction as to communication
Verbal Qualitative
Communication Mean Interpretation description
Staff pays customers personal attention Very satisfied
Staff always listens to the customers Very satisfied
Staff are polite and ready to entertain Very satisfied
18 questions 3.44 Strongly Agree
Staff have a pleasant demeanor Very satisfied
Staff understands the needs of the Very satisfied
20 customers 3.67 Strongly Agree
Average 3.56 Strongly agree Very satisfied
which is verbally interpreted as strongly agree which denotes highly practiced customer’s
satisfaction when it comes communication. Specifically, out of all indicators were verbally
interpreted as strongly agree which denotes highly practiced customer service.

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Table 4. Summary on level of customer’s satisfaction
Verbal Qualitative
No. level of customer’s satisfaction Mean Interpretation Description
1 Reliability 3.41 Strongly agree Very satisfied
2 Responsiveness 3.35 Strongly agree Very satisfied
3 Accessibility 3.59 Strongly agree Very satisfied
4 Communication 3.56 Strongly agree Very satisfied
Grand mean 3.48 Strongly agree Very satisfied
Table 4 illustrates the overall results of the level of customer’s satisfaction wherein the
total average is (M=3.48) which was verbally interpreted as strongly agree and therefore, the level
of the customer’s satisfaction offered by the selected lending institutions showed high practiced
customer service. Furthermore, the overall results could mean that the customers in Socorro are
very satisfied by the services offered.

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Table 5. Proposed intervention program
Problem objectives strategies Persons

involved
Maintain Encourage employees to create performance Business
loyalty with goals together. It's critical to include owner/s,
the customers employees in the process of outlining managers and
individual performance targets. Ask staffersemployees
how they would like to improve, what they
would like to achieve and the new skills
they want to learn. Inviting this level of
engagement will motivate employees to
1. Reliability work hard and strive for betterment.
To retain Supervise the employee’s feedback from Business
customers the customers. Set goals with the owner/s,
employees by keeping customers loyalty managers,
employees
2.Responsiveness and customers
To build Train the employees and guide with a more Business
customer experienced employee to keep his work job owner/s
access with the well.
employees or
3. Accessibility the owner
To build good look for ways to advance their skill in Business
rapport with communicating with the customers like owner/s and
customers trainings or advancing their role when they employees
are regarded as good communicator
4. Communication
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Chapter IV
SUMMARY, FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
This chapter presents the summary, findings, the conclusions derived from the findings and the
recommendations suggested by the researcher.
Summary
This study was conducted to determine the level of customer’s satisfaction offered by the
selected lending in Socorro, Surigao del Norte. Specifically, the study aimed to identify the profile
of the respondents as to age, gender, civil status and years of transactions.
Descriptive research method was used in the study wherein 25 customer respondent
participated. The tools used in gathering the data included the survey questionnaire containing
questions about demographic profile and the level of customer’s satisfaction indicators. The
statistical treatments of the gathered data included frequency, percentage, mean and standard
deviation.
Findings
 The data shows that 4 or 16% of the respondents are male while 21 or 84 % of the total
respondents are female. While, 24 or 96% lending customers are married and only 1 or 4% is
widow. Lastly, 25 or 100% of the total respondents have transactions for 3 years.
 The data illustrates the overall results of the level of customer’s satisfaction wherein the total
average is (M=3.48) which was verbally interpreted as strongly agree and therefore the
customers are very satisfied by the customer service offered by the selected lending in Socorro.
Conclusions
Based on the findings of the study, the following conclusions are drawn:
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 These result indicates that lending customers are usually women due to the fact that women
play the active role in borrowing funds for some specific purposes.
 It is understood that married participants dominate lending customers in the sense that
payment of the borrowed money is mostly shouldered by the husband or both.
 Since the results showed that transactions of the respondents are all 3 years, this could
mean that respondents were in their early stage of transactions.
 Based on result, data showed that the customers in Socorro are very satisfied by the
services offered.
Recommendations
Based on the conclusions, the following recommendations are formulated:
1. To increase or retain the loyalty of customers, it is necessary to improve/optimize the
performance the business through the customer database programs and delivery service so that it
can minimize the role of travel agents in order to create operating cost efficiency.
2. The management may create various activities and strategies specifically to attract customers
and increase the frequency of visits.
3. This lending institutions in Socorro may improve and reach the highest standard of quality
services offered to its customers.
4. The management may continuously provide orientation and training to employees on customer
relations and services to meet the full satisfaction of the customers.
5. Future research using other variables connected to this study mall may be conducted.
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28

Taruc, Socorro, Surigao del Norte
LEVEL OF CUSTOMER SATISFACTION OFFERED BY THE SELECTED LENDING

INSTITUTIONS IN SOCORRO, SURIGAO DEL NORTE
APPENDIX A
Questionnaire Survey
PART – I Demographic profile

Directions: Put a check on the empty circle provided below based on your knowledge.
Name: __________________________ clientele’s
name:___________________
Gender :
male female
Civil status:
married single widow
Educational attainment:
elementary secondary college graduate
Number of years in transaction
3 years 5 years 10 years Up
PART- II
LEVEL OF CUSTOMER SATISFACTION
Direction: Rate from 1-3 the following statement if you think you had performed it.
Rating Scale Verbal Interpretation

1 STRONGLY DISAGREE (SD)
2 DISAGREE (D)
3 AGREE (A)
29
4 STRONGLY AGREE (SA)
INDICATORS Strongly Disagree Agree Strongly

disagree agree
Reliability 1 2 3 4
1. Customer service performs the service
right at first time
2. Customer service delivers the service
exactly as promised.
3. Provides information that fits your
needs
4. Services are consistently efficient.
5. Employee and security personnel are
consistently professional and
courteous.
Responsiveness
6. Customer service is prompt in
responding your request
7. Customer service process problem fast
8. Remedying your complaints
transparently and effectively
9. Extent of cooperation extended by our
employees to give advice and support
to the customers
10. employee are responsive and answer
questions promptly and correctly
Accessibility
11. Easy accessibility to information on the
services
12. Employee are never be too busy to
respond to customer’s requests.
13. accessibility on information gives
individual attention
14. Employee have knowledge to answer
questions.
15. Easy of accessibility to the required
services
Communication
16. Staff pays customers personal attention
17. Staff always listens to the customers
18. Staff are polite and ready to entertain
questions
19. Staff have a pleasant demeanor
30
20. Staff understands the needs of the

customers
APPENDECES
31
APPENDIX A
LETTER OF VALIDATION
Rolando S. Nocon
Dean, College of Business
Bucas Grande Foundation College
Sir:
Good day!
The undersigned are fourth year BSBA students at Bucas Grande Foundation College
undertaking a research study entitled “Level of customer’s satisfaction offered by the selected
lending institutions in Socorro, Surigao del Norte ” as partial fulfilment of the requirements in
business research.
With your expertise, the researchers are sincerely asking for your precious time to validate
the questionnaire which they intend to use as the research instrument of their study.
They are looking forward for your positive response about this matter. Thank you so much
and God bless!
Respectfully yours,
ALDINE B. ADLAO
KRIZA HAYLS Q. RAMIREZ
Researchers
Noted:
CHENGA LEA T. QUISAGAN

Research Adviser
Approved:
ROLANDO S. NOCON
Dean, College of BUSINESS
32
APPENDIX B
LETTER OF PERMISSION
BUSINESS OWNER
Greetings of Peace!
We, Aldine B. Adlao and Kriza Hayla Q. Ramirez are fourth year BSBA College student of
Bucas Grande Foundation College. We are presently conducting a study “Level of customer’s
satisfaction offered by the selected lending institutions in Socorro, Surigao del Norte ” in the
academic year 2017-2018.
In connection to this, we would like to ask permission from your good office in
administering the researcher made questionnaire and standardized test questionnaire to evaluate
your business management; rest assured that all the gathered information will be taken with utmost
consideration and confidentiality.
We’re anticipating with positive regard and approval on this earnest request.
Thank you very much! God Bless and More power!
Respectfully yours,
ALDINE B. ADLAO
KRIZA HAYLS Q. RAMIREZ

Researchers
Noted:
CHENGA LEA T. QUISAGAN
Research Adviser
Approved
33
Business Owner
APPENDIX C
QUESTIONNAIRE
SOCORRO, SURIGAO DEL NORTE
Dear Participants,
The researchers would like to inform you that you are the chosen participants of this study.
With this, we would like you to answer this questionnaire. Each of the statement in this
questionnaire evaluates and gathers information with regard to the Causes of Failure in Engaging
Business. Please do not leave any item unanswered.
Rest assured that the information you will share will be kept confidential. Please answer
honestly and with all sincerity.
Truly yours,
The Researchers
34

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BUCAS GRANDE FOUNDATION COLLEGE

Socorro, Surigao del Norte

LEVEL OF CUSTOMER SATISFACTION OFFERED BY THE SELECTED LENDING

organizations. The financial sector of the municipality of Socorro is now characterized by

new products including loans for their clients.

retention (Kumar et al., 2010).

Nowadays, the incredible growth of the globalization and especially liberalization of

conveniences. However, due to services intangibility, inseparability, heterogeneity and perishability

catches up the level of customer satisfaction.

customer satisfaction should be paramount for any firms‘marketing strategy. It is through

placed emphasis on the importance of customers.

sustainable competitive advantage. And in money-lending business, customer satisfaction carries a

satisfaction (Parasuraman, et al., 2010).

banking services (Sureshchandar et al., 2002).

main sources of information for customers.

Review of Related Literature

service quality to the satisfaction of customers through the following literatures.

antecedents of behavioral intentions. On studying the literature, declare relationship quality to be

an importance of customer satisfaction as well as service meeting.

keeping a business productivity and profitable.

sales staff, representative‘s availability, representative‘s knowledge, reliability of returning calls,

and technical service.

According to Amudha, R. &Vijayabanu, C. (2012), service development performance of a

delighted (Kotler, 2000).

market and understanding their needs, wants and demands.

convenience on customer satisfaction. The author identified employee behaviour, tangibility,

information technology, access convenience, transaction convenience, decision convenience and

quality of service when compared to the public sector banks.

Surigao del Norte.

have a different understanding. In general, satisfaction is considered to have a broader concept

(Zeithaml & Bitner, 2001: 74).

rendered. Building good relationship in order to increased customer satisfaction is valuable,

(Fornell 2010; Anderson & Sullivan 2011).

Hallowel (2012) assumed that there is a positive relationship between customer

satisfies the customers.

the determinant of customer’s satisfaction.

The extent of service

Figure 1. Schematic Diagram of the Study

Statement of the problem

selected lending institutions in Socorro Surigao Del norte.

The study answered the following questions;

1. What is the profile of the respondents in terms of?

3. Based on the findings what intervention may be proposed?

Significance of the Study

Scope and Limitation of the Study

questionnaire was be checked by the expert.

Sampling Design and Respondents

Instruments of the Study

and to identify the level of customer’s satisfaction.

Gathering Data Procedure

To analyze the data the following statistical tools was used;

Percentage count – was used to analyse problem number 1.

Mean and standard deviation was used to analyse problem number 2.

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

offered by the business organizations in Socorro, Surigao del Norte.

Problem 1. Profile of the respondents

civil status, and number of years operated.

Table 1. Frequency and Percent Distribution of the profile of the respondent

were in their early stage of transactions.

Table 2. Level of customer’s satisfaction as to reliability

information that fits your needs’ (M=3.20).

Table 2. Level of customer’s satisfaction as to responsiveness

agree which denotes highly practiced customer service.