IMPACT OF INNOVATION STRATEGIES ON CUSTOMER SATISFACTION AMONG COMMERCIAL BANKS IN ILORIN METROPOLIS
Abstract
Until recently, innovation studies focused on radical, technology-based innovations in large firms whereas innovation patterns in small enterprise had widely been neglected.
Scholars and practitioners alike are concerned about the poor level of customer satisfaction in the banking sector. However, in recent times, since the cost of retaining existing customers has been confirmed to exceed that of acquiring new ones, the emphasis has been on retaining existing customers. This study examines how bank customers' satisfaction could be improved through some specific innovative practices. This study focused on three banks within Ilorin metropolis in Nigeria. The descriptive research design was adopted. 384 self-administered, structured questionnaires were distributed, out of which 332 copies were returned. Data was presented using frequencies and cross tabulations. One-sample I-test and Analysis of Variance were used to test hypotheses. The results of standard multiple regression indicated thal product innovation has a positive and significant effect on customer satisfaction with coefficient value of. 194 and a critical value of t=2.435, p-value
(0. 016) < 0.05. Results also indicated that process innovation has a positive and significant with customer satisfaction. The coefficient has the value 0.257 and a critical value of 1=3.532, p-value (0.001) < 0.05. Result indicated that marketing innovation has a positive and significant customer satisfaction. The coefficient has the value 0. 240 and a critical value of t=2.784, p-value (0.006) < 0.05. Technological innovation has a positive and significant effect on customer satisfaction as well with coefficient value of .261 and a critical value of 1-3.076, p-value (0. 002) < 0.05. The study recommended that these banks should go beyond the conventional practice of outward show of appreciation of customer patronage, but rather work towards resolving customers' complaints, and meeting their needs promptly, and should be proactive on innovation mix to enhance their performance.
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