THE CUSTOMER SATISFACTION OF THE THREE LEADING BANKS IN

THE PHILIPPINES

A Research Paper
Presented to
Dr. Juliet Hernandez
College of Liberal Arts
Pamantasan ng Lungsod ng Maynila

In Partial Fulfillment
Of the Requirements
In Technical Writing

By
Alcantara, Mikaerika T.
Atienza, Christine V.
Norberte, Mikio Cay M.
BS ACCOUNTANCY BLOCK 3-2

Chapter 1
INTRODUCTION
For so many years of dominating the local banking industry, BDO, BPI and Metrobank
maintains a quality service that ensures the loyalty of its customers. Service quality is defined as
the difference between customers expectation of services and their perceptions of the actual
service performance. It is a multidimensional concept, incorporating a number of aspects of both
past and present service experience (Abdullah et al, 2011). Its significance in banks has been
emphasized in studies and perceived quality advantage leads them to higher profit. Thus, this
study was conceived to determine the customers view of the performance of the three leading
banks in providing them satisfaction using the SERVQUAL model.
Some of the concepts of satisfaction include value and quality. Value is the importance
attached to services based on their usage and the amount paid in exchange of the service. Quality,
on the other hand, is defined as the meeting of the needs and expectation of customers. These
concepts proved to have a crucial effect on the stability and the economic standing of these
banks. Therefore, the focus of these banks lies within customer satisfaction since they offer
undifferentiated products and used this to their advantage to survive in the market.
Customers want the best value for their money that is why they put so much effort in
searching for high quality services. Customers perception are determined by myriad factors
supposed that their consumption is affected or influenced by personal characters like age,
occupation, lifestyle and personality. According to Abdullah, the level of satisfaction may also be
influenced by internal and external factors.

To obtain profit, banks offer their customers services such as investment advices,
engaging in foreign exchange trading, processing payments, and accepting deposits believing
that these customers would not want to spend their money and choose to place it with banks for
safe keeping and to earn interest as well. It is their duty, thereof, to ensure the customers that
their money is safe by offering reliable services.
Banks services are of the experience and credence types and are therefore difficult to
assess by customers. Customers cannot evaluate these types because they do not have the
required skills, expertise and knowledge to carry out the evaluation. To that effect, customers
place a high premium on the image and reputation of the bank before purchasing. OwusuFrimpong (2009) indicates that because services of banks are of the credence type, friends and
other fellow customers constitute the main source of information for customers which is an
advantage to the banks if they are able to satisfy these customers.
STATEMENT OF THE PROBLEM
There were few studies conducted on customer satisfaction in the banking industry.
However, none of these works concentrated on the status of local banks in the Philippines that is
affected by vast amount of consumers that seeks high quality service. This study was then aimed
to determine the quality services of the customers of the three leading banks in the Philippines as
it is a critical concept and a significant factor in maintaining financial stability and optimizing
income level. Specifically, the following questions was measured:

TECHNICAL ASPECT:
How would these banks improve their services for the welfare of its customers?
Does the environment of the bank give the customers comfort?

MANAGEMENT ASPECT:

Which among BDO, BPI and Metrobank offers the best quality service?
What is the perception of customers to the services of these banks?
SOCIO-ECONOMIC ASPECT:
What is the relationship of service quality and customer satisfaction
What are the factors that affect consumer behavior?
What are the needs and demands of the customers?
MARKETING ASPECT:
How do these banks communicate the value of their services and products to customers?
FINANCIAL ASPECT:
How does customer satisfaction affect the income of these banks?
SIGNIFICANCE OF THE STUDY
The main objective of this study was to compare the customers satisfaction regarding the
quality of service of the three leading banks in the Philippines.
Benefits to Customers
The importance of delivering excellent service quality is becoming increasingly
magnified as competition intensifies throughout the banking industry. A superior service quality
is todays most effective bait for acquiring and retaining customers. The benefits to customers are
that they can attain better service and thus become more loyal to the company. Moreover, this
study will also help the customers to decide which bank will be a better choice to entrust their
finances.
Benefits to the Banks
This study will assist these banks to know what their clients think of their services in
terms of sex, age, location and occupation. This study will also show how BDO, BPI and
Metrobank value their opinions and prioritize their needs that would, perhaps, improve their
service for the convenience of their clients. The benefits to the bank derived from this study can
be summarized relating to the increasing market share, cost reduction and increase in income
level, improved efficient and effective customer service.

SCOPE AND LIMITATION

This study focused in its discussion on the customer satisfaction in the three leading
banks in the Philippines. It does not cover other aspects of profit-generating factors of these
banks but mainly focuses on the effect of quality service in their income. The center of
discussion was about the factors affecting the consumer behavior, consumer satisfaction and
service quality.

CHAPTER 2
THEORETICAL FRAMEWORK
INTRODUCTION
This chapter looks at the literature review. Specifically, it reviews the literature on
consumer behaviour, concepts of customer satisfaction and models and the empirical studies in
the banking sector using SERVQUAL model.
CONSUMER BEHAVIOUR

Behaviour of consumers is not predictable since their preferences are becoming more
complex and differentiated, (Hartl, 2006). Their demand for sensory, health, process and
convenience qualities have become more heterogeneous. Individuals differ from one another and
even perceive the same thing differently, (Smith, 2009). Many organisations of late have adopted
a strategy of opening avenues for consumers to lodge their complaints. It is believed that
knowing the types of complaints will give a clue to companies to have an in-depth knowledge
about customers satisfaction, thus indirectly knowing the quality of services or products offered,
(Fornell, 2007). Consumers opt for certain products or particular brands not due to the fact they
offer intended functional or performance benefits only but also products can be used to exhibit
consumers personality, social status, affiliation or to fulfil their internal or inner psychological
needs like the desire for change or newness (emotional). There are four factors that influence
consumers behaviour known as cultural, social, personal and psychological.

Cultural factors: Culture has a great impact on a persons consumption behaviour. It is the
values, ideas and symbols that enable people to communicate interpret and evaluate as members
of society. Culture influences a persons wants behaviour since it is learnt. They believe that in
societies in which children find themselves, they learn from the various institutions values,
perceptions, wants and behaviours. Thus, a culture has subcultures or groups of people like
nationalities, religions, racial groups and geographical regions with values which hold them
together. These subcultures are the main tools shaping consumers behaviour.
Assael (2009) emphasizes that social class is the divisions among people in society whereby
members are tied with similar values, interests and behaviours. Factors that determine social
class include power, prestige, occupation, income education, family background and wealth. In

addition members of a social class are more similar than others. However, others believe that
social class has a direct influence on the purchasing behaviour of people. The perceptions, needs
and wants and the entire behaviour may differ from one social class to another.

Social factors: reference groups, family and roles and status constitute the social factors that
influence consumers buying behaviour. Reference groups are groups that have direct and
indirect influence on the behaviour of their members. These groups are four types; primary
membership groups, secondary membership groups, aspirational groups and dissociative groups.
Primary membership groups are the ones which members interact and are the informal types.
These include family, neighbours, colleagues and friends. Secondary groups are the formal ones
which members interact less often. Among them are trade unions, religious groups and
professional associations. Aspirational groups are those who wish to come together as a group
whilst dissociative groups are the ones people reject their values and behaviour.
The most significant group that exerts much pressure on the individual is the family.
Apart from the fact that family members influence themselves in buying decisions, they also
undertake collective decisions. The father and the mother usually make most of the purchasing
decisions. However, with constant changing of the society, children also influence family
consumptions very much. Apart from this, parents also tutor their children to make consumptions
choices. A familys collective decision emanate when the risk involved in the purchasing is high.
Therefore all members decide to atleast reduce the risk to the barest minimum or take risky
decisions since all will bear the consequence. Other factors for making collective decision are
when the decisions are of utmost importance and when there is much time at their disposal.
(Assael, 2009)

Personal factors: to a large extent an individual decision to buy is influenced by the

characteristics he possesses. There characteristics include his age, and life-cycle, occupation,
economic situation, lifestyle and personality and self-concept. Aging correlates with a persons
buying behaviour. Economic situation like the income of a person determines his purchasing
behaviour. Lifestyle also determines the consumption behaviour. This is exhibited in his
activities, interests and opinions. Personality is the unique psychological characteristic that is
responsive to someones own environment. Personality is seen in terms of traits like selfadaptability, dominance, sociability, autonomy and defensive. Both personality and lifestyle
influences a person decision-making.

Psychological factors: these factors include motivation, perception, learning and beliefs and
attitudes. Motivation is the force that drives a person to search for satisfaction. Perception is the
process through which people select, (selective attention) organise (selective distortion) and
interpret (selective retention) information to a meaningful picture about the universe. Because of
these three perceptual processes, individuals can see the same object in different ways. Selective
attention is where the individual sifts numerous information that come across his way. Selective
distortion is whereby people interpret or distort information to fit into what they have already
conceived. That means, they will accept information that conforms to what they have
preconceived. Selective retention is when people remember or retain information that is in
accordance with their beliefs, attitudes, values and interests.
CUSTOMER SATISFACTION
Both customers and banks attach much importance to satisfaction. Frantic efforts are
being made by banks to offer high quality products and services to their customers. Customers

also want the best values for their money and are sparing no efforts in selecting the best products
and services, (Strategic Direction, 2007). Once customers are satisfied and have a positive image
or intentions about a particular firm, it will take some time for competitors to snatch or convince
them to switch to them. Benefits derived by companies from customer satisfaction include
loyalty, repurchasing to increase sales or profit, speak well about the products or services to
others to purchase. As pointed out by Assael (2009), the economic viability of firms lies in the
hands of consumers. There are various types of customers or consumers. They may be
individuals, groups, organisations, communities or nations. The banking industry like any other
industry has intensified its efforts to satisfy consumers through the provision of quality service.
This stem from that fact that competition has been stiff and every bank is trying to retain the old
customers and woo new ones.
SERVICE QUALITY
According to Siddiqui and Khandaker (2007), quality of service is an elusive and
imprecise construct and is difficult to measure, because services are intangible, heterogeneous,
inseparable

and

perishable.

Hence,

marketing

researchers

adopted

the

expectancy

disconfirmation theory and developed service-quality model or SERVQUAL model. This model
has five dimensions for measuring and managing service quality: tangibles, reliability,
responsiveness, assurance and empathy (Parasuraman, Zeithaml & Berry 1988). Tangibility
refers to the appearance of the service firms facilities, employees, equipment and
communication materials. Reliability is the delivering the promised outputs at the stated level.
Responsiveness refers to providing prompt service and help to customers; the reaction speed
plays a vital role here. Assurance refers to the ability of a service firm to inspire trust and

confidence in the firm through knowledge, politeness and trustworthiness of the employees.
Empathy is the willingness and capability to give personalized attention to a customer.
Though the SERVQUAL model has many limitations, its framework has guided
numerous studies in the service sector, which focuses on banks, repair and maintenance services, telephone companies, physicians, hospitals, hotels, academic institutions and retail stores
(Babakus and Boller, 2010; Carman, 2008; Cronin and Taylor, 2006). In fact, Siddiqi (2010)
concluded in his recent study that the SERVQUAL model is still suitable as an assessment tool to
measure the service quality perceptions.
Thus any bank that fails to surpass customer expectations and meet customer satisfaction
will not be able to compete with other banks. It is the most difficult challenge for a bank that its
customers transfer their accounts to rival banks because of better services.
SYNTHESIS
In the study conducted by Barbara Culiberg* Ia Rojek, the model used in measuring
service quality was based on SERVPERF. SERVPERF assumes that respondents provide their
ratings by automatically comparing performance perceptions with performance expectations and
that measuring expectations directly is unnecessary. Through this model, they found out that the
largest part of the variability (32.2%) of customer satisfaction can be attributed to staff conduct
which may be important information for managers working in the banking sector when analysing
reasons for customer satisfaction or dissatisfaction. Another 10.5% of variability of customer
satisfaction can be linked to the range of services that the bank is offering.

With these results, it is evident that assurance and empathy primarily drive customer
satisfaction and that bank employees (especially contact personnel) have a fatal impact on the

most appealing service attribute when targeting customers (Rojek, 2010). The conduct of staff is
at least as important as service ranges offered or even more. Furthermore, the study suggests that
hiring competent personnel will provide a high customer satisfaction. If the working
environment is managed well there is potential for a cycle of success instead of becoming stuck
in a cycle of failure (Lovelock and Wirtz, 2007).

If the first study focused on the performance of the employees and how important it is to
have a face-to-face interaction with the customer, the study conducted by Jaya Sangheeta, on the
other hand, suggest that developments in information and communications technology have
provided a platform by which companies can design, develop and deliver services that can be
perceived by customers as superior (Surjadjaja et al., 2008). With the majority of consumers
now more than ever prefer to opt for a technology-based service delivery over that of the
employee, Sangheeta developed a comprehensive model to measure customer perceptions of
service quality of technology interfaces used in commercial banks.

According to Sangheetas model, the technology interface service quality in banks can be
conceptualized as a seven- factor structure consisting of: ATM service quality, telephone banking
service quality, internet banking service quality, call center service quality, queue systems service
quality, core service quality and price quality (Sangheeta, 2012). Moreover, the comprehensive
model will allow bank administrators to gain a comprehensive understanding of the importance
and quality issues associated with technology interfaces, thereby allowing them a better
opportunity to improve service quality and customer satisfaction and help gain a competitive
advantage (Sangheeta, 2012).

The study conducted by Rojek states that banks that are trying to divert their customers
from bank offices to ATMs and the internet may well be undermining the importance of human
contact which is essential for successful customer service (Rojek, 2010). But, in the study
conducted by Sangheeta, she states technology is needed to reduce cost and eliminate
uncertainties.

CONCEPTUAL FRAMEWORK
The previous discussion leads to the development of Figure 1 that depicts the relationship
between the quality of services of the three leading banks in the Philippines and customer
satisfaction. The quality of services was measured by using the SERVQUAL model which
includes the five service quality dimensions or attributes: tangibility, reliability, responsiveness,
assurance and empathy. This was done by distributing questionnaires, based on the SERVQUAL
model, to know the degree of customer satisfaction.

CONCEPTUAL PARADIGM

Tangibility
Quality of
services of the
three leading
banks in the
Philippines

Reliability
Responsivenes
s
Assurance
Empathy

Customer
Satisfaction

Figure 1: Customer Satisfaction in the three leading banks in the Philippines.

Chapter 3
METHODOLOGY
This chapter presents the research design, sample, sample size and sampling techniques,
instrumentation and validation, data sources and the statistical tools that the study, The Quality of
Services towards Customer Satisfaction of the Three Leading Banks in the Philippines utilized.
RESEARCH DESIGN

An exploratory research was used in this study. An exploratory research is conducted about a
research problem when there are few or no earlier studies to refer to. The focus is on gaining insights and
familiarity for later investigation or undertaken when problems are in a preliminary stage of investigation.
Exploratory research is flexible and can address research questions of all types (what, why, how).
Hence, the researchers used this research design to investigate the quality of services towards customer
satisfaction of the three leading banks in the Philippines.
RESPONDENTS
The researchers used the selected students of the College of Accountancy and Economics in
Pamantasan ng Lungsod ng Maynila to be the sample in this study. These selected respondents should be
a customer of at least one of the three leading banks in the Philippines, namely; Banco de Oro,
Metropolitan Bank and Trust Company and Bank of the Philippine Islands.
Because of the time constraint and limited funds, the researchers decided to have a total of 45
respondents to be studied. And to reduce the sampling bias and to have a fair evaluation of the quality of
services of the three leading banks in the Philippines, the researchers selected 15 customers of each of the
said banks.

SAMPLING DESIGN
The researchers used the purposive sampling method under the non-probability sampling
technique. Purposive sampling is also known as judgmental, selective or subjective sampling; it relies on
the judgment of the researcher when it comes to selecting the units that are to be studied. There are a wide
range of purposive sampling techniques but in this study the researchers intend to use homogeneous
sampling. Homogeneous sampling is a purposive sampling technique that aims to achieve a homogeneous

sample; that is, a sample whose units share the same characteristics or traits. A homogeneous sample is
often chosen when the research question that is being address is specific to the characteristics of the
particular group of interest, which is subsequently examined in detail. The homogeneous sample in this
study was the group of people that are similar in terms of the banks they use.
Since the main goal of the researchers is to focus on the customers of the three leading banks in
the Philippines, the researchers chose purposive sampling, particularly the homogeneous sampling, as the
sampling design of the research.
INSTRUMENTATION
The questionnaire was adapted in another research paper conducted by Corneliu (2013) which
also uses the SERVQUAL model. It contained statements which are relevant to the study being
conducted.
The researchers used the Likert Scale for the respondents to answer the following questions. The
Likert Scale is a psychometric scale commonly used in questionnaires and is the most widely used scale
in survey. Such that term is often used interchangeably with the rating scale even though the two are not
synonymous. When responding to a Likert Scale questionnaire item, respondents specified their level of
agreement to a statement. They only answered very satisfied, satisfied, indifferent, dissatisfied and very
dissatisfied.

STATISTICAL TREATMENT
The data gathered was analyzed by the use of:

Weighted Mean

Weighted mean is the measure of central tendency. There is some variation in the relative
contribution of individual data values to the mean. Each data value (Xi) has a weight assigned to
it (Wi). Data values with larger weights contribute more to the weighted mean and data values
with smaller weights contribute less to the weighted mean. The formula in finding the weighted
mean is:
=
The weighted mean was used in determining which of the five features pertaining to the
quality of services of the three leading banks in the Philippines the customers give value to.

Standard Deviation

Standard deviation is the measurement of variability or diversity. It shows how much

variation or dispersion there is from the average. A low standard deviation indicates that the data
points tend to be very close to the mean, whereas high standard deviation indicates that the data
is spread out over a large range of values. Standard can be also defined as the square root of the
variance. In computing for the standard deviation, we will use the formula:
= ()2
1
Wherein:

()2
is the squared deviation

Analysis of variance (ANOVA)

n is the number of respondents

ANOVA is a collection of statistical models used to analyze the differences between

group means and their associated procedures, developed by R.A. Fisher. In the ANOVA setting,
the observed variance in a particular variable is partitioned into components attributable to
different sources of variation. In its simplest form, ANOVA provides a statistical test of whether
or not the means of several groups are equal, and therefore generalizes the t-test to more than two
groups. As doing multiple two-sample t-tests would result in an increased chance of committing
a statistical type I error, ANOVAs are useful in comparing (testing) three or more means (groups
or variables) for statistical significance.
With the use of ANOVA, the researchers can determine if there is a significant difference
between the qualities of services of the three leading banks in the Philippines. Since there are
three groups to be analyzed in this study, the researchers decided to use ANOVA instead of the
T\t-test.

PROCEDURE
It was as early as June 3, 2014 when an announcement was made that a research paper
would be a part of the requirement in completing the Technical Writing course subject. This
research was expected to serve as an input for future feasibility study or any other course
requirement.
Initially, we were asked to search for possible topics to be used in conducting our
research. On July 22, 2014, we were tasked to visit our school library to look for topics that were
explored but needs an improvement, topics that were over explored and topics to be explored,

and from there, we are to choose the topic that will serve as the center of our study. One week
after, we consulted our professor for the approval of our chosen topic and started to have our
working title for this research.
The first submission was done at August 5, 2014 where we submitted the first chapter of
this research. It contained the introduction, statement of the problem, significance of the study
and scope and limitation of the study. The statement of the problem is categorized into five subcategories which are the management aspect, technical aspect, financial aspect, socio-economic
aspect and marketing aspect. As we pass the first chapter, we also started working on the next
chapter of our research. Through reading, we collected the necessary data and information
regarding consumer behaviour, concepts of customer satisfaction and models and the empirical
studies in the banking sector using SERVQUAL model. These were collected from secondary
sources found in the National Library and some are from the internet. Such sources are listed in
the Reference section of this study. It took two to three weeks to gather the necessary data to be
used in this research.
The primary sources were collected through questionnaires distributed between August
19, 2014 and August 26, 2014. Each selected accessible member was approached and invited by
the researchers to participate in the study. Selected students of the College of Accountancy and
Economics in Pamantasan ng Lungsod ng Maynila were asked to complete the distributed
questionnaires and they were given as much time as needed to complete each valuation. The
questionnaires were collected immediately after it was answered and ready for analysis. The
process took at least a week.

After gathering the data needed, these were analyzed carefully and prepared objectively
to be used in the study. Working on the last few chapters of the research was done simultaneously
as time passes by. This was done in three weeks. The last activity was to finalize the paper and
the preparation to present the results of the study.

Chapter 4
Presentation, Analysis and Discussion
The data are presented, tabulated, analyzed and discussed in this chapter. Also, the five
aspects of business considerations are included in the discussion of the data gathered in the study.
TECHNICAL ASPECT

The SERVQUAL customer perception tool consists of 22 statements that are grouped and
related to one of the five service quality dimensions. Each of the statements is presented in two
different forms. The first part of the questionnaire is designed to measure customers perceptions
(P) about the service area being measured. The second time that the question appears it is
designed to measure customers general expectations (E) about the bank whose service quality is
being assessed. The SERVQUAL instrument captures customer expectations of service quality as
well as their perception of the services actually provided to them. The perceived service quality,
or gap score (denoted as Q) is calculated for each statement by subtracting the E score from the P
score, implying a Q score for each statement. A negative Q score indicates a level of service
quality which is below that which is expected by the customer. Conversely, a zero to positive Q
score indicates a level of service which is equal to or exceeds customer expectations.
The data collected shows that the customers of the three banks put the most importance in
the responsiveness dimension which indicates that they value the readiness and the willingness
of the employees to help them by providing prompt timely services more than any of the
dimensions. As shown in Table 1, with a p score of 4.75 and an e score of 4.3, for the BDO
customers, the Q score of 0.375 point that their customers are the most satisfied with their
employees services. The same results turned out with Metrobank with a 0.375 Q score and BPI
with 0.5 which also shows that the BPI customers have the best satisfaction of responsiveness
with their bank.
The data also shows that, for the BDO customers, they are the least satisfied with the
banks tangibility dimension with a Q score of negative 0.125. The tangibility dimension of the
SERVQUAL model refers to the physical appearance of the banks. As for the Metrobank, with a

Q score of negative 0.06, customers are the least satisfied with the individual attention of the
employees of the bank. For the BPI customers, the ability of the bank to perform the promised
service dependably and accurately does not satisfy them.
Table 1: SERVQUAL Dimension Results
Dimension

Tangibility
Reliability
Responsiveness
Assurance
Empathy
Mean

BDO
E
3.875
4.3
4.375
4.31
4.198
4.212

P
3.75
4.6
4.75
4.625
4.5
4.445

Metrobank
Q
-0.125
0.3
0.375
0.315
0.302
0.233

E
4.125
3.8
3.875
4
4.1
3.98

P
4.34
3.89
4.25
4.11
4.04
4.126

BPI
Q
0.215
0.09
0.375
0.11
-0.06
0.146

E
4.5
4.1
3.75
4.125
3.8
4.055

P
4.625
3.9
4.25
4.375
3.9
4.21

Q
0.125
-0.2
0.5
0.25
0.1
0.155

MANAGEMENT ASPECT
Using ANOVA, we are able to determine which among the three leading banks in the
Philippines offers more satisfying services or if there is a significant difference in the perceptionexpectation of their customers. In the survey conducted, the respondents were asked 22 questions
each for the customer perception and customer expectations. The independent variables are
computed in order to assess if there is a difference among the service quality of the banks. In
terms of the details of the ANOVA test, note that the number of degrees of freedom ("df") for the
numerator (found variation of group averages) is one less than the number of groups; the number
of degrees of freedom for the denominator (so called "error" or variation within groups or
expected variation) is the total number of leaves minus the total number of groups. The F ratio

can be computed from the ratio of the mean sum of squared deviations of each group's mean
from the overall mean [weighted by the size of the group] ("Mean Square" for "between") and
the mean sum of the squared deviations of each item from that item's group mean ("Mean
Square" for "error"). In the previous sentence mean means dividing the total "Sum of Squares"
by the number of degrees of freedom. The p-value corresponding to the F-statistic of one-way
ANOVA is higher than 0.05, suggesting that the treatments are not significantly different for that
level of confidence

Table 2: Customer Perception Results

BDO
89.0
90.0
85.0
83.0
88.0
89.0
87.0
93.0
85.0
87.0
92.0
85.0
86.0
91.0
88.0

Metrobank
88.0
89.0
85.0
88.0
90.0
87.0
88.0
86.0
89.0
91.0
84.0
88.0
87.0
86.0
89.0

BPI
86.0
89.0
84.0
86.0
85.0
88.0
85.0
86.0
86.0
90.0
87.0
92.0
87.0
85.0
86.0

Table 3: Descriptive Statistics of Independent Treatments

Treatment
observations N

BDO
15

Metrobank
15

BPI
15

Pooled Total
45

sum xi
mean x
sum of
squares x2i
sample variance s2
sample std. dev. s
std. dev. of
mean SEx

1,318.0000
87.8667
115,922.0000

1,315.0000
87.6667
115,331.0000

1,303.0000
86.8667
113,261.0000

3,936.0000
87.4667
344,514.0000

8.1238
2.8502
0.7359

3.5238
1.8772
0.4847

5.2667
2.2949
0.5925

5.5727
2.3607
0.3519

Table 4: One - way ANOVA Independent Treatments

Source

sum of
squares SS

degrees of
freedom

mean square
MS

F statistic

p-value

Treatment

8.4000

4.2000

0.7449

0.4809

Error

236.8000

42

5.6381

Total

245.2000

44

Table 5: Customer Expectation

BDO

Metrobank

BPI

92.0
89.0
86.0
84.0
87.0
85.0
88.0
86.0
90.0
89.0
88.0
87.0
89.0
86.0
87.0

87.0
87.0
86.0
85.0
87.0
90.0
84.0
88.0
87.0
89.0
88.0
86.0
85.0
88.0
90.0

89.0
90.0
88.0
83.0
84.0
86.0
88.0
87.0
84.0
88.0
89.0
90.0
86.0
87.0
84.0

Table 6: Descriptive Statistics of Independent Treatments

Treatment

observations N

15

15

15

sum

Pooled
Total
45

xi

1,313.0000

1,307.0000

1,303.0000

3,923.0000

87.5333

87.1333

86.8667

87.1778

114,991.000
0

113,927.000
0

113,261.000
0

342,179.000
0

4.2667

3.1238

5.2667

4.1040

mean

sum of
squares
sample

x2i

variance

s2

sample std.
dev. s

2.0656

1.7674

2.2949

2.0258

std. dev. of
mean SEx

0.5333

0.4563

0.5925

0.3020

Table 7: One - way ANOVA of Independent Treatments

Source

sum of
squares SS

degrees of
freedom

3.3778

1.6889

Error

177.2000

42

4.2190

Total

180.5778

44

treatment

mean square
MS

F statistic

p-value

0.4003

0.6726

SOCIO-ECONOMIC ASPECT
Understanding that the five dimensions of customer service quality have been identified
and established by extensive research conducted by the SERVQUAL developers and that all five
has been found to be important to customers. They have also concluded that the customer base
assign different levels of importance to each dimension. The SERVQUAL customer perception
tool that included a section between the expectation and perception sections that asked the
respondents to divide 100 points between the five dimensions based upon their perception of
importance. The respondents were asked to assign the most points to the most important
dimension and fewer points to the least important dimensions.

This study revealed the importance ranking of the SERVQUAL dimensions of the
customers of the three leading banks from most important to least important as:
1.
2.
3.
4.
5.

Responsiveness
Reliability
Assurance
Empathy
Tangibility

The average importance score was also used to weight the gap scores for each dimension.
Weighted scores were established by multiplying the dimension weight and the dimension gap
score. The weighted score helps to clarify the significance of the perception/expectation gaps.

17.26

13.63
Tangibility
Reliability
21.2

18.31

Responsiveness
Assurance
Empathy

29.6

Figure 2: Dimension Weight

MARKETING ASPECT

In the midst of competitive banking industry, the banks innovate and improve their
services constantly for the growing demands of their customers to maintain harmonious and
continuous relationship with them. Customer satisfaction is one of the important factors in
creating bonds with customers and because of these, the banks find ways to communicate their
services and products in the most convenient mode for their clients.
In the survey conducted, the respondents were asked about their way of doing
transactions with their respective banks. Banks offer their services in different mediums like
internet and phones. The results showed that the customers still prefer a face-to-face transactions
if it concerns their finances. Table 8 proves, with 46.667 percent that instead of using a phone or
the internet which is more convenient, customers would be more assured if they do their
transactions personally.
Table 8: Service Communication Results
Mode of dealing with the bank
Office
Telephone
Internet
Total

Percentage
46.667%
20%
33.333%
100%

FINANCIAL ASPECT
In this study, customers are assumed to be the only profit-generating factor for banks. As
it is, the effect of their perception to the services of these banks has a great impact on its income
and financial stability. This study, however, limits the knowledge of the researchers as to how

customer satisfaction directly affects the income of the three leading banks. Further explanation
on this aspect will be discussed in the final chapter.

Chapter 5
Summary of Findings, Conclusion and Recommendation
SUMMARY OF FINDINGS
The main aim of the study is to compare the perception of customers regarding the
quality of service of the three leading banks in the Philippines. Forty five customers of at least one
of the three leading banks in the Philippines, namely; Banco de Oro, Metropolitan Bank and Trust
Company and Bank of the Philippine Islands from the College of Accountancy and Economics in

Pamantasan ng Lungsod ng Maynila were chosen for the study. Information was gathered from
the community through a questionnaire.
CONCLUSION
The readiness and willingness of the employees to help the customers by providing
timely services was found to be the most important dimension and the Bank of the Philippine

Island gives its customers the best satisfaction of responsiveness. While the tangibility dimension
which refers to the physical appearance of the banks was the least important among the
aforementioned dimensions, and the BDO customers were least satisfied with this. But with
overall customer satisfaction, there is no significant difference with the service quality of the
three leading banks.
The findings suggest that since it was found out that the responsiveness dimension is
what the customers give their most importance then the banks should provide their employees
seminars or other ways that would improve their social skill and be able to communicate with
their customers. Seeing the demand of the customers for timely services, these banks should also
require its employees to always put the customers interests first and do it sincerely to earn their
trust.
The study elicited five quality dimensions namely responsiveness, reliability, assurance,
empathy and tangibility. These dimensions of customer service quality have been identified and
established by extensive research and that all five has been found to be important to customers.
They have also concluded that the customer base assign different levels of importance to each
dimension. The readiness and willingness of the employees to help the customers by providing
timely services was found to be the most important aspect in responsiveness dimension and the
Bank of the Philippine Island gives its customers the best satisfaction of responsiveness. While
the tangibility dimension which refers to the physical appearance of the banks was the least
important among the aforementioned dimensions, and the BDO customers were least satisfied
with this.

The banks innovate and improve their services constantly for the growing demands of
their customers to maintain harmonious and continuous relationship with them. Customer
satisfaction is one of the important factors in creating bonds with customers and because of
these, the banks find ways to communicate their services and products in the most convenient
mode for their clients. Banks offer their services in different mediums like internet and phones.
The customers still prefer a face-to-face transactions if it concerns their finances. Instead of
using a phone or the internet which is more convenient, customers would be more assured if they
do their transactions personally.
With the assumption that customers are the major or the only source of income of the
three banks, the researchers can conclude that with a high customer satisfaction, the banks
income is greatly affected, therefore, these banks should put more effort in improving their
service to provide the customers their needs and demands. But since it is only an assumption and
these banks have more ways of generating income, the direct effect of customer satisfaction is
still vague to make a definite conclusion in this aspect.
With all the findings gathered, we can conclude that the three leading banks in the
Philippines namely; Banco de Oro, Metrobank and Bank of the Philippine Islands does not have
a significant difference in the quality of their service. The customers have almost the same
perception on these banks services and it also shows that with the perception being higher than
the expectation, then it means that these customers are satisfied with their respective banks.
RECOMMENDATION
Service quality is a crucial factor in maintaining financial stability in banks, thus, studies
like this would be a great help to improve their services and provide their customers a better and

a more satisfying service. For future researchers, the following recommendation must be taken
into account:
1. Since this study uses the SERVQUAL model, future studies must use other models like
SERVPERF or the 360-degree leader to see if it will give the same results. This way,
banks will have more information and awareness about customer satisfaction.
2. Make a full study in this topic. Broaden the profit-generating factors of the banks and see
how important customer satisfaction is to its income.

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