Development of Customers Satisfaction Model in Banking Sector Using Fuzzy Cognitive Map

Abstract

Customer satisfaction is one of the key factors in modern marketing and customer’s behavior analysis. Banking industry is one of the numerous services in which the customer satisfaction has had an ever increasing importance in the corresponding research areas. The problem here is the complexity of dealing with customer satisfaction due to super abundant factors engaged in it. In this paper the applications of Fuzzy Cognitive Maps (FCM’s), as a decision making tool, in banking industry, a very vital part of a country’s economy, has been discussed.

The paper focuses on the development of customers' satisfaction model in banking sector using fuzzy cognitive map. A questionnaire assessing customer’s opinions to give a clear perception of factors affecting customer satisfaction in banks was designed based on Complaint handling, Service quality, Service feature, Competiveness and Convenience, which are the five major factors considered. The questionnaire was administered to bank managers, other bank staff and the customers within selected banks (First bank, Polaris bank and Wema bank) in Ogbomosho environ, Oyo state South-West Nigeria. The opinions from the administered questionnaires were quantitatively analysed using descriptive statistic in Statistical Package of Social Sciences. The analysis on five factors considered which are: Complaint handling, Service quality, Service feature, Competiveness and Convenience and defining the relationship between the factors were then used to develop the FCM model with the use of mental modeler software.

The nodes of the FCM model represent the main factors affecting customer satisfaction in banking sector and running of ‘what if’ scenario to determine how the model might react under possible change. The simulated results show that Service quality and Complain handling has a degree of effect on Customer satisfaction while other factors has no effect on customer satisfaction which could be positive and negative impact on customer satisfaction in banking sector. This implies that Service quality and Complain handling are important factors in predicting the customer satisfaction in banking sector.

Keywords: Customer satisfaction, Fuzzy Cognitive Map (FCM), Model, Banks and Decision.

DOI: 10.7176/JIEA/10-4-06

Publication date:September 30^th 2020