PRODUCT AND SERVICE DEVELOPMENT IN THE CUSTOMERS’ QUALITY: EVIDENCE FROM SELECTED NIGERIAN COMMERCIAL BANKS

Abstract

Convectional practice of business organisations seeking profits have necessitated unending search for continuous customers’ needs and desires.  This study sets to examine the effect product and service development on customers’ quality in the selected Nigerian commercial banks. The study adopted cross-sectional survey, through administration of structured questionnaire of six-point Likert scale among selected banks, with sample size of 1,490 customers using Watson formula and response rate of 90.2% (1,344). Reliability and validation of items/constructs range between 0.75-0.85 as Cronbach-Alpha coefficient. Data collection was analysed using regression analysis. Findings showed that there is a positive significant effect of product and service development on customer quality of the selected Nigerian commercial banks (β = .725, t= 28.480, p<0.05).  Descriptive analysis indicated that banks practising product and service development are more productive by improving customers’ satisfaction and organizational profitability. Customer quality identifies needs for creating product and service development ultimately desired by the bank customers and enhances process and systematic provisions of it. The study recommended that commercial banks should strategically employ technique of customer quality in an attempt to provide desired product and service development for customers.