Effect of Information Technology

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EFFECTS OF INFORMATION TECHNOLOGY ON CUSTOMERS’ SATISFACTION IN NIGERIAN FINANCIAL INSTITUTIONS.

By

ERNEST E. INYANG, A. D. O. OTONKUE AND JUDE U. BASSEY

ABSTRACT

Information technology may be considered to be the harnessing of electronic technology in its various forms to improve the operations and profitability of the business as a whole. Information Technology provides significant improvements with facilities such as word processing (improving secretarial, typing and some reprographic services) communication facilities in the form of electronic mail, databases in relation to filing and data retrieval. Such advances improves business efficiency eliminating unnecessary delays in communication between different parts of the organization and dealing with routine filing and correspondence. KEY WORD: INFORMATION TECHNOLOGY, CUSTOMER’S SATISFACTION

INTRODUCTION
This research is the lack of investigation on the effects of information technology in delivering service to customers, especially in the financial services sector. Hence, this research work hinges on the effect of an information technology enabled electronic delivery channel on overall customer satisfaction. This is the assumption that higher customer satisfaction leads to sustainable revenue growth and profitability. This claims is based on the arguments provided in Heskett etal (1997) that profit and growth are estimated primarily by customer loyalty and loyalty is a direct result of customer satisfaction.

This research work is undertaken with a view to finding out whether good performance of Nigerian financial institutions is largely due to implementation of information technology and also to improve upon the existing marketing activities of Nigerian financial institutions, so as to have high customers’ satisfaction. For the purpose of this study the hypothesis tested is:

Ho:Information Technology has no positive impact on customers’ satisfaction in Nigerian financial institution. Hi:Information Technology has positive impact on customers’ satisfaction in Nigerian financial institutions.

This research work is significant in the sense that it would help to identify ways of improving the services of Nigerian financial institutions. It may also serve as a basis on which future research on information technology and customer satisfaction may be based. REVIEW OF SOME RELATION LITERATURE

According to Kinshnan etal (1999), financial service companies have products such as current and servings accounts and in some cases may also offer insurance policies. An interesting aspect of financial service companies is that they do not fully fit into the mould of full service industries that offer tangible products and full service industries.

The notion of quality in financial service firms is quite different from that in manufacturing companies. The nature of the financial service industry is such that its products are mostly intangible for instance, in an investment company, the product delivered is not the stock certificate, but the investment it represents, as well as the peripheral services such as online account services and accurate periodic reports. Since customers do not view the actual product as a full product, the service accompanying the product is very important in consequence, in modeling overall customer satisfaction for financial service companies, it is important to include both product and service attributes. Prior research has identified specific attributes to quality that are linked to customer satisfaction in both manufacturing and service industries (Garvin 1988, Zeithamal etal, 1990).

Research on service quality has generally investigated the quality attributes of certain service encounters (Zeithamal etal, 1990). There is a paucity of research and guidance in understanding the drivers of overall customer satisfaction at the firm level. This is true especially for multi-channel firms that are increasingly becoming the norm in the...
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