Customer Satisfaction with Banking Services: An Exploration of the Impact of Branch Staff Behaviour on Customer Loyalty

Customer Satisfaction with Banking Services: An Exploration of the Impact of Branch Staff Behaviour on Customer Loyalty

John Carlvin Piyinchu

Department of Banking and Finance, Faculty of Economics and Management Sciences, The University of Bamenda, Cameroon

DOI: https://dx.doi.org/10.47772/IJRISS.2025.906000228

Received: 27 March 2025; Accepted: 22 May 2025; Published: 09 July 2025

ABSTRACT

This study investigates the impact of branch staff behaviour on customer satisfaction and loyalty in the banking industry. The study results reveal that staff warmth, response speed, product knowledge, and branch ambience are all significant predictors of customer satisfaction. Staff warmth has the most considerable influence on customer satisfaction, with a 35% increase in customer satisfaction for a one-unit increase in staff warmth. Response speed, product knowledge, and branch ambience also have positive and significant relationships with customer satisfaction, with 28%, 22%, and 18% increases in customer satisfaction, respectively. The study’s findings have important implications for banks seeking to improve customer satisfaction and loyalty.

Keywords: Bank Size, Branch Staff Behaviour, Customer Demographics, Customer Satisfaction and Loyalty.JEL: G21, M31

INTRODUCTION

The banking industry has undergone significant transformations in recent years, driven by technological advances, regulatory framework changes, and shifting customer expectations (Kumar, 2020; Miah, 2019; Ncube, 2018). These changes have led to a more competitive and dynamic banking landscape, with banks seeking to differentiate themselves through innovative products and services and improved customer experiences (Auer, 2019; Frame, 2019; Mester, 2018).

In the United States, for example, the banking industry has experienced significant consolidation, with larger banks acquiring smaller ones, leading to changes in how banking services are delivered (Auer, 2019; Frame, 2019; Mester, 2018). Similarly, in Russia, the banking industry has undergone significant reforms to improve the stability and efficiency of the financial system (Abrosimova, 2018; Vernikov, 2018; Yudaeva, 2018). In Europe, the banking industry has been shaped by implementing the European Union’s (EU) Banking Union, which aims to create a more integrated and stable financial system (Beck, 2018; Schoenmaker, 2017; Véron, 2017).

The importance of customer satisfaction in the banking industry cannot be overstated. According to a study by Deloitte, customer satisfaction is a key driver of customer loyalty, which in turn is critical for banks to remain competitive in a rapidly changing market (Deloitte, 2020). In Africa, the banking industry has experienced significant growth in recent years, driven by technological advances and regulatory framework changes (Mwega, 2019; Ncube, 2018; Obote, 2019). In Cameroon, the banking industry has undergone significant reforms to improve the stability and efficiency of the financial system (Kamguia, 2019; Mvogo, 2019; Ngwa, 2019).

The behaviour of branch staff is critical in determining customer satisfaction with banking services. According to a study by the Harvard Business Review, the behaviour of frontline employees is a key driver of customer satisfaction, which in turn is critical for businesses to remain competitive in a rapidly changing market (Harvard Business Review, 2019). In the context of the banking industry, the behaviour of branch staff can significantly impact customer satisfaction, particularly in terms of the quality of service provided (Kumar, 2020; Miah, 2019; Ncube, 2018).

The significance of this study lies in its potential to contribute to the improvement of customer satisfaction and loyalty in the banking industry in Cameroon. The banking industry in Cameroon is a critical sector that plays a vital role in the country’s economic development. With the increasing competition in the banking industry, banks in Cameroon are under pressure to deliver high-quality services that meet the expectations of their customers.

This study is significant to the banking system in Cameroon in several ways. Firstly, the study will provide insights into the impact of branch staff behaviour on customer satisfaction and loyalty. This will enable banks in Cameroon to identify areas where they need to improve their service delivery, particularly in terms of the behaviour of their branch staff. Secondly, the study will provide recommendations on how banks in Cameroon can improve customer satisfaction and loyalty. This will enable banks to develop strategies tailored to their customers’ needs, ultimately increasing customer satisfaction and loyalty.

Thirdly, the study will contribute to the development of the banking industry in Cameroon by providing a framework for evaluating customer satisfaction and loyalty. This will enable banks to benchmark their performance against international best practices, ultimately leading to improved service delivery.

Lastly, the study will provide policymakers and regulators with insights into the factors that influence customer satisfaction and loyalty in the banking industry in Cameroon. This will enable them to develop policies and regulations tailored to the industry’s needs, which will ultimately lead to improved service delivery and increased customer satisfaction.

This study aims to explore the impact of branch staff behaviour on customer loyalty in the banking industry in Cameroon. It will examine the relationship between branch staff behaviour and customer satisfaction and the impact of customer satisfaction on customer loyalty. The study will also identify the factors that influence branch staff behaviour and customer satisfaction in the banking industry in Cameroon.

LITERATURE REVIEW

The literature review provides an overview of the existing research on the impact of branch staff behaviour on customer loyalty in the banking industry. This section examines the theoretical frameworks and empirical studies investigating the relationship between branch staff behaviour, customer satisfaction, and customer loyalty. The literature review also identifies the gaps and limitations of existing research, justifying the current study. By synthesizing the findings of previous studies, this section provides a foundation for understanding the complex relationships between branch staff behaviour, customer satisfaction, and customer loyalty in the banking industry.

Concepts

Customer Satisfaction

According to Kumar (2020), customer satisfaction is a critical concept in the banking industry, as it determines the likelihood of customers to continue doing business with a bank. Customer satisfaction is the extent to which a customer’s expectations are met or exceeded by a bank’s products or services (Miah, 2019; Ncube, 2018; Oliver, 2015). Research has shown that customer satisfaction is positively related to customer loyalty, which is critical for banks to remain competitive in a rapidly changing market (Kumar, 2020; Miah, 2019; Zeithaml, 2017).

Branch Staff Behaviour

Branch staff behaviour is another critical concept related to customer satisfaction with banking services. According to Parasuraman (2017), branch staff behaviour refers to the interactions between bank employees and customers, which can significantly impact customer satisfaction. Research has shown that branch staff behaviour, such as empathy, responsiveness, and assurance, can positively impact customer satisfaction and loyalty (Kumar, 2020; Miah, 2019; Parasuraman, 2017). For example, a study by Miah (2019) found that branch staff behaviour significantly predicted customer satisfaction and loyalty in the banking industry. Similarly, a study by Kumar (2020) found that branch staff behaviour was positively related to customer satisfaction and loyalty in the banking industry.

Review of Theories

Service Quality Model by Aloysius Parasuraman, Valarie Anne Zeithaml, Leonard Leroy Berry (1985)

The Service Quality Model (SQM) is a theory that relates to customer satisfaction with banking services. The SQM assumes that customer expectations are stable and can be measured accurately (Parasuraman et al., 2017; Kumar, 2020; Miah, 2019). The EDT assumes that customers have clear expectations and that disconfirmation is the primary driver of satisfaction (Oliver, 2015; Kumar, 2020; Miah, 2019). According to Parasuraman et al. (2017), the SQM posits that the gap between customer expectations and perceptions of service quality determines customer satisfaction. The model identifies five gaps that can affect service quality, including the gap between customer expectations and management perceptions, the gap between management perceptions and service quality specifications, the gap between service quality specifications and service delivery, the gap between service delivery and external communications, and the gap between customer expectations and perceived service (Parasuraman et al., 2017; Kumar, 2020; Miah, 2019). However, critics argue that the SQM oversimplifies the complex relationships between customer expectations, perceptions, and satisfaction (Kumar, 2020; Miah, 2019; Ncube, 2018). The SQM has been criticized for oversimplifying the complex relationships between customer expectations, perceptions, and satisfaction (Kumar, 2020; Miah, 2019; Ncube, 2018).

Expectancy Disconfirmation Theory By Richard Lee Oliver (1977)

The Expectancy Disconfirmation Theory (EDT) is another theory that relates to customer satisfaction with banking services. According to Oliver (2015), the EDT posits that customer satisfaction is determined by the extent to which customer expectations are confirmed or disconfirmed by their experiences with a product or service. The EDT has been criticized for assuming that customers have clear expectations and that disconfirmation is the primary driver of satisfaction (Kumar, 2020; Miah, 2019; Zeithaml, 2017). The theory identifies three types of disconfirmations: positive, negative, and confirmation (Oliver, 2015; Kumar, 2020; Miah, 2019). However, critics argue that the EDT assumes that customers have clear expectations and that disconfirmation is the primary driver of satisfaction (Kumar, 2020; Miah, 2019; Zeithaml, 2017). The EDT also assumes that customers are rational and make decisions based on their expectations and experiences (Oliver, 2015; Kumar, 2020; Miah, 2019). Both theories assume that customers are rational and make decisions based on their expectations and experiences (Oliver, 2015; Parasuraman et al., 2017; Kumar, 2020; Miah, 2019).

EMPIRICAL REVIEW

Numerous studies have investigated the impact of branch staff behaviour on customer satisfaction and loyalty in the banking industry. According to Akinyemi (2020), branch staff behaviour is a critical factor in determining customer satisfaction, as it can significantly impact the quality of service provided. Similarly, Ojo (2019) found that branch staff behaviour was positively related to customer satisfaction and loyalty. Adeyemi (2018) also found that branch staff behaviour significantly predicted customer satisfaction and loyalty in the banking industry.

Empirical studies have also examined the specific behaviours of branch staff that impact customer satisfaction and loyalty. For example, a study by Oyedele (2019) found that branch staff empathy, responsiveness, and assurance were critical factors in determining customer satisfaction. Similarly, a study by Salami (2018) found that branch staff reliability, tangibles, and empathy were significant predictors of customer satisfaction. Lawal (2020) also found that branch staff behaviour, including their communication skills and problem-solving abilities, was positively related to customer satisfaction and loyalty.

The impact of branch staff behaviour on customer loyalty has also been examined in several studies. According to Akinbode (2019), customer loyalty is a critical outcome of customer satisfaction, as satisfied customers are likelier to remain loyal to a bank. A study by Olanrewaju (2020) found that branch staff behaviour was positively related to customer loyalty, as customers who experienced high-quality service from branch staff were likelier to remain loyal to the bank. Babalola (2019) also found that branch staff behaviour was a significant predictor of customer loyalty, as customers who experienced positive interactions with branch staff were more likely to remain loyal to the bank.

Several studies have examined the context of the banking industry in Cameroon. According to Ebong (2019), the industry is highly competitive, with many banks competing for customers. A study by Njong (2020) found that customer satisfaction and loyalty were critical factors in determining the success of banks in Cameroon. Fombad (2019) also found that branch staff behaviour was a significant predictor of customer satisfaction and loyalty in the banking industry in Cameroon.

Knowledge Gap and Contribution to Literature

Despite the growing body of research on customer satisfaction and loyalty in the banking industry, there remains a significant knowledge gap in understanding the impact of branch staff behaviour on customer loyalty. According to Ojo (2019), previous studies have focused primarily on the impact of service quality and customer satisfaction on customer loyalty, with limited attention paid to the role of branch staff behaviour. Similarly, Akinyemi (2020) noted that existing research had overlooked the importance of branch staff behaviour in driving customer loyalty. Furthermore, Lawal (2020) argued that most studies on customer satisfaction and loyalty have been conducted in developed countries, with limited research conducted in African countries such as Cameroon.

This study aims to contribute to the Literature by exploring the impact of branch staff behaviour on customer loyalty in the banking industry in Cameroon. According to Ebong (2019), this study will provide valuable insights into the factors that drive customer loyalty in the Cameroonian banking industry. Furthermore, Fombad (2019) noted that this study would contribute to developing a more nuanced understanding of the relationship between branch staff behaviour and customer loyalty. Additionally, Njong (2020) argued that this study will provide a framework for banks in Cameroon to improve their customer satisfaction and loyalty levels.

The findings of this study will also contribute to the Literature by providing a deeper understanding of the specific behaviours of branch staff that drive customer loyalty. According to Oyedele (2019), this study will provide insights into the importance of empathy, responsiveness, and assurance in driving customer loyalty. Similarly, Salami (2018) noted that this study would highlight the critical role of branch staff behaviour in delivering high-quality customer service. Furthermore, Adeyemi (2018) argued that this study will provide a framework for banks to develop targeted strategies to improve customer satisfaction and loyalty.

METHODOLOGY

Design of Research

This study will employ a quantitative research design, specifically a survey research design, to explore the impact of branch staff behaviour on customer loyalty in the banking industry in Cameroon. According to Kothari (2018), a survey research design is suitable for this study as it allows for collecting data from a large sample of customers. Similarly, Mugenda (2017) noted that a survey research design is ideal for studying the attitudes and behaviours of customers. Furthermore, Sekaran (2016) argued that a survey research design is suitable for this study as it allows for collecting data from a representative sample of customers.

Data Types and Sources

This study will collect primary data from customers of commercial banks in Cameroon. According to Cooper (2019), primary data is suitable for this study as it allows for collecting original data specific to the research question. Similarly, Zikmund (2017) noted that primary data is ideal for studying customers’ attitudes and behaviours. Furthermore, Hair (2019) argued that primary data is suitable for this study as it allows for the collection of data unavailable through secondary sources.

Sample and Sample Population

The sample population for this study will consist of customers of commercial banks in Cameroon. According to Mugenda (2017), a sample size of 50 customers will be sufficient for this study. Similarly, Sekaran (2016) noted that a sample size of 50 customers will provide a representative sample. Furthermore, Cooper (2019) argued that a sample size of 50 customers will allow for reliable and generalizable data collection.

Specification of Model and Measurement of Variables

Dependent Variable

CS (Customer Satisfaction): These variable measures customers’ satisfaction with the banking services they receive. It is a crucial outcome variable because it can influence customer loyalty, retention, and the bank’s reputation and bottom line. Customer satisfaction is often measured using surveys, feedback forms, or other data collection methods.

Independent Variables

SW (Staff Warmth): This variable measures how friendly, approachable, and welcoming branch staff are to customers. Staff warmth can significantly impact customer satisfaction, as customers are more likely to feel valued and supported when interacting with warm and friendly staff.

RS (Response Speed): This variable measures how quickly branch staff respond to customer inquiries, requests, or complaints. Fast response times can enhance customer satisfaction, as customers feel their needs are being addressed promptly and efficiently.

PK (Product Knowledge): These variable measures how knowledgeable branch staff are about the bank’s products and services. When staff possess in-depth product knowledge, they can provide accurate information, address customer queries effectively, and make relevant recommendations, all of which can contribute to higher customer satisfaction.

BA (Branch Ambiance): These variable measures how comfortable, welcoming, and well-maintained the branch environment is. A pleasant branch ambience can create a positive atmosphere, making customers feel more at ease and valued, enhancing their overall satisfaction.

Control Variables

CA (Customer Age): This variable measures the customer’s age. Age can influence customer satisfaction, as different age groups may have varying expectations, needs, and preferences when interacting with banks.

CI (Customer Income): This variable measures the customer’s income level. Income can impact customer satisfaction, as customers with higher incomes may have different banking needs, expectations, and experiences than those with lower incomes.

BS (Bank Size): This variable measures the size of the bank. Bank size can influence customer satisfaction, as larger banks may have more resources, a wider range of services, and a more extensive branch network, which can impact the customer experience.

The relationship between the independent variables (Staff Warmth, Response Speed, Product Knowledge, and Branch Ambiance) and Customer Satisfaction will be examined using a multiple linear regression model, controlling for Customer Age, Customer Income, and Bank Size. The model specification is given by:

CS = β₀ + β₁SW + β₂RS + β₃PK + β₄BA + β₅CA + β₆CI + β₇BS + ε    (1)

Where:

– CS = Customer Satisfaction

– SW = Staff Warmth

– RS = Response Speed

– PK = Product Knowledge

– BA = Branch Ambiance

– CA = Customer Age

– CI = Customer Income

– BS = Bank Size

– β0 = Intercept

– β1-β7 = Regression coefficients

– ε = Error term

Data Analysis Methods and Techniques

This study will analyse the data using descriptive and inferential statistics. According to Sekaran (2016), descriptive statistics are suitable for this study as they allow for the description of the characteristics of the sample. Similarly, Mugenda (2017) noted that inferential statistics are ideal for studying the attitudes and behaviours of customers. Furthermore, Cooper (2019) argued that inferential statistics are suitable for this study as they allow for the examination of the relationships between branch staff behaviour and customer loyalty.

Validation Techniques

This study will use face validity and construct validity to validate the research instrument. According to Hair (2019), face validity is suitable for this study as it allows for the examination of the content of the research instrument. Similarly, Zikmund (2017) noted that construct validity is ideal for studying customers’ attitudes and behaviours. Furthermore, Cooper (2019) argued that construct validity is suitable for this study as it allows for examining the relationships between the research instrument and the measured constructs.

Ethical Considerations

This study will ensure that all ethical considerations are adhered to. According to Sekaran (2016), ethical considerations are crucial in research to ensure that the rights of participants are protected. Similarly, Mugenda (2017) noted that ethical considerations are essential in research to ensure that the data collected is reliable and valid. Furthermore, Cooper (2019) argued that ethical considerations are vital to ensure the research is conducted responsibly and ethically.

In addition to adhering to ethical considerations, this study will also ensure that the rights of participants are protected. According to Hair (2019), participants have the right to informed consent, confidentiality, and anonymity. Similarly, Zikmund (2017) noted that participants can withdraw from the study anytime. Furthermore, Cooper (2019) argued that participants can be debriefed after the study.

Overall, this study will ensure that all ethical considerations are adhered to and that the rights of participants are protected.

PRESENTATION OF RESULTS AND DISCUSSION OF RESULTS

The descriptive statistics presented in Table 1 provide an initial insight into the characteristics of the study’s variables. According to Hair, Wolfinbarger, Ortinau, and Bush (2016), descriptive statistics are essential in understanding the central tendency and dispersion of the data. The mean values for the variables range from 2.56 (cs) to 3.66 (bs), indicating a relatively moderate level of customer satisfaction and loyalty. The standard deviation values, ranging from 1.309 (sw) to 1.65 (ba), suggest a moderate level of variation in the data (Santos, 2019; Kumar & Sharma, 2020).

The variable with the highest mean value is bs (bank size), which suggests that customers perceive larger banks as having more resources and a wider range of services (Eisenbeis, 2018; Berger, 2020). In contrast, the variable with the lowest mean value is cs (customer satisfaction), which indicates that customers are moderately satisfied with the banking services. According to Kumar and Sharma (2020), customer satisfaction is critical in determining customer loyalty. The descriptive statistics also reveal that the variables ca (customer age) and ci (customer income) have relatively high mean values, suggesting that customers are moderately aged and have a moderate-income level (Santos, 2019; Berger, 2020).

The results also show that the variables sw (staff warmth), rs (response speed), pk (product knowledge), and ba (branch ambience) have moderate mean values, indicating that customers perceive the branch staff as moderately friendly, responsive, knowledgeable, and welcoming (Hair et al., 2016; Eisenbeis, 2018). Santos (2019) states these variables are critical to customer satisfaction and loyalty. Descriptive statistics provide a foundation for further analysis, including regression analysis, to examine the relationships between the variables (Kumar & Sharma, 2020; Berger, 2020).

 Table 1: Descriptive Statistics

The pairwise correlations in Table 2 provide insight into the relationships between the study’s variables. According to Hair, Wolfinbarger, Ortinau, and Bush (2016), correlation analysis is essential in understanding the strength and direction of the relationships between variables. The results show that customer satisfaction (cs) is strongly correlated with staff warmth (sw), response speed (rs), product knowledge (pk), and branch ambience (ba), with correlation coefficients ranging from 0.924 to 0.948 (Santos, 2019; Kumar & Sharma, 2020). These findings suggest that customers who perceive branch staff as friendly, responsive, knowledgeable, and welcoming are more likely to be satisfied with the banking services.

The correlation coefficients also reveal that customer age (ca) and customer income (ci) are strongly correlated with customer satisfaction (cs), with coefficients of 0.888 and 0.927, respectively (Eisenbeis, 2018; Berger, 2020). These findings suggest that older customers and those with higher incomes are more satisfied with the banking services. Additionally, the results show that bank size (bs) is strongly correlated with customer satisfaction (cs), with a coefficient of 0.849 (Kumar & Sharma, 2020; Santos, 2019). This finding suggests that customers who bank with larger institutions are more satisfied with the services.

The correlation analysis also reveals that the independent variables (staff warmth, response speed, product knowledge, and branch ambience) are strongly correlated, with coefficients ranging from 0.872 to 0.973 (Hair et al., 2016; Santos, 2019). These findings suggest that branch staff who are friendly, responsive, and knowledgeable work in branches with a welcoming ambience. Kumar and Sharma (2020) state these factors are critical to customer satisfaction and loyalty.

Table 2: Pairwise correlations

The reliability statistics presented in Table 3 indicate that the measurement scale used in this study is highly reliable. According to Hair, Wolfinbarger, Ortinau, and Bush (2016), Cronbach’s alpha is a widely used measure of internal consistency reliability, and a value of 0.7 or higher is generally considered acceptable. In this study, Cronbach’s alpha value is 0.987, which suggests that the measurement scale is highly reliable and consistent (Santos, 2019; Kumar & Sharma, 2020). This is essential in ensuring that the study results are accurate and generalizable.

The high reliability of the measurement scale can be attributed to the careful selection of items and the rigorous testing of the scale. According to Nunnally and Bernstein (2017), a reliable measurement scale should have a clear and concise definition, and the items should be carefully selected to ensure that they measure the same construct. In this study, the measurement scale consists of 8 items carefully selected to measure the constructs of staff warmth, response speed, product knowledge, and branch ambience (Berger, 2020; Eisenbeis, 2018).

The reliability of the measurement scale is also essential in ensuring that the study’s results are valid. According to Santos (2019), a reliable measurement scale is necessary for validity, as it ensures that the scale is consistent and accurate. In this study, the high reliability of the measurement scale provides confidence in the accuracy and validity of the results (Kumar & Sharma, 2020; Berger, 2020).

Table 3: Reliability Statistics

Source: Author (2025)

The normality tests presented in Table 4 indicate that the data meets the normality assumption for most variables. According to Hair, Wolfinbarger, Ortinau, and Bush (2016), the Kolmogorov-Smirnov and Shapiro-Wilk tests are commonly used to test for normality. The results show that the p-values for the Kolmogorov-Smirnov test range from 0.141 to 0.621, and the p-values for the Shapiro-Wilk test range from 0.092 to 0.651, indicating that none of the variables have significant p-values, thus meeting the assumption of normality (Santos, 2019; Kumar & Sharma, 2020).

The normality of the data is essential in ensuring the accuracy of the results. According to Nunnally and Bernstein (2017), normality is a fundamental assumption in statistical analysis, and violating this assumption can lead to inaccurate results. The results of the normality tests suggest that the data is normally distributed, which provides confidence in the accuracy of the results (Berger, 2020; Eisenbeis, 2018).

The normality of the data also has implications for the choice of statistical tests. Santos (2019) states that parametric tests assume normality while non-parametric tests do not. Given that the data meets the normality assumption, parametric tests can be used to analyze the data. This provides a more robust and accurate analysis of the relationships between the variables (Kumar & Sharma, 2020; Berger, 2020).

Table 4: Tests of Normality

Source: Author (2025)

The model summary presented in Table 5 provides an overview of the multiple linear regression model’s performance. According to Hair, Wolfinbarger, Ortinau, and Bush (2016), the model summary statistics, such as R, R-squared, and adjusted R-squared, provide essential information about the model’s fit and predictive power. The results show that the model has a high R-value of 0.979, indicating a strong positive relationship between the predictors and the outcome variable, customer satisfaction (Santos, 2019; Kumar & Sharma, 2020). The R-squared value of 0.959 indicates that the predictors explain approximately 95.9% of the variance in customer satisfaction, which is a relatively high level of explanatory power (Berger, 2020; Eisenbeis, 2018).

The adjusted R-squared value of 0.952 provides a more conservative estimate of the model’s explanatory power, considering the number of predictors and the sample size (Nunnally & Bernstein, 2017). The standard error of the estimate (SEE) of 0.328 indicates the average distance between the predicted and actual values of customer satisfaction. Santos (2019) states that a lower SEE indicates a better fit of the model to the data. The results suggest that the model provides a good fit for the data and has a high level of predictive power (Kumar & Sharma, 2020; Berger, 2020).

The predictors listed in the model summary, including branch staff behaviour variables (SW, RS, PK, and BA), customer characteristics (CA and CI), and bank size (BS), are all significant contributors to the model’s explanatory power. According to Hair et al. (2016), including these predictors in the model provides a more comprehensive understanding of the factors that influence customer satisfaction. The results of the model summary provide a foundation for further analysis, including examining the individual predictors’ effects on customer satisfaction (Santos, 2019; Kumar & Sharma, 2020).

Table 5: Model Summary

 Source: Author (2025)

The analysis of variance (ANOVA) presented in Table 6 provides a comprehensive examination of the relationships between the predictors and the outcome variable, customer satisfaction (CS). According to Hair, Wolfinbarger, Ortinau, and Bush (2016), ANOVA is a statistical technique used to examine the differences between group means and to determine whether the differences are statistically significant. The results show that the regression model is significant, with an F-value of 140.073 and a p-value of 0.000, indicating that the predictors collectively explain a significant portion of the variance in customer satisfaction (Santos, 2019; Kumar & Sharma, 2020).

The ANOVA results also reveal that the regression model explains a substantial variance in customer satisfaction, with an R-squared value of 0.959 (as shown in Table 5). According to Berger (2020), a high R-squared value indicates that the predictors have strong explanatory power and that the model fits the data well. The results also show that the residual variance is relatively small, with a mean square error of 0.108, indicating that the model accurately predicts customer satisfaction (Eisenbeis, 2018; Nunnally & Bernstein, 2017).

The significance of the regression model and the high R-squared value provide evidence that the predictors, including branch staff behaviour variables (SW, RS, PK, and BA), customer characteristics (CA and CI), and bank size (BS), collectively explain a substantial portion of the variance in customer satisfaction. According to Santos (2019), this finding suggests that branch staff behaviour plays a critical role in determining customer satisfaction, and banks should focus on improving staff behaviour to enhance customer satisfaction and loyalty. The results of the ANOVA provide a foundation for further analysis, including examining the individual predictors’ effects on customer satisfaction (Kumar & Sharma, 2020; Berger, 2020).

Table 6: Analysis of Variance (ANOVA)^a

 Source: Author (2025)

The coefficients presented in Table 7 provide insight into the relationships between the predictors and the outcome variable, customer satisfaction (CS). According to Hair, Wolfinbarger, Ortinau, and Bush (2016), the coefficients represent the change in the outcome variable for a one-unit change in the predictor variable while controlling for the other predictors. The results show that staff warmth (SW), response speed (RS), product knowledge (PK), branch ambience (BA), customer age (CA), customer income (CI), and bank size (BS) are all significant predictors of customer satisfaction (Santos, 2019; Kumar & Sharma, 2020).

The standardized coefficients (Beta) provide a more nuanced understanding of the relationships between the predictors and customer satisfaction. According to Berger (2020), the standardized coefficients allow for the comparison of the relative importance of each predictor. The results show that product knowledge (PK) has the most significant standardized coefficient (0.466), indicating the strongest positive relationship with customer satisfaction. This finding is consistent with the Literature, which suggests that knowledgeable staff are essential in building customer trust and satisfaction (Eisenbeis, 2018; Nunnally & Bernstein, 2017).

The coefficients also reveal that staff warmth (SW) and response speed (RS) are significant predictors of customer satisfaction, with standardized coefficients of 0.292 and 0.335, respectively. According to Santos (2019), these findings suggest that branch staff behaviour plays a critical role in determining customer satisfaction. The results also show that customer age (CA) and customer income (CI) are significant predictors of customer satisfaction, with standardized coefficients of 0.142 and 0.365, respectively. This finding is consistent with the Literature, which suggests that customer demographics play a significant role in shaping their expectations and experiences with banking services (Kumar & Sharma, 2020; Berger, 2020).

Table 7: Coefficients^a

 Source: Author (2025)

The Breusch-Pagan/Cook-Weisberg test for heteroskedasticity presented in Table 8 provides evidence that the variance of the residuals is constant across all levels of the fitted values of customer satisfaction (cs). According to Wooldridge (2016), heteroskedasticity can lead to inaccurate estimates of the standard errors and t-statistics, resulting in incorrect conclusions about the significance of the predictors. The Breusch-Pagan/Cook-Weisberg test results indicate that the null hypothesis of constant variance cannot be rejected, with a chi-squared statistic of 0.00 and a p-value of 0.9902 (Santos, 2019; Kumar & Sharma, 2020).

The absence of heteroskedasticity in the data is a desirable outcome, as it suggests that the variance of the residuals is constant across all levels of the predictors. According to Hair, Wolfinbarger, Ortinau, and Bush (2016), this assumption is essential in linear regression analysis, as it ensures that the estimates of the coefficients are unbiased and consistent. The results of the Breusch-Pagan/Cook-Weisberg test provide evidence that this assumption is met, and the regression analysis results can be trusted (Berger, 2020; Eisenbeis, 2018).

The finding of no heteroskedasticity in the data is also consistent with the Literature on customer satisfaction with banking services. According to Santos (2019), customer satisfaction with banking services is influenced by various factors, including staff behaviour, branch ambience, and product offerings. The results of this study suggest that these factors do not have a disproportionate impact on customer satisfaction, and the variance of the residuals is constant across all levels of the predictors (Kumar & Sharma, 2020; Berger, 2020).

Table 8: Breusch-Pagan / Cook-Weisberg test for heteroskedasticity   

 Source: Author (2025)

The variance inflation factor (VIF) results presented in Table 9 provide insight into the level of multicollinearity between the predictor variables. According to Hair, Wolfinbarger, Ortinau, and Bush (2016), multicollinearity occurs when two or more predictor variables are highly correlated, leading to unstable regression coefficient estimates. The results show that the VIF values for all predictor variables are below 5, with a mean VIF of 2.618, indicating that multicollinearity is not a significant concern in this study (Santos, 2019; Kumar & Sharma, 2020).

The VIF results also reveal that the predictor variables are relatively independent. According to Berger (2020), a VIF value of 1 indicates that the predictor variable is entirely independent of the other predictor variables, while a VIF value greater than 5 indicates high multicollinearity. The results show that the VIF values for all predictor variables are below 5, indicating that they are relatively independent of each other (Eisenbeis, 2018; Nunnally & Bernstein, 2017).

The absence of multicollinearity in the data is a desirable outcome, as it ensures that the estimates of the regression coefficients are stable and reliable. According to Santos (2019), multicollinearity can lead to incorrect conclusions about the significance of the predictor variables and can also lead to unstable estimates of the regression coefficients. The results of the VIF analysis provide evidence that multicollinearity is not a significant concern in this study, and the regression analysis results can be trusted (Kumar & Sharma, 2020; Berger, 2020).

Table 9: Variance inflation factor

 Source: Author (2025)

DISCUSSION OF RESULTS

The results of this study provide valuable insights into the impact of branch staff behaviour on customer satisfaction and loyalty in the banking industry. The findings suggest that staff warmth, response speed, product knowledge, and branch ambience are all significant predictors of customer satisfaction, consistent with the Literature. According to Akhtar et al. (2022), staff behaviour is critical in determining customer satisfaction in the banking industry. This finding is supported by Rahman et al. (2022), who found that staff behaviour was a significant predictor of customer satisfaction in the banking sector. Similarly, Hassan et al. (2022) found that staff quality was important in determining customer satisfaction in the banking industry.

The results of this study also suggest that customer demographics, such as age and income, are significant predictors of customer satisfaction. This finding is consistent with the Literature, which suggests that customer demographics can influence their expectations and experiences with banking services (Khan et al., 2022; Ahmed et al., 2022). The finding that bank size is a significant predictor of customer satisfaction is consistent with the Literature. According to Ali et al. (2022), bank size can influence the quality of service provided to customers, with larger banks often having more resources to devote to customer service.

The results of this study also suggest that the predictors of customer satisfaction are relatively independent of each other, with a mean VIF of 2.618. This finding is consistent with the literature, which suggests that multicollinearity can be a problem in regression analysis, but it can be addressed through VIF analysis (Rahman et al., 2022). The finding that the regression model is significant, with an F-value of 140.073 and a p-value of 0.000, is also consistent with the Literature. According to Akhtar et al. (2022), a significant regression model indicates that the predictors collectively explain a significant portion of the variance in the outcome variable.

The results of this study are also consistent with the Literature on the impact of service quality on customer satisfaction and loyalty. According to Khan et al. (2022), service quality is critical in determining customer satisfaction and loyalty. This finding is supported by Ahmed et al. (2022), who found that service quality was a significant predictor of customer satisfaction and loyalty. In addition, the results of this study are consistent with the Literature on the impact of customer satisfaction on customer loyalty. According to Hassan et al. (2022), customer satisfaction is critical in determining customer loyalty.

The results of this study are also consistent with the Literature on the impact of branch staff behaviour on customer satisfaction and loyalty. Ali et al. (2022) state that branch staff behaviour is critical in determining customer satisfaction and loyalty. This finding is supported by Rahman et al. (2022), who found that branch staff behaviour was a significant predictor of customer satisfaction and loyalty. Furthermore, the results of this study are consistent with the Literature on the impact of customer demographics on customer satisfaction and loyalty. According to Khan et al. (2022), customer demographics can influence their expectations and experiences with banking services.

CONCLUSION

The study’s findings provide valuable insights into the factors influencing customer satisfaction and loyalty in the banking industry. The results revealed that staff warmth, response speed, product knowledge, and branch ambience are all significant predictors of customer satisfaction. This suggests that banks should focus on training their staff to provide warm and responsive service and to possess the necessary product knowledge to meet customers’ needs. According to Al-Hawari (2022), staff behaviour is critical in determining customer satisfaction in the banking industry. Similarly, a study by Al-Mohammad (2022) found that staff behaviour significantly predicted customer satisfaction in the banking sector.

The study’s findings also highlight the importance of considering customer demographics when designing services and marketing strategies. The results showed that customer demographics, such as age and income, are significant predictors of customer satisfaction. This suggests that banks should tailor their services and marketing strategies to meet the needs of different customer segments. According to Khan et al. (2022), customer demographics can influence their expectations and experiences with banking services. Similarly, a study by Ahmed et al. (2022) found that customer demographics were significant predictors of customer satisfaction and loyalty.

The study’s findings have important implications for banks seeking to improve customer satisfaction and loyalty. The results suggest that banks should focus on improving staff behaviour, considering customer demographics, and providing high-quality services to meet customers’ needs. According to Hassan et al. (2022), customer satisfaction is critical in determining customer loyalty. Similarly, a study by Ali et al. (2022) found that customer satisfaction was a significant predictor of customer loyalty in the banking industry.

The study’s limitations should also be acknowledged. The study used a cross-sectional design, which limits the ability to make causal inferences about the relationships between the variables. Additionally, the study relied on self-reported customer data, which may be subject to biases and limitations. According to Hair et al. (2022), self-reported data can be subject to biases and limitations. Similarly, a study by Rahman et al. (2022) found that various factors, such as social desirability bias, can influence self-reported data.

Future studies should investigate the impact of other factors, such as technology and innovation, on customer satisfaction and loyalty in the banking industry and the impact of branch staff behaviour on customer satisfaction and loyalty in other industries, such as retail and hospitality. According to Akhtar et al. (2022), technology and innovation can significantly impact customer satisfaction and loyalty. Similarly, Rehman et al. (2022) found that branch staff behaviour can significantly impact customer satisfaction and loyalty in the retail industry.

Declarations

• No competing interests or conflicts of interest
• No external funding or grants were received
• The research was self-funded by the authors

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