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Importance-Performance Matrix Analysis (IPMA) of Service Quality and Customer Satisfaction in the Ghanaian Banking Industry

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  • Nyarku Kwamena Minta
  • Oduro Stephen

Abstract

Drawing from the Importance-Performance Matrix Analysis (IPMA), this paper sought to examine service quality and customer satisfaction in the Ghanaian banking industry. A quantitative approach using questionnaires was adapted to survey 476 bank customers for the study. Data were analysed using structural equation model (SEM) - Partial Least Square (PLS). We found that except tangibility, the remaining four service quality dimensions - reliability, assurance, empathy, and responsiveness - have a significant influence on customer satisfaction. Meanwhile, the Importance Performance Matrix Analysis (IPMA) identified service reliability as the most important service quality dimension valued by customers but the highest service performance belongs to service tangibility. Performing well on tangibility dimension instead, the findings indicate a mismatch between customers’ interests and banks’ efforts. We recommend that the banks give the highest priority to service reliability and responsiveness by shifting their resource allocation focus from service tangibility, which appeared to be the least relevant service quality dimension from their customers’ perspective. The study contributes to the development and relevance of service quality dimensions towards improving banks’ service quality delivery practices in emerging economies.

Suggested Citation

  • Nyarku Kwamena Minta & Oduro Stephen, 2017. "Importance-Performance Matrix Analysis (IPMA) of Service Quality and Customer Satisfaction in the Ghanaian Banking Industry," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(7), pages 532-550, July.
  • Handle: RePEc:hur:ijarbs:v:7:y:2017:i:7:p:532-550
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    References listed on IDEAS

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    6. van Doorn, Jenny & Leeflang, Peter S.H. & Tijs, Marleen, 2013. "Satisfaction as a predictor of future performance: A replication," International Journal of Research in Marketing, Elsevier, vol. 30(3), pages 314-318.
    7. Jiunn-I Shieh & Hsin-Hung Wu, 2009. "Applying importance-performance analysis to compare the changes of a convenient store," Quality & Quantity: International Journal of Methodology, Springer, vol. 43(3), pages 391-400, May.
    8. Taplin, Ross H., 2012. "Competitive importance-performance analysis of an Australian wildlife park," Tourism Management, Elsevier, vol. 33(1), pages 29-37.
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