CHAPTER
BACKGROUND TO THE STUDY
1.1 INTRODUCTION
The company’s effort at prevailing among
thousand of competitors is surrounded by a number of strategies. Among this
strategy is effective customer relation customers are the centre-pieces of any
production outfit is goods based or services based. If there are no customers
either existing or prospective there will not be the needs for productive
activities talk less of creativity, inventions or innovations.
For any company to succeed and survive
in this dynamic and ever changing environment, it must confirm and adapt to the
change in other to compete effectively. One of the changes in the environment
is the improvement in information technology, among which is automatic teller
machine (A.T.M) that reduce the stress of compulsory visitation to bank’s
braches.
As someone said ‘‘a good marketer,
particularly of financial services products must be conscious of good consumers
relation with adequate consideration of consumers need so as to perfect the
ways and means of satisfying such needs. in order to satisfy the needs of
consumer without stressing them. (the customers) banks in the banking industry
realized that effective distribution of service is the key ingredient to
survival. Thus, lead to the introduction of A.T.M an accretion for automatic
teller machine with the following features and benefits in other to maintain
customer relationship and loyalty.
(a)
Balance enquires through
the A.T.M
(b)
Printing of mini
statement from the A.T.M
(c)
Transfer within your
related accounts
(d)
you can withdraw as
many time as you wish subject to the daily limit
(e)
No charge on
withdrawals through the A.T.M
(f)
Availability of clean
cash at all times
without doubt, the adoption of A.T.M in banking
industry will leads to maintenance of customer relationship which will in-turn
leads to the following.
(A)
Enhancing repeat sales
thereby increasing total revenue grossed by salesman.
(B)
A satisfied customer is
a willing albeit unconscious but additional promotional tools for the sales
man.
1.2 STATEMENT OF PROBLEM
In any research work, certain problems
are usually identified for the study to solve. It is the way a problem is
identified that governs the ability of decision makers to search and identify
appropriate solution.
In
this regard, below are the studies.
(i)
To identify the
significance of automatic teller machine to enhancing customer relationship in
banking industry.
(ii)
What attitude does
prospective customers stand to have towards the usage of A.T.M (automatic
teller machine)
(iii)
To identify same
problems that confront customer in the application of A.T.M as well as the
possible solution.
(iv)
To know the likely view
of existing customer towards the application of A.T.M in banking industry.
1.3 AIMS
OBJECTIVES
This research work will
be useful for practical purpose, which shows the significance of A.T.M in
enhancing customer relations in banking industry other aims of the study are.
(a)
To examine the
significance of automatic teller machines in enhancing customer relation in the
banking industry.
(b)
To highlight the likely
benefit of automatic teller machine both to firms and customer of the banking
industry.
(c)
To carryout
investigation on the effect of automatic teller machine as a tool for gaining
more market in the banking industry.
(d)
To know the effective
of A.T.M as one of the strategies for combating competitor in the banking
industry.
1.4 SIGNIFICANCE OF
THE STUDY.
Apart from the benefit that the
researcher stands to gain, this study is also benefit to the following group
(s)
(a)
The research: This
study is significant or beneficial to the researcher as it is one of the pre
requisites or requirement for the awards of higher national diploma (HND) in
marketing. Also it enriches the knowledge of the researcher through different
consultations.
(b)
The case study: The
research work is equally of immense benefit to diamond bank plc in knowing the
rational of adopting the techniques of using the A.T.M
(c)
It is significant to
all firms in banking industry. This is because virtually all firms in the
industry
Need
to adopt similar but related strategies regardless of the location and
potentialities
Therefore,
and recommendation in this study regards the significance of ATM in exchanging
customer relation can be useful to all firms in the industry.
(d)
It is equality of
immense benefits to customer in order to know the likely benefit that could be
derive through ATM. With ATM customer stress is reduce up to the bears minimum
and ability to cash new notes without any changers.
1.5
SCOPE
OF THE STUDY
Conceptually, this study is limited to the
significance of automatic teller machine in enhancing customer relation in
Nigeria Banking industry.
Geographically this study is expected to cover the
areas where automatic teller machine is located as it can not be found present I
every nooks and corner of the towns .
Industrially, this research work will be limited to
banking industry with emphasis of diamond bank Plc, 95 one of the firms in the
industry
Time scope –this study is expected to cover the
period of writing these projects that is second semester 2005/2006 session.
1.6
LIMITATION
CONSTRANTS TO THE STUDY
Generally
speaking, all areas of human Endeavour are characterized by some hindevonces a
research work of this nature is therefore of no exception
During
this study, the following are the inciting factors.
(a)
Financial
Constraints: This stand as a big barrier as a
lot of many were required in gathering relevant data which could have
jeopardize the full success of this study. Yet, with the assistance of parents,
family
(b)
Time
Factor: this is another bottle neck to the
study, because a lot of sacrifice has to be made due to the fast nature of
school calendar coupled with assignments and other academic work. Only a small
portion has to be scheduled for the work
(c)
Official
Secrecy: the principal limitation encountered
in this study is in respect of data collection, as different names were given
to relevant data such as ‘‘top secret”
confidential” untouchables” out of bound” e.t.c
despite
all the above stated limiting factors the researcher is of hope that, the
research will achieve it’s arms aims and objective with been bias.