EMPIRICAL STUDY ON CUSTOMER SATISFACTION IN

GOLDEN TOUCH SAVING AND CREDIT

COOPERATIVE LIMITED

BY
Sujina Maharjan
Symbol No: 22633/18
TU Registration No: 7-2-347-40-2018

A Summer Project Report Submitted to

Faculty of Management, Tribhuvan University
In partial fulfillment of the requirements for the
Bachelor of Business Administration

At the
Campion College
Tribhuvan University

Sanepa, Lalitpur
March 2023
 STUDENT DECLARATION

I, hereby declare that the summer project report entitled “Empirical Study on Customer
Satisfaction in Golden Touch Saving and Credit Cooperative Limited” submitted to
Campion College affiliated to Tribhuvan University is genuine work done originally by me
carried out in the year 2023. This report has been prepared for the partial fulfillment of the
Bachelor of Business Administration (BBA) program. It has not been previously submitted to
any other university or any other examination.

Sujina Maharjan
BBA 7th Semester
Registration Number: 7-2-347-40-2018
Campion College

i
 CERTIFICATE FROM THE SUPERVISOR

This is to certify that the project entitled “Empirical Study on Customer Satisfaction in
Golden Touch Saving and Credit Cooperative Limited” is an academic work done by
“Sujina Maharjan” submitted in the partial fulfillment of the requirements for the degree of
Bachelor of Business Administration Faculty of Management, Campion College under my
guidance and supervision. To the best of my knowledge, the information presented by him/her
in the project report has not been submitted earlier.

______________________
Signature of the Supervisor
Name:Asst. Professor Padam Dongol
Designation: Supervisor
Date:

ii
 ACKNOWLEDGMENTS

Firstly, I would like to extend my gratitude to Tribhuvan University (TU) for including a
business research project as a partial requirement of the Bachelor of Business Administration
(BBA) program. This study provided an opportunity to explore our knowledge of research
practically. I would like to pay my sincere regards to my college Campion College for
providing the opportunity to conduct analytical research related to an actual organizational
problem. This research has been accomplished with the support, valuable information, and
guidance of several people in the institution so I would like to express my sincere gratitude to
all the individuals who supported me to pursue and complete the research paper successfully.
I am extremely grateful to Mr. Padam Dongol for being my supervisor for this research. I
sincerely thank him for being a great mentor during my study, and for his support, guidance,
suggestion, feedback, and advice throughout this research. I could not have completed the
work without his guidance and motivation.

iii
 TABLE OF CONTENTS

Page N

o
Student declaration......................................................................................................................i
Certificate from the Supervisor..................................................................................................ii
Acknowledgments......................................................................................................................iii
Table of Contents.......................................................................................................................iv
List of Tables..............................................................................................................................vi
List of Figures............................................................................................................................vi
Executive Summary..................................................................................................................vii
CHAPTER I: INTRODUCTION.............................................................................................1
1.1 Context Information...........................................................................................................1
1.2 Purpose of the Study.........................................................................................................3
1.3 Significance of the Study...................................................................................................3
1.4 Limitations of the Study.....................................................................................................3
1.5 Theoretical Framework......................................................................................................4
1.6 Literature Review..............................................................................................................5
1.7 Research Methodology.....................................................................................................6
1.7.1. Research Design.............................................................................................................7
1.7.2 Population and Sample...................................................................................................7
1.7.3 Sampling Procedure........................................................................................................7
1.7.4 Data Collection Instrument.............................................................................................7
1.7.5 Data Analysis..................................................................................................................7
CHAPTER II: DATA PRESENTATION AND ANALYSIS................................................8
2.1 Respondent Profile.............................................................................................................8
2.1.1 Gender.............................................................................................................................8
2.1.2. Age.................................................................................................................................9
2.1.3 Education.......................................................................................................................9
2.2 Data Presentation and Data Analysis...............................................................................10
2.2.1 Interest Rate and Customer Satisfaction.......................................................................10

iv
 2.2.2 Saving Option and Customer Satisfaction...................................................................12
2.2.3 Location and Customer Satisfaction.............................................................................13
2.2.4. Employee Behavior and Customer Satisfaction...........................................................14
2.2.5. Loan Term and Customer Satisfaction.......................................................................16
2.3. Major Findings and Discussions.....................................................................................18
CHAPTER III: CONCLUSION AND ACTION IMPLICATION.....................................21
3.1 Conclusion.......................................................................................................................21
3.2 Action Implication...........................................................................................................22
REFERENCES........................................................................................................................23
APPENDIX...............................................................................................................................24

v
 LIST OF TABLES

Page No

Table2.1: Age of respondent.......................................................................................................9

Table 2.2: Interest Rate..............................................................................................................11
Table 2.3: Saving Options.........................................................................................................12
Table 2.4: Location....................................................................................................................14
Table 2.5: Employee Behavior..................................................................................................15
Table 2.6: Loan Term................................................................................................................17

LIST OF FIGURES

Page No

Figure 1.1: Theoretical Framework on Golden Touch Saving and Credit Cooperative Ltd.......4
Figure 2.1: Gender of respondent................................................................................................8
Figure2. 3: Interest Rate and Customer Satisfaction.................................................................10
Figure 2.4: Saving Option and Customer Satisfaction..............................................................12
Figure 2.5: Location and Customer Satisfaction.......................................................................13
Figure 2.6: Employee Behavior and Customer Satisfaction......................................................14
Figure 2.7: Loan Term and Customer Satisfaction....................................................................16

vi
 EXECUTIVE SUMMARY

In this competitive era, there are numbers of co-operatives established to fulfill the financial
need conveniently and safely as co-operatives are also considered the financial backbone of
rural areas in Nepal. The objective of the research was to assess the level of satisfaction
among the customers of the organization. It also explores the impression of the customers
upon the cooperative; either positive or negative. Customer satisfaction is tough to measure
because there are various types of clients with different natures and expectations from the
organization and to meet up their expectations is a challenging part.

To investigate the level of satisfaction in the cooperative sector in terms of interest rate, saving
options, employee behavior, location, and loan term a sample questionnaire is prepared and
administered to 100respondents out of which only 61 respondents responded. A set of
questionnaires consists of 3 demographic components related to the question and the
remaining 15 questions are related to the respondent's view of theindependent factor affecting
the dependent variable. After the data collection, the questionnaire was checked thoroughly to
prevent missing information and was entered intoMS Excel. The data are presented in the
form of a table, pie chart, and bar diagram with the use of MS Excel.

From the findings, it is clear that all the factors of comfortability and easiness are very
essential for customer satisfaction. The analysis shows the relationship among variables is
significant as a whole i.e. there is a positive relationship between various dimensions and
customer satisfaction. Hence it is found that all the service factors such as a variety of account
options, employee behavior, location, and interest rate are very essential for increasing
Customer Satisfaction whereas the cooperative is found to be lacking in the provision of loan
services as well as the location is not found to be appropriate for all the customer of the co-
operative.

vii
 CHAPTER I

INTRODUCTION

1.1 Context Information

During the time of economic crisis within a country, a society desires innovative methods
to come up with growth where the cooperative is a way out which measures one strategy
supporting fairness, democracy and equality. This business model is oriented to serving to
communities to overcome through financial crisis. First and foremost, as business,
cooperatives are subject to constant market and manage the economic forces that have an
economic effect on all models of enterprise. Cooperatives do not only collect the money
from the outlets but also manage and analyze them maintaining the economical process
and operate them through financial assistance. The aim of a cooperative is to supply most
of profit to its members by participating in economic activities or by intervening within the
market. There are various advantages in becoming a member in a cooperative either they
are social, economic or psychological. Several cooperatives jointly request to meet the
environmental objectives at the request of their members. The members jointly work for
the betterment and enhancement of the society with a focused plan and procedures along
with the various bodies of the society. The members of a cooperative possess full
responsibility for the success of the co-operative however areas of working are different.

There are various types of cooperatives in Nepal and they are supervised and monitored by
various federations and development boards of Nepal. They are: National Cooperative
Development Board, National Cooperative Federation of Nepal, and Nepal Federation of
Savings and Credit Cooperative Unions Ltd. The study is based on the cooperative
business or can be taken as an entrepreneurship and will encompass the customer
satisfaction theory as well. Customer satisfaction is tough to measure because there are
various types of clients with different nature and expectation from the organization and to
meet up their expectation is really a challenging part. However, customer satisfaction
survey is a best method to learn about the level of satisfaction of the customers. This will
help an organization to assess their quality of services and also collect the feedback from

1
clients. This will eventually help to improve the customer service and entire business as
well.

Rapid growth of cooperatives in Nepal has increased the competition in the market.
Attractive offers from each cooperative have made the competition tough. Therefore, it is
important for a cooperative to keep their customers intact by learning their needs and
demands from the service provider. This situation also demands customer satisfaction
survey which deeply examines demand side perspective. It also explores the impression of
the customers upon the cooperative; either positive or negative. This eventually helps the
commissioner to understand the market situation and formulate new strategies and policies
based upon the research. Evidence based planning is the best approach which also reflects
the top to bottom approach of planning.

There is very high competition and hence, attracting customers is a big challenge for
cooperatives currently. Particularly the cooperatives with limited services have even bigger
challenge to increase their customers against to those who have various types of services.
In such situation, service extension can be a productive intervention to stand up in the
competition. In order to extend the services, such client satisfaction survey should be
carried out. Planning can be done based upon the findings and the customers will have
feeling of ownership when the cooperative improvises as per the suggestion provided by
the customers. Therefore, given study was carried out with the aim to increase the
customers to cope up with the high competition in the market.

Golden Touch Saving and Credit Cooperative Limited

Golden Touch Saving and Credit Cooperative Limited was established on Mangsir 23,
2066 B.S. It was established under the acts and rules under Cooperative act 2048 BS. The
office of this organization is located in Newroad, Kathmandu Nepal. The board members
and the executive members are well experienced in banking sector and the main motto of
this cooperative is to collect the money from the public and invest to the needy people for
sustainable development and economic development of its customers. It does not only
collect the money from the public but also provides loan in a convenient and safest way so
that the money deposited from one person could be the financial solution for the needy

2
people. Its main motto is to provide loans in a quicker and safest way securing the
deposited money from its valued customers. Besides this, it is associated with various
social welfare activities and assisting various programs in business sector. If somebody is
in financial crisis and he is a member of this company, then he can get Rs. 1,00,000
without any collateral or deposits but if he tends to take more than that he is liable to have
a valuation of the property and should submit the attested documents from Land and
Revenue department.

1.2 Purpose of the study

This study aims to assess the cooperatives performance in terms of customer satisfaction.
However, the functional objectives of the study are:
 To investigate the level of customer satisfaction in the cooperative sector in terms
of interest rate and loan.
 To study the different influencing factor that determines the satisfaction towards
the co-operative firms.

1.3 Significance of the study

 It can collaborate with other similar financial organizations having similar

objectives. Through such activities it helps in financial support for huge investment
yielding out more benefit.
 Provide loans to the needy customers so that they can uplift their economic
condition and become an independent.
 To make proper investment of the deposited amount by the customers and provide
them attractive interest rate in their savings

1.4 Limitation of the study

 The study is based on customers of Golden Touch Saving and Credit Cooperative
Limited.
 A small sample size of 61 population is taken for the study.

3
  The study is based on descriptive research design.

1.5 Theoretical Framework

There are various studies done to determine the level of customer satisfaction and factors
affecting them. On the basis of these information and studies we can know that their
number of dependent and independent variable involved in the determination of customers
satisfaction. However, of these various independent and dependent variables we take in
consideration only few or major ones due to lack of time and resources to analyze each and
every one of them. Here, research will be conducted on the periphery of saving and credit
cooperative.

Interest Rate

Saving Option

Customer Satisfaction
Location

Employee Behavior

Loan

(Independent Variable) (Dependent Variable)

Figure 1.1: Theoretical Framework on Golden Touch Saving and Credit Cooperative
Limited.

4
1.6 Literature Review

Kaura et al. (2015) studied the impacts of store attributes on consumer-based retailer
equity (CBRE) dimensions. It studied about service quality, service convenience, price and
fairness, customer loyalty, and the mediating role of customer satisfaction. A mall-
intercept survey was undertaken using a systematic sampling of department store shoppers
of age 18 years and above in Kolkata, a metropolitan city in India. A survey questionnaire
was used to collect data from busy shopping malls or retail stores located in different
places of Kolkata. The impact of store attributes on CBRE dimensions was explored using
stepwise regression analysis. The result reveals that customer satisfaction is influenced by
the loyalty of the store. . Customer satisfaction is found as mediating variable between its
antecedents (except tangibility and post-benefit convenience) and customer loyalty.

Ngo Vu and Nguyen Huan (2016) investigated in Vietnamese Retail Banking Sector about
The Relationship between Service Quality, Customer Satisfaction and Customer Loyalty.
In this study, first, a research model about the interrelationships between service quality,
customer satisfaction, and customer loyalty is suggested. Then a survey is conducted with
retail banking customers about these constructs, which results in 261 valid respondents.
The hypotheses are then proposed and tested using confirmatory factor analysis (CFA) and
the structural equation modeling technique (SME). The analysis reveals that service quality
and customer satisfaction are important antecedents of customer loyalty and customer
satisfaction mediates the effects of service quality on customer loyalty. These findings
suggest that there are non-linear relationships between three constructs and emphasize the
need to treat customer loyalty management as a process which includes plenty of factors
interacting with each other.

DR. Snehalkumar Mistry (2016) focused on the factors that are affecting customer
satisfaction in banks and analyze their effects. It is revealed that customer satisfaction is
the key for many banks and cooperatives to survive competition. Customer gives third
preference to assurance factors, it include criteria like safety of transaction consisting in
service etc. so, banks and cooperative weather they are private sector or public sector they
should give more focus on increasing reliability, responsiveness and assurance. For that
they can give training to their employee who will help them to give personalize service.

5
Ozatac et al. (2016) evaluated the determinants of customer satisfaction on higher service
quality in North Cyprus Banking sector. SERVQUAL model is used to analyses the
perception of customers on determinants of service quality. Total of 207 customers of the
major banks in North Cyprus have been surveyed. Empirical analysis is carried out by
SPSS 18. Empirical results reveal that Customer satisfaction in the banking sector depends
on good and firm relations, building trust between customers and bank employees for the
case of North Cyprus. Results also suggest positive word of mouth plays a major role in
customer satisfaction.

Ravi C. S and Kundan Basavaraj (2017) investigated the preference and satisfaction level
of customer towards loans, deposit schemes, insurance and value-added services rendered
by private and public banks in Shivamoggadistrict. Business and vehicle loans are fast
moving than other services and overall satisfaction resulted at 50%. Further, overall
satisfaction on bank deposit schemes resulted positively well other service of banking still
need to be given attention by focusing on customer issues. In recent years the cooperative’s
revenue and profit have grown along with customer satisfaction. Over the last three years,
its network has doubled and it has won numerous new customers who were dissatisfied
with their previous banks.

Kaakeh et al.(2019) studied the effects of the following factors: image, awareness,
compliance and individualism, on the attitude and intention of customers to use Islamic
banking among Bank customers in UAE. The study focused on surveying bank customers
living in UAE. The researcher uses structural equation modeling to analyze the data. The
results show that attitude and awareness affect intention directly, while image, awareness,
compliance and individualism affect attitude directly and intention indirectly mediated by
attitude.

1.7 Research Methodology

Research methodology is simply the study to analyze relation between various variables
and elements.

6
1.7.1. Research Design

The research design selected for the research is Descriptive Research design. It is a
theoretical type of research design based on the collection, designing and presentation of
the collected data. Descriptive research design is prepared if researchers need to explain
the phenomenon or event existing currently under the areas of study. It is helpful in acquire
information regarding the current status of selected phenomenon and describes what
remains with respect to variables or condition in a situation.

1.7.2 Population and sample

The population of the research includes the customer of Golden Touch Saving and Credit
Cooperative Ltd. The sampling technique chosen for the research is Convenience
Sampling under non-probability sampling method. Out of 100 customers sampled
61respondents responded to the questionnaire.

1.7.3 Sampling Procedure

The study is primarily based on the primary data. A sample of questionnaire is prepared
and administered to respondents. Some of the respondents were interviewed to gain proper
prospects of the survey.

1.7.4 Data Collection Instrument

In the process of data collection, a set of questionnaires was developed regarding the
description of the respondent, phenomena of the respondent and collect the data through
the questionnaire. There are basically 3major question related to demographic component.
Remaining 15 question is related the respondent view for independent factor affecting the
dependent variable.

1.7.5Data Analysis

Data will be analyzed by using relevant charts and graphs by using the MS Excel.

7
 CHAPTER II

DATA PRESENTATION AND ANALYSIS

The organizing and processing of the data require knowledge of some technical methods.
The activities in the data collection include editing, coding, and classification of
information. The process of evaluating data using analytical and logical reasoning to
examine each component of the data provided is called data analysis. This form of analysis
is just one of the many steps that must be completed when conducting a research
experiment.

2.1 Respondent Profile

Respondents were active customers who are getting service from the co-operative limited
randomly in the survey process. A short profiling of the target respondent is prepared.
Attributes like age, gender and education background are described here to build the
profile of the respondents.

2.1.1 Gender

31%

Male
Female

69%

(Source: Primary data using Excel,2022)

Figure 2.1: Gender of respondent

Figure 2.1 shows that out of a total of 61 respondents, 42 (69%) respondents are found to
be female, and the remaining 19 (31%) respondents are found to be male. From the survey

8
done in Golden Touch Saving and Credit Cooperative Ltd. through questionnaire, it can be
said that female respondents found more than male respondents of the study.
2.1.2. Age
Age Frequency Percentage
Table2.1: 25 14 23% Age of
25 -35 18 30% respondent
36 -45 20 33%
46 9 15%
Total 61 100%

(Source: Primary data using Excel,2022)

Table 2.1 depicts the age group of the respondents. From the study, it was found that 14
respondents are of 25 years which represents 23% of the total respondents. In the same
way, 18 respondents are found between 25-35 years which represents the 30%. Likewise,
respondents between 36 to 45 years is 20 which represent 33%. 9 respondent is found 46
years which represents the 15%. More respondents that belong to 36-45 age group is found
more in this study.

2.1.3 Education

High school 43%

Bachelor 39%

Master 18%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

(Source: Primary data using Excel,2022)

Figure 2.2: Education level of respondent

9
Figure 2.2 shows education level of the respondents which reveals that 11 respondents are
master graduates i.e., 18%. Similarly, there are 24 respondents that are bachelor graduates
which represents 39%. Likewise, the respondents of high school are 26 which represents
43%. From the survey done, we can acknowledge that there is high number of respondents
who have completed or studying in high school.

2.2 Data Presentation and Data Analysis

Data from various sources is gathered, reviewed, and then analyzed to form some sort of
finding or conclusion. This is done to detect omissions or errors in the responses of the
respondents. The collected data are presented using a statistical tool that is a bar diagram
along with mean and standard deviation.

2.2.1 Interest Rate and Customer Satisfaction

30 28 28
20 21 21
20 17
13 14
10 5
1 1 2 3 5 4
0

Strongly disagree disagree neutral

agree strongly agree

(Source: Primary data using Excel,2022)

Figure2. 3: Interest Rate and Customer Satisfaction

Figure 2.3 shows the relationship between interest rate and customer satisfaction of Golden
Touch Saving and Credit Cooperative Ltd. To the statement of deposit interest rateled to
customer satisfaction, the study revealed that 28respondents’opinion is strongly agreeing
with the statement while 14 respondents put agree and 13 respondents found to be

10
indifferent to this statement. There are 5 respondents who disagree to this and 1respondent
is found to strongly disagree with the statement.

Similarly, to the statement of interest on loan is proper and effectively determined, the
study revealed that 21 respondents’ opinion is strongly agreeing with the statement while
17 respondents put agree and 17 respondents found to be indifferent to this statement.
There are 2 respondents who disagree to this and 1 respondent is found to strongly disagree
with the statement.

Likewise, to the statement of customer satisfaction with the interest rate provided by the
company, the study revealed that 21 respondents’ opinion is strongly agreeing with the
statement while 28 respondents put agree and 4 respondents found to be indifferent to this
statement. There are 5 respondents who disagree to this and 3 respondents are found to
strongly disagree with the statement.

Table 2.2: Interest Rate

Statements Mean S.D.

Deposit interest rate led to my satisfaction 4.03 1.07
Interest on loan is proper and effectively determined 3.90 0.970
I am satisfied with the interest rate provided by the company 3.97 1.086
(Source: Primary data using Excel,2022)

Table 2.2 reveals the results of interest rate as a factor for the satisfaction of customer in
the cooperative. Majority of respondents agree that the interest rate provided by the
cooperative lead to their satisfaction. Also, the respondent agree that the interest loan
provided by the cooperative is effective and properly determined. Furthermore, most of the
respondents are satisfied with the interest rate provided by the company.

11
2.2.2 Saving Option and Customer Satisfaction

35
30
30 28
25

20 18
16
15
12
10
10

5 4
1 1 2
0
There are variety of saving option There are variety of credit option

Strongly disagree disagree neutral

agree strongly agree

(Source: Primary data using Excel,2022)

Figure 2.4: Saving Option and Customer Satisfaction

Figure 2.4 shows the relationship between saving option and customer satisfaction of
Golden Touch Saving and Credit Cooperative Ltd. To the statement of there are variety of
saving option, the study revealed that 28 respondents’ opinion is strongly agreeing with the
statement while 12 respondents put agree and 16 respondents found to be indifferent to this
statement. There is1 respondents who disagree to this and 4respondents are found to
strongly disagree with the statement.

Similarly, to the statement of there are variety of credit option, the study revealed that 10
respondents’ opinion is strongly agreeing with the statement while 30 respondents put
agree and 18 respondents found to be indifferent to this statement. There are 2 respondents
who disagree to this and 1 respondentis found to strongly disagree with the statement.

Table 2.3: Saving Options

Statement Mean S.D.

There are variety of saving option in this cooperative 3.97 1.173
There are variety of credit option in this cooperative 3.75 0.823
(Source: Primary data using Excel,2022)

12
Table 2.3 reveals the result of saving option as a factor for the satisfaction of customer in
cooperative. As there are variety of saving option available in this cooperative, the analysis
presented shows that majority of the respondent are attracted towards the cooperative due
to the saving option. Also, the study found that customers willing to take loans are also
influenced positively by the flexible loan options.

2.2.3 Location and Customer Satisfaction

25
18 20
20 15 13 17 16 16 14 15
15 10 10
10 6 7 6
5 0
0

Strongly disagree disagree neutral

agree strongly agree

Figure 2.5: Location and Customer Satisfaction

(Source: Primary data using Excel,2022)

Figure 2.5 shows the relationship between location and customer satisfaction of Golden
Touch Saving and Credit Cooperative Ltd. To the statement of location as a factor for
customer in order to choose the company, the study revealed that 10respondents’ opinion
is strongly agreeing with the statement while 17 respondents put agree and 13 respondents
found to be indifferent to this statement. There are 15 respondents who disagree to this and
6respondents are found to strongly disagree with the statement.

Similarly, to the statement of location of the cooperative have helped customers work
effectively, the study revealed that 20respondents’ opinion is strongly agreeing with the
statement while 18 respondents put agree and 6 respondents found to be indifferent to this

13
statement. There are 10 respondents who disagree to this and 7respondents arefound to
strongly disagree with the statement.

Likewise, to the statement of location is suitable for all customers, the study revealed that
no respondent is found to strongly agreeing with the statement while 15 respondents put
agree and 14 respondents found to be indifferent to this statement. There are 16
respondents who disagree to this and 16respondents are found to strongly disagree with the
statement.
Table 2.4: Location

Statements Mean S.D.

Location was a factor for choosing 3.16 1.244
Location of this cooperative have helped me work
3.56 1.385
effectively
Location is suitable for all customers 2.46 1.125
(Source: Primary data using Excel,2022)

Table 2.4 reveals the result of location as a factor for the satisfaction of customer in
cooperative. As location plays vital role for each and every organization, the respondents
agree that location was a factor for choosing this cooperative. In order to work effectively,
the respondent agree that the location of this cooperative was favorable for them. Also, as
for the context of location reliability, respondents disagree that location is suitable for
every customer of this cooperative.

2.2.4. Employee Behavior and Customer Satisfaction

29
30
20 15 17 15 14
9 10 11 10 8 11 11 10 11
10
2
0

Strongly disagree disagree neutral

agree strongly agree

14
 (Source: Primary data using Excel,2022)

Figure 2.6: Employee Behavior and Customer Satisfaction

Figure 2.6 shows the relationship between employee behavior and customer satisfaction of
Golden Touch Saving and Credit Cooperative Ltd. To the statement of employee behavior
and treatment is fair in the cooperative towards customers, the study revealed that
29respondents’ opinion is strongly agreeing with the statement while 11 respondents put
agree and 10 respondents found to be indifferent to this statement. There are 2 respondents
who disagree to this and 9 respondents are found to strongly disagree with the statement.

Similarly, to the statement of employee present themselves with problem solving attitude,
the study revealed that 11respondents’ opinion is strongly agreeing with the statement
while 17 respondents put agree and 8 respondents found to be indifferent to this statement.
There are 15 respondents who disagree to this and 10 respondents are found to strongly
disagree with the statement.

Likewise, to the statement of employee are helpful and cooperative towards all customers,
the study revealed that 14respondentsare found to strongly agreeing with the statement
while 11 respondents put agree and 15 respondents found to be indifferent to this
statement. There are 10 respondents who disagree to this and 11 respondents are found to
strongly disagree with the statement.

Table 2.5: Employee Behavior

Statements Mean SD
Employee behavior and treatment is fair 3.80 1.435
Employee present themselves with problem solving attitude 3.07 1.377
Employee are helpful and cooperative 3.11 1.404
(Source: Primary data using Excel,2022)

Table 2.5 reveals the result of employee behavior as a factor for the satisfaction of
customer in cooperative. Respondents agree that the employee behavior and the way each
and all customers are treated equally by the employees of the cooperative is fair. Also, the
survey found out that the employee has problem solving attitude and they present

15
themselves accordingly. Mostly all customers expect the employees to be helpful and
cooperative towards them. Hence, the survey found out that respondents agree to the
employees helpful and cooperative behavior which also attract them towards the
cooperative.
2.2.5. Loan Term and Customer Satisfaction

25 20 20 20
20 15 17
15 12 10 11 13 11 13 11 13
8 10 8 8 8 7 9
10
5
0
er re bl
e
bl
e
rop e du it a li a
p oc su re
d pr d
an is an
ai
r an re t
sf e
lo edu f as
i th oc is
e
ur ith pr ur
e
ed w oa
n
ed
oc ed rl oc
pr sfi fo pr
an ati e ue
Lo s m
m ra i ss
Ia ef an
tim Lo
the
Strongly disagree disagree neutral
agree strongly agree

(Source: Primary data using Excel,2022)

Figure 2.7: Loan Term and Customer Satisfaction

Figure2.7 shows the relationship between loan term and customer satisfaction of Golden
Touch Saving and Credit Cooperative Ltd. To the statement of loan procedure is fair and
proper in the cooperative, the study revealed that 8 respondents’ opinion is strongly
agreeing with the statement while 20 respondents put agree and 11 respondents found to be
indifferent to this statement. There are 10 respondents who disagree to this and 12
respondents are found to strongly disagree with the statement.

Similarly, to the statement of customers satisfaction with the loan procedure, the study
revealed that 13 respondents’ opinion is strongly agreeing with the statement while 11
respondents put agree and 13 respondents found to be indifferent to this statement. There
are 11 respondents who disagree to this and 13 respondents are found to strongly disagree
with the statement.

Likewise, to the statement of the timeframe is suitable for loan procedure, the study
revealed that 8 respondents are found to strongly agreeing with the statement while 15

16
respondents put agree and 20 respondents found to be indifferent to this statement. There
are 8 respondents who disagree to this and 10 respondents are found to strongly disagree
with the statement.
Correspondingly, to the statement of loan issue procedure is fast and reliable, the study
revealed that 9 respondents are found to strongly agreeing with the statement while 20
respondents put agree and 17 respondents found to be indifferent to this statement. There
are 7 respondents who disagree to this and 8 respondents are found to strongly disagree
with the statement.

Table 2.6: Loan Term

Statements Mean S.D.

Loan procedure is fair and proper 3.03 1.342
I am satisfied with the loan procedure 3.00 1.437
The timeframe for the loan procedure is suitable 3.05 1.247
Loan issue procedure is fast and reliable 3.25 1.223
(Source: Primary data using Excel,2022)

Table 2.6 reveals the result of the loan term as a factor for the satisfaction of customers in
cooperatives. The respondents believe that the cooperative's loan process is fair and
appropriate, and they are satisfied with it. Every customer will only begin the loan
application process if the timeline is appropriate. Accordingly, the study's respondents
agree that the loan application process time is appropriate, and customers are drawn to the
cooperative because the loan application process is efficient and dependable.

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2.3. Major Findings and Discussions

2.3.1. Major Findings

 After taking the survey of 61 customers as 100% shows the gender of respondent
where 31% are male 69% are female hence it shows majority of customers are
female.

 As per the age group of the respondents, 23% of the respondents belongs to below
25 age group, 30% belongs to 25-35 age group, 33% belongs to 36-45 age group
and the rest 15% belongs to above 46 years. Overall, the samples are found to be
concentrated to the age group 25-45.

 The research also focused on the education level of the respondent, which reveals
that 18% of them are master graduates, 39% bachelor graduates and 43% high
school graduates. Here we can see that most people are high school graduates. And
least are master’s degree holders.

 After the analysis of customer satisfaction, it is found that interest rate on saving
and deposit is very important for providing customer satisfaction. About 69 % of
total feel necessity of proper interest rate for customer satisfaction in a cooperative.
About 62% of total feel that interest on loan is proper and effective and 80% of the
respondent are satisfied with the interest rate provided by this cooperative.

 Similarly saving option plays a very important role for satisfaction of the
cooperative. It was found using liker scale 66% people feel the variety of both
saving options and credit options important for satisfaction.

 Location of the cooperative is also essential for customer satisfaction. The survey
revealed that 52% feel location of the cooperative is not suitable for all the

18
 customers. In contrary, 44% were found to choose this cooperative due to the ease
of location.

 Likewise, 62 % of the total respondents found that the location of this cooperative
has helped them to work efficiently.

 Employee behavior have huge impact on satisfaction of the customer as about 80%
customer felt they were treated fairly. Also, 46% of the total respondents found the
employee of this firm to have a better problem-solving attitude. The helpful and
cooperative behavior of the employees have led this finance company to great
customer satisfaction.

 Loan policy of this co-operative is found to be neutral among the customers. Based
on the study nearly about half of the respondents are not familiar with the loan
policy which has made the respondents neutral about the loan procedure. Likewise,
respondents have indifferent thoughts on time frame and reliability on the loan
policy of this firm.

 Hence it is found that all the service factors such as variety of account options,
employee behavior, location and interest rate are very essential for increasing
Customer Satisfaction whereas the co-operative is found to be lacking on the
provision of loan services.

2.3.2. Discussions

 Majority of the account holders are female in this cooperative as there are different
saving schemes available which provides higher interest rates.

 The female age group of 36-45 who have no major source of income but have few
passive incomes from households tend to save their money in the saving accounts
for the different purpose. Therefore, this cooperative have high customers from this
age group.

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 People having the knowledge of saving and investment are well aware about the
importance of the saving habits so, the people from the different educational
background are involved in financial investments.
 The majority of customers are attracted from the high interest rates in saving
accounts. People make use of this opportunity to maximize their returns from
savings.

 It is a fact that customers are easily attracted to the new schemes and offers incase
of saving as well as credit. The availability of variety of saving and loan option
turns out to be a positive impact for the satisfaction of customers in this
cooperative.

 The location plays an important role for the success of that particular business firm.
In case of this cooperative, people are able to carry out their financial transactions
effectively for the people living in surrounding areas but it is not suitable for all the
customers.

 Friendly and polite environment is the key to greater customer satisfaction.

Customers can openly share their problems and queries with a responsible
employee and get the best solution in a cooperative environment.

 For the customers applying for loan, it is necessary for a cooperative to have a fair
loan procedure, suitable time period for loan repayment and reliable. Customers
can apply for the loan easily without major issue.

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 CHAPTER III

CONCLUSION AND ACTION IMPLEMENTATION

3.1 Conclusion

The research study made a clear description of the factors that affect the customer
satisfaction. There are various factors and elements that affect the satisfaction level of the
customer’s satisfaction. Some of these factors taken in consideration to judge the
customers satisfactions were location, interest rate, employee behavior, saving options and
loan term on the basis of these five dimensions customers satisfaction was evaluated.

Since the numbers of cooperative are increasing more in numbers day by day it is essential
to evaluate the satisfaction level of the customer from the service provided by these
cooperative. However, due to variety of cooperative’s we have focused on the saving and
cooperative alone to evaluate the satisfaction level. This research was conducted to know
the relationship between customer satisfactions based on five dimensions of service
offered. The literature review provided useful insights about the relationship of service
offered with customer satisfaction

The study provided insight about the various dimensions and their association with
customer satisfaction. The study has come up with the finding that was quested through
research objectives. The relationship of customer satisfaction dimensions identified
(location ,interest rate, employee behavior, deposit rate, loan term) and are tested with
customer satisfaction.

From the findings, it is clear that all the factors of comfortability and easiness are very
essential for customer satisfaction. The analysis shows the relationship among variables is
significant as a whole i.e. there is positive relationship between various dimension and
customer satisfaction. So cooperative society should focus on increasing service quality,
proper location, interest rate that lead to increase in customer satisfaction. Proper focus on
these factors all can get economic benefit as well as social benefit which can be very
fruitful for increasing the sales in competitive market for the cooperative as a whole. It is

21
concluded that all the factors like location, deposit rate, employee behavior etc. are very
essential for increasing Customer Satisfaction basically on cooperative in Nepal.

3.2 Action Implication

Based on the findings of this study, the following action implication should be considered
by the cooperative in order to improve the level of satisfaction among the customers:

 Interest rate should not be massively fluctuated as people are very concerned about
the deposit interest rate as well as interest on loan.

 Premier saving options must be created that attract the customers to choose the
cooperative

 The cooperative must be located in a favorable location so that it would be suitable

for all the customers.

 Loan policy procedure must be implemented in systematic way.

 Employees must be helpful and cooperative with problem solving attitude.

22
 REFERENCES

Dalvadi, Y. M., &Darji, M. R. G. A Study on Perceived Service Quality And Customer

Satisfaction of Financial Services In Rural Areas of Gujarat. A Study of Four
Villages RK Renin Singh and Rasananda Panda 3. Consumers' Adoption of Online
Shopping: A Study of Rural Youth in South Gujarat,
60.https://d1wqtxts1xzle7.cloudfront.net/58108511/SYNERGY_2full_journal.pdf

Dongol, P. (2022). Workforce Diversity and Its Impact on Employees’ Performance in

Commercial Banks in Nepal. Galaxy International Interdisciplinary Research
Journal.https://www.giirj.com/index.php/giirj/article/view/1034

Kaakeh, A., Hassan, M.K. and Van Hemmen Almazor, S.F. (2019), "Factors affecting
customers’ attitude towards Islamic banking in UAE", International Journal of
Emerging Markets, Vol. 14 No. 4, pp. 668-688. https://doi.org/10.1108/IJOEM-
11-2017-0502

Kaura, V., Durga Prasad, C. S., & Sharma, S. (2015). Service quality, service convenience,
price and fairness, customer loyalty, and the mediating role of customer
satisfaction. International Journal of Bank Marketing.https://doi:10.1108/ijbm-04-
2014-0048 

Ngo Vu M., Nguyen Huan H. (2016). The Relationship between Service Quality,
Customer Satisfaction and Customer Loyalty: An Investigation in Vietnamese
Retail Banking Sector. Journal of Competitiveness.
https://doi.org/10.7441/joc.2016.02.08

Ozatac, N., Saner, T., & Sen, Z. S. (2016). Customer Satisfaction in the Banking Sector:
The Case of North Cyprus. Procedia Economics and Finance.
https://doi.org/10.1016/s2212-5671(16)30247-7

Ravi, C. S., & Basavaraj, K. (2017). Customers preference and satisfaction towards
banking services with special reference to Shivamogga district in Karnataka.
TRANS Asian Journal of Marketing & Management Research (TAJMMR).

Shrestha, M. (n.d.). Customer Satisfaction Survey: A Study of Shree Kileshwor Saving &
Credit Cooperative Ltd.Theseus.
https://www.theseus.fi/bitstream/handle/10024/226667/CUSTOMER
%20SATISFACTION%20SURVEY%20A%20Study%20of%20Shree
%20Kileshwor%20Saving%20and%20Credit%20Cooperative%20Ltd..pdf?
sequence=2&isAllowed=y

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 APPENDIX

Dear respondent, I am a student of Campion College conducting a survey for the research
project. This research is based on the satisfaction of customer in the saving and credit
cooperative inside the Kathmandu valley. Your sincere response would be valuable to me
and would definitely help me to arrive at a conclusion as per my research objective.
This information would be confidential and only be used for research purpose. Show your
level of agreement in the following statement tick in an appropriate box to indicate any one
of the following
1) Strongly disagree 2) disagree 3) neutral 4) agree 5) strongly agree

Gender*

Male
Female

Age*

Below 25 years
25-35 years
36-45 years
Above 46

Highest level education*

Masters
Bachelors
High school

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S.N. Questions 1 2 3 4 5
Interest Rate
1 Deposit interest rate lead to my satisfaction
2 Interest on loan is proper and effectively determined
3 I am satisfied with the interest rate provided by this cooperative

Saving Options
There are variety of saving options in this cooperative leading to my
4 satisfaction
There are variety of credit options in this cooperative leading to my
5 satisfaction

Location
6 Location was a factor for choosing this cooperative for transaction
Location of this cooperative has helped me work effectively and
7 efficiently
8 Location of this cooperative is suitable for all the customer

Employee Behavior
9 Employee behavior and treatment is fair in this organization
10 Employee present themselves with a problem-solving attitude
11 Employee are helpful and cooperative towards the customers

Loan Term
12 I feel loan procedure is fair and proper
13 I am satisfied with loan procedure of the cooperative
14 The time frame for loan payment is suitable for me
15 The loan issue procedure is fast and reliable.

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