CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Customer’s orientation is the philosophy of business that believes markets must connect with customers in forming, engaging and even energizing them in the process. Most financial institutions and companies today centred their focus on balding customer’s relationship and not just product. For instance, a well packaged product that is not well established will not penetrate the market the only value your company financial institutions will ever create is the value that comes from the customer, the ones you have known and the ones you will have inn sure.

        Business succeeds by getting, keeping and growing customers. Customers are the only reason you build factories, hire employees, and schedule meeting, lay filter-optic line or engaging in any  business activity. Without customers, you don’t have a business.

        Customer orientation is informative and educative for its objective to be actualised. In other words, it is known as perceived value. The determinant of the customer orientation perceived is based on cost and benefit of a particular product for instance, when a customer derived high level of benefit from a product, such customer will not be the monetary value.

        The study therefore focuses on customer orientation as a strategy for achieving competitive edge in the banking sector. The study selected Unyogba Micro Finance Bank that have network to provide quality service to its numerous customers. The secret is centered on providing adequate information about the banking operation to its customers and the benefit achieved towards operating an account with the bank. Although, the bank rendered most of it service to civil servant and business men and women, the benefit a depositor is quick credit facilities to its customers at the rate of ten percentage. At moment, Ungba Micro Finance Bank is listed on the Nigeria stock exchange, because it satisfied the capitalisation requirement of the Central Bank of Nigeria. Invest in the micro finance bank to ensure safety for your investment value.

1.2 Statement of the Problems

Customer orientation practiced in Unogba Micro Finance Bank is faced with difficulties that needs to be resolved. Customer orientation and satisfaction in Nigeria, misappropriation of fund by management, right personnel to the right job, insensitivity to competitive environment. Influence of the apex authority like the central bank of Nigeria and also faced with problems like national deposit insurance commission and security exchange commission.

        The excess changed and deduction of money by the commercial bank. The method of clearing cheque is still very slow to meet with the customers demand.

1.3 Objectives of the Study

        The objectives of the study are based on the following:

i.         To identify the major attributes and benefits that customer’s value accesses the ban and competitors performance on the different customers value against their rated importance.   

ii.       To examine how customers in a specific segment rated the bank performance against a specific major competition on an individual attributes or benefit overtime.

iii.     To ascertain customer data base

iv.      To know the bank strategy in attracting and retaining customers

v.        Finally, to identify the customer compliance and possible solutions applied.   

1.4 Research Hypotheses

Hypothesis One

Ho: The delay in the clearing of customer’s cheque cannot cause low patronage of the micro finance bank in Nigeria.

Hi: The delay in the clearing of customer’s cheque can cause low patronage of the micro finance bank in Nigeria.

Hypothesis Two

Ho: The arrangement of counter level of paper work and computation can decrease the number of customers patronizing micro finance bank in Nigeria.

Hi: The arrangement of counter level of paper work and computation cannot decrease the number of customers patronizing micro finance bank in Nigeria.

Hypothesis Three

Ho: The rated importance of the performance b customers in a specific segment is low and causes low patronage of customers.

Hi: The rated importance of the performance b customers in a specific segment is high and increase patronage of customers. 

1.5 Significance of the Study

        The present micro finance banks call for effective and efficient application of customer orientation which serves as a marketing strategy towards goal relegation. The importance of the study is to ensure the following:

        Customer’s orientation leads to effective customer relationship (i.e. one to one relationship).

        It enables micro finance bank in Nigeria to be more result orientated in terms of thinking customer always.

        It enables customers to have value in transacting with the banks.

        It enables the management of the micro finance bank in Nigeria to improve business planning and build a customer perceived value.

        It helps to identify the bank strength and weakness in terms of provision of survives.

        Customers orientation leads to high level of patronage which in turn result to increase in the volume of profit.

1.6 Scope and Limitations of the Study

1.6.1 Scope of the Study

        The scope of this study is purely aimed at working into customer’s orientation as a strategy for achieving competitive edge in the banking sector. Therefore, Unyogba micro finance bank was selected as a case study of research work.

1.6.2 Limitations of the Study

        As a result of time constraint and financial inadequacy the study is limited to Unyogba Micro Finance Bank, Ajaka. In this regards all information generated for this study is within the reach of the bank.

1.7 Operational Definition of Terms

Marketing: Is defines as the planning process of creating customers is the primary objective with the aim of making profit as the secondary objective. Therefore all marketing activities are centred on the creation of customers and profitability.

Customers: A customer is any person whether incorporate or individual who has some sort of account with the bank.

Bank: A bank is a firm, incorporated companies or individual undertaking banking business.

Strategy: Is defines as the mode of plan of action for the allocation scarce resources to gain a competitive advantage and to achieve an objective at an acceptable level of risk.

Company: Is a legal person or entity created by an association of a member of person’s who contribute common capital in allowance with law of the land for the propose of carrying on business.      

Business: Is defines as the total human activities with economic significance undertaken with the primary purpose of customers creation and making profit for the owner of resources.

Account: An account with the bank is the business relationship expressed or implied arising by agreement with the customer. It shows debit and credit reflection, increase and decreases in the subject of the account. 

Public Relation: Is an attempt by which information persuasion and adjustment of engineer public support, course, movement or institution.

Clearing House: Is the institutional frame work established and supervised by the Central Bank of Nigeria. The representative of the local bank meet to clear there inter-bank.

Target Market: Is a group within the market segment towards which all marketing activities will be directed.

Management: Is the co-ordination of resources through the process of planning, organising and directing in order to attain a stated objective. These resources involve the eight Ms of management which include money, manpower morale, material, machine, method, maintenance and measurement. .

1.8 Organization of Work

        The research work is divided into five chapters. Chapter one, talks about the information, background of the study, statement of the problems, objectives of the study and definition of key terms. Chapter two focuses on the review of the related literature of the study and end of chapter references while chapter three discuss research methodology and design. Chapter four tackle data presentation and analysis and chapter five summaries the summary of the study, conclusion and recommendations.       

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