Social Capital and Customer's Satisfaction on the Bank-Customer Relationship in Sri Lanka
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Date
2021
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Publisher
Uva Wellassa University of Sri Lanka
Abstract
Social capital, is a set of social organization characteristics, like trusts, norms, and networks which
may leads to improve the behavioral and social efficiency through coordinated actions. There are less
studies on the concept of social capital in the Sri Lankan context, particularly the nexus between
social capital and customer‟s satisfaction on the relationship with the bank though it is an essential
penomenan specially to the service sector organizations. Thus, the purpose of this paper is to
investigate the influence of social capital on customer‟s satisfaction regarding the Bank-Customer
relationship in Sri Lanka. Structural social capital, relational social capital, and cognitive social
capital were considered as the diamentions of social capital while the re-patronage intention and
negative word of mouth were used to measure the customer‟s relationship satisfaction. The sample of
this study was 150 unsatisfied customers, selected 30 from each of the top five licensed commercial
banks according to the Fitch Ratings (Pvt.) Ltd, 2020 using convenient sampling techniques. The data
were collected using a structured questionnaire and the descriptive statistics were measured using
SPSS version 26 software. The major analysis technique used in this study was the structural
equation model in Smart PLS software. The results revealed that all three diamentions of social
capital have a significant positive impact on customer's relationship satisfaction. This study
recommends the service sector organizations to create meachnism to improve the social capital and
there by improve the relationships with customers. Further this study contributes to the Sri Lankan
literature in the context of social capital.
Keywords: Social capital; Customer‟s satisfaction; Customer relationship; Banking sector; Sri Lanka
Description
Keywords
Business Management, Bank, Financial Management, Entrepreneurship, Customer's Satisfaction, Customer Relationship