Introduction
1.1 Background of the Study
Customers are the most variable people in any organization as the business depends on the customer, but customers are not dependent on the business. Therefore, ensuring customer satisfaction with the services offered in a business is a significant aspect that should always be implemented. The success or failure of any business can only be guaranteed by the customers’ attitude toward that business. Where customers are well treated, that marks the start of the business success, while where customers are not, that marks the start of the business failure.
Cooperatives are jointly owned by people, where they produce or distribute goods and services for their joint profits. Members of a cooperative believe in honesty, openness, ethical values, and caring for others, as the group aims to be a self-help group. A cooperative is made to offer financial services such as credit to its members. Florida’s cooperative development has a long historical detail that resulted in its formation. In this case, the Florida cooperative was started in Florida as a small community development, and for now, it has developed into social and economic development in both the rural and urban areas.
The strength and development of the Florida cooperative highly depend on the ability to mobilize more resources from the members to gain both market share and economic growth, as it maintains the commitment and satisfaction of the members. The more members are satisfied, the more likely they will be committed, hence more resources.
1.2 Company Profile
Florida cooperative was started by people with average income who need better coordination between their financial needs and complements. The cooperative needs to mobilize the resources to continue developing and competing with the many cooperatives in Florida. The cooperative provides financial services to the business community and other people residing in the Florida area who want to save their money and earn better revenue.
1.3 Strategies
- To be a foundation pillar that enhances economic growth, saving deposits mobilization, operational of micro-enterprises, and ensuring people’s awareness of the concept of cooperatives.
- To address the economic, social, and cultural needs to enhance the community’s development and ensure the delivery of services.
1.4 Statement of the Problem
The number of cooperatives in Florida is increasing at a high rate in terms of their activities and delivery of services. Since customers are very crucial to the success of an organization, every organization must try its best to ensure customer satisfaction. The study will help us in the following ways:
- Determine the level of satisfaction of customers from Florida cooperative
- Helps in determining the factors that result in customer satisfaction.
- Know how to improve the satisfaction of customers in Florida cooperatives.
1.5 Objective of the Study
- To determine the impact of interest rates on customer satisfaction
- To determine the impact of loan terms on customer satisfaction
- To determine the impacts of employee behaviors on customer satisfaction.
- To determine the impact of saving options on customer satisfaction.
Literature Review
This section reviews the previous research done by the previous author related to customer satisfaction.
2.1 Employee Behaviors on Customer Satisfaction
Employee behavior as they deliver their services to customers is important in determining consumer satisfaction. If the services provided to a customer comply with their necessity, they will get satisfied, while they will be unsatisfied if the service provided to them does not comply with their necessity (Sinha et al. 79). The management should ensure they treat their clients with care and consideration. The management should build up minds while putting the client’s needs in their minds. Employees should ensure the client develops trust as it helps to attain long-lasting and more profitable relationships with their clients (Sürücü et al. 116). Customer trust in the management reflects a favorable attitude toward the services the management offers.
2.2 Loan Term on Customer Satisfaction
The loan terms provided by any cooperative play a vital role in determining consumer satisfaction. Loan terms are the agreement between the client and the organization on various loan requirements. The organization should decide on the needs of its clients and meet all their requirements to achieve customer satisfaction (Adam et al. 431). To meet its objective, the organization must fulfill the customer’s needs. The organization’s loan term should be credible as it shows its goodwill to its customers. Customer satisfaction will be increased when the organization can fulfill its customers’ requirements on time (Shah et al. 51). Having an accessible and trustworthy loan from an organization will increase customer satisfaction as customers will trust the services offered.
2.3 Interest Rate on Customer Satisfaction
When the interest rates are low, customers can borrow more at a low cost, which boosts their spending and investment. In general, when an organization offers low interest rates, it encourages the consumption of their customers as they have fewer savings, while with the increase in interest, the organization discourages consumption and encourages saving (Tien et al. 47). To increase customer motivation, the organization should have low-interest rates which will encourage more customers.
2.4 Saving Options on Customer Satisfaction
In cases where customers are offered favorable saving terms, their satisfaction in that organization is. Various banks use saving deposits to attract more customers as they are more satisfied with these services (Tien et al. 48). Increasing savings increases the capital resources of the organization, which helps it to offer the best services to its customers; hence they experience better satisfaction.
Methodology
3.1 Research Design
The research used descriptive research design as it described the characteristics associated with customer satisfaction among the selected member of the Florida cooperative. Descriptive research design assisted in demonstrating how the information was gathered, measured, and examined to achieve the goal (Siedlecki et al., 2020). The descriptive research design helped describe the existing phenomena by asking the participants about their attitudes, perceptions, and values.
3.2 Location of the Study
The study was conducted in Florida, where the Florida cooperative is based.
Targeted Population
The research targeted members of Florida cooperatives. From Florida cooperatives.
Sampling and Sampling Procedure
Stratified random sampling was used to group the members in Florida cooperative. The study applied systematic random sampling to keep away biases.
Sampling Size
The research consisted of 20 participants
Data Sources and Collection Instruments
The research was conducted using primary data to conduct the study. Questionnaires were used to acquire the information from the members of the Florida cooperative. The participants were asked to take ten minutes to fill in the questionnaire, after which the filled questionnaire was collected.
3.3Results
The statistical analysis of the data was facilitated by coding and entering the questionnaire using the statistical packages for social sciences (SPSS). Descriptive statistics such as mean, median, and standard deviation analysis were used to help describe and summarize data, making it easy to interpret.
4.0 Discussion
4.1 Response Rate
All the questions administered to 20 participants were correctly filled out and returned. It constituted a response rate of 100%. The response rate was very good as the researcher administered the questionnaires in person. He waited for the participant to fill in and then collected the questionnaire immediately, which helped ensure the respondents represented the targeted population.
4.2 Response to Specific Variables.
This part summarizes the responses that were received concerning the independent variables and the dependent variables.
Impact of interest rate on customer satisfaction
It is evidence that Florida Cooperative provides better services that try to satisfy their customer’s needs, as indicated by a mean of 3.69. members as well satisfied by the interest rates offered by the cooperative, with a mean of 3.63. The indication implies that the interest rate and the condition offered have no negative effects on their members. The data indicates that customers are satisfied (mean 3.64) in paying for the interest rate as the cooperation requires.
Impact of loan term on customer satisfaction
Evidence shows that members experience positive relations with the cooperative (mean 4.16). Members are also willing to recommend to their friends the services offered by the cooperative (mean 3.7). Moreover, members said they also feel the loan offered by the cooperative to be more favorable (mean 3.96).
Impact of Employee Behaviors on Customer Satisfaction
The research indicated that the Florida cooperative responds well to its members (mean 3.47). The management has regularly met with the members (mean 3.61). Customers are satisfied with the commitment of the management of the cooperative (mean 3.53).
Impact of Saving Options on Customer Satisfaction
The respondent disagreed or was neutral on how satisfied they were with the cooperative services (mean 2.86). However, they supported the saving options of the cooperatives (mean 3.26). Members were willing to recommend the saving options offered by the cooperatives (mean 3.27).
Conclusion
This sector consists of a summary of the research findings from the analyzed data. It also gives a detailed conclusion on the study variables and recommendations.
Impact of interest rate on customer satisfaction
Customer satisfaction with the interest rate was supported by a high mean of 3.79. This indicates that the cooperative was responsive to the needs and requirements of the customers. Therefore, the study concluded that interest rate was the most significant variable for customer satisfaction. The study concluded that the most significant focus had favorable interest rates for the members. The study concluded that organizations should ensure a good interest rate for their customers to get their commitment as they will be satisfied.
Impacts of employee behaviors on customer satisfaction
Good relationships and management concerns about the member’s needs result in increased customer satisfaction. This statement is supported by the mean of 3.61 of the responses. The commitment of the management increases the satisfaction of the members. The study concluded that regular meeting with the members by the management increases customer satisfaction. The study also concluded that effective communication with customers plays a key role in ensuring customer satisfaction.
The loan term on customer satisfaction
The cooperative provides favorable loan terms to their member, which increases customer satisfaction. The statement is supported by the mean of 4.16, indicating the member’s satisfaction. The best loan term must be easily accessible and ensure accountability. This study concluded that improvement in offering customer services increases customer satisfaction.
Saving options for customer satisfaction
Most of the responses toward the saving option needed to be increased. The respondent disagreed or was neutral on how satisfied they were with the cooperative services (mean 2.86). These indicated that the cooperative needed to improve the saving option to increase customer satisfaction. This study concluded that improper implementation of the organization’s activity could be led to lower customer satisfaction.
Recommendation for Policy and Practice
The research findings of this research can be used to recommend the following;
Cooperatives should provide a favorable interest rate to their customers. Favorable interest rates will increase customer satisfaction; hence they remain committed.
Cooperatives should ensure they offer friendly loan terms to their customers to increase their satisfaction. The loan provided to their customers should be easily accessible and credible.
Cooperatives should provide their customers with favorable saving terms to increase their satisfaction. Favorable saving terms encourage the customer to continue saving more, resulting in organizational growth.
The other variable of interest is the employee behavior towards the customers. They should handle the customers with great care to increase their satisfaction, motivating them to continue supporting the organization.
Suggestion for Further Studies
The study recommends further studies concerning customer satisfaction in different local businesses. Other factors, such as employee empowerment and management by facts and cultures, could be examined. Research could include a large number of local businesses.
Work Cited
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Kurdi, Barween, Muhammad Alshurideh, and Ahmad Alnaser. “The impact of employee satisfaction on customer satisfaction: Theoretical and empirical underpinning.” Management Science Letters 10.15 2020: 3561–3570.
Siedlecki, Sandra L. “Understanding descriptive research designs and methods.” Clinical Nurse Specialist 34.1 2020: 8–12.
Sürücü, Özlem, et al. “Brand awareness, image, physical quality, and employee behavior as building blocks of customer-based brand equity: Consequences in the hotel context.” Journal of Hospitality and Tourism Management 40 2019: 114–124.
Shah, Snehal, Nikita Lalwani, and Diya Modi. “A COMPARATIVE STUDY OF HOME LOAN IN PUBLIC AND PRIVATE SECTOR BANKS.” International Journal of Management, Public Policy and Research 1.2 (2022): 49-55.
Tien, Nguyen Hoang, et al. “Factors impacting customer satisfaction at Vietcombank in Vietnam.” Hmlyan J. Econ. Bus. Manag 2 (2021): 44-51.
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