ANALYSIS OF CUSTOMER SATISFACTION WITH WAITING LINES IN TWO SEVER-STAGE SERVICE. A CASE STUDY OF FINANCIAL INSTITUTIONS IN KOFORIDUA

IN GHANABy

Godfred Kwame Abledu

ABSTRACTA basic fact of life is that we spend a great deal of time waiting in queues. In our

service economy, we wait in lines every day, from driving to work to checking out our

balances at the banks, at the supermarket, at fast food restaurant and many other

situations. The central problem in virtually every waiting line situation is a trade-off

decision. The manager must weigh the added cost of providing more rapid service

against the inherent cost of waiting in order to satisfy the demands of the customers.

Organizations and institutions owe their existence to the customers they

serve .Their survival and growth depend on their orientation to customer

satisfaction(Chau-Kuang & Hughes, 2004).Total Quality Management spreads from

business to education. The total quality initiatives also recognises the changing

conditions in our service economy, e.g. a considerable increase in customers'

requirements and needs, increasing demands from business and industry, increasing

demands from governing boards and the public sector, decreasing funds, and

increasing competition among institutions and organisations. Focusing on the customer

is an essential principle of Total Quality Management.

Without perceived value there is no reason for customers to choose a particular

financial institution over an increasingly large number of similar institutions. To raise that

value, customers' perceived quality and satisfaction should be measured and managed.

On this background it is essential to measure customers' perceived quality and

satisfaction within financial institutions

Therefore, the purpose of this paper is to develop and apply a queuing model

and an associated measurement instrument of customers' perceived quality, satisfaction

and loyalty. Three financial institutions in Koforidua would be selected at random for the

study. Managerial implications are discussed and the proposed model and

measurement instrument is used for tracking and benchmarking,

Keywords: queuing model, total quality, satisfaction, benchmarking