HomeUIC Research Journalvol. 18 no. 1 (2012)

 Satisfaction Domains of Rural Bank Clients: A Path Analysis

Gloria P. Gempes | Ronel V. Sudaria

Discipline: Finance



The purpose of this study was to generate a causal model on satisfaction among rural bank clients in Northern Mindanao Region. Four hundred thirty eight clients from 49 rural banks operating in Region X were involved in the study. The rural bank clients were mostly female, aged 40 and below, married, college level, with an average monthly income of 10,000 pesos and self-employed. The selection dimension which is the independent or endogenous variable has the following indicators: people influences, attractiveness, service provision, ATM service, branch location, proximity, secure feeling, marketing promotion and financial benefits. The indicators of client satisfaction, as the dependent or endogenous variable of the study are tangibles, reliability, responsiveness, assurance and empathy. From these variables, five hypothesized models of client satisfaction were crafted. Using path analysis, Model 5 emerged as the most parsimonious model suggesting that satisfaction among rural bank clients was anchored on selection dimensions and income which in turned were greatly influenced by the clients’ level of education. This study offers a meaningful identification of consumer behavior in rural banking sector. It bears a standpoint for rural banks to take into account the changing needs and wants of their valued clients.