The Relationships between Customer Satisfactions and Banks Profitability: A Comparative Study between Egyptian and Iranian Banks

Journal of Accounting, Management, and Insurance, Vol. 15, 2012

Posted: 16 Jun 2012

Date Written: June 2, 2012

Abstract

This study shows customer satisfaction as a predictor of bank profitability on the level of analysis of customer. Customer satisfaction is an important dimension for performance measurement for any organization. Customer satisfaction plays a key role in the banking sector as it is important for products differentiation and development of good relationship with customers. It directly affects the financial performance of banks. Although there is a challenge on identifying the criteria that should be used for customer satisfaction measurement, service quality in banks depends a lot on the employee satisfaction personnel, professionalism and good customer service. Moreover, excellent service quality is vital to business profitability and survival in banking sector. The research recommends measures that can be used to measure client satisfaction and evaluates its impact on the financial performance of banks comparing between two developing countries, Egypt and Iran through studying sample of bank clients in each.

Keywords: Customer Satisfaction, Financial Performance, Private Banks

JEL Classification: M41

Suggested Citation

Eldeeb, Mohamed Samy, The Relationships between Customer Satisfactions and Banks Profitability: A Comparative Study between Egyptian and Iranian Banks (June 2, 2012). Journal of Accounting, Management, and Insurance, Vol. 15, 2012, Available at SSRN: https://ssrn.com/abstract=2073496

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