Research Methodology
Research Methodology
Research Methodology
PROGRAMME: MBA2
ID: 0040EFHEFH1115
SEMESTER: TWO
Contents
1.0. INTRODUCTION ................................................................................................................... 3
1.1 BACKGROUND OF THE STUDY ......................................................................................... 3
1.2 PROBLEM STATEMENT ....................................................................................................... 4
1.3 RESEARCH QUESTIONS ...................................................................................................... 5
1.4 RESEARCH OBJECTIVES ..................................................................................................... 6
1.5 SIGNIFICANCE OF THE STUDY.......................................................................................... 6
1.6 LIMITATIONS OF THE STUDY............................................................................................ 6
1.7 SCOPE OF THE STUDY ......................................................................................................... 6
2.0. LITERATURE REVIEW ........................................................................................................ 7
2.1. Customer Satisfaction .......................................................................................................... 7
2.2. Customer Trust..................................................................................................................... 8
2.3. Customer Identification ....................................................................................................... 8
2.4. Customer Loyalty................................................................................................................. 9
2.5. RELEVANT MANAGEMENT THEORY ............................................................................. 9
2.5.1. Economic Responsibilities .............................................................................................. 10
2.5.2. Legal Responsibilities ..................................................................................................... 11
2.5.3. Ethical Responsibilities................................................................................................... 11
2.5.4. Philanthropic Responsibilities ........................................................................................ 11
2.6. CONCEPTUAL FRAMEWORK FOR RESEARCH ........................................................... 12
2.7. CONCLUSION ...................................................................................................................... 12
3.0. RESEARCH METHODOLOGY........................................................................................... 13
3.1. RESEARCH DESIGN ........................................................................................................... 13
3.2 SAMPLING AND SAMLE SIZE .......................................................................................... 13
3.3 DATA TYPES AND SOURCES OF INFORMATION ........................................................ 14
3.4 DATA COLLECTION METHODS ....................................................................................... 14
3.5 DATA ANALYSIS TECHNIQUES....................................................................................... 14
3.6 ETHICAL CONSIDERATIONS ............................................................................................ 14
3.7 EXPECTED OUTCOMES ..................................................................................................... 15
3.8 TIMELINE AND GANTT CHART ....................................................................................... 15
Appendix 1: Questionnaire ........................................................................................................... 17
References ..................................................................................................................................... 22
1.0. INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The concept of corporate social responsibility (CSR) within the banking sector is one that has
changed and evolved tremendously over the last few years, the change has come from
advancements in technology and to be more specific the manner in which public relations
campaigns and media campaigns are run. Great emphasis is now being placed on how banks are
doing good and how their actions have had a positive impact on the society and environment they
operate within through their shiny annual reports that are now easily accessible to the general
public. This easy accessibility was not always the case. A major reason for the change can be
attributed to the fact that the banking sector is a sphere or service provided to the general public
that involves trust, consumers can be said to be sensitive and due to several things that may have
happened in the past such as fraud and scandals they may lack trust in the institutions (Ramlugun
& Raboute, 2015). When it comes to defining the term CSR scholars have been unable to
universally agree on one particular definition, however prominent CSR theories over time from
the various angles and perspectives of research have managed to come to one particular theme or
reference point and that is that CSR can be said to be a comprehensive set of policies, practices
and programs that are integrated into the business operations, supply chains and decision making
process throughout the company and usually include issues related to business ethics, community
investment, environmental concerns, governance, human rights, the market place as well as the
work place (Ahmad, 2014).
This definition has been selected as it is one that is most holistic as it highlights the duties and
responsibilities of the company to the society that have been emphasized by Carroll (1979) in her
CSR theory and it also explains the three-dimensional model of CSR. So it can be deduced that
indeed the main function or role of CSR is to make sure that firms or in the case of this study that
banks are accountable to their various stakeholders. This may include shareholders, customers,
employees, trade unions and the community so that in the long run they are able to maximize
profits as well as retain customers (Olajide,2014).
In Malaysia the concept of CSR can be said to be one that has been around from as far back as
1980 and because of that there is a general state of awareness on CSR within the general public.
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However, it must be noted that only in this past decade has CSR truly become more prominent.
This is due to the introduction of Bursa Malaysia which made it compulsory for companies to
release their annual financial reports as well as their CSR activities and initiatives. Philanthropy is
the most popular form of CSR and a survey conducted in from July 2003 to December 2004 found
that Malaysian firms donated over 82 million ringgits to various charitable organizations and
similarly Sime Darby reports show that contributions of worth millions of ringgits are made to
charities every year (Abdulrazak & Ahmad, 2014).
This study is an investigation on the effects of CSR activities of Banks within Malaysia and how
their practices affect the customer loyalty towards the banks. An analysis will be done on various
factors that may contribute to customer loyalty from the various CSR activities conducted by the
banks. The research will be based on previous researchers findings as it has been suggested that
there could be a link between the banks practices and the perception or loyalty of the customer as
well as that of potential customer who may one day seek to patronize and eventually become loyal.
Other studies conducted within the country have focused on individual banks such as Public
Bank. A particular study on Public Bank focused on the CSR activities of the bank and the
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impact of the banks actions on a societal and environmental level. The results of the study
showed that within Malaysia there are some areas that the bank could focus on, with a more
serious approach so that they are able to expand as well as keep their consumers happy. Some of
these areas identified were Forum 21 and disaster types, these were the areas that were suggested
for expansion for Public Bank (Singh, et al., 2009).
Other studies conducted worldwide have been similar to those conducted within Malaysia in the
sense that they focus on an Islamic perspective too. It has been found that they have looked at
CSR and the financial performance of the banks, in a study conducted by Mallin, Farag & OwYong focused on Islamic banks, they studied 90 Islamic banks in 13 countries worldwide they
covered the theme of CSR by looking closely at ten dimensions and seeing whether the social
activity of the bank has a financial gain in the long run for the bank. The results emphasized that
the bank and the CSR performance and determined by the financial performance (Mallin, et al.,
2014).
Research conducted by Rambat and Rabute show that in previous studies done on the banking
sector worldwide, show that in an online survey conducted by Elderman Insight in 2012 in 25
countries found that the banking sector is the industry that consumers trust the least. To make
consumer feel safer and at ease about the banking institutions, it has been discovered that boosting
their corporate image through corporate social responsibility could have a positive effect on the
customer and may even lead to increased consumer trust (Rabute, 2015) .
To add to the existing body of literature within Malaysia, this study aims to investigate the effects
of CSR practices of Banks in Malaysia, not only Islamic banks but all banks and how these
practices affect customer loyalty, it can be said that very little has been done from the perspective
of consumer loyalty and in particular how they, as consumers respond or what they think about
the CSR activities that the banks have conducted within the society as a result this study will focus
on this aspect and discover what effect is had on their loyalty in the long run.
2. In the view of the customer what actions and practices taken by the bank are deemed as a
socially responsible?
This is normally done through means such as their demonstration of support, spreading of the the
companies positive initiatives through word of mouth as well as by having a higher level of
tolerance towards the companies even when they do wrong. Previous studies conducted show
that when CSR is done right the consumers are willing to support the corporations it has also
shown that these initiatives can improve the relationship quality and the important factors that
are to be highlighted in the relational aspect are satisfaction, trust and identification (Xie,
2014).
in the long run this delight causes the consumer to feel positively about the services being provided
and in the long run their evaluation of the bank becomes one that is extremely positive (Xie,2014).
This feedback from the customers is said to be a measurable parameter as feedback can be given
on their experiences and that way the banks are able to effectively meet their needs because they
are able to measure their performance against the expected performance that has been stated by
the customer or consumers. Satisfaction has also been identified as a necessary condition that is
to be met in order to keep the current consumer base and this factor determines whether most
customers will stay or leave (Arokiasamy, 2012).
followed by other aspects such as commitment, trust and satisfaction. CSR activities of banks
allow them to communicate their unique characteristics with their stakeholder and consumers
which in the long run improves their reputation as well as prestige with the customer and
encourages identity attractiveness which in the long run all contributes to customer identification
(Xie, 2014).
2.4. Customer Loyalty
Whether customer loyalty can only be said to be achieved after meeting the above mentioned
factors such as satisfaction, trust and identification will be investigated in the following study.
Banks have evolved in the manner in which they seek to achieve these various factors in their CSR
practices, keeping up with technology and technological advancements has now made this easier
and now services provided by the industry have evolved. To ensure that banks are meeting the
expectation of their customer and even going beyond what is expected of them they ensure that
they regularly meet the customers and get feed back from them. Previous research has shown that
the cost of attracting a new customer is five times the cost of keeping a current customer happy.
It is for this reason that banks are to ensure that they keep customers happy and that they show
signs or re-patronage behavior and that they are showing positive behavior, actions and
commitment towards the banks that provide them with services (Porter, 2012).
Shown above is an illustration of how Carroll organized different corporate social responsibilities
and the four layered model is known as the pyramid of responsibilities.
2.5.1. Economic Responsibilities
Carrolls economic component places emphasis on the fact that an organization or bank should
perform in a manner that is consistent with maximizing profits or earnings per share, that they
should be strong competitors and well as be highly efficient and that success for an organization
can be indeed measured by their profitability. Other scholars that have conducted previous research
however state that in some instances excessive financial performance may not always be the
interest of all stakeholders. Good economic entities or organizations that are established however
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are done so in the hope or with the aim of providing goods and services that will benefit society
(Olajide, 2014).
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community (Olajide, 2014). In Malaysia several banks have taken an approached directed in this
manner.
Corporate Social
Responsibility
Respo
Customer Trust
Customer Loyalty
Customer
Identification
Figure 2. Conceptual Framework
The illustration above depicts the connection of variables that have been explained in detail above.
2.7. CONCLUSION
The literature above explains how CSR can achieve customer satisfaction, trust and identification
when done in the right manner and how all of this can then lead or result in customer loyalty. This
will then help us determine and be able to examine which practices done by the Malaysian banks
are deemed to be socially responsible by their customers and this will be based on Carrolls CSR
pyramid and to answer if there is a positive relationship between the banks CSRs activities and
loyalty the factors of satisfaction, trust and identification will be analyzed in detail.
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The questionnaire will contain 21 questions divided into four sections, the participants will be
asked to used a scale of 1-5 to score their responses 5 being strongly agree and 1 disagree, this will
ensure that the researchers questions are adequately met.
3.2 SAMPLING AND SAMLE SIZE
The sample for the following study will be male and female adults between the ages of 18-50 who
have bank accounts within the Klang Valley. This sample has been chosen, as it will seek to
represent the views and perceptions of the customers who have bank accounts as well as illustrate
their loyalty towards the banks. This sample was chosen as most young adults by the age of 18
have opened bank accounts and will be active users of the banking system and it has been left open
all the way to participants who are aged 50 as these individuals would have experienced several
years with the banking industry and thus they might be able to give a holistic perspective of the
perception that customers in the Klang Valley in Malaysia have overall.
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consent from the participants and from the banks will be necessary, for the participants so that they
are aware that all the information will be kept private and confidential and only used for the
purposes of this study. While for the banks to ensure them that the email addresses will only be
used to collect data for the survey. The researcher will also assure that he will not be prejudiced or
biased during the period in which the survey will be conducted. The researcher will also avoid
plagiarism as this is an academic offense and the researcher will also ensure that credit is given to
the original author of the work through proper referencing and by maintaining work that is of a
high scholarly standard.
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Task
N
o
Task
Month 1
WK
1
K2 K3
Month 2
Month 3
k1
k2
k3
k4
k1
k2
k3
Writing of
proposal
Proposal approval
2
Collection3 of data
Draft report
5
Supervisors
6
feedback
Revise report
7
Final report
8
submission
16
k4
Appendix 1: Questionnaire
The questions below are to be answered using the following scale:
Very important (5), Important (4), Not sure (3), Less important (2), not important (1)
Demographics
1. Age
o 18- 25
o 25-35
o 35-45
o 45-50
2. Gender
o Male
o Female
3. Bank used :
o Maybank
o CIMB
o Hong Leong
o RHB
o AM BANK
o Affin Bank
o Alliance Bank
o HSBC Bank
o Public Bank
Importance ascribed to CSR
4. How important is branding, image and individualistic nature of a bank?
o 5
o 4
o 3
17
o 2
o 1
5. How important is it to keep the customers satisfied and meet their needs and concerns?
o 5
o 4
o 3
o 2
o 1
6. How important is the legal responsibility and the transparency a bank has?
o 5
o 4
o 3
o 2
o 1
7. How important are the voluntary actions or the philanthrophic activities of a bank such as
charity work and giving back to the community?
o 5
o 4
o 3
o 2
o 1
8. How important are the moral and ethical actions a bank takes to their society or the
community within they operate within?
o 5
o 4
o 3
o 2
o 1
18
Economic responsibility
9. Banks should be committed to being profitable as possible
o 5
o 4
o 3
o 2
o 1
10. Banks should be highly competitive
o 5
o 4
o 3
o 2
o 1
11. Banks should be highly efficient
o 5
o 4
o 3
o 2
o 1
Legal responsibility
12. Banks should obey government rules and regulations
o 5
o 4
o 3
o 2
o 1
13. Banks should be law abiding
o 5
o 4
o 3
o 2
19
o 1
14. Banks should provide service that meet all minimal requirements
o 5
o 4
o 3
o 2
o 1
Ethical responsibility
15. Banks should perform in a manner consistent with societal expectations and norms
o 5
o 4
o 3
o 2
o 1
16. Banks should recognize and respect new moral norms of society
o 5
o 4
o 3
o 2
o 1
17. Banks should prevent ethical norms from being compromised to achieve their corporate
goals
o 5
o 4
o 3
o 2
o 1
Philanthropic responsibility
18. Banks should contribute resources to the community
o 5
o 4
20
o 3
o 2
o 1
19. Banks should perform in a manner consistent with the philanthropic and charitable
expectations of the community
o 5
o 4
o 3
o 2
o 1
20. Banks should voluntarily support projects that enhance the communities quality of life
o 5
o 4
o 3
o 2
o 1
21. Which of the following makes you loyal to a particular bank? Tick as many as are
applicable
o Their efficiency
o Their transparency
o Their profit making
o Their services and the manner they provide them in
o Their branding and uniqueness
o Other: _______________________________________________
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