EFFECT OF POINT OF SALES (POS) ON THE CUSTOMER SATISFACTION OF COMMERCIAL BANKS IN RWANDA: THE CASE OF ECOBANK RWANDA

Abstract

This study examines the impact of point of sales (POS) systems on customer satisfaction within the context of Ecobank Rwanda Plc. In the contemporary banking landscape, POS systems play a crucial role in facilitating transactions and enhancing the overall customer experience. However, the extent to which POS systems influence customer satisfaction in the specific context of Ecobank Rwanda Plc remains underexplored. This study on cashless payment system services and customer satisfaction in commercial banks, with a focus on Ecobank Rwanda, is significant as it contributes to understanding the evolving dynamics of banking in Rwanda's digital economy. The study was pinged in include Assimilation Theory. The research design that was employed is a mixed-methods approach, incorporating quantitative surveys and qualitative interviews with customers and bank representatives to provide a comprehensive understanding of the dynamics between technology adoption and customer satisfaction. The study used both a descriptive and explanatory survey. The target population was 150 respondents. Consequently, 110 members were considered as the sample size to provide the primary data required in this research using Yamane’s Formula. Stratified sampling was employed as the method of selection. Primary data was gathered through the use of questionnaires, with responses being rated on a five-point Likert scale, with no room for free-form comments.  Secondary data was gathered from a variety of sources, with respondents providing the necessary information by filling in the blanks on a questionnaire. Ten participants were used in the upcoming pilot study. Cronbach's Alpha was utilized to determine the level of reliability. The instruments' validity was assessed by a group of research leaders knowledgeable in project management. Frequency tables, descriptive statistics, and regression analysis were used to present the results of the SPSS (v23) analysis of the obtained data. Both qualitative and quantitative approaches were used to analyze the data. The findings highlight the positive relationship between Point of Sale (POS) systems and customer satisfaction, as evidenced by a substantial coefficient of 0.987 (p < .001). The model summary indicates a significant relationship between Point of Sale (POS) systems and customer satisfaction at Ecobank Rwanda Plc. With an R-squared value of .618, approximately 61.8% of the variability in customer satisfaction can be explained by POS usage, suggesting the importance of these systems in enhancing customer experiences. The adjusted R-squared value of .614 further confirms the model's robustness, accounting for the predictors involved. However, it's crucial to recognize other potential influences on satisfaction, such as service quality and user experience. The ANOVA results support these findings, showing a substantial impact of POS systems on customer satisfaction, with a significant F-value of 150.293 (p < .001). The regression coefficient of 1.785 for the POS variable underscores its positive effect on satisfaction, consistent with prior literature. The equation derived from the model suggests that customer satisfaction in Rwanda increases by 1.785 for every unit increase in POS usage. These results highlight the critical role of POS systems in driving customer satisfaction in the banking sector, emphasizing the need for continual optimization and maintenance of these systems to ensure positive customer experiences. In conclusion, the findings of this study underscore the significant positive impact of Point of Sale (POS) systems on customer satisfaction within the context of Ecobank Rwanda Plc. The robust regression analysis and ANOVA results affirm the pivotal role of POS technology in enhancing customer experiences, highlighting the importance of continued investment and optimization of POS systems to meet evolving customer needs and expectations in the banking sector. Based on the findings, it is recommended that Ecobank Rwanda Plc continues to prioritize investment in POS systems to enhance customer satisfaction. Additionally, efforts should be directed towards maintaining the reliability, accessibility, and ease of use of these systems, alongside ongoing monitoring of service quality and user experiences, to ensure sustained positive impacts on customer satisfaction levels. Further studies could explore the interplay between POS system features, such as security protocols and transaction speed, and their impact on customer satisfaction in Rwandan banking. Additionally, comparative research across different banks or regions could provide valuable insights into the generalizability of findings and the effectiveness of POS systems in diverse contexts within the Rwandan banking sector.