ICTACT Journal on Management Studies

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

A Study on Service Quality in Private Banks – An Alternate Approach


Affiliations
1 Mepco School of Management Studies, Mepco Schlenk Engineering College, India
     

   Subscribe/Renew Journal


Traditional SERVQUAL may be quite sufficient for the measurement of service quality of banks. But this research aimed for a more practical approach in using the actual services offered by banks in measuring their service quality. For this research, customers’ satisfaction towards the services offered by private banks was considered. A total sample of 112 is taken from the customers of private banks. Data was collected using a structured questionnaire from the customers which included factors to get opinion on general customer service offered by the banks, security provided for investments and assets, interest rate offered for investments, access to other products offered by the banks apart from traditional services, loan facilities and locker facilities offered by these banks. Data description was done with percentages of the sample, while data was done using linear regression and analysis of covariance (ANCOVA). From the outcome it was found that majority of the customers of private banks are satisfied with the services offered by the banks. There is a significant impact from the considered factors on the overall satisfaction of the customers on the services offered by these banks and there is no significant group difference among the gender and domicile of customers considered on their perception of overall satisfaction on the services offered by these banks. It was also found that there is a significant group difference on the opinion of overall satisfaction among customers differentiated by their age, educatio marital status and income.

Keywords

Private Banks, Modified Service quality, Linear Regression, Levene’s test, Analysis of Covariance (ANCOVA)
Subscription Login to verify subscription
User
Notifications
Font Size

  • Van Dinh and Lee Pickler, “Examining Service Quality and Customer Satisfaction in the Retail Banking Sector in Vietnam”, Journal of Relationship Marketing, Vol. 11, No. 4, pp. 199-214, 2012.

  • Deepak Jaiswal and Suyash Mishra Rishi Kant, “The Investigation of Service Quality Dimensions, Customer Satisfaction and Corporate Image in Indian Public Sector Banks: An Application of Structural Equation Model (SEM)”, The Journal of Business Perspective, Vol. 21, No. 1, pp. 1-10, 2017.

  • Koushiki Choudhury, “Service Quality: Insights from The Indian Banking Scenario”, Australasian Marketing Journal, Vol. 16, No. 1, pp. 48-61, 2008.

  • Sunny Bose and Nitin Gupta, “Customer Perception of Services based on the SERVQUAL Dimensions: A Study of Indian Commercial Banks”, Services Marketing Quarterly, Vol. 34, No. 1, pp. 49-66, 2012.

  • Prabha Ramseook Munhurrun and Perunjodi Naidoo, “Customers Perspectives of Service Quality in Internet Banking”, Services Marketing Quarterly, Vol. 32, No. 4, pp. 247-264, 2011.

  • Philip Gerrard and J. Barton Cunningham, “The Service Quality of E-Banks: An Exploratory Study”, Financial Services Management, Vol. 1, No. 1, pp. 102-117, 2005.

  • Mohammed Sadique Khan and Siba Sankar Mahapatra, “Service Quality Evaluation in Internet Banking: An Empirical Study in India”, Indian Culture and Business Management, Vol. 2, No. 1, pp. 30-46, 2009.

  • Abdul Qawi Othman and Lynn Owen, “The Multi Dimensionality of Carter Model to Measure Customer Service Quality in Islamic Banking Industry: A Study in Kuwait Finance House”, International Journal of Islamic Financial Services, Vol. 3, No. 4, pp. 1-13, 2018.

  • Mohd Adil, “Modelling Effect of Perceived Service Quality Dimensions on Customer Satisfaction in Indian Bank Settings”, Services and Operations Management, Vol. 15, No. 3, pp. 358-373, 2013.

  • Sudheer M. Dhume, Rakesh D. Raut and Ranjan Chaudhuri Sachin S. Kamble, “Measurement of Service Quality in Banks: A Comparative Study Between Public and Private Banks in India”, Services and Operations Management, Vol. 10, No. 3, pp. 274-293, 2011.

  • Ugur Yavas and Emin Babakus Osman M. Karatepea, “Measuring Service Quality of Banks: Scale Development and Validation”, Journal of Retailing and Consumer Services, Vol. 12, pp. 373-383, 2005.

  • Hyun Jeong Kim, “Service Orientation, Service Quality, Customer Satisfaction, and Customer Loyalty: Testing a Structural Model”, Journal of Hospitality Marketing and Management, Vol. 20, No. 6, pp. 619-637, 2011.

  • George J. Siomkos and John Mylonakis Dimitrios K. Koutouvalas, “Perceived Service Quality Management and Loyalty in Public Versus Private Banks Operations: Some Empirical Evidence”, Services Operations Management, Vol. 1, No. 2, pp. 101-122, 2005.

  • Dimitrios K. Koutouvalas and George J. Siomkos, “An Examination of the Relationship between Service Quality Perceptions and Customer Loyalty in Public versus Private Greek Banks”, Financial Services Management, Vol. 1, No. 2-3, pp. 190-204, 2006.

  • Damodar Suar and Pratap K.J. Mohapatra Usha Lenka, “Service Quality, Customer Satisfaction, and Customer Loyalty in Indian Commercial Banks”, Journal of Entrepreneurship, Vol. 18, No. 47, pp. 47-64, 2009.

  • Siong Choy Chong and Binshan Lin Mohd Rizal Abdul Razak, “Service Quality of a Local Malaysian Bank: Customers’ Expectations, Perceptions, Satisfaction and Loyalty”, Services and Standards, Vol. 3, No. 1, pp. 18-38, 2007.

  • Shamsher Singh, “Customer-Perceived Internet Banking Service Quality: A Study in National Capital Region of India”, Financial Services Management, Vol. 7, No. 2, pp. 113-138, 2014.

  • Kavita Srivastava and Narendra K. Sharma, “Service Quality, Corporate Brand Image, and Switching Behavior: The Mediating Role of Customer Satisfaction and Repurchase Intention”, Services Marketing Quarterly, Vol. 34, No. 4, pp. 274-291, 2013.

  • R. Saravanan and K.S.P. Rao, “Measurement of Service Quality from the Customer's Perspective-An Empirical Study”, Total Quality Management and Business Excellence, Vol. 18, No. 4, pp. 435-449, 2010.

  • Jorge Vera and Andrea Trujillo, “Service Quality Dimensions and Superior Customer Perceived Value in Retail Banks: An Empirical Study on Mexican Consumers”, Journal of Retailing and Consumer Services, Vol. 20, pp. 579-586, 2013.

  • Kazi Omar Siddiqi, “Interrelations between Service Quality Attributes, Customer Satisfaction and Customer Loyalty in the Retail Banking Sector in Bangladesh”, International Journal of Business and Management, Vol. 6, No. 3, pp. 12-36, 2011.

  • Andy C.L. Yeung and T.C. Edwin Cheng and R.W.Y. Yee, “An Empirical Study of Employee Loyalty, Service Quality and Firm Performance in the Service Industry”, Production Economics, Vol. 124, pp. 109-120, 2009.

  • Andreas Andronikidis and Victoria Bellou, “Verifying Alternative Measures of the Service-Quality Construct: Consistencies and Contradictions”, Journal of Marketing Management, Vol. 12, No. 59, pp. 570-587, 2014.

  • Abdel Kader Mohamed Ahmed Abdullah and Norizan Mohd Kassim, “Measuring Perceived Service Quality in Qatari Islamic Banks”, International Business and Entrepreneurship Development, Vol. 4, No. 1-2, pp. 90-106, 2009.

  • Muhammad Ali and Syed Ali Raza, “Service Quality Perception and Customer Satisfaction in Islamic Banks of Pakistan: The Modified SERVQUAL Model”, Total Quality Management and Business Excellence, Vol. 13, No. 54, pp. 1-19, 2015.

  • A Parasuraman, Valarie A Zeithaml and Leonard L Berry, “A Conceptual Model of Service Quality and Its Implications for Future Research”, Journal of Marketing, Vol. 49, No. 4, pp. 41-50, 1985.

  • A Parasuraman, Valerie A Zeithaml and Leonard L Barry, “SERVQUAL: A Multiitem Scale for Measuring Consumer Perceptions of Service quality”, Journal of Retailing, Vol. 64, No. 1, pp. 12-37, 1988.

  • Gronroos Christian, “Service Management and Marketing: Managing the Moments of Truth in Service Competition”, Lexington Books, 1990.

  • Mary Jo Bitner, Bernard H Booms and Mary Stanfield Tetreault, “The Service Encounter: Diagnosing Favourable and Unfavourable Incidents”, Journal of Marketing, Vol. 54, No. 1, pp. 71-84, 1990.

  • Ruth N Bolton and James H Drew, “A Multistage Model of Customers Assessments of Service Quality and Value”, Journal of Consumer Research, Vol. 17, No. 4, pp. 375-384, 1991.

  • Mary Jo Bitner and Amy R Hubbert, “Encounter Satisfaction Versus Overall Satisfaction Versus Quality: The Customer's Voice”, SAGE Publications, 1994.

  • Roland T. Rust and Anthony J. Zahorik, “Customer Satisfaction, Customer Retention, and Market Share”, Journal of Retailing, Vol. 69, No. 2, pp. 193-215, 1993.

  • Patrick Asubonteng, Karl J McCleary and John E Swan, “SERVQUAL Revisited: A Critical Review of Service Quality”, Journal of Services Marketing, Vol. 10, No. 6, pp. 62-81, 1996.

  • Adrian Payne, “The Essence of Services Marketing”, Prentice Hall, 1998.

  • Antreas D. Athanassopoulos, “Service Quality and Operating Efficiency Synergies for Management Control in the Provision of Financial Services: Evidence from Greek Bank Branches”, European Journal of Operational Research, Vol. 98, pp. 300-313, 1997.

  • Antreas D. Athanassopoulos, “Customer Satisfaction Cues to Support Market Segmentation and Explain Switching Behavior”, Journal of Business Research, Vol. 47, pp. 191-207, 2000.

  • J. Joseph Cronin, Richard R. Brady and Michael K. Brady, “Performance-Only Measurement of Service Quality: A Replication and Extension”, Journal of Business Research, Vol. 55, pp. 17-31, 2002.

  • Steven A. Taylor J. Joseph Cronin, “Measuring Service Quality: A Re-Examination and Extension”, Journal of Marketing, Vol. 56, pp. 55-68, 1992.

  • Jengchung V. Chen and Bayu Aji Aritejo, “Service Quality and Customer Satisfaction Measurement of Mobile Value-Added Services: A Conceptual Review”, International Journal on Mobile Communications, Vol. 6, No. 2, pp. 165-176, 2008.

  • Jay Kandampully and Thanika Devi, “Relationships and Impacts of Service Quality, Perceived Value, Customer Satisfaction, and Image: An Empirical Study”, The Service Industries Journal, Vol. 20, No. 32, pp. 111-125, 2012.

  • Jay Kandampully and Kashif Hussain Halil Nadiri, “Zone of Tolerance for Banks: A Diagnostic Model of Service Quality”, The Service Industries Journal, Vol. 29, No. 11, pp. 1547-1564, 2015.

  • Ahmad Jamal and Kamal Naser, “Factors Influencing Customer Satisfaction in The Retail Banking Sector in Pakistan”, International Journal of Commerce and Management, Vol. 6, No. 46, pp. 29-53, 2017.

  • Shamsher Singh, “The Impact of Service Delivery Quality on Customer Satisfaction in Indian Banks International Journal of Financial Services Management, Vol. 6, No. 1, pp. 60-78, 2013.

  • Boon Cheong Chew, Syaiful Rizal Hamid and Lay Hong Tan, “Relationship between Service Quality and Customer Satisfaction: A Study of Malaysian Banking Industry”, International Journal of Productivity and Quality Management, Vol. 19, No. 1, pp. 38-50, 2016.

  • Howard Levene, “Robust Tests for Equality of Variances”, Stanford University Press, 1960.


Abstract Views: 236

PDF Views: 0




  • A Study on Service Quality in Private Banks – An Alternate Approach

Abstract Views: 236  |  PDF Views: 0

Authors

J. Praveen Paul
Mepco School of Management Studies, Mepco Schlenk Engineering College, India
S. Sharmila
Mepco School of Management Studies, Mepco Schlenk Engineering College, India

Abstract


Traditional SERVQUAL may be quite sufficient for the measurement of service quality of banks. But this research aimed for a more practical approach in using the actual services offered by banks in measuring their service quality. For this research, customers’ satisfaction towards the services offered by private banks was considered. A total sample of 112 is taken from the customers of private banks. Data was collected using a structured questionnaire from the customers which included factors to get opinion on general customer service offered by the banks, security provided for investments and assets, interest rate offered for investments, access to other products offered by the banks apart from traditional services, loan facilities and locker facilities offered by these banks. Data description was done with percentages of the sample, while data was done using linear regression and analysis of covariance (ANCOVA). From the outcome it was found that majority of the customers of private banks are satisfied with the services offered by the banks. There is a significant impact from the considered factors on the overall satisfaction of the customers on the services offered by these banks and there is no significant group difference among the gender and domicile of customers considered on their perception of overall satisfaction on the services offered by these banks. It was also found that there is a significant group difference on the opinion of overall satisfaction among customers differentiated by their age, educatio marital status and income.

Keywords


Private Banks, Modified Service quality, Linear Regression, Levene’s test, Analysis of Covariance (ANCOVA)

References