Banking Industry and its Service Quality: Customer Perception and Expectation

This paper examines the customers' expectations and their perceptions related to various services offered by banking industry. Customer satisfaction being the top priority across all industries, we find the determinants of service quality and performance in Banks. Being service industry there may be a big difference between expected and perceived service quality. Expectation of the customers with regards the service can vary based on a range of factors such as prior experience, personal needs and what other people may have told them. The quality of service is determined on five dimensions which are: Reliability, Responsiveness, Assurance, Empathy and Tangibles (Appearance of physical facilities, equipment etc.). SERVQUAL method is used to find the gap between expected and perceived service quality. Customers of Public Sector Banks and Multinational Banks are the target population for the research, while sampling frame includes customers of Public Sector and Multinational Banks in Kanpur Some non-users of banking services are also included to understand their expectations of Banks' service quality and what can pull them to be users. To minimize the sampling error and bias all the demographic segments have been included in sample size. The findings and results of the paper may be useful for PSU and Multinational Banks to improve their service quality, while emerging managers may also get the idea of the same for their future prospects in industry.