Predictive Validity of Service Quality Dimensions in Commercial Banks

Banks service quality is commonly noticed as a critical pre requisite for satisfying and retaining valued customers. This paper extends a modified SERVQUALfor measuring service quality in Indian commercial banks. The construct of service quality consists of 28 variables belonging to the five dimensions of SERVQUAL. By the test of reliability and validity, the construct has only three dimensions namely Human Skills, Tangibles and Empathy. This paper also investigates the significant influence of the construct s dimensions on overall attitude towards banks. Even though, the overall attitude towards banks is highly influenced by all three dimensions, the human skills have more predictive validity. Apart from that, the impact made by tangibles and empathy on the overall attitude is different, but that difference is not statistically confirmed. This is supposed to help bank managers focus their attention on the most important service quality dimensions that matters most to customers.