International Journal on Customer Relations

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Customer's Expectation from Service Quality of Private and Public Sector Bank: a Comparitive Study


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1 BIT Mesra (Ranchi), Noida Campus, U.P., India
     

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Satisfaction of the customers is an invaluable asset for the modern organizations, providing unmatched competitive edge. It helps in building long-term relationship as well as brand equity. The best approach to customer retention is to deliver high level of customer satisfaction that result in strong customer loyalty. Satisfaction being a judgment, that a product or service feature or the product or service itself, provides a pleasurable level of consumption related fulfilment, is dynamic in nature. It is the result of interplay of a number of factors, which vary from one product/service category to another. The purpose of this study is to compare the public sector banks and private sector banks in terms of customer satisfaction and to study the various variables of service quality using SERVQUAL model. The work has been carried out with the objective of understanding the reasons of customer dissatisfaction and what are the opportunity areas that these banks need to focus on to strengthen their customer service practices resulting in customer delight. The research work uses both the sources of information, i.e., Primary and Secondary sources, and thereafter SERVQUAL model has been used to identify the discrepancy in the service delivery system. Finally the study concludes by giving some recommendations to improve in the area where these banks do not meet the expectations of their customers. Two-stage factor analysis was computed on 27 variables based upon the SERVQUAL model of service quality to arrive at the factors of customer satisfaction. The study revealed four factors in public sector banks and six factors in private sector banks of customer satisfaction. Further, paired sample t test was applied to test the hypothesis and compare the services provided by the public sector bank with that of private. Split half way method (Crobach coefficient α) was calculated on over all reduced variables, as well as individual factors in order to check the reliability.

Keywords

Customer Satisfaction, Private and Public Banks, Service Quality, SERVQUAL
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  • Customer's Expectation from Service Quality of Private and Public Sector Bank: a Comparitive Study

Abstract Views: 565  |  PDF Views: 6

Authors

Garima Srivastava
BIT Mesra (Ranchi), Noida Campus, U.P., India
Arun Mittal
BIT Mesra (Ranchi), Noida Campus, U.P., India

Abstract


Satisfaction of the customers is an invaluable asset for the modern organizations, providing unmatched competitive edge. It helps in building long-term relationship as well as brand equity. The best approach to customer retention is to deliver high level of customer satisfaction that result in strong customer loyalty. Satisfaction being a judgment, that a product or service feature or the product or service itself, provides a pleasurable level of consumption related fulfilment, is dynamic in nature. It is the result of interplay of a number of factors, which vary from one product/service category to another. The purpose of this study is to compare the public sector banks and private sector banks in terms of customer satisfaction and to study the various variables of service quality using SERVQUAL model. The work has been carried out with the objective of understanding the reasons of customer dissatisfaction and what are the opportunity areas that these banks need to focus on to strengthen their customer service practices resulting in customer delight. The research work uses both the sources of information, i.e., Primary and Secondary sources, and thereafter SERVQUAL model has been used to identify the discrepancy in the service delivery system. Finally the study concludes by giving some recommendations to improve in the area where these banks do not meet the expectations of their customers. Two-stage factor analysis was computed on 27 variables based upon the SERVQUAL model of service quality to arrive at the factors of customer satisfaction. The study revealed four factors in public sector banks and six factors in private sector banks of customer satisfaction. Further, paired sample t test was applied to test the hypothesis and compare the services provided by the public sector bank with that of private. Split half way method (Crobach coefficient α) was calculated on over all reduced variables, as well as individual factors in order to check the reliability.

Keywords


Customer Satisfaction, Private and Public Banks, Service Quality, SERVQUAL

References