Impact of Service Quality On Satisfaction in The Indian Banking Sector
Impact of Service Quality On Satisfaction in The Indian Banking Sector
Abstract
This study attempts to know the relationship between service quality and customer
satisfaction through two public sector banks at Pudukkottai district in Tamil Nadu. Data was
collected from 150 customers to investigate relationship
between identified service quality dimensions and customer satisfaction, and
to estimate the perceived service quality and customer satisfaction in this
setting. The questionnaire used in this study is comprised of
three parts: general demographics questions, perceived bank service quality
and customer satisfaction. Perceived bank service quality was measured
using 22 perception-only items to measure five dimensions of service quality
based on the SERVQUAL instrument. Overall customer satisfaction was
measured using a three items that identified how satisfied a customer felt
with regard to the participating banking service provider The data was analyzed with the help of
factor analysis, regression analysis, and descriptive analysis. The results of factor analysis
revealed a four dimensional structure of SERVQUAL scale: responsiveness/assurance, empathy,
reliability, and tangibles. The strongest predictor for customer satisfaction is
responsiveness/assurance, followed by empathy, and reliability. Nevertheless,
tangibles was found not significant related with customer satisfaction.
Introduction Whether a firm produces products or services is no longer a debate in the board
room or among academics; the focus is centred primarily on the customer and the pursuit of
superior customer perceived service quality, value, and image.