International Journal of Management and Social Sciences Research (IJMSSR)

Volume 2, No. 3, March 2013

ISSN: 2319-4421

Impact of Service Quality on Customer Satisfaction at AXIS

Bank
Dr. S. J. Manjunath, Associate professor, DOS in B. N. Bahadur Institute of Management Sciences, University of
Mysore, Mysore, India
Aluregowda, Assistant Professor, MBA Department, P E S college of Engineering, Mandya, India

ABSTRACT
LITERATURE REVIEW
Service Quality, a measure of the overall value of a
service, is a key concept in service marketing. Service
Quality has been significant impact on customer loyalty.
They can lead to customer satisfaction and customer
loyalty. The aim of this study is to find customer
perceptions on service quality dimensions among
consumers of bank services. The results show service
quality is an important element to create customer loyalty
that will lead to customer satisfaction and loyalty.
Therefore, in trying to develop strong service quality,
bankers should be interested in assessing the degree of
customer service dependence. The banks service quality
depends on the perceptions of their service customers.
Satisfied and loyal customers indicate positive perceptions
of the banking services.

Keywords
Services, Axis Bank, Service
Satisfaction, Customer Loyalty.

Quality,

Customer

INTRODUCTION
In the last two decades, regulatory, structural and
technological factors have significantly changed the
banking environment throughout the world (Angur, 1999).
In a milieu which becomes increasingly competitive,
service quality as a critical measure of organizational
performance continues to compel the attention of banking
institutions and remains at the forefront of services
marketing literature and practice (Lasser, 2000; Yavas and
Yasin, 2001). The interest is largely driven by the
realization that higher service quality results in customer
satisfaction and loyalty, greater willingness to recommend
to someone else, reduction in complaints and improved
customer retention rates (Danaher, 1997; Magi and
Julander, 1996; Levesque and McDongall, 1996). No
doubt, the belief that delivery of higher service quality is a
must for attaining customers satisfaction and a number of
other desirable behavioural outcomes, recent years have
witnessed a flurry of research exploring inter relationship
between service quality and, satisfaction and behavioural
outcomes.

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Service quality is considered a multi-attribute put up-the

product of the comparison between the customers
expectations and their perceptions of the companys
actions. Perceived service quality has been defined as the
consumers universal attitude or judgment of the overall
superiority of the service. Perceived service quality results
from comparisons by consumers of expectations with their
perceptions of service delivered by suppliers. Customers
expectation are idea about a service that serve as values
against which service performance is judged (Zeithaml,
1993); what customers think a service provider should
offer rather than what strength be on offer (Parasuraman,
1988). Prospect are formed from a variety of sources such
as the customers personal needs and wishes.
Measurement of Service Quality.
The SERVQUAL instrument proposed by Parasuraman,
(1988) posits the computed disconfirmation move toward
whereby the difference between a customers expectation
and the definite performance is calculated. This loom has
been criticize by several authors for a number of
weaknesses. The substitute approach namely SERVPERF,
is that measurement of the customers perception of the
performance of a service which provides adequate
assessment for service quality. The increasing support on
the measurement of service quality by performance-only
measurement (SERVPERF) is witnessed (Andaleeb, and
Basu, 1994; Zeithaml, 1996 and Cronin, 2000). Since the
weight of evidence in the literature supports the use of
International Journal of Management & Strategy JulyDec.2010 Vol.1, No.1 4. Service Quality Dimension in
Banks.
Several researchers have suggested that the search for
universal conceptualization of the service quality
construct may be futile (Levist, 1981; Lovetock, 1983).
The service quality construct is either industry or context
specific (Babakus and Boller, 1992). The measurement of
the service quality construct is multidimensional. In its
original structure, service quality consists of five
dimensions (Parasuraman, 1988; Carman, 1990; Rust and
Oliver, 1994). These are:

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International Journal of Management and Social Sciences Research (IJMSSR)

Volume 2, No. 3, March 2013

1. The tangibility aspects of the service

2. The reliability of the service provider
3. The assurance provided by the service provider
4. The responsiveness of the service provider; and
5. The service providers empathy with customers
The included variables to measure the service quality of
commercial banks were ranging from seventeen to fifty
seven variables. According to a model presented by
Zeithaml et al., (1996), behavioural intention can be
captured by such measures as repurchase intentions,
words of mouth, loyalty, complaining behaviour, and
price sensitivity. High service quality often leads to
favourable behavioural intention (Burton et al., 2003).
Loyal customers are important, because they contribute to
the banks profitability by passing positive words of
mouth and also retain their customership.. Loyalty is
predominantly satisfaction driven (Rust et al., 1995) and
therefore customers satisfaction measurements are
believed to give a better indication of future performance
of service firms
than, for instance financial and
accounting based measures. Customer loyalty is a feeling
of commitment on the part of the consumer to a product,
brand, marketer, or services above and beyond that for the
competitors in the market place, which results in repeat
purchase (Szymigin and Carrigan, 2001). A loyal
customer to a bank is thus, one who will stay with the
same service provider, is likely to take out new products
from the bank.

OBJECTIVE OF THE STUDY

The objective of the study is to determine the impact of
service quality on customer satisfaction.

HYPOTHESIS
Ho These is no significant relationship between
reliability and customer satisfaction.
Ho These is no positive relationship between
responsiveness and customer satisfaction.
Ho These is no positive relationship between tangible
and customer satisfaction.
Ho These is no significant relationship between
recovery and customer satisfaction.
Ho These is no positive relationship between perceived
value and customer satisfaction

RESEARCH METHODOLOGY
The data for the research has been collected through
structured questionnaire from the customers of AXIS
bank, Mysore. The sample size of 140 respondents was
selected for the study. The data has been analyzed by
using one sample t test and anova analysis.

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ISSN: 2319-4421

DATA
ANALYSIS
INTERPRETATION

64

AND

One-Sample Statistics

Reliability
Error-free records
Timely Passion of
service
Right at first time
itself
Providing service
at promised time

N
140

Mean
1.6143

Std.
Deviati
on
.63001

Std.
Error
Mean
.05325

140

1.7357

.68500

.05789

140

1.6357

.72182

.06100

140

1.7143

.69205

.05849

One-Sample Test

Reliability

t
Error-free
records
Timely
Passion of
service
Right at first
time itself
Providing
service at
promised
time

df

Test Value = 3
Mean 95% Confidence
Sig. (2- Differen Interval of the
tailed)
ce
Difference
Lower Upper

-26.025

139

.000 -1.38571 -1.4910 -1.2804

-21.838

139

.000 -1.26429 -1.3787 -1.1498

-22.364

139

.000 -1.36429 -1.4849 -1.2437

-21.982

139

.000 -1.28571 -1.4014 -1.1701

Based on the results of the One sample t-test analysis at

95% confidence level, Mean values fall in positive side of
rating (less than 3), tcal value > ttab value and p-value < =
0.05 for all the select reliability factors under study.
Hence Hypothesis Ho - There are no significant effects of
reliability and customer satisfaction is rejected, and Ha
There is a significant effects of reliability on customer
satisfactions is not rejected since one sample t-test
successfully revealed a statistically significant values for
reliability factors.
One-Sample Statistics

RESPONSIVENESS
Employees adopt
service to the
customer needs
Well handling of peak
hours
Customers informed
about service
performance
Courteous among
employees

Mean

Std.
Deviation

Std. Error
Mean

140 1.6857

.73048

.06174

140 1.6571

.65450

.05532

140 1.6357

.65931

.05572

140 1.5643

.55244

.04669

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International Journal of Management and Social Sciences Research (IJMSSR)

Volume 2, No. 3, March 2013

One-Sample Test

t
Employees
adopt service
to the
customer
needs
Well
handling of
peak hours
Customers
informed
about service
performance
Courteous
among
employees

Test Value = 3
Sig. Mean 95% Confidence
(2- Differen Interval of the
df tailed)
ce
Difference
Lower Upper

-21.288 139

.000 -1.31429 -1.4364 -1.1922

-24.277 139

.000 -1.34286 -1.4522 -1.2335

-24.484 139

.000 -1.36429 -1.4745 -1.2541

-30.750 139

.000 -1.43571 -1.5280 -1.3434

Based on the results of the One sample t-test analysis at

95% confidence level, Mean values fall in positive side of
rating (less than 3), tcal value > ttab value and p-value < =
0.05 for all the select responsiveness factors under study.
Therefore Hypothesis Ho - There are no significant effects
of responsiveness and customer satisfaction is rejected,
and Ha - There are significant effects of responsiveness on
and customer satisfaction is not rejected since one sample
t-test successfully revealed a statistically significant
values for responsiveness factors.
One-Sample Statistics

TANGIBLE
Attractive
interior design
Neat and
professional
appearance of
employees
Visually
appealing
facilities

65

One-Sample Test

TANGIBLE

RESPONSIV
ENESS

ISSN: 2319-4421

Mean

140

1.6714

Std.
Deviation
.67262

Std.
Error
Mean
.05685

Test Value = 3
Sig.
Mean 95% Confidence
(2- Differenc Interval of the
df tailed)
e
Difference
Lower Upper

Attractive
interior
-23.371 139
design
Neat and
professional
-22.396 139
appearance of
employees
Visually
appealing
-21.827 139
facilities

1.6643

.70569

1.6929

.70860

RECOVERY
Employees
empowered for
correction
Quick Correction
on mistakes made
Convenient
operating hours

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Std.
Deviation

Std.
Error
Mean

Mean

140

1.7643

.71581

.06050

140

1.6786

.62637

.05294

140

1.6643

.61878

.05230

One-Sample Test

Test Value = 3

.05964

.05989

.000 -1.30714 -1.4256 -1.1887

One-Sample Statistics

t
140

.000 -1.33571 -1.4536 -1.2178

The results of the One sample t-test analysis at 95%

confidence level, the Hypothesis Ho - There is no
significant influence of tangibles on customer satisfaction
is rejected, and Ha - There is a significant influence of
tangibles on and customer satisfaction not rejected since
one sample t-test successfully revealed a statistically
significant values for tangibles. Mean Based values fall in
positive side of rating (less than 3), tcal value > ttab value
and p-value < = 0.05 for all the select tangibles under
study

RECOVERY
140

.000 -1.32857 -1.4410 -1.2162

Employees
empowered for
correction
Quick
Correction on
mistakes made
Convenient
operating
hours

95%
Sig.
Mean
Confidence
(2- Differen Interval of the
df tailed)
ce
Difference
Lower Upper

-20.426 139

.000 -1.23571 -1.3553 -1.1161

-24.962 139

.000 -1.32143 -1.4261 -1.2168

-25.541 139

.000 -1.33571 -1.4391 -1.2323

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International Journal of Management and Social Sciences Research (IJMSSR)

Volume 2, No. 3, March 2013

The results of the One sample t-test analysis at 95%

confidence level, the Hypothesis Ho - There is no
significant influence of tangibles on customer satisfaction
is rejected, and Ha - There is a significant influence of
recovery on and customer satisfaction not rejected since
one sample t-test successfully revealed a statistically
significant values for recovery. Mean Based values fall in
positive side of rating (less than 3), tcal value > ttab value
and p-value < = 0.05 for all the select tangibles under
study
One-Sample Statistics

PERCEIVED
VALUE
Navigation
Easy
Confidence on
Bank
Safety

Mean

Std.
Deviation

Std.
Error
Mean

140

1.6286

.64977

.05492

140

1.7429

.67185

.05678

140

1.6071

.69631

.05885

bank choice decisions of the customers may differ from

other customers in the city.
Furthermore, the bank choice decisions of the customers
in Mysore different across the city.
In addition, some of the respondents may not be honest
and sincere in answering the questionnaire. The results of
this study should also be interpreted with care. The
development of a process measure for referent influence
would add to the strength of the findings and is a
limitation of this study.
Despite these limitations, the study makes some
contribution by providing important information regarding
factors that affect service quality in Mysore.

CONCLUSION
This study basically indented to find out the factors that
affect service. It also gives an insight of customer loyalty
and customer satisfaction affects on service quality in
general.
In terms of customer loyalty, it is found that customer
loyalty does have a relationship with service quality and it
did affect consumer satisfaction in services. The more
involvement of services is important for service quality.

One-Sample Test

PERCEIV
ED
VALUE

ISSN: 2319-4421

Test Value = 3
Sig.
95% Confidence
(2Mean
Interval of the
df tailed) Difference
Difference
Lower

Navigation
-24.973 139
Easy
Confidence
-22.140 139
on Bank
Safety
-23.669 139

Upper

.000 -1.37143 -1.4800 -1.2629

.000 -1.25714 -1.3694 -1.1449
.000 -1.39286 -1.5092 -1.2765

Based on the results of the One sample t-test analysis at

95% confidence level, Mean values fall in positive side of
rating (less than 3), tcal value > ttab value and p-value < =
0.05 for all the select reliability factors under study.
Hence Hypothesis Ho - There are no significant effects of
perceived value and customer satisfaction is rejected, and
Ha There is a significant effects of perceived value on
customer satisfactions is not rejected since one sample ttest successfully revealed a statistically significant values
for reliability factors.

LIMITATION
AND
FURTHER STUDY

SCOPE

FOR

The area of study is limited to Mysore city. In this study,

Due to time and cost constraints, the data for this study
will be collected from single axis bank. Furthermore, the

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International Journal of Management and Social Sciences Research (IJMSSR)

Volume 2, No. 3, March 2013

ISSN: 2319-4421

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