Service Quality Dimensions in the Banking Sector (original) (raw)

The Effect of Service Quality on Banks Marketing Performance

This paper investigated the effect of service quality on banks marketing performance in Jordan. The study had the specific aim of examining the relationship between service quality dimensions (reliability, responsiveness, assurance, empathy and tangibles) and bank marketing performance in the banking sector of Jordan. Primary data were collected from 174 managers of 21 banks in Jordan, using a questionnaire. Descriptive and analytical statistical methods such as multiple and simple regression analyses were employed to analyze the data collected. Consequently, it was found that there is was a significant positive relationship between the five dimensions of service quality (reliability, responsiveness, assurance, empathy and tangibles) and banks marketing performance in Jordan, with dimensions reliability and responsiveness being the strongest predictors of the dependent variable (marketing performance). Hence, the study concluded that service quality had a significant positive effect on banks marketing performance in Jordan. We recommend that Jordanian banks should ensure the delivery of consistently high quality services to customers in order to improve their marketing performance in the banking sector that is more competitive than ever.

Key determinants of service quality in retail banking

Purpose – The purpose of this study is to build a retail-banking specific quality scale and, through its examination and comparison with the SERVQUAL and BSQ metrics that are currently used in banking, to deepen understanding of quality determinants in the industry. Furthermore, the study is set to provide additional input to the debate over generic against setting/industry/time-specific quality metrics. Design/methodology/approach – The study is implemented through a two-stage process of literature review and empirical survey. Evidence drawn from Greek retail banking, through a specially designed research tool, is analyzed through reliability, factorial and regression analysis to determine the scale's item and factorial structure and assess its reliability and validity. Findings – The BANQUAL-R metric is introduced, with key elements assurance/empathy, effectiveness, reliability and confidence, a combination of SERVQUAL and BSQ dimensions. Findings back the setting-specific approach of service quality and the notion that SERVQUAL provides the skeleton on which setting-specific scales should be built. Practical implications – Bank managers are provided with a reliable and valid metric of service quality in retail banking. Its dimensionality implies that under credit-crunch conditions service delivery should be directed towards reinstating customers' trust and confidence that are put in danger. Banks should redirect resources from tangibles to the human contact-related service elements. Originality/value – Although the subject of “service quality measurement” is extensively researched, the continuously changing marketing environment calls for an ongoing assessment of quality factors. With respect to its academic value, the study accumulates knowledge that will eventually outgrow the boundaries of academia and pervade management.

Measuring Service Quality Dimensions in Nationalized and Private Banks

Strategic Infrastructure Development for Economic Growth and Social Change

Quality generally refers to something done by human beings at a very high level of excellence, oftentimes in the sense of works of perfection as being distinctive from inferior to mediocre performance. This chapter is an analytical study based mainly on the primary data collected through a scientifically developed scale. The scale was personally administered on a sample size of 202, chosen on a convenient basis from two banks, a nationalized bank and private bank. The scale of Parasuraman, Zeithml, and Berry (1986, 1988) was used here. In order to achieve higher levels of quality service in banking, banks should deliver higher levels of service quality, and in the present context, customers' perceptions are highest in the level of infrastructure facilities of the bank. Owing to the increasing competition in retail banking, customer service is an important part and bank managers should rethink how to improve customer satisfaction.

Measuring Service Quality of Banks: An Empirical Study

Research Journal of Finance and Accounting, 2011

This study examines an interrelationship among service quality, satisfaction and customer loyalty. The objective of this study is to establish an inter-linkage among service quality, satisfaction and loyalty. For this purpose, existing SERVQUAL model has been extended to test the above linkage in a developing country context. A quantitative research approach is used in this study. A sample of 222 bank clients was drawn randomly from private and public sector banks in Bangladesh. The research findings suggest that there is a strong influence of service quality dimensions on satisfaction. It is also found that the customer satisfaction and reputation of the bank lead greater loyalty. Hence, the findings of the study would open up a new method of designing banking service in developing country like Bangladesh. It will also guide the bankers how well they could serve present and prospective customers. In fact, the study provides a framework for bankers to offer quality service.

Identifying service quality dimensions as antecedents to customer satisfaction in retail banking

Economic and Business Review, 2010

Th is paper explores service quality in a retail bank setting in Slovenia and its infl uence on customer satisfaction. In previous studies both SERVQUAL and SERVPERF scales have been used for measuring service quality. Based on SERVPERF a 28-item scale has been developed for this study. Th rough factor analysis four dimensions of service quality have been obtained. Th e results from regression analysis suggest that all four dimensions of service quality as well as service range infl uence customer satisfaction. Th e information provided by this research can be used when designing marketing strategies to improve customer satisfaction in retail banking.

CONCEPTS OF SERVICE QUALITY MEASUREMENT IN BANKS

The major aim of the research paper is to measure the quality of service offered by Raiffeisen Bank in Romania. Moreover, it tries to investigate the relationship between service quality, customer satisfaction and loyalty. The five dimensions of SERVQUAL model i.e. reliability, assurance, tangibility, empathy and responsiveness were used to measure the quality of service offered by the private banks. In order to achieve the aims, both primary and secondary sources of data were used.

Service Quality Gap Assessment in Banking Industry

Tij S Research Journal of Social Science Management Rjssm, 2014

Indian banking sector has become highly competitive in the Environment of Liberalisation, Privatisation and Globalisation. Banks should not only focus on providing wide range of products to create competitive advantages; but also emphasize on the importance of services, particularly in maintaining service quality. The objective of this study is to study the determinants of quality of services and to analyze the difference between customers' expectations and customers' perceptions of services rendered by banks. The 22 attributes confined into 5 dimensions of the SERVQUAL instrument are used to measure the service quality of the banks. They are as Tangibility, Reliability, Responsiveness, Assurance and Empathy. The sample for this study comprises 200 customers from public and private sector banks and convenience sampling technique is chosen as the basic method to carry out the study. The study reveals that attributes under the three dimensions namely, Responsiveness, Assurance and Empathy are the major short falls of service quality rendered by banks. These are the service attributes a bank is required to pay more attention to maintain their customers satisfied.

Quality of Service in the Banking Sector

Mediterranean Journal of Social Sciences, 2013

While observing the various financial institutions in our country we notice the existence of multiple varieties such as: insurance institutions, banks, institutions of social services etc. Among the financial institutions mostly used by businesses and people in general we distinguish the banks. In addition, today's market tendencies have increased the request for financial bank services. As a result, lately the number of banks in our country has increased. This phenomenon has increased customer service, the quality of service and higher competition among banks. Under these conditions it is necessary that banks use aggressive marketing strategies in order to be successful and competitive among their own kind. Due to the increase in market competition, identifying consumer's needs and increasing the quality of service has become a very important trend in today's marketing world. Research has shown that good quality customer service generates better income. While trying to determine what marketing strategies give the edge, academic researchers are trying to figure out what kind of customer service works best in today's environment so that they can improve it. Based on various studies the quality of service has a huge impact on consumer's satisfaction and their loyalty, at the same time it is established as a result of comparison that clients do between the expectations they have for service and their perception of the quality of service rendered. (Parasuraman et al., mentioned in Caruana, 2002).The quality of service has a positive effect in the performance of a bank; as a result it gains competitive advantages due to the improvement of quality of service. As such, what clients think of a service overpasses their expectations for the same service. Caruana, 2002; Chumpitaz, 2004). Due to higher internet access in today's world, the way businesses are managed including the banking business has changed. Consumers are expecting better quality of service, shorter transaction times and better service conditions. However, because the nature of the services, susceptibility, indivisibility, heterogeneity and the quality of services become difficult to be appreciated.

HOW DO SERVICE QUALITY PERCEPTIONS CONTRIBUTE IN SATISFYING BANKING CUSTOMERS?

2011

The notion that service quality enhances the relationship of buyer-seller and shared benefits including performance and customer satisfaction had been acknowledged widely . In this connection, also found that perceived service quality was significant predictor of customer satisfaction by using SERVQUAL instrument. So it was hypothesized that clients using commercial retail services of the banks with favorable perceptions of service quality dimensions (tangibility, reliability, responsiveness, assurance and empathy) will experience higher satisfaction. Multiple regression of survey responses indicated that assurance satisfied banking customers more than did reliability whereas favorable perceptions regarding SERVQUAL remaining dimensions did not prove to be instrumental in satisfying customers. Implications for banking practitioners and future research were also discussed in the paper.