Assessing the Impact of Service Quality Dimensions on Customer Satisfaction in Commercial Banks of Mauritius

Abstract

In today’s hyper competitive banking arena, banking institutions are focusing on improving service quality. Providing excellent quality of service is important in creating and sustaining competitive advantage in the banking industry of Mauritius due to intense competition between local and international banks. Hence, the paper explores the impact of Service Quality (SQ) Dimensions on customer satisfaction. Using the SERVQUAL model, the paper seeks to examine the impacts of reliability, responsiveness, assurance, empathy and tangible aspects on customer satisfaction in banks of Mauritius. A sample of 200 banking customers was randomly selected and data were analyzed through SPSS version 22. The SERVQUAL model has been found as reliable factors and appropriate tool to measure, evaluate, support, and improve the quality of services in banking industry. Results indicated that all five service quality factors have significantly positively influenced customer satisfaction in banks. Regression analysis was also conducted and depicted that empathy is a significant predictor of customer satisfaction among the five SQ dimensions.

Do women customers love to talk about financial brands? An empirical evidence on the mediated service responsiveness and brand sincerity in creating a positive word of mouth

“…There is overwhelming literature support available concerning service quality and customer satisfaction of financial services (Al-Salem & Mostafa, 2019;Avkiran, 1994;Bakar et al, 2019;Bolton & Drew, 1991;Cadotte et al, 1987;Devesh, 2019;Levesque & McDougall, 1996;Pakurár et al, 2019;Suciptawati et al, 2019;Vencataya et al, 2019). It has been frequently debated that customer satisfaction is increased because of high perceived service quality (Gounaris et al, 2003;Parasuraman et al, 1988), which defines the strong relationship between the two.…”

Customer Satisfaction in Retail Banking– Current and Future Research Trends

“…For customers, ethicality is more important than the innovativeness of organizational or procedural solutions (Al-Salim, 2018). The conducted regression analysis indicated that empathy was a significant indicator of customer satisfaction among the five dimensions of SERVQUEL (Vencataya et al, 2019). Research confirms that the personal character traits of people providing services are of considerable importance for customers.…”

“…Banking is a very competitive industry (e.g. Lee and Moghavvemi, 2015;Vencataya et. al., 2019;Benţe, 2018) and startup online high-tech banking institutions continue to challenge traditional brick and mortar establishments.…”

Determining the Effect of Banking Service Quality on Customer Loyalty Using Customer Satisfaction as a Mediating Variable: An Applied Study on the Jordanian Commercial Banking Sector

“…The discussion follows prior studies (e.g. Raza et al, 2020;Fida et al, 2020;Siddiqi, 2011;Lomendra et al, 2019;Panichpathom, 2016). The third section explains the mediating variable (e.g.…”

“…Prior studies (e.g. Ajmal et al, 2018;Naeem et al, 2009;Lomendra et al, 2019;Zeithaml et al, 2002;Raza et al, 2020;Kotler & Keller, 2012;Fragoso & Espinoza, 2017;Parasuraman et al, 1988;Eltahir & Abdallah, 2019;Al Karim & Chowdhury, 2014) used the following dimensions of banking service quality: Tangibility: It includes physical evidence of a service, such as physical facilities, machinery, equipment and personnel.…”