Customer Satisfaction Index Model for Indian Banking Industry: A Qualitative Study

Abstract

The conventional financial measures have always dominated the business performance evaluation in India. There is a need to augment the current approaches to evaluate the financial health of individual firms and industries. Customer Satisfaction Index (CSI) is one of the best solutions which is a customer-based satisfaction benchmarking system and serves as a standard metric, widely implemented in the United States and Europe. However, there is no such index in India and there is a need for a non-financial, customer-based satisfaction metric. This study is a pilot attempt to develop a Customer Satisfaction Index (CSI) model, specifically for the Indian banking industry. To achieve this, the focus group technique was employed to find the key determinants of customer satisfaction in the banking industry. The comprehensive thematic analysis revealed a total of six themes and nine sub-themes which have been proposed as the antecedents of customer satisfaction in the CSI model for the Indian banking industry. The future research intends to develop instrumentation based on the focus group results and validate the hypothesized CSI model proposed in this study.

Modified Servqual Model and Effects of Customer Attitude and Technology on Customer Satisfaction in Banking Industry: Mediation, Moderation and Conditional Process Analysis

“…Hence, it is further concluded that the technology has a significant impact as moderating variable between the services quality dimensions (empathy, reliability, competence, and online banking) and customer satisfaction. These results are consistent with the previous research studies, which demonstrated that banking services are now linked globally by using technologically compatible regulations (Rout, Samarpita 2017;Prasadh, Suresh 2016;Raza, Hanif 2013;Angur et al 1999). Note: 'X' is known as the multiplicative sign; * denotes rejection of the hypothesis at the 0.05 level (P < 0.05); DV = Customer satisfaction; EMP = Empathy; REL = Reliability; COM = Competence; OB = Online banking; Moderator: TEC = Technology; Level of confidence for all confidence intervals in output: 95.00.…”

“…The SERVQUAL model signifies satisfaction that is associated with the magnitude and path to disconfirmation of an individual's exposure when she/he encounters in her/his first anticipations (Hery 2016;Prasadh, Suresh 2016;Parasuraman et al 1985;Smith, Houston 1982;Churchill, Surprenant 1982). On the basis of earlier empirical shreds of evidence, the hypothesis of this study have been formulated as under:…”

“…They concluded that there was high reliability in all four companies; however, some potential exceptional values were also related to this dimension. Several researchers have used reliability as the quality dimension along with other dimensions with 22 to 30 constructs in order to investigate the customer satisfaction in conventional and Islamic banking sectors (Prasadh, Suresh 2016;Smith 1995;Jabnoun, Al-Tamimi 2003;Cronin, Taylor 1992;Raza et al 2015). Bahia and Nantel (2000) proposed a modified SERVQUAL six dimensions (tangibility, effectiveness & assurance, reliability, access, price, and service portfolio) model for the banking industry.…”

“…By using technology, the wider range of banking activities can be performed, and it can help the banking industry to stay competitive in the financial market. The biggest utility of rapid technology is assurance of quality services to the customers and their satisfaction (Prasadh, Suresh 2016;Gümüş, Öner 2016;Guo et al 2008;Arasli et al 2005;Angur et al 1999;Herington, Weaven 2007;Metawa, Al-Mossawi 1998;Newman, Cowling 1996;Raza et al 2015). These changes are very much volatile, therefore the banks are required to remain very much vigilant to the changes, as the technology changes in hours rather than years.…”

“…The speed of Internet has significantly increased due to Fibre optics and processors, which made the banking operations further smooth and speedy. Similarly, in Cellular technology the Smartphone and generation telecommunication (1G-5G) have brought revolution in online transactions (Long, Vy 2016;Prasadh, Suresh 2016). Thus, the technology has a significant influence on the banking business, particularly in rendering quality services to the customers.…”