Impact of service quality on customer satisfaction in private and public sector banks

Abstract

Purpose – In today’s world, with increased competition, service quality has become one of the most popular areas of academic investigation. The purpose of this paper is to examine the impact of various service quality variables on the overall satisfaction of customers and compare the private and public sector banks using a sample from India. Design/methodology/approach – With the help of forward stepwise regression, the authors explain how a variety of variables are both negatively and positively influencing customer satisfaction. The authors collected data from 500 respondents in India; 250 of which were customers of private sector banks, and 250 of which were customers of public sector banks. The authors had a response rate of 65 percent. Findings – In the case of private sector banks, knowledge of products, response to need, solving questions, fast service, quick connection to the right person, and efforts to reduce queuing time were found to be the factors that are positively associated with overall satisfaction. Assistance to the customer, appearance, and follow up are negatively associated with customer satisfaction. On the other hand, in the case of public sector banks, knowledge of the product and fast service are the factors which are associated positively and appearance is the only factor that is negatively associated. Originality/value – The components of service quality that are positively associated are not the same in public sector banks as they are in private sector banks.

The Effect of Service Quality, Customer Satisfaction and Corporate Image on Customer Loyalty in the banking sector in Indonesia

“…The results of several studies indicate that service quality has a positive effect on satisfaction [5], [6], [7], [8]. One of these studies found that service quality has a positive significant impact on customer satisfaction.…”

“…One of these studies found that service quality has a positive significant impact on customer satisfaction. Knowledge of [8].…”

Online Banking Service Quality: A South African E-S-QUAL Analysis

“…As such, customer satisfaction is critical in ensuring business goals are achieved. The achievement of goals the customer set out to achieve without limitations results in customer satisfaction [5], which is key to customer retention [6]. However, Rauyruen and Miller [7] identified factors that impact customer satisfaction, in addition to contextual and personal aspects, price, product quality and service quality also plays a role.…”

Technical Efficiency for Strategic Change and Global Competitiveness

“…Service quality is important for the survival of any bank in an era of cut‐throat competition, as consumers value efficiency and quality in retail banking (Paul et al ., ). Commercial banks have undergone tremendous technological and managerial changes (including computerization) to catch up with the pace of globalization and new business environments across the globe.…”