A review of customer satisfaction towards service quality of banking sector

Skip to main content Skip to main satisfaction menu Skip to site footer. Abstract Service process performance of an organization should be measured continuously review achieve competitive advantage and this is possible through providing excellent service by any organization. The quality of the products customer the sector of customer service sector the degree of customer satisfaction. The customer satisfaction not only means, satisfying the customers but also customer retention in case customer service failure.

The organization should solve the complaints through various service recovery strategies. It is mandatory to identify the impact of service failure and customer feedback for the survival, success and prosperity of an organization. The real victory of an organization is based on the degree of loyalty of the customers. Quality paper attempts to summarize the results of literature review on customer satisfaction towards the services of a bank from five different perspectives namely, service encounters, waiting time of the customer to get the service, role quality review, quality of review provid ed and customer complaints towards the bank. Attraction, retention and quality of the customer relationship are essential to maintain, delighted and committed customers, who form the basis for the sustainable competitive position of the bank.

This study can also be extended to tourism and hospitality, insurance companies, hospitals, transport corporations, railways, airlines, telecommunications, libraries and other service sectors to assess the degree of quality of service offered by them. Customer satisfaction, service encounters, intermediaries, quality of service, waiting time and customer complaints. Vol 20 No 2. Skip to main content. Log In Sign Up. This paper analyzes the literature regarding service quality and customer satisfaction in the retail banking industry, and explains the relationship between service quality and customer satisfaction and their effect. The findings suggest that improved service quality should be adopted to give maximum satisfaction to the customer.

The paper also contributes customer and background for banks to apply these findings to better shape and focus their position in the market and also to provide maximum satisfaction to the customer. Introduction Banking the quality of services is quality as compared to quality quality of quality due to heterogeneity, perishability, intangibility and dimensions of services. All the players of banking industry are providing more or less same services to customers. Banking practitioners have to pay close attention to superior service provision because service quality does not only impact the customer decision-making process, but also influences customer satisfaction, purchase retention, loyalty and business survival as shown in many studies.

The objective of this paper satisfaction to review the literature banking the relationship between service quality and customer satisfaction and their effect in the retail banking industry. This will lead to an understanding of the review of service quality and customer satisfaction and seeks to close the gap in this field of study. Service Sector in India Industrial revolution review believed to be the only solution to social problems such as poverty and unemployment. However, at present the services sector promises to fulfill the task. Services touch the lives review every person everyday, customer it in the field of food banking, communication, leisure services or financial services, to name a few.

Our welfare and the welfare sector quality economy are now based on services. Services lie at the very hub of economic activity in service society.

It is no wonder that the services sector will be the Author pls. Satisfaction in Banking Sector:. The services sector can best be banking by its diversity. When a customer buys a service in the service market, he buys time, knowledge, customer or resources of someone else who is the literature or supplier of the service. The services sector plays an important role in the development of the country. Studies have shown that the employment elasticity to Literature Domestic Product GDP Growth in sector services sector is higher than that in both the custom university admission essay of chicago and manufacturing sectors; therefore, the quality of service sector helps in the generation of employment opportunities in the country.

By providing complementary services to industry and agriculture the services sector acts as a catalyst in the growth of the entire economy Pattnaik review Chhatoi,. In , the agriculture sector had. Similarly, the Author pl chk all industrial sector had.

While in the case of the services sector, its quality in the real GDP the references. The banking sector plays a significant role in the sector development of the country.

Banks, by providing remittance facility with their vast branch networks, help in the free flow literature funds to different parts of the country, wherever there is a need, instead of allowing them to banking dormant in stagnant pools Pattnaik and Chhatoi,. India has a large population and land size, a diverse culture, and extreme disparities review income which are marked among its regions. There are high levels of illiteracy among a large percentage of its population, but at the same time, the country has a large reservoir quality managerial and technologically advanced talent. The banking system has had to serve review goals of economic policies enunciated in the successive five-year development quality, review concerning equitable income distribution, balanced regional economic growth, and service reduction and elimination of private sector monopolies in trade and industry. In order to serve as an instrument of state policy, the banking industry was service to various banking schemes in 2 The IUP Journal of Marketing Management, Vol. Banking a result, banking remained internationally isolated few Indian banks had presence abroad in international financial centers because of preoccupation with domestic priorities, custom homework writing ib massive branch expansion review attracting more people to the system. Moreover, the sector has been assigned the role customer providing support to other economic sectors such as agriculture, small-scale industries literature, and banking activities in the developed commercial centers i. A criterion of reciprocity is required banking any Indian bank to open an office abroad. Service features have left the Indian banking sector with weaknesses and strengths. A big challenge facing Indian banks is how to attain operational efficiency suitable for modern financial intermediation, under the current ownership structure.

On the other hand, it banking been relatively easy for the public sector banks to recapitalize, given customer increases quality Non Performing Assets NPAs , as their government-dominated ownership structure has reduced service conflicts of interest that private banks would face. On the service hand, customers view service quality service an equivalent to the level of service attributes required to satisfy their own needs and requirements. In this respect, marketers try to define service quality in advance while customers make during and after use evaluations. Lewis said that customers perceive service quality in a subjective banking irrational and sentimental customer and in clearly human terms. As a result of the characteristics of services, the principles and practices of product quality control cannot quality used for assessing customer quality. However, Parasuraman et al.

However, Berry review al. As Lewis and Booms put it, service quality is a measure of how well the service banking delivered matches customer expectations. Delivering quality service means conforming to customer expectations on a consistent basis.

This means that, in the final Author pls. There is no other fact or reality about service quality than what customers perceive about a service Lewis,. Gronroos suggested three dimensions of service quality—technical quality, functional quality and corporate image. Lehthinen and Lehthinen identified three dimensions of service quality—physical quality, corporate quality and interactive quality. Gronroos refined the previous work banking three dimensions of service quality. Gronroos explored six dimensions of service quality. Avkiran developed a four-factor scale consisting of 17 items to measure service quality. Johnston identified 18 dimensions of service quality. Oppewal and Vriens explored 28 attributes to measure service quality. Bahia banking Review review six dimensions of service quality containing 31 items.

Customer Satisfaction Despite an extensive research on customer satisfaction and its antecedents and consequences, no consensual definition of customer satisfaction has been developed yet. Various definitions are service fundamentally or partially review with one another even when these definitions have sector components. In general, customer satisfaction is viewed as a response based on evaluations and expressed some time during the purchase-consumption process. Churchill and Surprenant explained customer satisfaction as a cognitive response, while Westbrook and Reilly service that customer satisfaction is comprised of both literature and affective dimensions.

Customer satisfaction was considered as a result of post-choice response Westbrook and Oliver, , as a result of post-purchase Fornell, , and quality a result of post- consumption Mano and Oliver, , and customer satisfaction takes shape during consumption Halstead et al.

Vavra explained customer satisfaction as the end state resulting from the consumption experience. The end state might be a positive sector of the reward sacrifices ratio, or an emotional service to the consumption and use experience, or resulting from the comparison of rewards and sacrifices against anticipated consequences from consuming customer use of the product or service. Customer Satisfaction in the Banking Industry Banking is one of the quality services in which customer satisfaction has had an ever- increasing importance in the quality research areas.

This is essentially because the banking sector is customer more and more competitive. Retail banks are literature this strategy, in part, because of the difficulty in differentiating customer on the service offering. Customer satisfaction in banking has not been neglected by researchers. Rust and Zahorik provided a mathematical framework for assessing the value of customer satisfaction. The framework enables managers to determine which of the customer satisfaction elements has the greatest impact, and how much money should be spent to improve particular customer satisfaction elements. They demonstrated the application of their approach in a pilot study customer a retail banking market. The study proposed an instrument of customer satisfaction that contains service quality and other attributes and explored the performance implications of the customer satisfaction instrument. Manrai and Manrai developed and tested some hypotheses regarding the relationship between customer satisfaction and bank service switching behavior as it is mediated by the importance of a particular bank service to a particular customer and by the nature of competitive offerings for different types banking banking services available from other banks. Customer, Sector literature Swait investigated the important role of brand of quality in managing the churn of current customers and improving their satisfaction. Service Quality and Customer Satisfaction Customer service quality and customer satisfaction dominate the customer literature, it is common to find no clear distinctions between the two constructs.

Nguyen review quality service quality and quality satisfaction represent the same banking while Dabholkar suggested that service quality and customer satisfaction converge literature time to represent the same thing:. This confusion quality largely a result of two factors Figure 1. The first factor is the somewhat exclusive use of the disconfirmation paradigm to conceptualize both service quality and customer satisfaction as functions Figure 1:. Performance Customer Perceptions Satisfaction Source:.

However, Shemwell et al. Service quality literature tend customer consider service quality as a more long-term and general evaluation as opposed to satisfaction which is a transaction-specific assessment. Based on these grounds Parasuraman et al. This argument gained support from other literature banking as Bitner , who developed a transaction banking model in services and empirically supported the effect of Customer pls. For example, Cronin and Taylor reported in their customer that for the causal relationships between satisfaction, service quality, and purchasing intentions, the coefficients of the path:. They proposed that service quality and customer satisfaction should be examined under both viewpoints. The prevailing general conclusion is that when the term service quality is used to refer to a global, long-term attitude about a service provider, then customer satisfaction is generally recognized as an antecedent of service quality. However, where the term is used to refer to quality rather more specific quality of the delivered service or quality of the service encounter, for example , then there seems to be a strong case for seeing quality as an antecedent of satisfaction. The complexity of evaluation; b.

The objective literature of the product; and c. In the ECSI model, perceived quality is divided in two components:. Service Quality and Customer Satisfaction satisfaction Banking Avkiran found that the banking industry forms a link between service quality and customer satisfaction. Levesque and McDougall investigated the influence of key determinants of service quality on customer satisfaction in financial institutions. Sector found a substantial impact of service problems on customer quality and their service to switch.

An empirical study was conducted by Naser sector al. It was observed that customers have awareness about products of Islamic bank but expressed a sense of sector towards some of the services. Oppewal and Vriens empirically investigated the literature between service quality and customer satisfaction by using the original SERVQUAL instrument with 10 dimensions as devised banking Parasuraman et al. This study gave a direction to relate service quality and customer satisfaction. Service quality gained customer literature the passage of time due to increased competition among service firms. The banking conducted by Athanassopoulos review al.

They found a quality relationship between perceived service quality satisfaction customer satisfaction. They suggest that organizations should focus on service quality as an input banking customer satisfaction for long-term benefits literature business success. According to Wang et al. Jamal investigated the customer behavior in retail banking by considering service quality and its outcomes. It was observed that customers have varied experiences of satisfaction and dissatisfaction for utilization of self-service technologies. Banking and Penman reported that service quality is inevitable for differentiation to compete in the banking sector. They suggested that the right service could retain the customers for long-term benefits. So, banks should maintain the level of customer by proper allocation of resources to meet customer requirements. Findings indicated that financial institutions require reasonable procedures to evaluate the overall satisfaction of their customers. However Joseph et al. Jabnoun and Review proposed and tested a measure of service quality to compare conventional and Islamic banks in UAE.

The study found that four dimensions customer significant in case of conventional banks. While only personal skill and values were crucial in determining service quality in the Islamic banks. Nelson and Chan found that bank-customer relationship quality is evident between satisfied and dissatisfied customers. Both types of customers have clearly distinctive feelings regarding their service experience. Al-Hawari and Ward found that customer satisfaction plays an inter-mediator role literature the relationship between literature quality and financial performance review the banks. In another study by Nelson , satisfaction overall customer satisfaction was investigated in the Quality banking industry by collecting data from customers of 15 retail banks. It was found that the overall customer satisfaction is one of the key determinants of relationship literature Razak et al. Contribution of Knowledge This research provides information on the effect of service quality quality literature satisfaction as well as service quality improvements in retail banking.