The impact of perceived service quality dimensions on customer satisfaction

2017 ◽  
Vol 35 (3) ◽  
pp. 411-430 ◽  
Author(s):  
Rishi Kant ◽  
Deepak Jaiswal

Purpose In the present competitive scenario in the Indian banking industry, service quality has become one of the most important facets of interest to academic researchers. The purpose of this paper is to determine the dimensions of perceived service quality and investigate their impact on customer satisfaction in the Indian banking context, with special reference to selected public sector banks in India. Design/methodology/approach On the basis of the empirical study, the authors validate a measurement model using structural equation modeling for investigating the impact of perceived service quality dimensions on customer satisfaction. The study sample consists of 480 respondents in the National Capital Region (NCR) of India; the data were collected through a structured questionnaire utilizing a seven-point Likert scale while implementing a purposive sampling technique. Findings The perceived service quality dimensions identified were tangibility, reliability, assurance, responsiveness, empathy, and image. The empirical findings revealed that “responsiveness” was found to be the most significant predictor of customer satisfaction. On the other hand, “image” (corporate image) has a positive but the least significant relationship with customer satisfaction followed by all other constructs. The exception is “reliability,” which is insignificantly related to customer satisfaction in Indian public sector banks. Research limitations/implications The study cannot be generalized in the context of Indian banking sectors, as it only focused on the public sector. The findings of this study suggest that the six dimensions of perceived service quality model are a suitable instrument for evaluating bank service quality for public banks in India. Therefore, bank managers can use this model to assess the bank service quality in the context of Indian public sector banks. Originality/value There is dearth of research focusing on corporate image as a dimension of perceived service quality and its effect on customer satisfaction in the Indian banking context. Furthermore, similar studies were rarely found in the Indian context, especially within the public banking sector. Hence, this paper attempts to accomplish the research gap by empirically testing the satisfaction level of a large sample of the population in NCR toward six dimensions of perceived service quality rendered by selected public sector banks in India.

2016 ◽  
Vol 34 (5) ◽  
pp. 606-622 ◽  
Author(s):  
Justin Paul ◽  
Arun Mittal ◽  
Garima Srivastav

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.


2017 ◽  
Vol 8 (4) ◽  
pp. 595-604 ◽  
Author(s):  
Mohamed Abdulnaser Janahi ◽  
Muneer Mohamed Saeed Al Mubarak

Purpose The purpose of this paper is to contribute to the Islamic banking literature by examining the impact of different factors of customer service quality on customer satisfaction. Design/methodology/approach The paper presents a model which is not frequently used in Islamic banking literature and shows relationships between six factors of customer service quality and customer satisfaction in the Islamic banking sector. Customers of five main Islamic banks are contributing in this study. Findings This paper demonstrates strong and positive relationships between the six main dimensions of customer service quality (Compliance, Assurance, Reliability, Tangibility, Empathy and Responsiveness) and customer satisfaction. Research limitations/implications The study may suffer from lack of generalization, as it is conducted in one country (Bahrain). It might also be useful to enlarge the study sample and include comparison between Islamic versus conventional banking with regard to service quality and customer satisfaction. Practical implications This paper can influence the current Islamic banks with regard to service quality with an ultimate aim of increasing customer satisfaction and retaining customers. Originality/value This study is one of the few that focus on effects of customer service quality dimensions on customer satisfaction in the Islamic banking sector. It reveals that, although customers pay special attention to Sharia’h laws (compliance) in their transactions with banks, the way services are delivered matters to them too.


2015 ◽  
Vol 32 (3) ◽  
pp. 250-269 ◽  
Author(s):  
Ernest Emeka Izogo ◽  
Ike-Elechi Ogba

Purpose – The purpose of this study is to explore the dimensional structure of the SERVQUAL scale within non-western service setting as well as the impact of service quality dimensions on customer satisfaction and loyalty. Design/methodology/approach – A quantitative approach was employed, using 32-item, seven-point Likert-scaled questionnaire administered to 384 participants with 55.99 per cent usable response rate. Data were analysed using exploratory factor analysis, Cronbach’s internal consistency and γ test to, respectively, measure scale suitability, usability and strength/direction of association. Findings – The outcome from the study was the reduction of the 32 items to 26 scale items with 0.929 total α score. Further outcomes show that service quality dimensions are significant predictors of customer satisfaction and loyalty with the commitment dimension accounting for the highest degree of this impact. Research limitations/implications – Findings failed to corroborate past research as it was established that distinct efforts to measure customer satisfaction and loyalty within non-western service contexts proved to be less useful. However, outcomes cannot be generalized and as such, the modified scale that emerged from this research should receive more rigorous tests in other emerging services contexts. Practical implications – Automobile repair services firms within Ebonyi State will be better placed in their strategic responses to customer loyalty if they boost customers’ satisfaction through excellent service quality improvement actions. Social implications – The best way to enhance the welfare of the consumers of automobile repair services in Ebonyi State is by improving the empathy, tangibles, responsiveness, reliability and commitment dimensions of service quality. Originality/value – The paper demonstrates that the commitment dimension of service quality emerged as the most significant predictor of customer satisfaction and loyalty. The research also demonstrates that satisfied customers will definitely be loyal because a distinct effort to measure customer satisfaction and loyalty was found to be less useful.


2016 ◽  
Vol 34 (6) ◽  
pp. 904-923 ◽  
Author(s):  
Olof Wahlberg ◽  
Peter Öhman ◽  
Christer Strandberg

Purpose The purpose of this paper is to explore mass affluent customer perceptions of the service quality delivered by personal advisors and banks, and the contributions of personal advisors and banks to customer satisfaction; and also to analyse the strength of the relationship between customer satisfaction with personal advisors and banks. Design/methodology/approach A survey composed of items designed to mirror service quality practices used in the mass affluent segment was administered to customers of a major Swedish bank. Statistical analyses of the responses were performed. Findings Four service quality dimensions are identified as salient to customer satisfaction: interpersonal behaviour, knowledge, service portfolio, and trust. The relative importance of these dimensions depends on whether customer satisfaction with the personal advisor or the bank is focused. Moreover, the analysis indicates a double “rubbing off” effect where customer satisfaction with the personal advisor influences customer satisfaction with the bank and vice versa. Originality/value The unexplored separation of service quality provided by the bank and the personal advisor is central to perceived service quality. The study focuses on customer satisfaction in the mass affluent segment, which is an unexplored context different from retail banking.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Evangelos Psomas ◽  
Nancy Bouranta ◽  
Maria Koemtzi ◽  
Efthalia Keramida

PurposeCitizen's service centers (CSCs) are front-end delivery public points which aim to reduce bureaucratic procedures and improve citizens' services. The present study, based on the citizens' perceptions, aims to explore the impact of the CSCs' service quality on citizens' satisfaction and also to identify statistically significant differences with regard to service quality dimensions and citizen satisfaction among different groups of citizens.Design/methodology/approachA questionnaire survey was carried out based on the five dimensions of the SERVPERF model. Random sampling was used to acquire a representative and reliable sample of 1,226 respondents. Descriptive statistics, multiple linear regression analysis, T-test and ANOVA were applied to analyze the data.FindingsAccording to the citizens' perceptions, the levels of the service quality dimensions and citizen satisfaction are medium to high. The service quality dimensions have a statistically significant impact on citizens' satisfaction. Moreover, statistically significant differences are observed among groups of citizens in terms of the service quality dimensions and citizen satisfaction.Originality/valueThe present study is stimulated by the existing gap identified in the literature in the field of the public sector and more specifically in the CSCs. Building on the public sector literature, the study examines the relationship between service quality dimensions and citizens' satisfaction from the services provided by the Greek CSCs, which are innovative public service organizations operating all over Greece. It also highlights key implications for public organizations and government policy decision-makers based on citizens' demographic characteristics.


2015 ◽  
Vol 7 (2/3) ◽  
pp. 152-169 ◽  
Author(s):  
Gerson Tontini ◽  
Júlio Cesar da Silva ◽  
Eliane Fátima Strapazzon Beduschi ◽  
Elis Regina Mulinari Zanin ◽  
Margarete de Fátima Marcon

Purpose – The purpose of this paper is to consider the nonlinear impact of online retail stores’ quality dimensions on general customer satisfaction and loyalty. Design/methodology/approach – Using a quantitative approach, 429 online users answered a closed questionnaire regarding their present satisfaction with 26 service attributes, their general satisfaction and loyalty. Using factorial analysis with Varimax rotation, five service-quality dimensions are studied: service accessibility/speed, fault recovery, buying reliability, service and site flexibility and site interaction/feedback. Penalty and reward contrast analysis identifies the Kano model classification of the service-quality dimensions, and the nonlinear impact of these dimensions, and customer satisfaction, on customer loyalty. Findings – The results show that there is a nonlinearity between quality dimensions, customer satisfaction and loyalty. The dimension “service accessibility/speed” has a one-dimensional impact on customer satisfaction, but with higher reward impact than penalty impact. “Fault recovery” is a “must-be”, “buying reliability” and “service flexibility” are “attractive” and “site interaction/feedback” is one-dimensional. Besides, the dimension “service accessibility/speed” has also a direct impact on loyalty if achieving above-average performance, thus reinforcing general customer satisfaction. Originality/value – Few previous papers explore this nonlinearity in online retail services. So, future studies should lead to a theoretical and practical understanding of managing these services. Understanding this nonlinearity may help companies to better identify what improve or offer to customers.


2014 ◽  
Vol 26 (4) ◽  
pp. 540-565 ◽  
Author(s):  
Hung-Che Wu

Purpose – The purpose of this paper is to identify the dimensions of service quality and examining the interrelationships among behavioral intentions, customer satisfaction, perceived value, corporate image and service quality in the gaming industry. A multi-level and hierarchical model is used as a framework to synthesize the effects of customer satisfaction, perceived value, corporate image and service quality on behavioral intentions of customers in the gaming industry. Design/methodology/approach – The data used in this study were based on a sample of 470 at a newly built casino in Macau. Data were analyzed using exploratory factor analysis and regression analysis. Findings – The findings support using a multi-level model consisting of three primary dimensions and ten sub-dimensions to conceptualize and measure perceived service quality. Perceived service quality significantly influences perceived value and corporate image, respectively. In addition, perceived value and corporate image are main determinants of customer satisfaction. Also, customer satisfaction and corporate image significantly affect behavioral intentions. Originality/value – This is the first study synthesizing behavioral intentions, customer satisfaction, perceived value, corporate image and perceived service quality in a Macau casino setting.


2018 ◽  
Vol 36 (5) ◽  
pp. 908-930 ◽  
Author(s):  
Sedigheh Moghavvemi ◽  
Su Teng Lee ◽  
Siew Peng Lee

Purpose Foreign and local banks in Malaysia are competing in terms of skilled staff, innovative products and services, rendering quality services and customer satisfaction. The purpose of this paper is to examine the overall service quality and customer satisfaction of both foreign and local banks. Design/methodology/approach The data used to test the hypothesis were collected from 748 foreign and local bank customers in Malaysia. The research model was analysed using a structural equation modelling technique. Findings Results show that knowledge and staff competencies, as well as convenience of the bank is more significant for local bank customers while bank image and internet banking are important components for foreign bank customers. The results also reveal that foreign bank customers have higher satisfaction as compared to local bank customers. Research limitations/implications No analysis is undertaken of any difference in the service quality dimensions between banks of different size. Further research on banking services could usefully test services quality dimensions across banks of different sizes. Practical implications The findings serve as a valuable reference for local banks understand service quality challenges they may face from foreign banks in this competitive industry. Findings suggest that, to provide high-quality services, financial institutions need to heighten customer satisfaction differentiation strategies. Originality/value The outcomes of this study enhance the knowledge on the performance of both local and foreign banks in Malaysia as well as customer satisfaction, which are invaluable to all bank managers and industry players in improving their services.


2017 ◽  
Vol 21 (1) ◽  
pp. 76-85 ◽  
Author(s):  
Rishi Kant ◽  
Deepak Jaiswal ◽  
Suyash Mishra

The purpose of this article is to identify the dimensions of service quality (SQ) in the banking sector and examine the effect of SQ dimensions on customer satisfaction (CS), and therefore the effect of CS on corporate image (CI) in the selected public sector banks (PSBs) in India. The sample of the study consists of 640 retail customers of PSBs in the National Capital Region (NCR) of India and the data were collected through a structured questionnaire using a 7-point Likert scale based on purposive sampling. Therefore, the authors empirically validate a measurement model using structural equation modelling (SEM) through path analysis. The findings revealed that ‘tangibility’ and ‘assurance’ dimensions were most important predictors of CS among all five dimensions of SQ. In addition, the results also validate that CS is an important antecedent for influencing CI, and therefore CS acts as a linkage between SQ dimensions and CI in the Indian context. Finally, the research article presents the conclusion, implications and limitations and the possible directions for further research.


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