Assessment of service quality using text mining – evidence from private sector banks in India

2018 ◽  
Vol 36 (4) ◽  
pp. 594-615 ◽  
Author(s):  
Somnath Chakrabarti ◽  
Deepak Trehan ◽  
Mayank Makhija
Keyword(s):  
Service Quality ◽  
Sentiment Analysis ◽  
Banking Sector ◽  
Cost Effective ◽  
Retail Banking ◽  
Traditional Concept ◽  
Content Type ◽  
Product Categories ◽  
Cost Effective Approach ◽  
Private Banks

Purpose As the retail banking institutions are becoming more customer centric, their focus on service quality is increasing. Established service quality frameworks such as SERVQUAL and SERVPERF have been applied in the banking sector. While these models are widely accepted, they are expensive because of the need for replication across bank branches. The purpose of this paper is to propose a novel, user friendly and cost effective approach by amalgamating the traditional concept of service quality in banks (marketing base) and sentiment analysis literature (information systems base). Design/methodology/approach In this study, the main objective is to analyze user reviews to better understand the correlation between RATER dimension sentiment scores as independent variables and user overall rating (customer satisfaction) grouping in “good” and “bad” as dependent variable through development of authors’ own logistic regression model using lexicon-based sentiment analysis. The model has been developed for three largest private banks in India pertaining to three banking product categories of loans, savings and current accounts and credit cards. Findings The results show that the responsiveness and tangibles dimensions significantly impact the user evaluation rating. Even though the three largest private banks in India are concentrating on the tangibles dimension, not all of them are sufficiently focused on the responsiveness dimension. Additionally, customers looking for loan products are more susceptible to negative perceptions on service quality. Originality/value This study has highlighted two types of scores whereby user provided overall evaluation scores help provide validation to the sentiment scores. The developed model can be used to assess performance of a bank in comparison to its peers and to generate in depth insights on point of parity (POP) and point of difference (POD) fronts.

Brazil banks will stay cautious amid fragile recovery

2017 ◽  
Keyword(s):  
Private Sector ◽  
Banking Sector ◽  
Retail Banking ◽  
Foreign Bank ◽  
Foreign Banks ◽  
Risk Averse ◽  
Public And Private ◽  
Content Type ◽  
Private Banks ◽  
Public And Private Sector

Subject Outlook for the banking sector. Significance The two-year recession has made Brazil’s public- and private-sector banks increasingly risk-averse in their lending to households and companies. This is likely to persist in 2017, owing to a very uncertain and fragile economic recovery, high unemployment and elevated levels of private-sector debt. Impacts Less-aggressive lending by national state banks will help public finances and give private banks a chance to increase market share. Spanish Santander will be the only foreign bank capable of competing in Brazil’s retail banking segment in the coming years. Other foreign banks lacking the necessary scale for profitable retail banking will focus on other niches.

Factors influencing consumer loyalty: evidence from the Ghanaian retail banking industry

2019 ◽  
Vol 37 (3) ◽  
pp. 798-820 ◽  
Author(s):  
Osaretin Kayode Omoregie ◽  
John Agyekum Addae ◽  
Stanley Coffie ◽  
George Oppong Appiagyei Ampong ◽  
Kwame Simpe Ofori
Keyword(s):  
Service Quality ◽  
Structural Equation ◽  
Banking Sector ◽  
Banking Industry ◽  
Retail Banking ◽  
Corporate Image ◽  
Equation Modeling ◽  
Design Data ◽  
Cross Sectional ◽  
Content Type

PurposeThe increasing number of banks in the Ghanaian banking industry has brought about intense competition in the industry. The purpose of this paper is, therefore, to examine the factors that influence retail banking customers’ loyalty intentions.Design/methodology/approachIn order to validate the proposed research model, the study adopts a survey design. Data were collected from 565 customers of the top performing banks in terms of customer deposits. Data analysis employed the partial least squares structural equation modeling (PLS–SEM) using SmartPLS version 3.FindingsResults from the PLS–SEM analysis indicated that satisfaction, service quality and trust had significant effect on loyalty, with satisfaction having the most significant effect. Interestingly corporate image was found to have a significant effect on both satisfaction and trust but not on loyalty. In all, the proposed model accounted for 63.3 percent of the variation in loyalty.Research limitations/implicationsThe current study samples customers from only the top performing banks in Ghana. The use of cross-sectional data makes it impossible to study how customers’ perceptions change over time. Results from this study could, however, help managers of banks in designing strategies aimed at improving customer loyalty in order to consolidate their market share.Originality/valueThis paper adds to existing works that focus on loyalty in the retail banking sector, especially from the context of a developing economy. The study draws attention to the interrelationship among service quality, perceived value, satisfaction, image, trust and loyalty.

Perceived service quality and satisfaction of self-service technology

2015 ◽  
Vol 32 (4) ◽  
pp. 361-380 ◽  
Author(s):  
Bedman Narteh
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Banking Sector ◽  
Retail Banking ◽  
Ease Of Use ◽  
Security And Privacy ◽  
Privacy And Security ◽  
Content Type ◽  
Bank Managers ◽  
Quality Dimensions

Purpose – The purpose of this paper is to propose and investigate the dimensions of automated teller machine (ATM) service quality and their relationship with customer satisfaction in the retail banking sector. Design/methodology/approach – A structured questionnaire gleaned from the literature was used to collect data from 530 ATM customers of 15 banks in Ghana. Descriptive statistics, confirmatory factor analysis were used to identify the dimensions of ATM service quality and their relationship with customer satisfaction. Findings – The study found convenience, reliability, ease of use, privacy and security, responsiveness and fulfillment to be the major dimensions of ATM service quality. Apart from security and privacy, these dimensions are significantly related to customer satisfaction. Practical implications – The ATM quality dimensions found in this study provide practical guidelines for bank managers to improve customer experience with ATMs. The relative importance of the factors identified in the study also provide managers with a sense of what issues to focus on in order to improve service delivery through the ATMs. Originality/value – The ATM service quality dimensions found in this study have enriched knowledge in electronic banking usage in developing countries such as Ghana. In addition, the study also provides bank managers with insights into how to improve customer satisfaction in retail banking through the usage of ATMs.

Determinants of sales misconduct in Indian retail banking services

2019 ◽  
Vol 26 (1) ◽  
pp. 313-329
Author(s):  
Suman Mittal ◽  
Krishan K. Garg
Keyword(s):  
Banking Sector ◽  
Retail Banking ◽  
Primary Data ◽  
Bank Account ◽  
Banking Services ◽  
Content Type ◽  
Public Sector Banks ◽  
Private Banks ◽  
Close Supervision ◽  
Private And Public

Purpose The purpose of this paper is to demonstrate those factors which are responsible for the sales misconduct in Retail banking services across the world and try to find out the determinants which majorly affect the Indian Retail banking industry. The authors also try to find out whether the sales approach leads to malpractices in sales and how does it affect the different categories of the customers. Design/methodology/approach Primary data have been collected from the bank account holders having account in various private and public sector banks operating in India. Findings The authors have come out with finding that sales misconduct is majorly affected by misrepresentation of facts, complexity of products, lack of disclosure norms and more. They also found that push sales approach is adopted by banks, particularly by private banks to majorly tap the class customers to sell the financial products without their requirement and achieve the revenue targets. Practical implications Banking regulators can keep a close supervision on sales mal practices in banking sector and implement stringent norms to reduce these kinds of practices. Originality/value Very few studies have been conducted on the basis of the class of the customer, and how sales approach leads the malpractices in sales and how it affects the class of the customers.

Customer perceived service quality and loyalty in Islamic banks

2016 ◽  
Vol 28 (1) ◽  
pp. 62-78 ◽  
Author(s):  
Muhammad Kashif ◽  
Mohsin Abdur Rehman ◽  
Lina Pileliene
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Cultural Context ◽  
Structural Equation ◽  
Banking Sector ◽  
Retail Banking ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Cultural Perspective ◽  
Content Type

Purpose – There is a plethora of research which has dealt with service quality issues in various service organizations. But a few researchers have presented state of service quality from a cultural perspective, especially within an Asian cultural context. The purpose of this paper is to measure service quality of Pakistani Islamic banks through validating a culturally sensitive scale: PAKSERV. Furthermore, the path from service quality to customer loyalty has been presented through applying PAKSERV service quality scale. Design/methodology/approach – Following a positivist tradition, the service quality to loyalty path in Islamic banking sector of Pakistan is established. A self-administered survey was conducted to approach 300 Islamic bank customers in major cities of Pakistan. The respondents were purposefully selected based on their extent of using the retail banking services. The data were analysed through employing various quantitative measures such as correlation and structural equation modelling employing AMOS. Findings – The findings reveal that Pakistani Islamic banking customers are satisfied with the service quality offered. All the dimensions of PAKSERV are found to significantly contribute towards customer satisfaction and loyalty. However, major focus of customer is on the dimensions such as responsiveness and sincerity which are understandable in high-risk avoiding and moderately power-oriented Pakistani society. Originality/value – The research has been first of its type to present the validity of PAKSERV scale in a collectivist cultural context of Pakistan. Furthermore, the path from the customer satisfaction to loyalty by employing PAKSERV scale has been presented for the first time.

Investigating the influence of TQM, service quality and market orientation on customer satisfaction and loyalty in the Indian banking sector

2017 ◽  
Vol 34 (3) ◽  
pp. 362-377 ◽  
Author(s):  
Durgesh Pattanayak ◽  
Maddulety Koilakuntla ◽  
Plavini Punyatoya
Keyword(s):  
Quality Management ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Market Orientation ◽  
Banking Sector ◽  
Retail Banking ◽  
Management Tool ◽  
Equation Modeling ◽  
Survey Method ◽  
Content Type

Purpose The purpose of this paper is to examine the effect of total quality management (TQM) on service quality (SQ), market orientation (MO) and the subsequent effect on customer satisfaction (CS) and customer loyalty (CL). The research also analyses the direct effect of TQM on CS. Design/methodology/approach Data were collected from middle managers of retail banking sector in India using survey method. Structural equation modeling is used to analyze the data and to test the hypotheses. Findings The results show that TQM is positively associated with SQ, MO and CS. SQ and MO are significantly and positively associated with CS. CS subsequently leads to improved CL. Practical implications Enforcing TQM practices in their organizations as a change management tool, banks can achieve a greater degree of MO, improved SQ and higher CS to gain higher CL. Originality/value This paper empirically demonstrates that, by proper implementation of TQM in banks, the SQ and MO can be improved. Well implemented quality management practices, better customer service and market-focused attitude of banks will elevate the CS level and improve loyalty of customers toward the banks. With a little study has yet focused on India, the paper offers knowledge to banking professionals for increasing CL by effective implementation of TQM practices.

Service quality, service convenience, price and fairness, customer loyalty, and the mediating role of customer satisfaction

2015 ◽  
Vol 33 (4) ◽  
pp. 404-422 ◽  
Author(s):  
Vinita Kaura ◽  
Ch. S. Durga Prasad ◽  
Sourabh Sharma
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Banking Sector ◽  
Retail Banking ◽  
Content Type ◽  
Service Convenience ◽  
Perceived Price ◽  
Quality Dimensions ◽  
Service Quality Dimensions

Purpose – The purpose of this paper is to examine the extent to which service quality, perceived price and fairness and service convenience influence customer satisfaction and customer loyalty for Indian retail banking sector. It further explores the role of customer satisfaction as mediating variable between service quality dimensions, perceived price and fairness, service convenience dimensions and customer loyalty. Design/methodology/approach – A cross-sectional research on 445 retail banking customers through questionnaire is conducted. Population of study is valued retail urban customers of banks in Rajasthan, India, who frequently visit bank premises for transactions, have accounts in at least two banks and have availed of at least one information technology-based services. Responses are analyzed using factor analyses and regression analyses. Findings – Results reveal that service quality dimensions, perceived price and fairness and service convenience dimensions have positive impact on customer satisfaction and customer loyalty. Moreover, customer satisfaction acts as mediating variable between its antecedents and customer loyalty. Research limitations/implications – This study has taken into account a specific category of retail banking customers. Thus, it limits generalization of results to other banking population. Practical implications – This study explains the importance of customer satisfaction for achieving customer loyalty for Indian retail banking sector. Originality/value – The paper underlines the importance of customer satisfaction for achieving customer loyalty. Impact of SERVCON dimensions on customer loyalty is found rare in literature.

Service quality and word of mouth: a study of the banking sector

2014 ◽  
Vol 32 (7) ◽  
pp. 612-627 ◽  
Author(s):  
Koushiki Choudhury
Keyword(s):  
Service Quality ◽  
Word Of Mouth ◽  
Banking Sector ◽  
Customer Orientation ◽  
Retail Banking ◽  
Content Type ◽  
Four Dimensions ◽  
Bank Managers ◽  
The Relationship ◽  
Practical Implications

Purpose – The purpose of this paper is to explore the influence of the dimensions of service quality on customers’ word-of-mouth (WOM) in the context of the retail banking industry. Design/methodology/approach – A modified SERVQUAL instrument was used to capture customers’ perceptions of service quality followed by exploratory factor analysis to study the dimensionality of service quality in retail banking. Multiple regression was used to probe the influence of the dimensions of service quality on WOM. Findings – The study revealed four dimensions of service quality in retail banking, namely, attitude, competence, tangibles and convenience and showed that the service quality factor attitude is most important in influencing WOM. Research limitations/implications – Continued refinement of the scale for measuring service quality in retail banking, proposed in this study, is certainly possible based on further research and trends in retail banking. Further research may also incorporate multiple measures of the WOM construct. Practical implications – Retail bank managers must realise the importance of employees’ attitude towards customers, be sensitive to the intangible aspects of the service, particularly the customer-orientation of its frontline personnel and engender and continuously rejuvenate a customer-oriented culture. This is because, the provision of personalised, courteous service and helpful employees who understand the customers’ needs is the strongest driver for WOM. Originality/value – This study explores the relationship between service quality and WOM by linking both constructs at their dimensional level. This increases the diagnostics of explaining customers’ propensity for WOM.

The influence of culture on service quality leading to customer satisfaction and moderation role of type of bank

2019 ◽  
Vol 10 (1) ◽  
pp. 134-154 ◽  
Author(s):  
Yousef Mohamed Endara ◽  
Asbi B. Ali ◽  
Mohd Shukri Ab Yajid
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Practical Implication ◽  
Middle Eastern ◽  
Business Environment ◽  
Business Strategies ◽  
Content Type ◽  
Perceived Service Quality ◽  
Private Banks ◽  
Post War

PurposeConsidering the importance of current Libyan business environment, this paper aims to understand the influence of culture on perceived service quality that leads to customer satisfaction in the Libyan banking industry. In addition, it would be interesting to explore which type of banks, e.g. public or private banks, moderate the relationship between perceived service quality and customer satisfaction.Design/methodology/approachThe data were collected from the customers who are receiving services from the top three private and top three public banks in the cities of Tripoli and Misurata, Libya. About 329 samples were obtained and Smart PLS was used for the statistical analysis.FindingsThe results show that perceived service quality is strongly predicted by collectivism, masculinity and uncertainty avoidance. Perceived service quality also leads to customer satisfaction among the Libyan banking customers. Further, public bank is more concerned on customer satisfaction compared to private banks.Practical implicationThe research has greater implication for the Middle-Eastern bank managers who are pursuing possibilities of newer business strategies.OriginalityThe study provides an interesting viewpoint of the banking service in Libya, especially in the economic uncertainty post-war and political instability. Its focus on culture as a strong influence to the delivery of service quality in such context is admirable especially in relation with the embedded Islamic culture.

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