Perceived overall service quality and customer satisfaction

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.

2015 ◽  
Vol 32 (5) ◽  
pp. 486-502 ◽  
Author(s):  
Faizan Ali ◽  
Bidit Lal Dey ◽  
Raffaele Filieri

Purpose – The purpose of this paper is to assess foreigners and overseas Pakistanis’ evaluation of the quality of the services provided by Pakistan International Airlines (PIA) and its effect on customer satisfaction. Design/methodology/approach – A convenience sample of 498 respondents was used to test the hypotheses of the study through structural equation modelling. Findings – The results of this study indicate that all of the hypotheses are supported and customer satisfaction of PIA customers is influenced by all of the five service quality dimensions (AIRQUAL), including airline tangibles, terminal tangibles, personnel, empathy, and image. Research limitations/implications – This research examines the relationship between service quality dimensions and customer satisfaction. The study focuses on the evaluation of overseas Pakistanis and foreigners regarding the service quality of PIA. The main limitation of this study is that it focuses on PIA: thus, the results cannot be generalised. Practical implications – The results indicate that managers should focus on different dimensions of airline service quality in order to enhance customer satisfaction. Originality/value – This study would enable PIA to have a better understanding of the effects of service quality, which will lead to passengers’ satisfaction and encourage the development of long-term relationships with their customers.


2018 ◽  
Vol 36 (1) ◽  
pp. 68-88 ◽  
Author(s):  
Bedman Narteh

Purpose Various models and scales exist in the literature to measure retail bank service quality without any attempt at integrating them and the moderators have often been under explored. The purpose of this paper is to integrate the SERVQUAL and BSQ models and moderated the resulting scale with price in order to examine service quality and customer satisfaction with retail bank services in Ghana. Design/methodology/approach The study is quantitative and the survey methodology was used to collect data from 560 retail bank customers. The result was analyzed through structural equation modeling. Findings The study provides an expanded model for measuring retail bank service quality as seven of the eight latent constructs emerged as service quality dimensions when moderated with price. It is significant to also note that five of the constructs – tangibles, reliability, assurance, empathy and price – from the direct relationship emerged as the dimensions of retail bank service quality that positively and significantly predicted customer satisfaction. Practical implications The study provides insight into customer behavior with the quality of retail bank services in Ghana. The resulting broader dimensions provide an integrated and expanded model as well as pointers to bank managers on service quality and customer satisfaction cues to enable them attract, serve and retain customers. Originality/value The study is the first of its kind to integrate two of the popular models to measure retail bank service quality and to use price as a moderator of this relationship. The resulting scale, which comprised of variables from the two models, provides support for the approach used in the current study.


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.


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.


2015 ◽  
Vol 7 (1) ◽  
pp. 24-36 ◽  
Author(s):  
Syed Ali Raza ◽  
Syed Tehseen Jawaid ◽  
Ayesha Hassan

Purpose – This study aims to determine the effects of service quality dimensions on customer satisfaction in Pakistan by using the SERVQUAL model. Design/methodology/approach – A survey research questionnaire of 30 items has been adopted, and the data of 400 respondents were collected from the users of Internet banking of different banks located in Karachi city of Pakistan. Findings – The reliability analysis shows that all dimensions are reliable. Results of the factor analysis confirm the grouping of adopted questioner. At last, the regression analysis indicates a significant positive relationship between assurance, tangibility, reliability and responsiveness with customer satisfaction. Conversely, empathy shows a positive but insignificant effect on the customer satisfaction. Practical implications – It is recommended that the management of online banks has to focus on making the design and content of the Web sites more visually appealing to grab the attention of existing customers, as well as to attract new customers. The management has to take effective measures to further enhance the security and safety of online bank accounts, so that customers can maintain long-term relationships with the usage of online banking. Online banks have to provide more reliable services to the customers at heart to make the customers more comfortable and confident. The management should develop more effective systems to quickly solve the issues of customers. Originality/value – This paper makes a unique contribution to the literature with reference to Pakistan, being a pioneering attempt to investigate the customer satisfaction in the banking industry of Pakistan by using a large sample and advance statistical techniques.


Author(s):  
Beatrice Atta Mensah ◽  
Sylvester Achio ◽  
Isaac Ofori Asare

The study was conducted using 20 cafeterias in Greater Accra Region on the effect of service quality dimensions on customer satisfaction in the hospitality industry. Purposive sampling technique was employed for the collection of the study data. Two hundred questionnaires were distributed to the customers of the selected cafeterias. The data gathered was analyzed by employing structural equation modelling (SEM) supported by AMOS 23.0 with maximum likelihood estimation in order to test the proposed hypothesis for the study. From the analysis of the data, tangibility was statistically having significant relationship with customer satisfaction. The result indicates that responsiveness, empathy, and assurance have insignificant relationships with customer satisfaction of the selected cafeterias.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rafikul Islam ◽  
Selim Ahmed ◽  
Mahbubar Rahman ◽  
Ahmed Al Asheq

PurposeThe main purpose of this study is to investigate the impact of various service quality dimensions, namely reliability, responsiveness, visibility, employee commitment and access to service on customer satisfaction in the private banking sector of Bangladesh. The research also investigates the relationship between customer satisfaction and loyalty and effect of demographic variables on customer satisfaction.Design/methodology/approachThe researchers distributed 320 self-administered survey questionnaires among private banks' customers in Bangladesh and obtained 200 useable responses with a 62.5% valid response rate. The research data were analysed using confirmatory factor analysis (CFA) and structural equation modelling (SEM) approaches. Analysis of variance and logistic regression have also been used to obtain the supplementary findings.FindingsThe research findings indicate that visibility, responsiveness and employee commitment have positive and significant effect on customer satisfaction, whereas reliability and access to service are found to have insignificant influence on customer satisfaction of private banking services. The findings of this study also revealed that customer satisfaction has positive and significant relationship with customer loyalty. But except respondents' occupation type, all other demographic variables have no statistically significant relation with customer satisfaction.Research limitations/implicationsThe research focused solely on the private banking sector of Bangladesh, and thus the results may not be applicable to other service sectors.Originality/valueThis study conducted on customers' perception of private banking services is based on extended service quality dimensions and its relationship with customer satisfaction towards loyalty. The present research findings are anticipated to offer the guidelines for improving the customer satisfaction and loyalty of private banking services in Bangladesh as well as other countries.


2014 ◽  
Vol 31 (2) ◽  
pp. 145-151 ◽  
Author(s):  
Rodrigo Guesalaga ◽  
Dennis Pitta

Purpose – Services account for a very large portion of the economic activity in most countries. While there is abundant academic research on service quality, which has focused mainly on determining service quality dimensions, understanding service quality antecedents, and relating service quality to key outcomes, such as customer satisfaction and performance, there is, however, limited research on an increasingly relevant issue, which is how service quality perceptions differ among cultures. The aim of this research is to address this question. Design/methodology/approach – The research used two identical surveys administered to managers in two different cultures. One survey was in English for the US sample and one was in Spanish for the Chilean sample. The surveys measured the importance of the five SERVQUAL service dimensions as well as relevant information about the respondent's experience, position and type of company at which he/she worked. Each country was examined for significant characteristics using Hofstede's cultural dimensions. Hypotheses were developed reflecting the differences expected by the characteristics of the cultures in which the respondents worked. Data was analyzed to extract meaning from the data using ANOVA. Findings – Of the five service quality dimensions (tangibles, reliability, responsiveness, assurance and empathy), reliability is the most important in both countries. Responsiveness is the second most important. Three of the hypotheses testing the difference in perceived importance among service quality dimensions between Chile and the USA, were supported. H1: no difference exists between the two countries in the importance of tangibles, is supported (p=0.000). H2: reliability is more important in Chile than in the USA, is also supported (p=0.039). H3: responsiveness is more important in the USA than in Chile, is supported as well (p=0.012). Research limitations/implications – Use of MBA students as survey respondents limits the generalizability of the results. Despite the fact that each subject was employed in a managerial position within a firm, each subject was also enrolled in an MBA program. Arguably, the subjects are all employed in business but differ from others who are not in degree programs. Practical implications – The research highlights the need to attend to perceptions of service quality globally. The Hofstede cultural dimensions provide a clear and easy to apply framework that allows companies to identify what is important in a host culture. That information will enable service quality adjustments that offer the potential of improving customer satisfaction and firm success. Originality/value – The current research is the first to use two tested conceptualizations to assess differences in service quality importance across cultures. It explores the relationship of Hofstede's cultural dimensions, with perceptions of service quality. It hypothesizes which service quality dimensions will be important based on the characteristics of the culture in which they are delivered. No other study has compared service quality perceptions between the USA and Chile. Each country has a vibrant, free market economy. The study provides a foundation for approaching other markets in Latin America and in countries with similar cultural dimensions.


2017 ◽  
Vol 29 (1) ◽  
pp. 55-81 ◽  
Author(s):  
Cecilia Silvestri ◽  
Barbara Aquilani ◽  
Alessandro Ruggieri

Purpose Satisfaction in the tourism sector is a highly sensitive subject, and customer satisfaction (CS) has a significant impact on the choice of destinations made by tourists and on the decision to recommend them to friends or acquaintances. The purpose of this paper is to give empirical evidence of the dimensions of service quality (technical, functional and company image (CI)) and their connections in the sector of thermal tourism. It also aims at investigating the CI, seeking to understand whether some of the technical and functional service quality variables play a role in determining it. Design/methodology/approach An empirical survey was conducted by administering a structured research questionnaire in order to collect all necessary data, which was then elaborated to test the hypotheses using factor and multiple regression analyses. Findings The results of the survey confirm the direct impact of service quality dimensions (technical, functional and CI) on CS also in the thermal sector when considered individually. Moreover, when the CI was analyzed further, relational quality was found to be dependent on thermal employees’ capabilities, abilities, trustworthiness, availability, etc. Finally, when considered together, functional service quality and CI have a stronger effect on CS than technical service quality. Originality/value The originality of the present research relies on the following: a further contribution to the so-called “European perspective” of service quality; the study of service quality dimensions (technical, functional and CI) in the thermal sector; and evidencing the link between thermal employee characteristics and the relational quality factor of the CI, demonstrating that many aspects of this construct need further empirical investigation, in the wellness sector.


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