scholarly journals Determinants of service quality and its effect on customer satisfaction and loyalty: an empirical study of private banking sector

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rafikul Islam ◽  
Selim Ahmed ◽  
Mahbubar Rahman ◽  
Ahmed Al Asheq
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Banking Sector ◽  
Banking Services ◽  
Content Type ◽  
Research Findings ◽  
Quality Dimensions ◽  
Service Quality Dimensions ◽  
Private Banking ◽  
Customer Satisfaction And Loyalty

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.

Nonlinear impact of online retail characteristics on customer satisfaction and loyalty

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
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Fault Recovery ◽  
Online Retail ◽  
Content Type ◽  
One Dimensional ◽  
Service Accessibility ◽  
Quality Dimensions ◽  
Service Quality Dimensions ◽  
Customer Satisfaction And Loyalty

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.

Service quality, customer satisfaction, and loyalty in the banking sector

2018 ◽  
Vol 35 (8) ◽  
pp. 1546-1567 ◽  
Author(s):  
Samuel Famiyeh ◽  
Disraeli Asante-Darko ◽  
Amoako Kwarteng
Keyword(s):  
Organizational Culture ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Social Factors ◽  
Positive Relationship ◽  
Banking Sector ◽  
Content Type ◽  
Quality Dimensions ◽  
The Relationship ◽  
Customer Satisfaction And Loyalty

Purpose The purpose of this paper is to understand the moderating role of organizational culture in the relationship between service quality, customer satisfaction and loyalty in the banking sector using data from the Ghanaian banking sector. The idea is to understand the relative importance of the various service dimensions to customers patronizing banking services in Ghana and to ascertain what drives customer satisfaction and whether this satisfaction has implication on their loyalty. Design/methodology/approach The study used a survey and relied on partial least squares structural equation modeling to study the relationship between service quality and its impact on customer satisfaction and customer loyalty. Findings The result indicates that the reliability, ambiance and social factors all have a significant positive relationship with the satisfaction of customers doing business with these banks. However, assurance and responsiveness of the employees seem to have no significant relationship with the satisfaction of customers. It is also important to indicate that organizational culture seems to strengthen the positive relationship between the service quality dimensions and customer satisfaction. The results further indicate that customer satisfaction has a direct positive relationship with customer loyalty. Research limitations/implications Reliability, ambiance and social factors remain the three most important drivers of customer satisfaction in the banking sector in Ghana. It is, therefore, important for bankers to consistently undergo training and education in order to deliver more reliable services to customers. Managers should also make efforts to groom employees, provide attractive promotion materials, provide directions to the banks, make sure the banking halls are neat for customers while waiting and the provision of enough parking spaces for customers. One limitation of this work is that the data focused on only the Ghanaian banking environment. Practical implications The research shows the importance of the service quality constructs such as reliability, ambiance and the social factors on customer satisfaction and loyalty in the banking sector. The organizational culture seems to strengthen the positive relationship between empathy, reliability, tangibles and customer satisfaction. It is therefore important for banks to continue to build cultures that will commit employees to their work, so that they feel the sense of ownership of quality in order to contribute meaningfully. Originality/value The work illustrates and provides some insights and builds on the literature in the area of service quality, customer satisfaction and loyalty from a developing country’s environment using the stimulus-organism-response model. In addition, this work further highlights the importance of the moderating role of organizational culture in the relationship between the service quality dimensions and customer satisfaction.

The impact of customer service quality on customer satisfaction in Islamic banking

2017 ◽  
Vol 8 (4) ◽  
pp. 595-604 ◽  
Author(s):  
Mohamed Abdulnaser Janahi ◽  
Muneer Mohamed Saeed Al Mubarak
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Service ◽  
Banking Sector ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Quality Dimensions ◽  
Service Quality Dimensions ◽  
The Impact

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.

Service quality, customer satisfaction and loyalty in automobile repair services sector

2015 ◽  
Vol 32 (3) ◽  
pp. 250-269 ◽  
Author(s):  
Ernest Emeka Izogo ◽  
Ike-Elechi Ogba
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Past Research ◽  
Dimensional Structure ◽  
Content Type ◽  
Quality Dimensions ◽  
Service Quality Dimensions ◽  
Response Rate Data ◽  
The Impact ◽  
Customer Satisfaction And Loyalty

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.

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.

scholarly journals Investigating Structural Relationship Between Service Quality, Satisfaction and Loyalty in Banking Sector of Afghanistan

2021 ◽  
Vol 4 (2) ◽  
Author(s):  
Jamshed Haidery ◽  
◽  
Sayed Wali Shah Mandozai ◽  
Hafizullahmeen Amin
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Banking Sector ◽  
Empirical Support ◽  
Positive Influence ◽  
Equation Modeling ◽  
Quality Dimensions ◽  
Service Quality Dimensions ◽  
The Relationship ◽  
Customer Satisfaction And Loyalty

This study aims to understand the relationship of service quality dimensions, customer satisfaction, and loyalty in the banking sector using data from the Afghanistan banking sector. The study surveyed 269 respondents using a standard SERVQUAL questionnaire to examine the relationship between service quality dimensions, customer satisfaction, and loyalty in the banking sector of Afghanistan. The Structural Equation Modeling approached was used to analyze data. The findings suggest that assurance, empathy, and tangibles have a positive influence on customer satisfaction. Importantly, results revealed that female customers are less satisfied as compared to their counterparts. furthermore, the findings indicate a positive influence of customer satisfaction on customer loyalty. This paper offers empirical support for bank managers to enhance the physical facilities, assure customer trust, appropriately treat customers and consider gender requirements in providing banking services. The major limitation of this study is that it only includes one private bank customer and only Kabul province. This work illustrates an initial empirical study into service quality, customer satisfaction, and loyalty in Afghanistan using well developed SERVQUAL model.

scholarly journals Investigating Structural Relationship Between Service Quality, Satisfaction and Loyalty in Banking Sector of Afghanistan

2021 ◽  
Author(s):  
Jamshed Haidery ◽  
Sayed Wali Shah Mandozai ◽  
Hafizullahmeen Amin
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Banking Sector ◽  
Empirical Support ◽  
Positive Influence ◽  
Equation Modeling ◽  
Quality Dimensions ◽  
Service Quality Dimensions ◽  
The Relationship ◽  
Customer Satisfaction And Loyalty

This study aims to understand the relationship of service quality dimensions, customer satisfaction, and loyalty in the banking sector using data from the Afghanistan banking sector. The study surveyed 269 respondents using a standard SERVQUAL questionnaire to examine the relationship between service quality dimensions, customer satisfaction, and loyalty in the banking sector of Afghanistan. The Structural Equation Modeling approached was used to analyze data. The findings suggest that assurance, empathy, and tangibles have a positive influence on customer satisfaction. Importantly, results revealed that female customers are less satisfied as compared to their counterparts. furthermore, the findings indicate a positive influence of customer satisfaction on customer loyalty. This paper offers empirical support for bank managers to enhance the physical facilities, assure customer trust, appropriately treat customers and consider gender requirements in providing banking services. The major limitation of this study is that it only includes one private bank customer and only Kabul province. This work illustrates an initial empirical study into service quality, customer satisfaction, and loyalty in Afghanistan using well developed SERVQUAL model.

scholarly journals E-banking Service Quality Dimensions and Its Effect on Customers Satisfaction

2018 ◽  
Vol 12 (01) ◽  
Author(s):  
Leena Shimpi
Keyword(s):  
Regression Analysis ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Banking Sector ◽  
Expected Improvement ◽  
Primary Data ◽  
Extensive Literature ◽  
Banking Services ◽  
Quality Dimensions ◽  
Service Quality Dimensions

solutions by most of the Indian banks. It is playing a unique role in strengthening the banking sector and improving its service quality. There is expected improvement and tremendous increase in customer satisfaction level with the advent of e-banking services, along with other benefits like reduction in cost of banking operations, enhanced competitiveness and increased profitability. Therefore it is necessary to identify the dimensions of e-banking services and evaluate its effect on customer satisfaction. Research methodology- the present study is based on primary data, collected from 200 respondents availing E - banking services from various public sector as well as private sectors banks. The questionnaire is designed based on dimensions of SERVQUAL model. Various statistical tools are applied for analysis of data. Factor analysis was used for data reduction. Cronbach alpha, Kaiser- Meyer Olkin (KMO) and Bartlett test of sphericity were applied to check reliability. Correlation and Regression analysis were run to test the effect of the service quality dimensions on overall customer satisfaction. Secondary data was collected from various journals, magazines and websites for extensive literature review. The data was processed on SPSS 16.0 Findings and conclusion: all the service quality dimensions were found to have a positive correlation with overall customer satisfaction. The regression analysis showed that all the service quality dimensions positively affected the overall customer satisfaction.

The impact of perceived service quality dimensions on customer satisfaction

2017 ◽  
Vol 35 (3) ◽  
pp. 411-430 ◽  
Author(s):  
Rishi Kant ◽  
Deepak Jaiswal
Keyword(s):  
Public Sector ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Corporate Image ◽  
Content Type ◽  
Perceived Service Quality ◽  
Public Sector Banks ◽  
Quality Dimensions ◽  
Service Quality Dimensions ◽  
The Impact

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.

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