An Assessment of Service Quality in Banks

Abstract

Study attempts to measure and compare service quality and customer satisfaction among private, public and foreign bank. A survey has been used to collect primary data and 246 questionnaires were used in final analysis. Questionnaire items were developed through a two stage process involving a review of the measurement scale employed in previous studies and two pilot studies of focus group to identify the service attributes for assessing banking service quality. Factor analysis and reliability testing were employed to identify service quality attributes. Study results show that service quality is at the root of customer satisfaction. Exploratory factor analysis uncovered 19 variables (five groups) and they explain 95.22% variance. Replications among other samples are needed to validate the current finding. The research is just a small step in understanding the constructs of SQ and CS. The causal relationships between the two have not been investigated. This paper makes a valuable contribution given the fact that there are only a limited number of comprehensive studies dealing with the assessment service quality in banking environment in Gujarat state.