Post edited 5:09 pm – October 11, 2011 by Faizan2020

`

Consumer satisfaction and service quality gap approach: Commercial Indian Banks

Dr. Sadia Samar Ali, Associate Professor & Chairperson: Operations

Institute of Management Studies, Ghaziabad 201009

Telephone: +91-9971876017,Email address: sadiasamarali@gmail.com

Faizan Ahmad

Executive Business Development: I-Next (JPL Group)

50-Dainik Jagran, Okhla Phase 3, New Delhi-20

Telephone: +91-9811516022, E-mail: faizan2020@gmail.com

*Corresponding author

Aziz Ahmad

Software Engineer: Alcatel Lucent

Alcxatel Lucent, Udyog Vihar, Phase 4, Gurgaon

E-mail: azizahmad.mca@gmail.com

*Corresponding author

Abstract:

Banks have been known as one of the biggest provider of services in the Indian economy for quite some time. Due to globalisation and liberalisation of financial institutions, it has become vital for banks to provide better services. In the growing Indian economy, competition among banks in offering products and services becomes more intense. Banks are competing for greater market share and the need for better service quality has increased many-fold. Competitiveness and search for profits among scheduled commercial banks have called more attention towards customers’ satisfaction and increased researcher's interest on the topic of service quality. Satisfaction assessment becomes very important concern for industry to continuously understand and improve the status of this sector.

This article investigates how perceived service quality and satisfaction deter-mine gap analysis in a commercial banks evaluated by SERVQUAL for assessing service quality in India. It appears from findings that customers are not getting expected satisfaction. Consumers are slightly satisfied with the ‘services’ and ‘quality of services’ provided by the banks. The paper discusses implications for bank managers.

1. 1.      Research objective: The primary objective of the study is to measure service quality of banks in NCR using gap model.
2. 2.      Research Methodology :

The methodology comprised of two sections

    (1) Data Collection Methodology

Data collection was done via a survey where an instrument (questionnaire) was used to record opinions of respondent. This work was performed for private banks including two hundred respondents throughout the NCR. A questionnaire was developed based on the service quality dimensions asking the customer opinion for gathering data from which results were analyzed. In order to minimise the problem of a low response rate, we personally interacted with the customers.

Data were collected through an instrument developed using five service quality dimensions (tangibles, empathy, responsiveness, assurance, reliability) with 20 questions aiming at reducing questionnaire size and then improving the response rate. This work is quantitative in nature and uses a non-probabilistic conveyance sampling, determined according to Rea and Parker (2002).

(2) Data Analyses Methodology

A series of statistical techniques were required before the quantification of service quality. The statistical techniques conducted were:

(a) Reliability Test (using SPSS)

(b) Exploratory Factor Analysis (using SPSS)

The techniques for service quality model can be accommodated in a frame work of service quality improvement that measures service quality gaps selects an optimal combination of attribute levels to deliver customer satisfaction. This techniques when used in a complementary manner, can achieve much more then simple measurement.

A descriptive statistics analysis (mean and paired t-test) was used to evaluate the level of service quality of Indian private banks from the customers’ perspective.

3. Conclusion and findings:

This study examined the service quality gap by comparing customers’ expectations and their actual perceptions. In addition, this study focused on their satisfactions towards the service provided by private banks. The results of the study indicated that the overall service quality provided by the private banks was below customers’ expectations. Responsiveness was rated as the most important dimension followed by reliability, tangibility, assurance, and empathy.

Keywords: service quality; SERVQUAL; quality dimensions; repair retail business, SPSS15.0