Drishtikon: A Management Journal

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Financial Service Quality and Its Impact on Customer Satisfaction:Evidence from Indian Banking Sector


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1 Department of Management, Sikkim University (A Central University, Gangtok, Sikkim), India
     

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Customer satisfaction and loyalty in long run, prominently depend upon the way the organisations deliver the products and services to the customers. The emergence of digital ways of providing services have forced the bankers to devise different set of policies to attract the customers. Thus, this paper explores the dimensions of financial services quality in Indian banking sector and their impact on customer satisfaction. The underlying model of SERVQUAL with five dimensions, was adopted in this paper with one additional construct i.e. customer satisfaction to evaluate the impact of financial service quality on customer satisfaction among public and private sector banks in India. The findings show that in addition to the four dimensions of SERVQUAL model i.e. Empathy, responsiveness, assurance and tangibles; there is one more significant dimension i.e. Technology, which bothers more to Indian banking customers in assessing the financial service quality. Further, results of linear regression analysis revealed that Empathy and issues related to security & use of technology in the banking transactions are significantly important to the customers in determining their satisfaction with the quality of financial services. The policy makers may use these findings and concentrate on making their financial services more reliable & empathetic and shall ensure the right use of technology in making the transactions safe & secure in order to improve and strengthen the database of satisfied customers in long run.


Keywords

SERVQUAL, Empathy, Responsiveness, Tangibles, Assurance, Technology, Customer Satisfaction.
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  • Financial Service Quality and Its Impact on Customer Satisfaction:Evidence from Indian Banking Sector

Abstract Views: 206  |  PDF Views: 1

Authors

Krishna Murari
Department of Management, Sikkim University (A Central University, Gangtok, Sikkim), India

Abstract


Customer satisfaction and loyalty in long run, prominently depend upon the way the organisations deliver the products and services to the customers. The emergence of digital ways of providing services have forced the bankers to devise different set of policies to attract the customers. Thus, this paper explores the dimensions of financial services quality in Indian banking sector and their impact on customer satisfaction. The underlying model of SERVQUAL with five dimensions, was adopted in this paper with one additional construct i.e. customer satisfaction to evaluate the impact of financial service quality on customer satisfaction among public and private sector banks in India. The findings show that in addition to the four dimensions of SERVQUAL model i.e. Empathy, responsiveness, assurance and tangibles; there is one more significant dimension i.e. Technology, which bothers more to Indian banking customers in assessing the financial service quality. Further, results of linear regression analysis revealed that Empathy and issues related to security & use of technology in the banking transactions are significantly important to the customers in determining their satisfaction with the quality of financial services. The policy makers may use these findings and concentrate on making their financial services more reliable & empathetic and shall ensure the right use of technology in making the transactions safe & secure in order to improve and strengthen the database of satisfied customers in long run.


Keywords


SERVQUAL, Empathy, Responsiveness, Tangibles, Assurance, Technology, Customer Satisfaction.

References