PES Business Review

Deblina Vashishta ¹, Shilpa Santosh ²

Affiliations
1 Alliance Business School, Bangalore, IN
2 Alliance Business Academy, Bangalore, IN

Abstract

Indian Banking service sector is becoming more competitive today. The success of the service providers depends on its capability to retain its customers and make them loyal to their brand. The development in Indian banking Industry is providing an interesting puzzle. The banking service users in Bangalore and Delhi, NCR were surveyed. To examine the correlation between service quality, customer satisfaction and customer loyalty and to analyze the service quality problems the SERVQUAL Scale by Valerie Zeithaml has been used and further using the Gap model some core strategies have been suggested to address those service quality gaps. To examine the linkage between Service quality and customer loyalty, the structural Equation modeling has been used. The study shows that the service quality factors namely core service quality, banks networking of branches, value added service quality, have a significant positive impact on customer loyalty. The study further add new dimensions to the existing banking industry service quality by exploring new insights so as to increase customer satisfaction and increasing the loyal customer base as, in this industry it is the customers who are responsible for the differential element and its their satisfaction that helps achieve the competitive advantage.

Keywords

Service Quality, Customer Loyalty, Banking, Customer Satisfaction.

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