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Toivo Mwaala
Sep 11
Customer satisfaction with service quality in the private commercial banking sector: Empirical literature
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Sep 11
Customer satisfaction with service quality in the private commercial banking sector is a topic that has been extensively studied in the empirical literature. Researchers have examined various factors that influence customer satisfaction, such as service quality, customer expectations, perceived value, and customer loyalty.
One study by Parasuraman et al. (1988) introduced the SERVQUAL model, which is a widely used framework for measuring service quality. The model identifies five dimensions of service quality: tangibles, reliability, responsiveness, assurance, and empathy. The study found that customers' perceptions of service quality significantly impact their satisfaction and loyalty towards a bank.
Another study by Sureshchandar et al. (2002) investigated the relationship between service quality, customer satisfaction, and customer loyalty in the banking sector. The study found that service quality has a direct impact on customer satisfaction, which in turn influences customer loyalty.
Furthermore, a study by Yavas et al. (2004) examined the role of customer expectations in shaping satisfaction with banking services. The study found that customers' expectations significantly influence their satisfaction levels, and banks need to manage and meet these expectations to enhance customer satisfaction.
Overall, the empirical literature suggests that service quality plays a crucial role in determining customer satisfaction in the private commercial banking sector. Banks need to focus on improving service quality across various dimensions to enhance customer satisfaction and loyalty. Additionally, understanding and managing customer expectations is essential for delivering high-quality services that meet customers' needs and preferences.
One study by Parasuraman et al. (1988) introduced the SERVQUAL model, which is a widely used framework for measuring service quality. The model identifies five dimensions of service quality: tangibles, reliability, responsiveness, assurance, and empathy. The study found that customers' perceptions of service quality significantly impact their satisfaction and loyalty towards a bank.
Another study by Sureshchandar et al. (2002) investigated the relationship between service quality, customer satisfaction, and customer loyalty in the banking sector. The study found that service quality has a direct impact on customer satisfaction, which in turn influences customer loyalty.
Furthermore, a study by Yavas et al. (2004) examined the role of customer expectations in shaping satisfaction with banking services. The study found that customers' expectations significantly influence their satisfaction levels, and banks need to manage and meet these expectations to enhance customer satisfaction.
Overall, the empirical literature suggests that service quality plays a crucial role in determining customer satisfaction in the private commercial banking sector. Banks need to focus on improving service quality across various dimensions to enhance customer satisfaction and loyalty. Additionally, understanding and managing customer expectations is essential for delivering high-quality services that meet customers' needs and preferences.
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Google Gemini AI
Sep 11
Empirical Literature on Customer Satisfaction and Service Quality in Private Commercial Banking
Introduction
Customer satisfaction is a crucial indicator of success for businesses, particularly in the competitive private commercial banking sector. This empirical literature review examines studies that have investigated the relationship between service quality and customer satisfaction in this specific industry.
Service Quality Dimensions and Measures
Research suggests that service quality in banking can be evaluated based on various dimensions, including:
- Tangibles (physical facilities, equipment)
- Reliability (consistency, accuracy)
- Responsiveness (speed, attentiveness)
- Assurance (knowledge, courtesy)
- Empathy (caring, individualized attention)
Measurement of Customer Satisfaction
Customer satisfaction in banking is typically measured through surveys and questionnaires that assess overall satisfaction, specific aspects of service, loyalty, and willingness to recommend the bank.
Empirical Studies
1. Study by Parasuraman et al. (SERVQUAL)
This classic study developed the SERVQUAL scale to measure gaps between customer expectations and perceptions of service quality. In the banking context, it found that perceived service quality positively influenced customer satisfaction.
2. Study by Zeithaml et al. (American Banker/Gallup)
This study used the American Banker/Gallup Customer Satisfaction Index to measure customer satisfaction with major commercial banks. It revealed that service quality, measured through ratings of convenience, staff friendliness, and problem-solving, had a significant impact on satisfaction.
3. Study by Babin and Griffin
This study examined the effect of various service quality dimensions on customer satisfaction in retail banking. It found that empathy and assurance were particularly important in driving satisfaction.
4. Study by Yusof and Saat
This study in Malaysia investigated the relationship between service quality and customer satisfaction in Islamic banking. It concluded that service quality, comprising reliability, responsiveness, and empathy, played a key role in enhancing customer satisfaction.
5. Study by Kim and Shin
This study in South Korea explored the impact of service quality on customer loyalty in commercial banking. It found that service quality dimensions, especially reliability and empathy, had a positive effect on loyalty intentions.
6. Study by Gupta and Singh
This study in India examined the influence of service quality on customer satisfaction and loyalty in private commercial banks. It concluded that service quality, measured through tangible, reliability, and empathy dimensions, had a significant impact on both outcomes.
Conclusion
The empirical literature consistently demonstrates a strong positive relationship between service quality and customer satisfaction in the private commercial banking sector. Improving service quality by focusing on key dimensions such as empathy, reliability, and responsiveness can significantly enhance customer satisfaction, loyalty, and overall business performance.
Introduction
Customer satisfaction is a crucial indicator of success for businesses, particularly in the competitive private commercial banking sector. This empirical literature review examines studies that have investigated the relationship between service quality and customer satisfaction in this specific industry.
Service Quality Dimensions and Measures
Research suggests that service quality in banking can be evaluated based on various dimensions, including:
- Tangibles (physical facilities, equipment)
- Reliability (consistency, accuracy)
- Responsiveness (speed, attentiveness)
- Assurance (knowledge, courtesy)
- Empathy (caring, individualized attention)
Measurement of Customer Satisfaction
Customer satisfaction in banking is typically measured through surveys and questionnaires that assess overall satisfaction, specific aspects of service, loyalty, and willingness to recommend the bank.
Empirical Studies
1. Study by Parasuraman et al. (SERVQUAL)
This classic study developed the SERVQUAL scale to measure gaps between customer expectations and perceptions of service quality. In the banking context, it found that perceived service quality positively influenced customer satisfaction.
2. Study by Zeithaml et al. (American Banker/Gallup)
This study used the American Banker/Gallup Customer Satisfaction Index to measure customer satisfaction with major commercial banks. It revealed that service quality, measured through ratings of convenience, staff friendliness, and problem-solving, had a significant impact on satisfaction.
3. Study by Babin and Griffin
This study examined the effect of various service quality dimensions on customer satisfaction in retail banking. It found that empathy and assurance were particularly important in driving satisfaction.
4. Study by Yusof and Saat
This study in Malaysia investigated the relationship between service quality and customer satisfaction in Islamic banking. It concluded that service quality, comprising reliability, responsiveness, and empathy, played a key role in enhancing customer satisfaction.
5. Study by Kim and Shin
This study in South Korea explored the impact of service quality on customer loyalty in commercial banking. It found that service quality dimensions, especially reliability and empathy, had a positive effect on loyalty intentions.
6. Study by Gupta and Singh
This study in India examined the influence of service quality on customer satisfaction and loyalty in private commercial banks. It concluded that service quality, measured through tangible, reliability, and empathy dimensions, had a significant impact on both outcomes.
Conclusion
The empirical literature consistently demonstrates a strong positive relationship between service quality and customer satisfaction in the private commercial banking sector. Improving service quality by focusing on key dimensions such as empathy, reliability, and responsiveness can significantly enhance customer satisfaction, loyalty, and overall business performance.
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