Effect of Service Quality on Customer Satisfaction: An Empirical Study of Customers who have Bank Accounts in both Public and Private Banks in Sri Lanka
Journal Title: International Journal of Marketing and Technology - Year 2018, Vol 8, Issue 1
Abstract
Along with globalization, new technologies are introduced to the banking sector in order to enhance service quality which is consequential to attract and retain rational customers. In the competitive market, banks in both public and private sectors apply different strategies to improve the quality of their services provided. However, there is a lack of recent evidence to show how the quality of these services affects customer satisfaction, leaving a significant hole in Sri Lankan literature. Therefore, this study attempted to explore the effect of service quality of commercial banks on customer satisfaction. Data were collected from 141 customers who maintain both public and private bank accounts in the Gampaha district. Convenient sampling method was used to select the sample. Data were collected through a structural questionnaire conducting face to face interviews and the collected data were analysed through Partial Least Square Structural Equation Model. The study tested five hypothetical relationships between five dimensions of service quality of commercial banks and customer satisfaction. Results revealed a significant positive relationship between tangible and customer satisfaction as well as responsiveness and customer satisfaction of both public and private banks. It was also found that, assurance has a low positive relationship with customer satisfaction regarding private banks, while there was no relationship between assurance and customer satisfaction regarding public banks. Also, empathy and reliability indicated a low positive relationship between customer satisfaction regarding public banks while these two dimensions did not indicate any significant relationship with customer satisfaction regarding private banks. Therefore, this study found that customer satisfaction regarding the service quality of public banks is higher than that of private banks.
Authors and Affiliations
W. P. W. Anjalika And H. M. S. Priyanath
Keywords
Related Articles
- EP ID EP19678
- DOI -
- Views 385
- Downloads 21
Analysis on Problems of Customers on Mobile Banking Services of ICICI BANK in Tenkasi Taluk
Banking system is the backbone of the economy and Information Technology (IT) in turn has become the backbone of banking activities. Technology, which was playing a supportive role in banking, has come to the forefront...
Effectiveness of Celebrity Endorsement of various Brands: teenager’s perception
The use of celebrities in order to increase the sales and/ or the recall value of a brand is called celebrity endorsements. Endorsements by celebrities have started since a long time. The very fact that their use has c...
IMPACT OF TELEVISION COMMERCIALS UPON THE PURCHASE BEHAVIOR OF URBAN INDIAN CHILDREN
Introduction - The kid market is a burgeoning market worldwide. A similar situation exists in India where the kid market is estimated at Rs.5000 crores/ $110 million. The sheer size of the market reveals how strategica...
AN ANALYSIS OF INDIA’S KNOWLEDGE ECONOMY WITH REFERENCE TO HIGHER EDUCATION
Knowledge economy is usually associated with higher education institutions, which provide both technical and non technical knowledge. India is a large country with 1,220,200,000 (1.22 billion) of population. The presen...
DEBT BURDEN AND NIGERIAN DEVELOPMENT
The problem of debt has assumed a crisis proportion in Nigeria. What makes the debt crisis more critical is that Nigeria still has the unenviable distinction of being one of the most impoverished countries in the world...