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 349
- Downloads 21
“Marketing” Retail service quality with respect to supermarket in Mysore city
Retail stores belong to service industry, which offer a hybrid of goods and service, thus retail product management not only have the common characters of goods quality but also have the special characters of services...
Emergence of Spiritual Tourism in India
Spirituality, in general, has recently become an important subject of research in social and business areas. This has added a new dimension to the tourism industry, called ‗spiritual tourism‘. Consequently, there has b...
GLOBAL BUSINESS
Global business consists of transactions that are devised and carried out across national borders to satisfy the objectives of individuals, companies, and organizations. These transactions take on various forms, which...
Agribusiness role in indonesiA’s economy
The purpose of this study is to analyze:a) the role of the agribusiness sector in the economy through the structure of Gross Added Value, output distribution, income distribution and labor, b) to analyze the output mul...
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
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...