Relationship Between Service Quality And Customer Satisfaction in Banking Services

DOI: 10.5176/2251-1970_BizStrategy18.117

Authors: C.L.Kuruppu, L. D. A. D. Dissanayake, A.A.S.N. Munasinghe and W.D.N. Madhavika

Abstract: The purpose of this study is to measure the level of service quality in Banking Services (The gap between Perceived Service and Expected Service) and to identify the relationship between the ‘Service Quality’ and ‘Customer Satisfaction’. In order to achieve these objectives, a comparison of customers’ expected service with their perceived service was conducted in relation to five generic quality dimensions. The deductive reasoning has been applied for this research, with the application of Parsu Parasuraman’s SERVQUAL Model. The primary data was gathered through structured questionnaires from a sample of 120 regular customers of commercial banks. The findings of the study indicate that there are quality gaps in the service with reference to the main five dimensions of SERVQUAL Model. Furthermore, there are significant relationships between Reliability and Assurance with Customer Satisfaction and there are no relationships between the Responsiveness, Empathy and Tangible with Customer Satisfaction in the banking services.

Keywords:Service Quality, Customers’ Expectations, Customers’ Perceptions, SERVQUAL, Gap Analysis