Abstract:
In the service industry, a long term relationship with customers is the key success factor that is enormously increasing with the service quality. The Proliferation o f new channels and the high demand for differentiated products/services has presented customers with a wide choice in terms of which service to use in order to profitably interact with the bank. The purpose of this study is to present empirical evidence of services quality effect on customer satisfaction. The study measured
the relationship between services quality dimensions and customer satisfaction; and ascertain whether various demographic groups report different levels of customer satisfaction with their retail banks. The survey method was used as the main research method for the study. The sample consisted of 100 private sector banks’ customers drawn from three popular private sector banks. The Pierson’s Correlation analysis was used to identify the relationship between services quality judgments and customer satisfaction. T-test and One-way ANOVA was used to measure the
significant differences between demographic groups regarding the satisfaction levels. Further,
mean and standard deviation were calculated to specify the central tendency and the dispersion of
the responses. The study findings showed that services quality dimensions positively associated with customer satisfaction. As a group, private sector banking customers rated empathy and assurance aspects of services quality having the greatest impact on their satisfaction levels. The findings also confirmed that there is no significant difference in satisfaction levels among the diverse demographic groups. The study recommends the private sector banks should build services along the dimensions of services quality, so that the services generate expected satisfaction among the customers.
