market research project report.docx
TRANSCRIPT
Comparative Study of Service Quality between Private & Public Sector Banks
Comparative Study of Service Quality between Private Sector
and Public Sector Banks- Project Report
MBA (F&B) Batch VII Page 1
Comparative Study of Service Quality between Private & Public Sector Banks
Abstract:
Service quality and customer satisfaction are very important concepts that banks
must understand in order to remain competitive in business and grow. The banking
industry like many other financial service industries, witnessed the emergence of
many private sectors and is facing a rapidly changing Market, new technologies,
economic uncertainties, fierce competition and especially more demanding
customers. Customer service is one integral part of any facet of banking and it
defines future of any banking organization. In banking sector, the whole range of
activity and generation of income swivels around the customer. From a very
comfortable and peaceful environment, now the Indian Banking Sector is
characterized by stiff competition for the customer’s satisfaction and profit war
between different banking groups i.e. (Private bank vs. Public Bank). This report
tries to analyze the comparative analysis of service quality among these two
categories of banks – public and private sector banks using the list of service
attributes based on SERVQUAL method.
MBA (F&B) Batch VII Page 2
Comparative Study of Service Quality between Private & Public Sector Banks
Introduction:
The founding of the commercial banks started with the emergence of the Bank of
Calcutta later renamed the Bank of Bengal in the year 1806, thus making it the
oldest commercial bank in the Indian subcontinent, later its merger with the Bank of
Madras, Imperial Bank of India became State Bank of India. The liberalisation of the
Indian economy in 1991 set off a chain of paradigmatic changes in most sectors.
One of the sectors that came in for immediate structural changes was the financial
sector. Although the non-banking financial corporations had already been operating
in the private sector, the government zealously guarded the banking sub-sector
ever since bank nationalisation in the 1970s. The public sector banks operated like
any public undertaking. Obviously, their functioning suffered from similar
shortcomings. Amongst these, no less important a shortcoming was customer
service. The liberalisation of the banking sector brought in stiff competition in the
form of no holds-barred private sector banks that marketed their services amongst
the public aggressively. It witnessed the emergence of national mega-banking
companies such as (ICICI) and Housing Development Finance Corporation (HDFC)
Banks, for whom customer service was an article of faith. The changed business
environment in general and the banking sub-sector scenario in particular compelled
the public sector banks to give up their elephantine indifference to the needs of the
customers. With a view to vying for the market share with the private sector banks,
they started focusing on efforts to provide quality customer service.
Customer Satisfaction is a measure of how products and services provide by any
organization meet the expectations of a customer. It varies from person to person
and service to service. A customer can be defined as a user or potential user of
banking services. A customer would include an account holder, or a person carrying
out casual business transactions with a bank. The efficiency of a banking sector
depends upon how best it can deliver services to its target customers. In order to
survive in this competitive environment and provide continual customer
satisfaction, the banking services providers are required to frequently increase the
quality of services. In banking business it is seen that only 5% increase in customer
retention can extend 35% profitability
MBA (F&B) Batch VII Page 3
Comparative Study of Service Quality between Private & Public Sector Banks
In the context of the comparative efforts at positioning of private and public sector
banks in the market, this study attempts to assess the level of service quality
perceptions of banking sub-sector customers and map out the differences between
the service quality perceptions and expectations of customers of private and public
sector banks along with the factors responsible for these differences.
Literature Review:
For the past 30 years various topics such as the nature of service quality, bank
choice criteria, bank switching behavior and buying decision-making have been
examined by different researchers. Amongst the studies carried out on corporate
customers, focus has been on the importance of service in contributing to the
development of corporate banking relationships. The SERVQUAL method was used
by Parsuraman, Valarie Zeithaml and Len Berry in 1985 and was extensively used to
study the above topics. In 2000, researchers Bahia and Nantel developed their own
Banking Service Quality scale and claimed that it is more reliable than the
SERVQUAL scale. The BSQ scale has effectiveness and assurance, access, price,
tangibles, service, portfolio and reliability as its attributes. In 2002, Mr. Buttle and
Mr. Aldaigan conducted a study on retail bank customers and developed a new
scale with four verticals: behavioral service, service system quality, quality, service
transactional accuracy and machine service quality. This scale had 21 items and
was given weights according to the significance of the items. It was found that the
customers measure the service quality on the basis of two parameters: organization
and transaction. This scale was then used to conduct various other researches in
the same field and it was found out that it was highly useful to the banking industry;
moreover the major benefit of this method was that it could be used to extract fairly
accurate results from large and small samples
In United Arab Emirates , two researchers Al-Tamimi and Jabnoun carried out a
research in order to emphasize the fact that market share of banks is proportional
to the service quality concluding that customers value human relationships the
most when perceiving service quality. In 2005, Cheung and Liao conducted a study
on measuring the service quality of Internet Banking and they presented a user-
based model for evaluation of service quality of e-banking. Empirical results suggest
that perceived usefulness, ease of use, reliability, responsiveness, security and
MBA (F&B) Batch VII Page 4
Comparative Study of Service Quality between Private & Public Sector Banks
privacy and continuous improvement of e-banking services significantly influence
customer attitudes towards Internet e-banking.
The researchers of 20th century did not take into account very important
phenomena which was slowly gathering momentum – the growing use of
technology and increasing use of social Media. Private and public sector banks
began relying on technology in order to retain customers, provide better services,
to reduce costs and provide customer delight. The private and foreign banks started
a technological revolution in the banking industry. Mr. B.K. Tiwary suggested that in
the new economy mind share leads to market share and mind share is influenced
not only by the promotions and advertisements but more importantly on favorable
customer perception which in turn is based on satisfaction with regard to products,
services and interaction with the customers.
After the banks started integrating its products with IT solutions the customers were
also not far behind. The internet boom of India in the early 2000s started increasing
the internet outreach in internet penetration. As the customers became more tech
savvy the technologically innovative banks were perceived to be “futuristic” and
ahead of times. This is where the private banks had the edge over its competition
vis a vis public banks (D.R. Joshi 2012). But the public sector banks still enjoy the
trust of its customers and leading public sector banks like State Bank of India,
Punjab National Bank and Bank of Baroda started to embrace technology in order to
keep up with the competition.
The competition within the banks was so tough that the products and services
offered by the banks were similar in features and the only differentiating factor was
customer experience (J Sethuraman 2012) . A research done by Pooja Mengi in 2009
found that the customers who had account with public sector banks were more
satisfied as compared to the customers who had their accounts with the private
sector banks. This anomaly was because of the fact that in the Indian Banking
sector the “Human Aspect” of banking is more important than technical and
tangible aspects of service quality (Usha Lenka in 2009).
As the internet penetration increased, the customers also began to share their
experiences about a bank's service quality and satisfaction on social media
networking sites like Facebook, Twitter, Blogs etc. This has lead to a review of the
MBA (F&B) Batch VII Page 5
Comparative Study of Service Quality between Private & Public Sector Banks
old research methods of SERQUAL and BSQ, through this research we aim to
combine the traditional methods of research with the new ones in order to arrive at
a holistic approach towards analyzing the service quality of private and public
banks.
Objective:
1. To find out the parameters on which a customer decides with which bank he
wants to be associated with.
2. To compare the public sector banks and private sector banks in terms of service
quality.
The research objective was to examine the following hypotheses:
Null Hypothesis, Ho: There is no significant difference in the service quality
between public and private sector banks.
Alternate Hypothesis, Ha: There is significant difference in the service quality
between public and private sector banks.
Research Methodology:
SERVQUAL Model:
The research was directed towards understanding customer’s perceptions
towards Public and Private banks operating in India. The SERVQUAL model was
adapted with some modification for the study. The instrument was designed
keeping into consideration the Indian banking sector scenario. Attributes like
convenience, personal interaction, assurance and access and competence were
considered important in defining bank service quality. The questionnaire was a
SERVQUAL one in 5 key dimensions namely tangibles, reliability, responsiveness,
assurance and empathy. The list of service attributes based on different service
dimensions are ranked and rated by the customer to identify the importance of
each service attributes. All the data were collected from bank customers through
survey & Personal Interviews with consumers of different banks. After the data has
been collected, it was entered into SPSS and was prepared for analysis.
MBA (F&B) Batch VII Page 6
Comparative Study of Service Quality between Private & Public Sector Banks
Sample:
Random sampling technique was used for data collection. We had drafted the
questionnaire and floated to respondents over the internet through emails and
Facebook. The questionnaires were administered in English and the responses of
the customers was taken on a five-point Likert scale with responses varying on the
scale of 1 for strongly agree and 5 for strongly disagree.
The basic demographic profiles of the respondents are as below:
Gender:
Qualification:
Occupation:
MBA (F&B) Batch VII Page 7
Comparative Study of Service Quality between Private & Public Sector Banks
Marital Status:
Income:
Classification of Questionnaire:
The survey questions have been classified under five servqual parameters to make
a comparative study on service quality of public and private sector banks. The five
parameters are:
MBA (F&B) Batch VII Page 8
Comparative Study of Service Quality between Private & Public Sector Banks
1. Tangibility
2. Responsiveness
3. Assurance
4. Empathy
5. Reliability
Tangibility
Visually appealing facilities
Up to date technology
Well groomed and well behaved employees
Responsiveness
24/7 Contact
Timely service
Prompt service
AssurancePolite employees
Employees willing to help
Empathy
Personal attention
Understanding of needs
Service attention on high priority
ReliabilitySafe transactions
Trust
MBA (F&B) Batch VII Page 9
Comparative Study of Service Quality between Private & Public Sector Banks
Data Collection from Survey Questionnaire:
The questionnaires were distributed amongst customers who had current accounts
with major banks in the retail banking industry. All these banks have a strong
presence in the banking industry and are the largest and most profitable banks in
India. The sample size was fixed at 40 customers. Convenience sampling technique
was used to get the questionnaire filled by the customers.
Age grou
pGend
erBank
AccountSecto
rTangibili
tyResponsiven
essAssuran
ceEmpat
hyReliabili
ty
Service
Quality
26-30 yrs Male SBI Public 4 3.33
4.00
3.67
4.00
7.60
20-25 yrs Male HDFC
Private 4.33 4.33
3.67
4.00
4.00
8.13
20-25 yrs Male ICICI
Private 4.67 4.33
4.00
4.33
4.50
8.73
20-25 yrs Male ICICI
Private 4.00 4
4.33
4.00
4.00
8.13
20-25 yrs
Female ICICI
Private 4.33 4.33
3.67
4.00
4.00
8.13
26-30 yrs Male ICICI
Private 4.67 4.33
4.00
4.33
4.50
8.73
26-30 yrs Male SBI Public 3.67 3.67
4.00
3.33
3.67
7.34
26-30 yrs Male ICICI
Private 4.33 4.33
3.67
4.00
4.00
8.13
26-30 yrs Male SBI Public 4.00 3.67
3.67
3.33
3.67
7.34
MBA (F&B) Batch VII Page 10
Comparative Study of Service Quality between Private & Public Sector Banks
26-30 yrs Male
kotak mahindra
Private 4.00 4
4.33
4.00
4.00
8.13
26-30 yrs Male HDFC
Private 4.33 4.33
3.67
4.00
4.00
8.13
26-30 yrs Male HDFC
Private 4.67 4.33
4.00
4.33
4.50
8.73
26-30 yrs Male HDFC
Private 4.00 4
4.33
4.00
4.00
8.13
26-30 yrs Male
bank of america
Private 4.33 4.33
3.67
4.00
4.00
8.13
26-30 yrs Male
ICICI BANK
Private 4.67 4.33
4.00
4.33
4.50
8.73
31-35 yrs Male Citi
Private 4.00 4
4.33
4.00
4.00
8.13
26-30 yrs Male HDFC
Private 4.33 4.33
3.67
4.00
4.00
8.13
26-30 yrs Male citibank
Private 4.67 4.33
4.00
4.33
4.50
8.73
26-30 yrs Male ICICI
Private 4.00 4
4.33
4.00
4.00
8.13
20-25 yrs Male ICICI Public 4 3.33
4.00
3.67
4.00
7.60
31-35 yrs
Female HDFC
Private 3.67 4
4.00
4.33
4.00
8.00
26-30 yrs Male ICICI
Private 4.00 4.33 3.67
4.00
4.00
8.00
31-35 yrs
Female HDFC Public 4 3.33
4.00
3.67
4.00
7.60
26-30 yrs Male ICICI
Private 3.67 3.67
4.00
4.33
4.50
8.07
26-30 yrs Male
Indian Bank Public 4.00 3.67
3.67
3.33
3.67
7.34
26-30 yrs
Female SBI Public 4 3.33
4.00
3.67
4.00
7.60
26-30 yrs
Female ICICI
Private 3.67 4
4.00
4.33
4.00
8.00
MBA (F&B) Batch VII Page 11
Comparative Study of Service Quality between Private & Public Sector Banks
31-35 yrs Male SBI Public 4.00 3.67
3.67
3.33
3.67
7.34
26-30 yrs Male ICICI Public 4 3.33
4.00
3.67
4.00
7.60
26-30 yrs Male
standard Chartere
dPrivat
e 3.67 3.67 4
.00
4.33 4.
00
7.87 20-25 yrs Male ICICI
Private 4.00 4
3.67
4.00
4.50
8.07
20-25 yrs Male HDFC
Private 4.00 4
4.33
4.00
4.00
8.13
26-30 yrs Male ICICI
Private 4.33 4.33
3.67
4.00
4.00
8.13
> 35 yrs Male ICICI
Private 4.67 4.33
4.00
4.33
4.50
8.73
26-30 yrs Male ICICI
Private 4.00 4
4.33
4.00
4.00
8.13
26-30 yrs Male
kotak mahindra
Private 4.33 4.33
3.67
4.00
4.00
8.13
26-30 yrs Male ICICI
Private 4.67 4.33
4.00
4.33
4.50
8.73
20-25 yrs Male ICICI
Private 4.00 4
4.33
4.00
4.00
8.13
26-30 yrs Male
Bank of maharast
ra Public 3.67 3.67 4
.00
3.33 3.
67
7.34 31-35 yrs
Female citibank
Private 4.33 4.33
3.67
4.00
4.00
8.13
Hypotheses of the Study:
Keeping the objectives in mind, this study intends to test the following hypotheses:
Null Hypothesis, Ho: There is no significant difference in the service quality between public and private sector banks.
Alternate Hypothesis, Ha: There is significant difference in the service quality between public and private sector banks.
MBA (F&B) Batch VII Page 12
Comparative Study of Service Quality between Private & Public Sector Banks
Statistical Tests:
The following statistical tests were conducted to test the above mentioned hypotheses using SPSS software:
1. Run test
2. Ks test
3. Independent t test
4. Correlation
5. Regression.
Run Test:
Objective: To find whether the sample data are random or not .
H0: Series is random
Ha: Series is not random.
Level of Significance: 5%
MBA (F&B) Batch VII Page 13
Comparative Study of Service Quality between Private & Public Sector Banks
Descriptive Statistics
N Mean
Std.
Deviation Minimum Maximum
Tangibility 40 4.1420 .31902 3.67 4.67
Responsiveness 40 3.999 .3529 3.3 4.3
Assurance 40 3.950 .2427 3.7 4.3
Empathy 40 3.966 .3178 3.3 4.3
Reliability 40 4.071 .2578 3.7 4.5
Runs Test
Tangibility
Responsivene
ss Assurance Empathy Reliability
Test Valuea 4.00 4.0 4.0 4.0 4.0
Cases < Test Value 6 12 14 10 5
Cases >= Test
Value34 28 26 30 35
Total Cases 40 40 40 40 40
Number of Runs 13 14 26 16 11
Z .838 -1.265 2.224 .000 .569
Asymp. Sig. (2-
tailed).402 .206 .026 1.000 .570
It can be inferred that samples are random for Tangibility, Responsiveness,
Empathy & Reliability and not random for Assurance.
Kolmogorav Smrinov Test:
MBA (F&B) Batch VII Page 14
Comparative Study of Service Quality between Private & Public Sector Banks
Objective: The Kolmogorov-Smirnov test was done to decide if a sample comes
from a population with a specific distribution. We have carried out the test to check
if the data collected is normally distributed,
Null Hypothesis: H0: the data is normally distributed
Alternate Hypothesis: Ha: the data is not normally distributed.
The distribution of the data is checked for the normality with level of significance α -
5%
Descriptive Statistics
N Mean
Std.
Deviation Minimum Maximum
Tangibility 40 4.1420 .31902 3.67 4.67
Responsiveness 40 3.999 .3529 3.3 4.3
Assurance 40 3.950 .2427 3.7 4.3
Empathy 40 3.966 .3178 3.3 4.3
Reliability 40 4.071 .2578 3.7 4.5
ServiceQuality 40 8.051 .4228 7.3 8.7
MBA (F&B) Batch VII Page 15
Comparative Study of Service Quality between Private & Public Sector Banks
One-Sample Kolmogorov-Smirnov Test
Tangibilit
y
Responsivene
ss
Assuranc
e
Empath
y
Reliabilit
y
Servic
e
Qualit
y
N 40 40 40 40 40 40
Normal Parametersa Mean 4.1420 3.999 3.951 3.966 4.071 8.051
Std.
Deviatio
n
.31902 .3529 .2427 .3178 .2578 .4228
Most Extreme
Differences
Absolute .272 .251 .231 .293 .384 .249
Positive .272 .174 .226 .182 .384 .249
Negativ
e-.178 -.251 -.231 -.293 -.266 -.177
Kolmogorov-Smirnov Z 1.720 1.588 1.460 1.852 2.428 1.577
Asymp. Sig. (2-tailed) .005 .013 .028 .002 .000 .014
It can be inferred from the table that the samples are normally distributed for
Assurance and not normally distributed for other parameters.
MBA (F&B) Batch VII Page 16
Comparative Study of Service Quality between Private & Public Sector Banks
Independent t test:
Objective: Independent t test is used to compare the mean of two independent
samples. In this case, the two independent samples are service quality values of
public and private sector banks. The SPSS output is as follows:
H0: Mean service quality of private sector banks is equal to the Mean service
quality of public sector banks
Ha: Mean service quality of private sector banks is more than the Mean service
quality of public sector banks
The distribution of the data is checked for the normality with level of significance α -
5%
Group Statistics
Type of
sector N Mean
Std.
Deviation
Std. Error
Mean
Service
Quality
Private 30 8.2443 .27875 .05089
Public 10 7.4700 .13703 .04333
MBA (F&B) Batch VII Page 17
Comparative Study of Service Quality between Private & Public Sector Banks
Group Statistics
Type of
sector N Mean
Std.
Deviation
Std. Error
Mean
Service
Quality
Private 30 8.2443 .27875 .05089
Levene's
Test for
Equality
of
Variance
s t-test for Equality of Means
F Sig. t df
Sig. (2-
tailed)
Mean
Differenc
e
Std. Error
Differenc
e
95%
Confidence
Interval of the
Difference
Lower Upper
Servic
e
Quality
Equal
variances
assumed
3.73
7
.061 8.399 38 .000 .77433 .09219 .58770 .96097
MBA (F&B) Batch VII Page 18
Comparative Study of Service Quality between Private & Public Sector Banks
Group Statistics
Type of
sector N Mean
Std.
Deviation
Std. Error
Mean
Service
Quality
Private 30 8.2443 .27875 .05089
Equal
variances
not
assumed
11.58
5
32.03
5.000 .77433 .06684 .63819 .91048
Independent Sample test table
It can be inferred from the table that mean service quality of private sector banks is
more than the mean service quality of public sector banks.
Hence alternate hypothesis is accepted.
Correlation:
Objective: The test is conducted to see the correlation of five parameters to the
service quality value and to find the most correlated parameters. The SPSS output is
as follows:
MBA (F&B) Batch VII Page 19
Comparative Study of Service Quality between Private & Public Sector Banks
Tangibilit
y
Responsiv
eness
Assuranc
e Empathy
Reliabilit
y
Service
Quality
Tangibility Pearson
Correlatio
n
1 .676** -.231 .442** .621** .759**
Sig. (2-
tailed).000 .151 .004 .000 .000
N 40 40 40 40 40 40
Responsiveness Pearson
Correlatio
n
.676** 1 -.229 .629** .433** .780**
Sig. (2-
tailed).000 .155 .000 .005 .000
N 40 40 40 40 40 40
Assurance Pearson
Correlatio
n
-.231 -.229 1 .198 .124 .173
Sig. (2-
tailed).151 .155 .221 .446 .285
N 40 40 40 40 40 40
Empathy Pearson
Correlatio
n
.442** .629** .198 1 .790** .882**
Sig. (2-
tailed).004 .000 .221 .000 .000
N 40 40 40 40 40 40
MBA (F&B) Batch VII Page 20
Comparative Study of Service Quality between Private & Public Sector Banks
Reliability Pearson
Correlatio
n
.621** .433** .124 .790** 1 .842**
Sig. (2-
tailed).000 .005 .446 .000 .000
N 40 40 40 40 40 40
ServiceQuality Pearson
Correlatio
n
.759** .780** .173 .882** .842** 1
Sig. (2-
tailed).000 .000 .285 .000 .000
N 40 40 40 40 40 40
**. Correlation is significant at the 0.01 level
(2- tailed).
It can be inferred from the table that empathy parameter is more correlated
and assurance parameter is least correlated to service quality.
MBA (F&B) Batch VII Page 21
Comparative Study of Service Quality between Private & Public Sector Banks
Regression:
Objective: Regression analysis is performed to model a relationship between two
parameters. The SPSS output for regression is as follows:
Model
Variables
Entered
Variables
Removed Method
1 Reliability,
Assurance,
Responsivene
ss,
Tangibility,
Empathya
. Enter
a. All requested variables entered.
b. Dependent Variable: ServiceQuality
Model Summaryb
Model R R Square
Adjusted R
Square
Std. Error of
the Estimate
Durbin-
Watson
1 1.000a 1.000 1.000 .0000 1.645
a. Predictors: (Constant), Reliability, Assurance, Responsiveness,
Tangibility, Empathy
b. Dependent Variable: ServiceQuality
MBA (F&B) Batch VII Page 22
Comparative Study of Service Quality between Private & Public Sector Banks
Model Summaryb
Model R R Square
Adjusted R
Square
Std. Error of
the Estimate
Durbin-
Watson
1 1.000a 1.000 1.000 .0000 1.645
a. Predictors: (Constant), Reliability, Assurance, Responsiveness,
Tangibility, Empathy
ANOVAb
Model
Sum of
Squares df Mean Square F Sig.
1 Regression 6.973 5 1.395 . .000a
Residual .000 34 .000
Total 6.973 39
a. Predictors: (Constant), Reliability, Assurance, Responsiveness, Tangibility,
Empathy
b. Dependent Variable: ServiceQuality
Coefficientsa
Model
Unstandardized
Coefficients
Standardized
Coefficients
t Sig.B Std. Error Beta
1 (Constant) 1.577E-14 .000 . .
Tangibility .400 .000 .302 . .
MBA (F&B) Batch VII Page 23
Comparative Study of Service Quality between Private & Public Sector Banks
Model Summaryb
Model R R Square
Adjusted R
Square
Std. Error of
the Estimate
Durbin-
Watson
1 1.000a 1.000 1.000 .0000 1.645
a. Predictors: (Constant), Reliability, Assurance, Responsiveness,
Tangibility, Empathy
Responsiveness .400 .000 .334 . .
Assurance .400 .000 .230 . .
Empathy .400 .000 .301 . .
Reliability .400 .000 .244 . .
a. Dependent Variable: ServiceQuality
Residuals Statisticsa
Minimum Maximum Mean
Std.
Deviation N
Predicted Value 7.336 8.732 8.051 .4228 40
Residual .0000 .0000 .0000 .0000 40
Std. Predicted
Value-1.692 1.610 .000 1.000 40
Std. Residual . . . . 0
a. Dependent Variable: ServiceQuality
In this case, service quality is the dependent variable and Reliability, Assurance,
Responsiveness, Tangibility, Empathy are independent variables. Regression is
modeled between these two variables.
MBA (F&B) Batch VII Page 24
Comparative Study of Service Quality between Private & Public Sector Banks
It can be inferred from the table that service quality of private sector banks is better
than the service quality of public sector banks.
Conclusion:
The measurement of service quality has become a significant marketing tool for the
banking sector as a whole which is trying to develop a competitive advantage by
learning about their customers perception towards the service quality attributes. As
a part of our research we collected data which were classified as five empirical
service quality measurement heads as defined by the servquel model. The results
showed that all the five attributes held a significant effect on the customer
satisfaction. Improvement in customer satisfaction would mean that it is gaining
competitive advantage. The research can be extended to a larger sample which
could yield different results. The research can be carried out at a more micro level
by comparing the customer satisfaction levels between the Public and private sector
banks in the country and trying to understand the factors which influence customer
perceptions towards banks.
MBA (F&B) Batch VII Page 25
Comparative Study of Service Quality between Private & Public Sector Banks
The study concludes that in view of the stiff competition in the global business
arena where businesses have to survive and grow on the basis of volumes, instead
of margins, service quality will constitute an essential plank of service marketing.
This implies that public sector banks will have to focus on the reduction of the gap
in customer expectations and perceptions about their service quality if they are to
compete in the global marketplace. To this end, public sector banks should
continually assess and re-assess how customers perceive their services to know
whether these banks meet or exceed or fall short of the expectations of their
customers. Such a customer services quality audit, though tedious, will help the
banks to pay attention to potential failure points and service recovery procedure,
which could be made integral to employees' training. In other words, it amounts to
empowering employees to exercise responsibility, judgment and creativity in
responding to customers' problems.
Bibliography
1. Bahia, K. &. (2000). A Reliable and Valid Measurement Scale for the Perceived Service Quality. International Journal of Bank Marketing, 18(2), 84-91.
2. Bonaccorsi, A. &. (1996). Customer service satisfaction in market and intra-company exchanges. Managing Service Quality, 2, 1-14.
3. D.W., F. &. (1991). An Evaluation of the SERVQUAL Scales in a Retailing Setting. Advances in Consumer Research, 18, 3-22.
4. Oliver, R. (1980). A cognitive model of the antecedents and consequences of satisfaction. Journal of Marketing, 17(10), 460–469.
5. Parasuraman, A. Z. (1985). A conceptual model of service quality. Journal of Marketing, 4(4), 41-50.
MBA (F&B) Batch VII Page 26
Comparative Study of Service Quality between Private & Public Sector Banks
6. Parasuraman, A., Zeithmal, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale for measuring. Journal of Retailing, 64, 12-40.
7. Raheem, A. (2005). Determinants of banking service quality. An Application of Factor Analysi, 17-20.
8. Ranganathan, C. a. (2002). Key dimensions of business-to-consumer websites. Information and Management, 39, 457–465.
9. Zhu, J.-S. a.-T. (2010). The antecedents and consequences of e-service quality for online. Social Behaviour and Personality, 38(8), 1009–1018.
10. http://www.pbr.co.in/Vol%205%20Iss%2012/11.pdf
11. http://www.iimidr.ac.in/iimi/images/IMJ/Volume1_Issue3/Service%20Quality%20Expectations%20and%20Perceptions%20of%20Public%20and%20Private%20Sector%20Banks%20in%20India.pdf
12. http://www.ijsrp.org/research-paper-1012/ijsrp-p1059.pdf
13. http://indianresearchjournals.com/pdf/IJSSIR/2013/August/9.pdf
14. http://en.wikipedia.org/wiki/SERVQUAL
15. http://www.idrbt.ac.in/publications/Frameworks/Social%20Media%20%20Framework%20(2013).pdf
16. http://iosrjournals.org/iosr-jbm/full-issue/vol1-issue5.pdf
17. http://www.arraydev.com/commerce/jibc/2012-12/sangeethav03.pdf
MBA (F&B) Batch VII Page 27