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TRANSCRIPT
Service Quality: Public, Private, and Foreign Banks
Presenter : Radium ChengInstructor : Dr. Teresa Hsu
October 7, 2013
Citation
Swar, B. N.,& Sahoo, P. K. (2012). Service
Quality: Public, Private, and Foreign Banks.
Journal of Indian management, 9 (3), 43-50.
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Content
IntroductionI
Literature ReviewII
MethodologyIII
ResultsIV
Conclusion & Suggestions
V
Future StudyVI3
Introduction
• Background
The need for quality is felt everywhere by every organization, whether it is public, private or foreign sector.
The banking industry in India has been a witness for the lastdecade to several regulatory changes that have resulted in aheightened level of competition among the banks.
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Introduction
• Purpose of the study
• The present study focuses on the relationship between service quality and service delivery among public, private, and foreign banks in Odisha.
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Literature Review
• Parasuraman et al (1988) developed a twenty-two item instrument representing the five dimensions, recognized as . SERVQUAL
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Literature Review
• Suresh Chandar et al (2001) identified five factors of service quality as critical from the customers’ point of view.
• 1. Core service or service product• 2. Human element of service delivery• 3. Systematization of service delivery: Non-human element• 4. Tangibles of service - Services capes• 5. Social responsibilities
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Literature Review
• Mohammad Al-hawari (2008), finds that there is a positive and significant relationship between the proposed traditional service quality factors and customer satisfaction.
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Literature Review
• Research Hypothesis
• H1: Customers’ perceptions of Service delivery influencing
customers’ perceptions of service quality
• H2: Customers’ expectations of Service delivery influencing
customers’ expectations service quality
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Method
• Participant• 600 customers from 6 banks have been selected. • 524 usable questionnaires
87.33%valid
Invalid
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Method
• Questionnaire• Part I – SERVQUAL scale• Part II – Demographic information
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31 statements
Perception of Service Quality
Expectation ofService Quality
Method
• Sample Profile• These banks are purposely selected.
200
300
100
Private sector
Foreign sector
Public sector
179
276
69
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Result
Elements of Service Quality
Service Quality
Perceptions Expectations
Reliability .739 .721
Assurance .961 .826
Tangibility .837 .839
Empathy .923 .912
Responsiveness .830 .815
Service Quality Reliability Test
0.7 13
Result
Elements of Service Delivery
Service Delivery
Perceptions Expectations
Systemization Elements of Service Delivery
.801 .897
Human Elements of Service Delivery
.876 .834
Service Delivery Reliability Test
0.714
Cronbach’s alpha value fulfills the reliability test requirement.
Result
Customers’ Perceptions of Service Delivery influencing Customers’ Perceptions of Service Quality
Model it
R .95
R2 .90
Coefficients
B .90
ᵦ .95***
• Hypothesis 1
15Customers’ perception of service delivery accounts
for 90% of the variation in customers’ perceptions of service quality.
Result
Customers’ Expectations of Service Delivery influencing Customers’ Expectations of Service Quality
Model it
R .97
R2 .93
Coefficients
B .81
ᵦ .97***
• Hypothesis 2
16The expectations of service delivery significantly influence the expectation of service quality.
Conclusion & Suggestions
• Efforts of the banks have to be made that level of quality service which exceeds the perceived expectations of customers and thus creates a ‘wow’ syndrome among all visiting customers.
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Conclusion & Suggestions
• Banks should make investment in research so as to understand customers’ needs and expectations at all stages in the service delivery process in order to determine the key components of service quality.
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Future Study
Service Quality
Customer Loyalty
Customer Satisfaction
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• Participant• The 200 employees in the corporation
• Instrument• Parasuraman et al. (1988)• 22 statements of the SERVQUAL instrument
• 22 statements of the SERVQUAL instrument
Thank You
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