Impact of Service Quality on Customer Satisfaction Loyalty Commitment and Retention in the Indian Banking Sector

Abstract

Today, the banking industry has become highly competitive in India. It is not only focusing on providing wide range of products to create competitive advantages; but also emphasizes on the importance of services, particularly in maintaining service quality. Thus, it is clear that service quality offers a way of achieving success among competing services, particularly in the case of firms that offer nearly identical services, such as banks, where establishing service quality may be the only way of differentiating oneself. newline800 customers of four selected banks SBI, PNB, ICICI and HDFC were surveyed through non probability convenience sampling. After checking reliability of the collected data, various statistical tests were performed on the collected data. Factors of the service quality were extracted through exploratory factor analysis and based on that, empirical model of the service quality was proposed. Validity of the model checked through the confirmatory factor analysis. After that, association of the factors of service quality with the customer satisfaction / retention / loyalty and commitment were examined. It has been found out that customers of the public sector banks are more satisfied in comparison with the private sector banks. newlineThan after, impact of the factors of service quality on customer satisfaction / retention / loyalty and commitment were checked. In this objective also, more impact of service quality on customer satisfaction / retention / loyalty and commitment is being observed in public sector banks as compare with the private sector banks. Profiling of the customers of the selected four banks was also studied. Lastly, banks were ranked on the parameter of the service quality. newlineMajorly this thesis has contributed in the area of the service quality and added richness to the existing body of knowledge pertaining to the factors of service quality by incorporating new information through qualitative research