An Empirical Study of Linkages between Service Quality Customer Satisfaction and Service Value with Behavioral Intentions in Financial Services

Abstract

The study attempts to empirically test the inter relationships between the service encounter newlineconstructs of Service Quality, Customer Satisfaction and Service Value and their newlinesimultaneous direct and indirect effects on customers Behavioral outcomes in the form of newlineBehavioral Intentions. The relationships and their effects are investigated using a composite newlinemodel of Direct and Indirect effects of Service Quality on Behavioral Intentions. The Direct newlineEffects model postulates that the effect of Service Quality on behavioral Intentions is Direct newlineand Indirect (mediated by Customer Satisfaction and Service Value). The Indirect Effects newlineModel postulates that the effect of Service Quality on Customer Satisfaction is only newlineindirect(mediated by Customer Satisfaction and Service Value). The study is conducted newlinethrough exploratory and descriptive method of research. The measurement instruments for newlinethe constructs are developed through literature survey and validated through exploratory newlinefactor analysis and confirmatory factor analysis using SPSS ver. 15 and AMOS ver. 4.0 newlinesoftware. The study is conducted with existing customers of retail banking and life insurance newlineservices in National Capital region (NCR) of Delhi, capital of India. The results show that newlineService Quality in retail banking and life insurance services is a multi dimensional and multi newlinelevel construct consisting of the dimensions of service delivery, core service, tangibles, newlinereliability and competence for retail banking and dimensions of service delivery, core service, newlinesales agent quality, tangibles and empathy for life insurance services. newline newlineThe study also emphasizes the significance of newlineService Value in enhancing loyalty related Behavioral Intentions of Customers. The study newlinepoints to the need for adopting a comprehensive approach to managing and enhancing newlineBehavioral Intentions for Customer loyalty and retention by emphasizing the multi-variate newlineeffects of Service Quality, Customer Satisfaction and Service Value on Behavioral Intentions.