A Comparative Study of Customer Satisfaction in Public Sector Banks and Private Sector Banks in Delhi NCR

Abstract

Globalisation, liberalisation, technological advancement, high competition and newlineeconomic uncertainties have made it imperative for the banking sector to satisfy their newlineexisting customers and retain them and be proactive in their management strategies newlineto maintain their upper place in the highly competitive market. Since banking is a newlineservice industry and customer is of the central focus, the bank management needs to newlinedetermine the factors that leads to customer satisfaction. This research study is based newlineon the comparison of customer satisfaction in public and private sector banks in newlineDelhi-NCR. This study in the context of Indian banking industry will give us an newlineinsight into the parameters of customer satisfaction and their measurement. For this newlinestudy, descriptive research design is used where the data is primarily collected newlinethrough administration of questionnaire based on SERVQUAL model as proposed newlineby Parasuraman et al. 1988. The information is collected from the retail banking newlinecustomers of public and private sector banks, namely SBI, PNB, ICICI, HDFC banks newlinelocated in Delhi-NCR. In this research, service quality measure is based on modified newlineversion of SERVQUAL model proposed by Parasuraman, Zeithamal and newlineBerry(1988), which involve five service quality dimensions i.e. Reliability, newlineTangibility, Responsiveness, Assurance and Empathy. The sample size of the newlinepopulation is total 800 respondents (200 each from one of the four banks), who newlineresponded completely and timely. The reliability score, Cronbach-Alpha for the newlinecollected data is above 0.7 for both the sectors. Multiple Regression Analysis is newlineemployed for both the sectors to test the significance of service quality dimensions newlineon customer satisfaction. newline