| Title : | Impact of service quality on customer satisfaction: a case of Nepalese commerical banks | | Material Type: | printed text | | Authors: | Sharad Neupane, Author | | Pagination: | 78p. | | Size: | GRP/Thesis | | Accompanying material: | 5/B | | General note: | Including bibilography | | Languages : | English | | Descriptors: | Banks
Banks and banking
Customer satisfaction
Service quality
| | Keywords: | 'customer customer satisfaction banks bank and banking commercial nepal' | | Class number: | 658.812 | | Abstract: | Service quality offered by service firms especially for banks is important due to an increasing competition. As such service quality is considered the key to gain competitive advantage and important factor determining customer perception of bank‘s overall activities. And it is difficult to find a bank that has not initiated some kind of service quality improvement program in today‘s competitive business environment either it through superior customer service or via incorporation of advance technology. Despite of satisfactory financial performance proved by major commercial banks of Nepal, the need to understand and measure the non-financial aspect has been important for these commercial banks. Moreover, the traditional systems of performance evaluation based on financial measures have many drawbacks and the major reason being associated with manipulative accounting methods especially in context with highly competitive environments.
Service quality has a significantly positive effect on overall user satisfaction of the banks are the two important determinants of customer satisfaction (Wang and Shieh, 2006). Tangibles have positive relationship and have a significant impact on customer's satisfaction. Assurance and responsiveness has positive relationship but it has no significant effect on customer satisfaction (Munusamy at. el.,2010).The customers were more satisfied with the second generation joint venture banks where they has to spend less time waiting and also where the employees behavior was good (Gautam, 2004). Similarly, Koirala and Shrestha (2012) concluded that all the service quality dimensions like tangibility, reliability, responsiveness, assurance and empathy are important for forming service quality and customer satisfaction of commercial banks in Nepal.
The study has aimed to to analyze the impact of service qualities on customer satisfaction in the Nepalese commercial banks. The specific objectives of this study are: to measure the overall satisfaction level for the banking services and facilities of Nepalese commercial banking customers, to gain a better understanding of how banking sectors service providers can retain their targeted customers over time, to identify the impact of tangibles, reliability, empathy, responsiveness, and assurance on customer satisfaction in commercial banks of Nepal, to identify the major determinants of customer satisfaction in Nepalese commercial banks, to analyze the quality of services provided by commercial banks of Nepal, and to determine the factors that help customers to stay longer in the concerned bank.
The result showed that reliability is positively related to customer satisfaction which indicates that higher the reliability of the services higher would be the customer satisfaction. Tangibility is positively related to satisfaction which indicates that improved tangibility of the banking services would increase the customer satisfaction.Similarly, the positive relationship between empathy and customer satisfaction shows that improved empathy in the banking services increases the customer satisfaction. Responsibility is also found to be positively related with customer satisfaction indicating that improved responsibility of the banking services also improves the customer satisfaction.Further, responsiveness is positively related to customer satisfaction indicating that good responsiveness of the employees in the banking services help to increase the customer satisfaction in the Nepalese banking sector.
The relationship between retention and customer satisfaction is also found to be positive indicating that increased customer satisfaction increases the chances of customer retention. Beta coefficient for reliability is positive and significant at five percent level which indicates that improved reliability of the banking services increases the customer satisfaction from the banking services.The beta coefficient for assurance is also positive indicating increased assurance for the banking services increases the customer satisfaction. Similarly, beta coefficient for the tangibility is positive and significant at five percent level.Further, beta coefficient is positive for empathy with customer satisfaction and it is significant at five percent. This result indicates that increased empathy in banking services help to increase the customer satisfaction.
The major conclusion of this study is that there is positive impact of satisfaction, reliability, assurance, empathy, responsibility and tangibility on customer satisfaction. Improved reliability of the banking services increases the customer satisfaction from the banking services. Similarly, increased assurance for the banking services increases the customer satisfaction. Further, improved tangibility banking services increase the level of satisfaction in customer and increased empathy in banking services help to increase the customer satisfaction. |
Impact of service quality on customer satisfaction: a case of Nepalese commerical banks [printed text] / Sharad Neupane, Author . - [s.d.] . - 78p. ; GRP/Thesis + 5/B. Including bibilography Languages : English | Descriptors: | Banks
Banks and banking
Customer satisfaction
Service quality
| | Keywords: | 'customer customer satisfaction banks bank and banking commercial nepal' | | Class number: | 658.812 | | Abstract: | Service quality offered by service firms especially for banks is important due to an increasing competition. As such service quality is considered the key to gain competitive advantage and important factor determining customer perception of bank‘s overall activities. And it is difficult to find a bank that has not initiated some kind of service quality improvement program in today‘s competitive business environment either it through superior customer service or via incorporation of advance technology. Despite of satisfactory financial performance proved by major commercial banks of Nepal, the need to understand and measure the non-financial aspect has been important for these commercial banks. Moreover, the traditional systems of performance evaluation based on financial measures have many drawbacks and the major reason being associated with manipulative accounting methods especially in context with highly competitive environments.
Service quality has a significantly positive effect on overall user satisfaction of the banks are the two important determinants of customer satisfaction (Wang and Shieh, 2006). Tangibles have positive relationship and have a significant impact on customer's satisfaction. Assurance and responsiveness has positive relationship but it has no significant effect on customer satisfaction (Munusamy at. el.,2010).The customers were more satisfied with the second generation joint venture banks where they has to spend less time waiting and also where the employees behavior was good (Gautam, 2004). Similarly, Koirala and Shrestha (2012) concluded that all the service quality dimensions like tangibility, reliability, responsiveness, assurance and empathy are important for forming service quality and customer satisfaction of commercial banks in Nepal.
The study has aimed to to analyze the impact of service qualities on customer satisfaction in the Nepalese commercial banks. The specific objectives of this study are: to measure the overall satisfaction level for the banking services and facilities of Nepalese commercial banking customers, to gain a better understanding of how banking sectors service providers can retain their targeted customers over time, to identify the impact of tangibles, reliability, empathy, responsiveness, and assurance on customer satisfaction in commercial banks of Nepal, to identify the major determinants of customer satisfaction in Nepalese commercial banks, to analyze the quality of services provided by commercial banks of Nepal, and to determine the factors that help customers to stay longer in the concerned bank.
The result showed that reliability is positively related to customer satisfaction which indicates that higher the reliability of the services higher would be the customer satisfaction. Tangibility is positively related to satisfaction which indicates that improved tangibility of the banking services would increase the customer satisfaction.Similarly, the positive relationship between empathy and customer satisfaction shows that improved empathy in the banking services increases the customer satisfaction. Responsibility is also found to be positively related with customer satisfaction indicating that improved responsibility of the banking services also improves the customer satisfaction.Further, responsiveness is positively related to customer satisfaction indicating that good responsiveness of the employees in the banking services help to increase the customer satisfaction in the Nepalese banking sector.
The relationship between retention and customer satisfaction is also found to be positive indicating that increased customer satisfaction increases the chances of customer retention. Beta coefficient for reliability is positive and significant at five percent level which indicates that improved reliability of the banking services increases the customer satisfaction from the banking services.The beta coefficient for assurance is also positive indicating increased assurance for the banking services increases the customer satisfaction. Similarly, beta coefficient for the tangibility is positive and significant at five percent level.Further, beta coefficient is positive for empathy with customer satisfaction and it is significant at five percent. This result indicates that increased empathy in banking services help to increase the customer satisfaction.
The major conclusion of this study is that there is positive impact of satisfaction, reliability, assurance, empathy, responsibility and tangibility on customer satisfaction. Improved reliability of the banking services increases the customer satisfaction from the banking services. Similarly, increased assurance for the banking services increases the customer satisfaction. Further, improved tangibility banking services increase the level of satisfaction in customer and increased empathy in banking services help to increase the customer satisfaction. |
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