| Title : | Impact of service quality on the customer satisfaction of Nepalese commercial banks | | Material Type: | printed text | | Authors: | Sabina Khadgi, Author | | Publication Date: | 2017 | | Pagination: | 113p. | | Size: | GRP/Thesis | | Accompanying material: | 9/B | | Languages : | English | | Descriptors: | Customer satisfaction
Service quality
| | Class number: | 658.812 | | Abstract: | Customer satisfaction has been a subject of great interest to organizations and becomea central business challenge which has attracted considerable attention(Sachdev and Verma, 2004).The role of commercial banks in economic development includes saving promotion, saving mobilization, promotion trade, industry and employment allocation of funds, and transfer of money (Mishkin,2011).Therefore, operating in such a changing environment requires the right type of personnel to survive. It is at this point that the concept of customer satisfaction arises (Kameswari and Rajyalakshmi, 2012).Different studies have proposed different opinions regarding the definition of quality; it may also differ as per the situation. However, service quality is determined by the ability of any organization to meet or exceed customer expectations. Therefore, inability of organizations to meet the expectation of the customers is the main reason for customer dissatisfaction (Oliver, 1993). The advancement of technology has rapidly increased the level of customer awareness and resulted in fierce competition. Thus, banks need to continuously improve their variables related to service quality to in order to remain ahead of competitors and retain the loyalty of their customers (Mualla, 2011).
According to Gray (2004), service quality provides lasting competitive advantage to an organization and also helps to distinguish the organization from the competitors. Thus, service quality not only serves as an ingredient for creating customer satisfaction but also helps to create product differentiation. The rapid change in technology has changed customer perception of service quality. On top of that, the increase in the number of service providers has made customer satisfaction not an option but an essential part of the organizations’ strategic planning. Service quality is an important indicator of customer satisfaction and service quality is a subjective phenomenon which varies from one individual to another. Therefore, it must be measured by encompassing different dimensions or components which constitutes the overall quality of service provided by the organization (Spreng and Mackoy 1996).In order to determine the level of service quality of an organization certain factors or variables can be used such as tangibility, responsiveness, reliability, responsiveness, assurance and empathy (Ibrahim et al., 2015).
The major objective of the study is to analyze the impact of various dimensions of service quality on customer satisfaction and loyalty of Nepalese commercial banks. The other objectives of this study are to analyze the perception of customers towards the level of service quality dimension (responsiveness, tangibility, empathy, assurance, courtesy and reliability) of Nepalese commercial banks, to examine the relationship between responsiveness, tangibility and assurance with customer satisfaction and loyalty, to determine the impact of empathy and courtesy on customer satisfaction and loyalty of Nepalese commercial banks and to find out the most important service quality dimensions affecting customer satisfaction and loyalty of Nepalese commercial banks.
In order to achieve the objectives, primary data collection was performed by providing questionnaire to 200 employees of 25 commercial banks. The questionnaire were Yes, No, Ranking Scale, Likert and other demographic information were used to collect primary data. The Likert scale on the different variables on service quality dimensions, customer satisfaction and loyalty were measured in 5 point liker scale and weighted mean value of each variable were used to examine the relationship between independent and dependent variables as for the study purpose.
On the basis of regression result, the beta coefficient for responsiveness is positive and significant which reveals that higher the responsiveness, higher would be the customer satisfaction. The beta coefficient for tangibility is positive and significant which reveals that higher tangibility, higher would be customer satisfaction and customer loyalty. The results indicate that there is positive and significant impact of reliability on customer satisfaction and customer loyalty, which reveals that higher the level of reliability, higher would be the customer satisfaction and customer loyalty. Likewise, the study found that beta coefficient for empathy is positive and significant with customer satisfaction and customer loyalty indicating that increase in empathy leads to increase in customer satisfaction and customer loyalty.
The result confirmed that tangibility, reliability and empathy are major factors affecting customer satisfaction of Nepalese commercial banks.ATM location of the bank, up to date record delivery, individual attention given by the staffs, security of the bank and its operating hours are ranked as the most important attributes affecting customer satisfaction and customer loyalty of Nepalese commercial banks. Thus, this study observed empathy as the major determinant and is followed by responsiveness, tangibility, reliability and assurance with customer satisfaction and customer loyalty.
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Impact of service quality on the customer satisfaction of Nepalese commercial banks [printed text] / Sabina Khadgi, Author . - 2017 . - 113p. ; GRP/Thesis + 9/B. Languages : English | Descriptors: | Customer satisfaction
Service quality
| | Class number: | 658.812 | | Abstract: | Customer satisfaction has been a subject of great interest to organizations and becomea central business challenge which has attracted considerable attention(Sachdev and Verma, 2004).The role of commercial banks in economic development includes saving promotion, saving mobilization, promotion trade, industry and employment allocation of funds, and transfer of money (Mishkin,2011).Therefore, operating in such a changing environment requires the right type of personnel to survive. It is at this point that the concept of customer satisfaction arises (Kameswari and Rajyalakshmi, 2012).Different studies have proposed different opinions regarding the definition of quality; it may also differ as per the situation. However, service quality is determined by the ability of any organization to meet or exceed customer expectations. Therefore, inability of organizations to meet the expectation of the customers is the main reason for customer dissatisfaction (Oliver, 1993). The advancement of technology has rapidly increased the level of customer awareness and resulted in fierce competition. Thus, banks need to continuously improve their variables related to service quality to in order to remain ahead of competitors and retain the loyalty of their customers (Mualla, 2011).
According to Gray (2004), service quality provides lasting competitive advantage to an organization and also helps to distinguish the organization from the competitors. Thus, service quality not only serves as an ingredient for creating customer satisfaction but also helps to create product differentiation. The rapid change in technology has changed customer perception of service quality. On top of that, the increase in the number of service providers has made customer satisfaction not an option but an essential part of the organizations’ strategic planning. Service quality is an important indicator of customer satisfaction and service quality is a subjective phenomenon which varies from one individual to another. Therefore, it must be measured by encompassing different dimensions or components which constitutes the overall quality of service provided by the organization (Spreng and Mackoy 1996).In order to determine the level of service quality of an organization certain factors or variables can be used such as tangibility, responsiveness, reliability, responsiveness, assurance and empathy (Ibrahim et al., 2015).
The major objective of the study is to analyze the impact of various dimensions of service quality on customer satisfaction and loyalty of Nepalese commercial banks. The other objectives of this study are to analyze the perception of customers towards the level of service quality dimension (responsiveness, tangibility, empathy, assurance, courtesy and reliability) of Nepalese commercial banks, to examine the relationship between responsiveness, tangibility and assurance with customer satisfaction and loyalty, to determine the impact of empathy and courtesy on customer satisfaction and loyalty of Nepalese commercial banks and to find out the most important service quality dimensions affecting customer satisfaction and loyalty of Nepalese commercial banks.
In order to achieve the objectives, primary data collection was performed by providing questionnaire to 200 employees of 25 commercial banks. The questionnaire were Yes, No, Ranking Scale, Likert and other demographic information were used to collect primary data. The Likert scale on the different variables on service quality dimensions, customer satisfaction and loyalty were measured in 5 point liker scale and weighted mean value of each variable were used to examine the relationship between independent and dependent variables as for the study purpose.
On the basis of regression result, the beta coefficient for responsiveness is positive and significant which reveals that higher the responsiveness, higher would be the customer satisfaction. The beta coefficient for tangibility is positive and significant which reveals that higher tangibility, higher would be customer satisfaction and customer loyalty. The results indicate that there is positive and significant impact of reliability on customer satisfaction and customer loyalty, which reveals that higher the level of reliability, higher would be the customer satisfaction and customer loyalty. Likewise, the study found that beta coefficient for empathy is positive and significant with customer satisfaction and customer loyalty indicating that increase in empathy leads to increase in customer satisfaction and customer loyalty.
The result confirmed that tangibility, reliability and empathy are major factors affecting customer satisfaction of Nepalese commercial banks.ATM location of the bank, up to date record delivery, individual attention given by the staffs, security of the bank and its operating hours are ranked as the most important attributes affecting customer satisfaction and customer loyalty of Nepalese commercial banks. Thus, this study observed empathy as the major determinant and is followed by responsiveness, tangibility, reliability and assurance with customer satisfaction and customer loyalty.
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