Service Quality and Customer Satisfaction in the Banking Sector

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Service quality and customer satisfaction in
the banking sector
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Table of Contents
Introduction.................................................................................................................................................2
Identification of the research problem.........................................................................................................2
Discussion of the five factors suitable for the research problem..................................................................3
Justification of the three factors for the research problem...........................................................................3
Literature survey (three journal articles)......................................................................................................4
Problem statement.......................................................................................................................................7
Five specific purposes.................................................................................................................................8
Literature review (Five research articles)....................................................................................................8
Justification of the methods.......................................................................................................................15
Four ethical issues.....................................................................................................................................16
Timetable...................................................................................................................................................16
Conclusion.................................................................................................................................................18
References.................................................................................................................................................19

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Introduction
The paper will evaluate the identification and discussion of five factors of selected research
problem. It will also provide the justification of the three factors related to the research problem
along with the literature survey based on the topic. It further will discuss the key characteristics
of the problem statement and provides with the research questions and hypothesis based on the
articles. The primary aim of the paper is to focus on the five articles that will be discussed in the
literature review. The five articles provided with the comparative study reflects the comparison
between the researches based on different topics. It provides with the critical analysis of the
methods based on the comparative study. It also focuses upon the four ethical consideration
related to the articles. The paper will discuss the factors that put an impact on satisfaction of
customer related to quality of service in the financial institution.
Identification of the research problem
In various countries, the dynamics of quality of service and satisfaction of the customer in the
banking sectors shows that previous studies offer no services to satisfy the needs of customers. In
today's world, all the foreign, private and public banks focus on retail banking and its urban and
rural customers with core banking services (Sanjuq, 2014). This is done to control customer’s
loyalty and retention facilitating 100% satisfaction. It is observed that some of the foreign,
private and public sectors banks do not provide suitable services to their retail customers in order
to maintain quality of service and satisfaction of the customers. In the era of Information,
technology and communication, the method of online financial services and direct pay has shown
advancement. Nowadays the customers prefer suitable hours of transparency, customization and
operation. The defection rates of the customers are higher due to the increased competition in the
market. It is observed that as compared to the nationalized bank the foreign bank provides with
an excellent quality service to its customers. To develop the satisfaction of the customers the
financial institution must provide better services to its customers (Ndikubwimana and Berndt,
2016). Each and every issue of the customers must be solved at a rapid speed. Nowadays
customers highly prefer high-quality services and if the bank fails to facilitate such services than
the customers are dissatisfied. Dissatisfied customers put a significant impact on the financial
institutions to a greater extent.

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Discussion of the five factors suitable for the research problem
The five factors that are suitable for the research problem are tangibles, empathy, assurance,
responsiveness and reliability. As per the study, the most critical dimension is reliability as
compared to responsiveness, assurance and empathy to the customers. The customers are least
concerned about the tangibles. Reliability states that whatever is promised that must be provided
to the customers in the appropriate time. Also, the foreign, private and public sectors banks must
maintain an error-free record (Kasiri et al., 2017). The data of the customers must be handled
systematically by providing suitable services. On the other hand, as per responsiveness, it shows
that its duty is to inform the customers about when the services will be executed. It must provide
the customers with prompt services and must help the customers whenever needed. The requests
of the customers should be fulfilled immediately so that the customers will have a full
confidence towards the employees of the banks. Another factor assurance states that it makes the
customers feel secure while doing transaction and employees must possess the knowledge to
answer the questions asked by the customers. Empathy means paying special attention to
customers in order to deal with their problem. While tangibles mean utilization of the modern
equipment's and providing the efficient facilities to make the customers comfortable (Van Quyet
et al., 2015).
Justification of the three factors for the research problem
The three factors such as reliability, responsiveness, and assurance in the banking sectors are
utilized for customer satisfaction. Such factors refer to facilitate the consumers with high-
standard of services every time. All these factors state that how the financial institution controls
the problems of the customer's services systematically without any error. Related to the
performance and standards of the products or machine parts the customers must not face any
difficulty in functioning. There must be compatibility and uniformity among the machine or
product parts (Ali, and Raza, 2017). As the customers are more dependent on ATM transaction
thus, the security of the ATM has been considered to be a significant factor in the banking sector.
It also states that the issues of the customers must be responded rapidly without taking much
time for providing convenience to the customers. The customers must be assured that they can
safely transact through the banking procedures. The factors for the research problem are based
on the 22-item scale that demonstrates the capability of each factor in providing convenience to
the customers in the banking sectors. The primary aim of the factors is that the customers must

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not face any kind of difficulty in the banking procedures so that banking customers will be
highly satisfied (Zameer et al., 2015).
Literature survey (three journal articles)
Based on the topic of quality of service and satisfaction of customer in the banks the first journal
“Impact of service quality on customer satisfaction in private and public sector banks” states
the influence of the variables of the quality of service quality for the satisfaction of the customer
and the comparison of the public and private sectors bank. It is stated by Paul et al., (2016) that
the service quality shows the difference between the satisfactions of the customers in performing
the services before the identification of the service. Quality of service is determined to be the
primary factor responsible for providing customers with overall satisfaction and gaining
competitive advantage. The research paper provides a view of several quality of service for
satisfaction of customer. It also describes the gap in the marketing services based on the service
quality for the customers in the developed countries. To remove the gaps the study utilizes the
gap model that recognizes the gaps and creates various tools and techniques to eliminate the gaps
(Al-Hawari, 2015). It is observed that in order to provide the facilities the services of the public
sectors banks are poor in comparison with the private sector banks. The loyalty of the bank is
influenced by the service quality satisfaction.
Whereas, another journal “Impact of Service Quality on Customer Satisfaction and Customer
Loyalty: Evidence from Banking Sector” focuses on determining the banking consumers
satisfaction related to various quality of service facilitated by the bank. Also, it demonstrates the
customer’s loyalty with the particular bank. As per Khan and Fasih, (2014) service quality
comprise of several dimensions and the research paper examines that which dimension of the
service quality is better to improve loyalty and satisfaction of customer. In the financial market,
the banks play a significant role in running the economy of the country smoothly. Nowadays
corporate sector which is highly competitive, the service qualities is an important factor in
demonstrating loyalty and satisfaction of customer. These elements are considered to be the
significant factors in improvising the bank's performance to get success in relation to the bigger
market share and better profitability. In the past five years, the privatization of the banking
sectors has led to higher expectations from the banking customers. It is observed that from the
financial institutions that the customers expect a high quality of services. The study states that

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facilitating high-standard of services to the customers not only fulfills their present needs but
also focuses on their future requirements (Choudhury, 2014). It provides with a brief description
of the five dimensions of the quality of service in banking sectors.
The journal “Service Quality, Service Convenience, Price and Fairness, Customer Loyalty and
Mediating Role of the Customer Satisfaction” focuses upon the increasing expectations and
demand of the customers because of the increase in the competition within the market. It
investigates the relationships between customer loyalty and satisfaction, the guaranteed strength
of the perceived service, and perceived service value and service convenience. The dimensions
of the service quality related to technology-based banking have influenced customer loyalty and
satisfaction. It is stated by Kaura et al., (2015) that cumulative and specific transaction are the
two different factors of the satisfaction of the customers. It also shows that the information
technology, tangibility and employee behavior are considered to be the service quality
dimensions. In quality of service, the perceived cost play a vital role in the concept of decision
making. The convenience of service is measured by five dimensions they are, cost-benefit, and
transaction, access and decision convenience. The service convenience affects the overall
satisfaction of customer both on private and public sectors. It is observed that as compared to the
customer attraction the customer retention is more significant. The study states the significance
of customer loyalty and behavior toward the bank (Amin, 2016). It signifies that loyalty of
customer is the mixture of behavioral and attitudinal factor. Thus, the professionals of the
financial institutions are focusing on the factors of customer loyalty and satisfaction.
The ten articles that are relevant to the topic of quality of service and satisfaction of customer in
the bank are as follows:
1.” A Conceptual Framework for Understanding Customer Satisfaction in Banking Sector:
The Mediating Influence of Service Quality and Organizational Oath”
2. “Customer Satisfaction on Service Quality in Private Commercial Banking Sector in
Bangladesh”
3. “The Relationship between Service Quality, Customer Satisfaction and Customer Loyalty:
An Investigation in Vietnamese Retail Banking Sector”
4. “Service Quality and Customer Satisfaction among Bank Clients in Rwanda”