A Study of Service Quality and Customer Satisfaction of Banking Sector in Nagaland

In this modern customer-centric competitive arena, satisfaction and quality prove to be key factors reciprocally interrelated in a causal, cyclical relationship. The higher the service quality, the more satisfied are the customers. Any bank that wants to compete in this global industry must offer services that create customer satisfaction; Rank's success and survival depends on fulfilling customer's needs and expectations;. Again, to strive in a market characterized by global completion and fast technological advancements, commercial banks need to be more customer-focused. Technology as a macro-environmental factor affect today's banks in terms of what they provide, how they provide, and what the customer really wants. Therefore, it is important for banks to understand what affects customer satisfaction and how to optimize service quality as a driver of customer satisfaction. The study attempts to measure and compare accounts category-wise service quality and customer satisfaction of commercial banks in two districts of Dimapur and Kohima of Nagaland state with a sample of 500 respondents. The primary data has been collected through well-structured questionnaire. The opinion of the respondents on 70 issues, grouped into 8 service quality dimensions were measured with five point scales ranging from five to one. The mean scores of the respondents have been taken to determine the service quality consideration and level of satisfaction. The research shows that the overall satisfaction level of customers with current accounts is comparatively higher than the customers with savings accounts. However, service quality consideration and customer satisfaction varies on different quality dimensions as well as on category of customers.