International Journal in Management & Social Science

  • Year: 2019
  • Volume: 7
  • Issue: 10

Service quality and customer satisfaction of the public and private sector banks in selected cities of Tamilnadu, India

  • Author:
  • Kavitha Nachimuthu1, D. Muthukrishnaveni2
  • Total Page Count: 18
  • DOI:
  • Page Number: 72 to 89

1Associate Professor, Department of Business Administration, RD National Arts and Science (Co-Education) College, Erode, Tamilnadu, India

2Associate Professor, Department of Management Studies, Velalar College of Engineering and Technology, Erode, Tamilnadu, India

Online published on 30 July, 2021.

Abstract

The aim of the study is examining the service quality and its relationship between customer satisfaction of the public and private sector banks in selected cities of Tamilnadu. Customer satisfaction is very important for the success of service sector which focuses on frequent purchases and word-of-mouth marketing of the products and services by Salaar et al (2004). The study aims to examine the scope to which banking sector in Zimbabwe try to attain customer satisfaction through service quality and try to reduce attrition by Viriri Piason (2013). Therefore, performance of the banks always depends on the service quality and customer satisfaction of the banking sector.

The present study was to assess the service quality and customer satisfaction of public and private sector banks. To measure the service quality and customer satisfaction, SERVQUAL model has been established in relation to the banking industry with sample of 521 respondents, SMART PLS 3 Version for Structural Equation Model have been used to identify the variables relating to performance of the banking sector. This research paper aims to estimate the service quality and customer satisfaction of public and private sector banks using the SERVQUAL model. The data were analyzed to identify service quality and customer satisfaction related factors for public and private sector banks.

By using structural equation model, 20 measurement items with a path coefficient greater than (0.5) were identified to form five service quality dimensions namely tangibility, reliability, responsiveness, assurance and empathy on customer focus for the public and private banking explained 63.9 percent of the variance.

The service quality of the public and private sector banks has serious implications on the satisfaction of its customer in terms of performance aspects. The banking sector aim is to achieve higher banking performance in terms of service quality to its customers.

This exploratory research is novel, investigating the service quality and customer satisfaction of public and private banks are seldom sampled. Despite being limited with few alternatives such as public and private banks are very important for the study purpose.

Keywords

Banking, Customer satisfaction, SERVQUAL and public and private sector