Service Quality: Public, Private, and Foreign Banks

Presenter ： Radium ChengInstructor ： Dr. Teresa Hsu

October 7, 2013

Citation

Swar, B. N.,& Sahoo, P. K. (2012). Service

Quality: Public, Private, and Foreign Banks.

Journal of Indian management, 9 (3), 43-50.

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Content

IntroductionI

Literature ReviewII

MethodologyIII

ResultsIV

Conclusion & Suggestions

V

Future StudyVI3

Introduction

• Background

The need for quality is felt everywhere by every organization, whether it is public, private or foreign sector.

The banking industry in India has been a witness for the lastdecade to several regulatory changes that have resulted in aheightened level of competition among the banks.

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Introduction

• Purpose of the study

• The present study focuses on the relationship between service quality and service delivery among public, private, and foreign banks in Odisha.

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Literature Review

• Parasuraman et al (1988) developed a twenty-two item instrument representing the five dimensions, recognized as . SERVQUAL

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Literature Review

• Suresh Chandar et al (2001) identified five factors of service quality as critical from the customers’ point of view.

• 1. Core service or service product• 2. Human element of service delivery• 3. Systematization of service delivery: Non-human element• 4. Tangibles of service - Services capes• 5. Social responsibilities

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Literature Review

• Mohammad Al-hawari (2008), finds that there is a positive and significant relationship between the proposed traditional service quality factors and customer satisfaction.

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Literature Review

• Research Hypothesis

• H1: Customers’ perceptions of Service delivery influencing

customers’ perceptions of service quality

• H2: Customers’ expectations of Service delivery influencing

customers’ expectations service quality

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Method

• Participant• 600 customers from 6 banks have been selected. • 524 usable questionnaires

87.33%valid

Invalid

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Method

• Questionnaire• Part I – SERVQUAL scale• Part II – Demographic information

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31 statements

Perception of Service Quality

Expectation ofService Quality

Method

• Sample Profile• These banks are purposely selected.

200

300

100

Private sector

Foreign sector

Public sector

179

276

69

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Result

Elements of Service Quality

Service Quality

Perceptions Expectations

Reliability .739 .721

Assurance .961 .826

Tangibility .837 .839

Empathy .923 .912

Responsiveness .830 .815

Service Quality Reliability Test

0.7 13

Result

Elements of Service Delivery

Service Delivery

Perceptions Expectations

Systemization Elements of Service Delivery

.801 .897

Human Elements of Service Delivery

.876 .834

Service Delivery Reliability Test

0.714

Cronbach’s alpha value fulfills the reliability test requirement.

Result

Customers’ Perceptions of Service Delivery influencing Customers’ Perceptions of Service Quality

Model it

R .95

R2 .90

Coefficients

B .90

ᵦ .95***

• Hypothesis 1

15Customers’ perception of service delivery accounts

for 90% of the variation in customers’ perceptions of service quality.

Result

Customers’ Expectations of Service Delivery influencing Customers’ Expectations of Service Quality

Model it

R .97

R2 .93

Coefficients

B .81

ᵦ .97***

• Hypothesis 2

16The expectations of service delivery significantly influence the expectation of service quality.

Conclusion & Suggestions

• Efforts of the banks have to be made that level of quality service which exceeds the perceived expectations of customers and thus creates a ‘wow’ syndrome among all visiting customers.

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Conclusion & Suggestions

• Banks should make investment in research so as to understand customers’ needs and expectations at all stages in the service delivery process in order to determine the key components of service quality.

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Future Study

Service Quality

Customer Loyalty

Customer Satisfaction

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• Participant• The 200 employees in the corporation

• Instrument• Parasuraman et al. (1988)• 22 statements of the SERVQUAL instrument

• 22 statements of the SERVQUAL instrument

Thank You

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