11.customers' Perception Towards Service Quality of PDF

GE-International Journal of Management Research
Vol. 5, Issue 3, March 2017 Impact Factor- 5.779

ISSN(O): 2321-1709, ISSN(P): 2394-4226
© Associated Asia Research Foundation (AARF)
Website: www.aarf.asia Email : editor@aarf.asia , editoraarf@gmail.com
CUSTOMERS’ PERCEPTION TOWARDS SERVICE QUALITY OF

THE NEW GENERATION PRIVATE BANKS IN SALEM DISTRICT
Dr. G. Murugesan
Professor, Department of Management Studies,
Vinayaka Missions University, VMKV Engineering College, Salem, India.
ABSTRACT
In today’s economy, changing customer demands, increased expectations for
superior quality of products or services and the global competition have created a
competitive situation among different industrial sectors. Quality has become an icon for
customers while selecting a service or product and at the same time it has been considered
a strategic advantage for the organizations to gain success and to sustain in the business
world. Service organizations are now well aware about the facts that they need to take
preventive quality measures to gain customer satisfaction and retention. The banking
and financial sectors , therefore, make a start on training programs, which are now
usually referred to as front line staff in service and performance improvements. At this
juncture, the researchers have made an attempt to study the perception of the customers
towards service quality of the select Private Banks in Salem city. This study is restricted to
5 Private banks, which include HDFC, ICICI, AXIS, IndusInd Bank and Kotak Mahendr
Banks.. The service quality is a vast subject consisting of a number of dimensions. The
most common service quality dimensions namely, assurance, empathy, reliability,
responsiveness, and tangibility only are studied in the present study. In the present study,
the sampling involves two stages. In the first stage, out of the 10 Private banks in Salem
city, 5 Private banks are selected on random basis. In the second stage, by adopting quota
sampling, 100 respondents are selected from eachbanks. As an essential part of the study,
the primary data were collected from 500 customers with the help of questionnaire. In
order to study the perception of the customers towards service quality, various statistical
tools such as chi square test, student t test, paired t test, analysis of one-way variance, co-
efficient of variation, multiple regression analysis and percentage analysis were employed.
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The results of the study showed that lack of staff involvement, delay in service, absence of
innovativeness, higher fee and lack of detailed disclosures, reducing rate of reliability,
absence of c u s t o m e r compliant monitoring cell, absence of feedback from
c u s t o m e r s , absence of transparency and lack of quality improvement initiatives are
the problems of the respondents in the select Private banks. Recommendations are made
to improve the service quality of the select Private banks in Salem city.
KEYWORDS: Service Gap, Banking Services, Customer Satisfaction, Service Quality
Introduction
Service sector is the lifeline for the social and economic growth of a country. It is
today the largest and fastest growing sector, contributing more to the global output and
employing more people than any other sector. The valid reason for the growth of the service
sector is the increase in urbanization, privatization and more demand for intermediate and
final consumer services. During the last two decades, the service oriented industry has
potential growth and now constitutes a major portion of the world economy. One of the few
things that companies are left with is to distinct themselves in terms of quality of service
they offer, which has a direct impact on profit making. Thus quality of service is deeply
intertwined with profits, customers‟ expectations and eventual performance of a firm.
Service delight is now the ethos of several progressive companies over the world. With this
increasing emphasis on service delight and service quality, the banking industry in India is
becoming increasingly competitive. Banking being a service business, the best strategy can
only be to identify with the customers and offer them what they actually need. This objective
can only be achieved through best customer service. In India, the services offered by
commercial banks, especially after the reforms that took place after 1991, have improved
notably. After the entry of private and foreign banks in India, even the nationalized banks
have become competitive in nature and have attempted to improve their service delivery to
customers.
Concept of Service Quality
Service quality has been defined as customers‟ overall impressions of an

organization‟s services in terms of relative superiority or inferiority. Service quality is
considered to not only meet but to exceed customer expectations, and should include a
continuous improvement process. From the perspective of the customer, the service quality
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differentiates sought quality and perceived quality. Sought quality is the level of quality
customers explicitly or implicitly demand and expect from service providers. Perceived
quality means the overall impression a customer has and experiences about the level of
quality after service realization. The potential difference between the sought quality and the
perceived quality gives the service provider an opportunity to measure customer satisfaction
based on formulating the precise and actual criteria according to which the customers are
assessing the services. From the provider perspective, there are target quality and delivered
quality. The focus of process or supply led quality definition is rather internal than external,
and it is defined as conformance to requirements. It lays emphasis on the importance of the
management and the supply side quality, and there is an important role of the process in
determining the quality of outcome. Achieving the quality of conformance between the
target quality level and the real quality delivered to customers depends on the service quality
management system in an organization. Parasuraman, Zeithaml and Berry have identified 5
dimensions of service quality, namely, assurance, empathy, reliability, responsiveness and
tangibility.
Service Quality in Banking Industry
Liberalization, privatization and globalization planks of government of India as lead to a

cut-throat competition in the Indian corporate sector. Banking sector is not an exception to it.
Prior to the liberalization era the banking sector in India was operating in a protected environment
and was dominated by nationalized banks. Banks at that time did not feel the need to pay
attention to service quality issues and they assigned very low priority to identification and
satisfaction of customer needs. The need of the hour in the Indian banking sector is to build up
competitiveness through enhanced service quality, thus making the banks more market oriented
and provide more loans to the customers as they want to improve their standard of living. Service
quality has emerged as one of the most important issues in Indian banking sector. Any bank
faltering on this front is likely to die prematurely. The banks, on the other hand, imparting quality
in their services are likely to outshine others. Without good quality of services practiced, they will
not be able to perform their work effectively. Therefore, service quality has become the basic
mantra for not only the survival but growth as well.
In the era of cut throat competition, the survival of any bank depends upon the
satisfied customers. Regulatory, structural, and technological factors are significantly
changing the banking environment throughout the world. Regulatory changes have reduced
or eliminated barriers to cross-border expansion, creating a more integrated global banking
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market. Structural changes have resulted in banks being allowed a greater range of activities,
enabling them to become more competitive with non-bank financial institutions.
Technological changes are causing banks to rethink their strategies for services offered to
both corporate and individual customers. It is within this rapidly changing environment that
customer satisfaction and service quality are compelling the attention of all banking
institutions. In this digital era, the service sector has been growing at a lightening speed
across the globe. In India, banking has seen momentous changes in the post-independence
era. It has witnessed a remarkable shift in its operating environment during the last decade.
Various reform measures, both qualitative and quantitative, were introduced with an
objective to revitalise Indian banking sector and to meet the future challenges.
Banks make up the integral part of the financial system in developing economies.
Their primary roles as financial intermediaries and development partners are not only sought
by the government and regulators, but by the general public as a whole. The most important
factor that matters a lot in today's modern and successful banking business is the quality of
services. In the modern competitive environment, the pursuit of service quality is considered
to be an essential strategy. Service quality is essential in the banking services because
bankers tend to be viewed as relatively undifferentiated, and hence it becomes a key to
competitive advantage. In recent years, service quality has been widely used to evaluate the
performance of banking services. Service quality has been viewed as a significant issue in the
banking industry. In the present competitive Indian banking context, characterized by rapid
change and increasingly sophisticated customers, it has become very important that banks in
India determine the service quality factors, which are pertinent to the customer's selection
process. With the advent of international banking, the trend towards larger bank holding
companies, and innovations in the marketplace, the customers have greater difficulty in
selecting one institution from another. In this context, quality of service furnished by banking
sector is very important and profitability of their business is closely connected to the
quality of service they render. In India, a number of studies have been conducted and
committees formulated to study service quality in banks. To name a few, Saraiya Committee
(1972), Talwar Committee (1975), and Goipuria Committee (1980) have studied below
average customer service. An all India survey by the National Institute of Bank Management
has also identified the lacunae in Indian banking as dissatisfaction among the customers over
the delays.
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Statement of the Problem
The business surroundings marked by fierce rivalry and incessant changes in the
alliance between companies and customers sets the scene for the Indian banking industry.
With the entry of new generation tech-savvy private banks and the expansion of operations of
foreign banks, the banking sector has become too competitive. The challenge for banks is to
lower costs, increase efficiency, while improving quality of service, and increase customer
satisfaction. To deal with the emerging situations, bankers have to shed a lot of old ideas,
change in practices, develop customer loyalty programmes, and adopt a distinct approach to
meet the challenges ahead.
New generation private banks are oriented toward niche banking, unlike the public
sector banks, which meet the mass banking requirements. The strategies adopted by the new
generation private banks are more in tune with those of the foreign banks, where emphasis is
given to establishing superior benchmarks of efficiency, focusing on niche customers,
providing impressive customer service and bringing about operating efficiencies by using
high-end technology. The new generation private banks recruit the finest manpower, employ
state-of-the-art technologies and are oriented towards building a strong brand image. Even
though the new generation private banks do not have an extensive range of branch networks,
the emerging trends indicate that they pose a great threat to the public sector banks because of
their increasing market share.
The new generation private banks have made a strong presence in the most lucrative
business areas in the country because of technology upgradation. Undoubtedly, being tech-
savvy and full of expertise, the new generation private banks have played a major role in the
development of Indian banking industry. In the process they have jolted public sector banks
out of complacency and forced them to become more competitive. The new generation
private banks find new products avenues and make the industries achieve expertise in their
respective fields by offering quality service and guidance. Therefore, excellent service
performance can improve the bank's ability to lure affluent prospects, elevate the bank's
profitability, lower bank operation costs, and create greater customer loyalty. It has become
essential for the service firms in general and banks in particular to identify what the
customer's requirements are and how these requirements can be met effectively. In the view
of the study broadly, intends to find answers for the following questions: What are the factors
that influence service quality dimensions of customers? What is the level of quality of service
being offered by the new generation private banks? What factors mitigate in minimizing the
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service delivery gap? In this context, the researcher has made a modest attempt to find out the
answers for these questions.
Objectives of the Study
The main objective of this study is to examine the perception of the customers
towards service quality of the new generation private banks in Salem district. Besides, the
study has the following secondary objectives:
1. To study the various services offered by the select new generation private banks in
Salem district.
2. To analyze the perception of the customers towards service quality of the select new
generation private banks in Salem district.
3. To find out the gap in the service performance of the select generation private banks in
Salem district.
4. To offer suitable suggestions to improve the service quality of the select new generation
private banks based on the findings of the study.
Testing of Hypotheses
The following null hypotheses were formulated and tested.
H01: There is no significant association among the satisfaction levels of the customers
belonging to different socio-economic profiles towards the services of the select new
generation private banks.
H02: There is no significant relationship among the acceptance levels of the respondents
belonging to different demographic profiles towards the perceived level of service quality
in the select new generation private banks.
H03: There is no significant difference in the acceptance levels of the customers between
the expected and perceived levels of service quality in the select new generation private
banks in Salem district.
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Scope of the Study
The study is confined only to savings bank and current account holders who have
account with select new generation private banks in Salem district. Service quality is the vast
subject; therefore, the most common 5 dimensions of service quality, namely, assurance,
empathy, reliability, responsiveness and tangibility only are studied in this study. Moreover,
the study is confined only to five new generation private banks namely, Axis Bank, HDFC
Bank, ICICI Bank, IndusInd Bank and ING Vysya Bank.
Sampling Design
There are 21 public sector banks and 16 private sector banks which include 6 new
generation private banks in operation in Salem district as on March 2012. In order to collect
primary data for the purpose of the study, multi-stage sampling technique is adopted. At the
first stage, 5 new generation private banks which outnumber in number of branches were
selected out of the 6 new generation private banks. In the second stage, 40 per cent of the
branches i.e. 10 branches were selected out of the 5 selected new generation banks. In the
final stage, from each of the branch 40 savings bank account holders and 10 current account
holders were selected on the purposive basis. Therefore, the sample size consists of 500
customers. The following table shows the sampling distribution of the present study.
TABLE 1
Sampling Distribution
Samples
Account Holders
No. of Branches
Bank Account
No. of Current
No. of Savings
No. of
Name of the Bank
Branches
Holders
Axis Bank 5 2 80 20
HDFC Bank 8 3 120 30
ICICI Bank 8 3 120 30
IndusInd Bank 3 1 40 10
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ING Vysya Bank 2 1 40 10
Total 26 10 400 100
Tools for Data Collection
The present study is empirical in character, based on survey method. As an essential

part of the study, the primary data were collected from 500 customers. Taking into
consideration the objectives of the study, a questionnaire was prepared after a perusal of
available literature. Each question was improved for its relevance and meaning by constant
interaction with the experts in the areas. The questionnaire consists of 23 service quality
statements which are fall under the tangibility, reliability, responsiveness, assurance and
empathy dimensions of service quality. The questionnaire was constructed based on Likert
scaling technique. Pre-testing of questionnaire was done during April 2012, involving
25 respondents to know the relevance of the questions. The secondary data have been
collected mainly from journals, magazines, government reports and books. The data so
collected have been entered into a master table and tabulated to arrive at useful conclusions.
Framework of Analysis
The ultimate object of the study is to analyze the perception of the customers towards
service quality of the select new generation private banks in Salem district. The data collected
for the purpose of the study were quantified, categorized and tabulated. In order to study the
perception of the customers, chi-square test, analysis of variance, student t test, paired
comparison t-test, analysis of co-efficient of variation, multiple regression analysis,
discriminant function analysis and percentage analysis were employed. To arrive at possible
solutions, percentage analysis was also employed in this study.
Limitations of the Study
1. The selection of a more representative sample would bring more illuminating and
comprehensive database for decision making. The present study has the limitation of time
and resources, usually faced by the researchers. It is confined to only 5 new generation
private banks in a particular district and a sample of 500 respondents. Hence the findings
cannot be treated as representative of the entire banking industry.
2. Perceptions, satisfactions, and expectations usually are highly subjective versions of

reality. Besides, in any study having a bearing on attitude, incomplete and non-responses
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to some questions could not be avoided. However, the researcher took maximum efforts
to minimize such errors.
Findings
1. The overall influence of all the sixteen factors is considered „very important‟ in
motivating the customers to prefer banking services by 24.40 per cent of the
respondents, as „important‟ by 42.40 per cent of the respondents, „neither important nor
not important‟ by 18 per cent of the respondents, as „not important‟ by 8.20 per cent of
the respondents and as „not at all important‟ by 7 per cent of the respondents. The
average attitude score reveals that excellent customer service is the most important
factor (4.09) for the respondents to prefer banking services from the new generation
private banks, followed by personal services (4.05).
2. No significant association is found in the satisfaction level of the respondents belonging

to different genders, age groups, educational status groups, occupations, monthly
income groups, banks they belong to and having different accounts towards services of
the select new generation private banks in Salem district.
3. Female respondents, respondents in the age group above 55 years, respondents having
ITI/Diploma qualifications, professionals, respondents whose monthly income is
Rs.30001-40000, customers of IndusInd Bank and savings bank account holders are
more satisfied about services of the select new generation private banks in Salem
district.
4. There is no significant relationship among the acceptance levels of the customers

belonging to different genders, educational status groups and monthly income groups
towards perceived service quality in the new generation private banks in Salem district.
However, a significant relationship is found among the acceptance levels of the
customers belonging to different age groups, occupations, banks they belong to and
holding different type of accounts towards perceived service quality in the new
5. There has been a low correlation (0.057) between the satisfaction towards services and
the selected personal variables in the select new generation private banks. Gender, age,
education, monthly income and type of account of the respondents have no significant
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effect on the satisfaction towards services of the select new generation private banks in
Salem district.
6. Female respondents, respondents in the age group 46-55 years, respondents belonging
to postgraduate and above qualifications, businessmen, respondents having monthly
income above Rs.40000, customers of the ING Vysya Bank and current account holders
have higher acceptance level towards perceived service quality in the select new
7. There exists consistency among the acceptance level of female respondents,

respondents in the age group 36-45 years, respondents who have Diploma/ITI
qualification, students, respondents having monthly Rs.30001-40000, customers of the
IndusInd Bank, and savings bank account holders towards perceived service quality in
the select new generation private banks.
8. There has been a moderate correlation (0.597) between the perceived service quality
and the selected personal variables in the select new generation private banks. Gender,
age, educational status and monthly income of the respondents have no significant
effect on the perceived service quality in the select new generation private banks. Type
of account has significant effect on the perceived service quality in the select new
generation private banks at 1 per cent level of significance.
9. Discriminant function analysis was applied to examine how do the respondents who
have savings bank account differ from those who have current account in terms of their
perceived level on service quality? Do service quality dimensions like assurance,
empathy, reliability, responsiveness and tangibility significantly exist among these two
groups? The results of the analysis reveals that „assurance‟ is the maximum
discriminating variable (R2%=30.36%) between savings bank account and current
account holders, followed by „empathy‟ (10.96%)‟, „tangibility‟ (10.24%),
„responsiveness‟ (9.26%) and „reliability‟ (4.24%)‟ being the least discriminating
variable.
10. There is a significant difference in the acceptance level of the respondents between the
expected and perceived levels of various dimensions of service quality such as
assurance, empathy, reliability, responsiveness and tangibility.
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11. In regards to the various factors that contribute to the assurance dimension of service
quality, the majority of the respondents (25%) disagree with the list, followed by neither
agree nor disagree agree (24.60%) and agree (23.20%). 6.40% and 20.80% of the
respondents strongly agree and strongly agree respectively on the assurance dimension
of service quality in the select new generation private banks.
12. Out of 500 respondents, majority of the respondents indicate that they disagree
(31.40%) with the empathy dimension of service quality in select new generation
private banks, followed closely by neither agree nor disagree (21.60%) and strongly
disagree (21%). 6.06% and 19.40% of the respondents strongly agree and agree
respectively.
13. The majority of respondents indicate that they disagree (34.60%) with the reliability
dimension of service quality in the select new generation private banks, followed by
strongly disagree (22.80%) and neither agree nor disagree (21.40%). 4.40% and 16.80%
of the respondents strongly agree and agree respectively.
14. In regards to the responsiveness dimension of service quality in select new generation
private banks, majority of the respondents (32%) disagree, followed by neither agree
nor disagree (22.60%) and strongly disagree (21.40%). 4.20% and 19.80% of the
respondents strongly agree and agree respectively.
15. Out of 500 respondents, 28.40% of the respondents reveal that they disagree with the
tangibility dimension of service quality in the select new generation private banks,
followed by strongly disagree (22.20%), and neither agree nor disagree (21.40%).
7.40% and 20.60% of the respondents strongly agree and agree respectively.
16. There has been a low correlation (0.103) between the customer loyalty and the selected
personal variables in the select new generation private banks in Salem district. Gender,
age, educational status, monthly income and type of account of the respondents have no
significant effect on customer loyalty in the select new generation private banks in
Salem district.
17. Out of 500 respondents, 36.60% of the respondents reveal that they agree with their
loyalty with the new generation private banks, followed by neither agree nor disagree
(28.60%), and disagree (22.20%). 10.20% and 2.40% of the respondents strongly agree
and strongly disagree respectively.
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18. 75.40 of the respondents are not ready to change their prime bank, whereas 24.60% of
the respondents were of the opinion to change their prime bank in future.
19. Ranging from 20.32 per cent to 30.89 per cent of the respondents‟ reasons to change
their prime bank are non-availability of IT based services, lack of trust, strict formalities
to avail services and unethical practices of the bank. Ranging from 34.14 per cent to
49.59 per cent of the respondents will change their prime bank in future due to lack of
access to branches, lack of innovative services, services are not upto expectations,
suggestions of the well-wishers and poor service. Denied customer request, lack of
personal services and higher service charges are the respondents‟ reasons to change
their prime bank at 56.10%, 60.16% and 69.92% respectively.
20. Ranging from 27.60 per cent to 48.60 per cent of the respondents‟ problems with their prime
banks are absence of customer intimate strategy, poor-quality customer service, inadequate
range of products, inadequate customer communication and delay in service. Absence of
creativity and innovativeness, inadequate customer contact programmes, absence of update
information and lack of customer specific strategies are the problems of the customers in the
select new generation private banks at 52.40%, 58.60%, 60.20% and 64.40% respectively.
Suggestions
1. The select new generation private banks must know and prepare offers according to the
changing environment. The select new generation private banks must open the aperture
and create operational benchmarks that include financial institutions in other segments
of the market. The customer strategy should create differentiation through the bank‟s
own operational strengths and by emulating the capabilities of the bankers outside of its
peer group. Therefore, the select new generation private banks must keep innovating
and serve their customers with better quality services.
2. About 48.60% of the respondents state that the select new generation private banks have
not been able to provide quick service. A long delay in making available the services to the
customers may erode the credibility and goodwill as well as customers‟ confidence.
Therefore, the select new generation private banks should offer quick and prompt services
to their customers.
3. In order to keep the gap between the expected service and perceived service as
minimum as possible, it is important that the promises about how then service will
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perform, given by traditional marketing activities, and communicated by words of
mouth, must not be unrealistic when compared to the service the customers eventually
will perceive. Hence, efforts of the banks should not be only equationalise the customer
expectations with what the banks offer but endeavours have to be put into ensure that
the select new generation private banks provide such a level of quality service which
exceeds the perceived expectations of customers.
4. Since service quality is the most important factor in customers‟ choice, the banks
should focus on hiring competent and friendly personnel, and train them in order to
increase their efficiency and developing interpersonal communication skills. The banks
should design program to train staff with the skills and knowledge required to deal with
customers effectively. With a view to enhance service quality levels in terms of
responsiveness, reliability, empathy and assurance aspects, the training and retention of
staff should be given special care to empower them to exercise responsibility,
judgments and creativity in responding customers‟ problems. The new generation
private banks must pay attention to potential failure points and service recovery
procedures, which become integral to employees‟ training.
5. Since service delivery quality moves from internal customers, the select new generation
private banks should provide the necessary incentives to boost internal customer
satisfaction. Therefore, the select new generation private banks should provide the
necessary logistics to their staff because they help to achieve customer satisfaction. The
select new generation private banks should be aggressively engaged in internal
marketing to arrive at a synergy of satisfied employees and upgraded service
performance.
6. In the realm of meeting emotive needs, human performance is still the most effective means
of conveying important attributes like empathy, dignity, value and responsiveness. The
select new generation private banks must create the culture and model needed to promote
greater commitment, accountability and competency for staff allowing them to become
more responsive in delivering consistently in spite of the natural barriers that size and silos
can create.
7. Relationship marketing strategy and relationship based loyalty programs are important to
service providers, because it is a right way to build relationship and loyalty. Therefore, the
select new generation private banks must upgrade the level of advisory skills for staff
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dealing with customers, whether they are working in branches, delivering online services
via email with a view to maximize relationships with individuals.
8. Customers are loyal only when the bank has a thorough understanding of their
requirements. Therefore, the select new generation private banks shall keep on tracing the
customers and get thorough knowledge about customers‟ problems. Database on various
aspects of customers‟ profile should be created which should function in every branch and
it must develop an excellent total customers‟ care programme to suit the specific
requirements of its customers.
9. The select new generation private banks shall undertake customer contact programmes
in order to understand the problems and expectations of the customers. For this purpose,
customers meet, special events, direct mails, greeting cards, etc. can be used to get in
touch with customers.
10. Every branch shall constitute a “Customer Relationship Committee” consisting of staff
and customers of various segments. The customers can lodge their complaints and offer
their suggestions on various matters pertaining to banking services. These complaints
shall be discussed at the Customer Relationship Committee meeting every month.
11. The select new generation private banks should continually assess and reassess how
customers perceive bank services so as to know whether the banks meet or exceed or
are below the expectations of their customers. Frequent customer surveys, therefore,
throw light on ratification and refinement, which will go a long way to improve service
quality in banks. Some customer surveys shall be conducted through external agencies
so that public reposes confidence on the results of the surveys. Opinion polls should be
carried out from time to time to understand the perceptions of customers about the
service quality of the banks.
12. The process of fulfilling customer needs, therefore, requires tailoring bank services to
what customers want, rather than making them accept whatever banks can conveniently
provide. Today, customers are exposed to the standards of international banking and
expect the same range of service quality from Indian banks. Therefore, the select new
generation private banks have to maintain the international banking standard.
13. The select new generation private banks should focus more on improving the
infrastructure. The infrastructure not only involves the information technology input in
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the branches but also the physical evidence, internal environment and layout. This will
help in delivering quick and accurate services to customers as well as reducing the
workload of frontline staff and thereby providing ways to employees to respond to
customer requests.
Conclusion
The efficiency of a banking sector depends on how best it can deliver services to its
target customers. In order to survive in the competitive environment and provide continual
customer satisfaction, the providers of banking services are now required to continually
improve the quality of services and technology and other aspects. Before making their
banking products, the new generation private banks should give importance to the various
factors that influence banking service quality, so that they can retain their existing customers
and attract new customers. The finding of this study brings to light that there exists a
significant gap between the expected and perceived levels of service quality in the select new
generation private banks. In the increasing competition in banking industry, banks want to
differentiate themselves from the competitors and stay ahead in the race. The researcher
suggests measures such as customer intimate strategy, training to employees, high-quality
customer service, customer communication, creativity and innovativeness, customer contact
programmes, customer compliant monitoring cell, providing update information, improving
reliability, customer segment specific strategies, staff involvement, provisions of prompt
service and understanding the customers to improve service quality of the select new
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GE-International Journal of Management Research

Vol. 5, Issue 3, March 2017 Impact Factor- 5.779

CUSTOMERS’ PERCEPTION TOWARDS SERVICE QUALITY OF

KEYWORDS: Service Gap, Banking Services, Customer Satisfaction, Service Quality

Concept of Service Quality

Service quality has been defined as customers‟ overall impressions of an

Service Quality in Banking Industry

Liberalization, privatization and globalization planks of government of India as lead to a

Objectives of the Study

The following null hypotheses were formulated and tested.

HDFC Bank 8 3 120 30

ICICI Bank 8 3 120 30

Total 26 10 400 100

Tools for Data Collection

The present study is empirical in character, based on survey method. As an essential

Limitations of the Study

2. Perceptions, satisfactions, and expectations usually are highly subjective versions of

2. No significant association is found in the satisfaction level of the respondents belonging

4. There is no significant relationship among the acceptance levels of the customers

7. There exists consistency among the acceptance level of female respondents,

1. Buttle, F (1996). Relationship Marketing: Theory and Practice, London, Paul

6. Lewis, J. D (1991). “Competitive Alliances Redefine Companies”, Management

8. Mosad Zineldin (2005). “Quality and Customer Relationship Management (CRM) as

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