Service quality and customer satisfaction: An empirical analysis of banking sector in Goa

Abstract

Service quality leads to customer satisfaction, and ensuring that customers are getting satisfied is one of the critical factors that lead to the success of any business. As banking is a customer-oriented industry, banks have begun to realize the importance of satisfying their customers in order to retain existing customers as well attract potential customers. Existing studies revealed that study on customer service quality in banking sector has not been done in Goa. Present study was carried out by conducting a survey among 300 respondents. The result revealed no significant difference between customers of public and private sector banks with respect to gender, marital status, location, and account type except for age, income, and occupation. Six factors were identified that influence the choice of banks, viz., value-added service, responsiveness, accessibility, services assured, bank charges, and convenience. Moreover, for a majority of factors, there exists a difference between factors considered by customers of public and private sector banks across their demographic profiles. And finally customers are not satisfied with the services provided by public as well as private sector banks as gap is negative for most of the SERVQAL variables under consideration.