An Empirical Study on Impact of Service Quality on Customers Satisfaction in Banking Services of Selected Public and Private Sector Banks in Haryana

Abstract

Indian Banking sector facing challenges due to increasing competition, a rapidly changing market environment, and demanding customers. To establish a marketing strategy, service marketers, especially bank marketers need to focus on the service dimensions that are considered by customers while selecting banks. If bankers can understand properly which dimensions are used to examine a service, they will be better able to manage customer satisfaction. Service quality is one of the key parts of the banking industry. Therefore, the study undertaken is significant for the banking industry. The present study mainly focus on the impact of service quality on customer satisfaction in banking services of selected public and private sector banks. The service quality has been analyzed using a set of eleven service quality dimension namely tangibility, reliability, empathy, assurance, responsiveness remaining six service quality dimensions are Access to Service, Employee Competences, Financial Aspect, Courtesy, Understanding, and Security. The research is based on responses collected from 720 customers of selected public and private sector banks in Haryana using a five-point Likert Scale. The impact of each selected service dimensions on service quality and impact of service quality on customer satisfaction is analyzed by constructing a model using partial least squares structural equation modeling (PLS-SEM) that allows estimation of complex cause-effect relationships. A comparison of service quality provided by selected public and private sector is also made. These results indicate that characteristics such as accessibility, empathy, Employee competency, dependability, responsiveness, security, tangibles, and understanding play a significant role in determining whether or not a client is satisfied. Organizations may learn how to better serve their customers by analyzing the strength and direction of these connections. The current study is an invaluable tool that customers can utilize to make well-informed decisions, control their expectations, offer feedback, and ultimately improve their banking experiences. The research has broad ramifications for society, since it can help build social cohesion, reduce inequality, improve consumer welfare, increase financial inclusion, boost trust and confidence, and contribute to economic stability. In general, the current research study has broad consequences that go beyond the banking industry. These implications include influencing company strategies, societal dynamics, policy-making, technical improvements, and customer decision-making. newline