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CUSTOMER SATISFACTION:
A STUDY OF BANKING FACILITIES OF JODHPUR
Abstract
Services and Banks are the basis to the human facilitating themselves in any society
reflected by the availability of good Banking services related to human comfort.Customer satisfaction is basis of building the quality services of the human comfort
operating in any society. A satisfied customer is the basis for building good sustainable
models to operate in the society. The Banking sector in India has witnessed severalregulatory changes in the last few decades. The impact of technology has changed
landscape of serving the Customers of the banks where the competition has become
intense and retaining the human personnel is important for the survival of bankingbusiness. Banks help to provide the basis for the development of healthy society so that
the people can live a life of respect and dignity. The basic objective of this paper is
design the strategic framework for enhancing the customer satisfaction for the banking
sector of the city of Jodhpur.
Key words service quality, banking industry, facilities, technology
Introduction
The objective of this paper is to examine the consumer behaviour with respect to
banking, and to explore the possibility of blending these banking systems. The paper also
suggests strategies to banks to maximize the value of services to consumers. The primarydata used in the research consists of survey conducted on a sample of 100 consumers.
(Taylor, 1997) The survey includes in jodhpur city of India, instrument being
questionnaires filled up from the consumers and personal interaction, discussions withthe front line executives of banking divisions of the major players, particularly their
marketing and customer servicing departments and the banking experts, personal visits at
Automated Teller Machine (ATMs), Point of Sale (POS) counters of major banks. Themajor assumptions in this research are (a) the behaviour of the surveyed population viz.
consumers and bankers confirms to a normal distribution. The study limits itself to major
cities given the fact that Internet Banking has no geographical boundaries.
In the services marketing literature, it is generally agreed that service quality, customersatisfaction and loyalty are important constructs. These are especially critical in people-
intensive sectors like retail banking industry. In todays competitive business world many
firms are focusing their efforts on achieving and maintaining a loyal customer base.
According to Caruana (2002) loyal customers are the foundation of any business.Customer soften rely on intangible aspects to decide whether to become loyal client. In
this aspect it can be noted that, various factors are important to customers to make such a
decision and thus a better understanding of customer loyalty especially to service sectoris really needed.
To do so first of all it is important to identify the antecedents of loyalty. Bloemer et al
(1998) argued that a more feasible approach for banks is to focus on less tangibledeterminants of customer loyalty like satisfaction. So, it can be argued that to establish
loyal customer base, banks need to put effort to increase customer satisfaction. Customer
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satisfaction plays a vital role in establishing loyalty and at the same time it is also notedthat there are various factors that lead to satisfaction towards the bank. On the other hand,
identifying and understanding the antecedents of customer satisfaction is a critical issue
foracademicians as well as bankers. Considerable researchers (e.g. Parasuraman, et al.,
1988 and Zeithaml, et al., 1990) have pointed out service quality as the key factors ofsatisfaction.
The concept of satisfaction, service quality and loyalty are related to each other. In this
paper the researchers tried to establish satisfaction as an important factor behind loyaltyand also to find out their relationship. At the same time, the researchers also wanted to
develop a conceptual framework that incorporates loyalty, satisfaction and service
quality. After dealing with the conceptual issues researchers have collected data througha questionnaire and also discussed the results of the empirical study that has been done to
seek the answers of the research questions.
Service Quality in Banks
In the service quality literature, it is generally agreed that different people understand
different things regarding the service quality as a multidimensional notion. Bolton and
Drew (1991); and Oliver (1980) defined customers' service quality as the difference
between the actual service performance and their expectations. Similar to Bolton andDrew (1991); and Oliver (1980), Parasuraman et al. (1988: p19) characterised perceived
service quality as "the degree and direction of discrepancy between customers'
perceptions and expectations".
"Service quality has been variously defined as focusing on meeting needs and
requirements, and how well the service delivered matches customers' expectations"(Lewis 1993: p 22). They also proposed that "service quality is a global consumer
judgement or attitude, relating to service and results from comparisons by consumers
expectations of service with their perception of actual service performance" (Lewis,
1991; p 53). Service quality is the distinction between consumers' expectations forservice performance and their perceptions of the service received. Zeithaml and Bitner
(1996, p 45) defined perceived service quality as the judgement of a customer about the
overall excellence or superiority of a product or service. They also defined service qualityas, "the delivery of excellent or superior service relative to customer expectations".
Literature review
Quality is an important attribute of the service industry. Services have some exceptional
characteristics that ma ke them different from physical products. To produce a servicemay or may not require the use of tangible goods. There are some fundamental
characteristics of services like intangibility, inseparability, heterogeneity, and
perishability (Zeithaml and Bitner, 1996). The most notable thing is that it is often
difficult for customers to evaluate services at pre-consumption, consumption and post-consumption stage. On the other hand, due to intangible nature of services, organisation
may also face difficulty to understand how its customers perceive and evaluate the
quality of its services?In the recent years, service researches have revealed a variety of customer-based
improvement strategies based on the specific service elements, suggesting action plans
for different service requirements that demand managerial action. Results of these studieshave facilitated in competitive positioning of those service components which are
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directly tied to the organization's success. The present study is an endeavor to evolve atruly customer-centric service system based on customers assessment of service quality.
Service Quality and Customer Satisfaction: The distinction and association between
service quality and customer satisfaction remains at the forefront of many academic- and practitioner-oriented research endeavors (Spreng and Mackoy, 1995). The customer
satisfaction is important for the service industry also. (Bitner, 1990).
In the findings of the past research by Oliver (1989), an attempt has been made to study
the influence of service quality on the levels of customer satisfaction. The service quality
is determined by its various components and is part of satisfaction (Parsuraman1988).
According to Spreng and Mackoy (1996), the perceived service quality is an antecedent
to satisfaction...In an attempt to study the service gap, Dash and Kumar (2007) revealed that customers
expectations exceeded their perceptions, with regards to various dimensions of service
quality. They further claimed that perception of either positive or negative service quality
was related to the customers future behavioral intentions. Therefore, if a positive qualitygap exists, the customers would tend to comment positively about the service. On the
contrary, a negative quality gap would result in customers complaining, switching to
other service providers, commenting negatively about the provider or just decreasing theusage of the service. Hence it is recommended that the banks should continuously
monitor the service quality levels so as to avoid erosion of service quality and migration
or switching by customers to other banks.. Thus they recommended that banks should envisage a strategy to serve customers with
different facilities & services backgrounds.
Amudha and Banu (2007) revealed the necessity of employee contacts and evaluation
of service experiences.
Parikh (2006) found the problem of reliability in various measures of service quality,
and concluded that perception responses have high reliability as compared to expectation
responses.
Dabholkar, Thorpe and Rentz (1996) discovered the five dimensions of the service
quality.
Service Quality
In the service quality literature, it is generally agreed that different people understand
different things regarding the service quality as a multidimensional notion. Bolton andDrew (1991); and Oliver (1980) defined customers' service quality as the difference
between the actual service performance and their expectations. Similar to Bolton and
Drew (1991); and Oliver (1980), Parasuraman et al. (1988: p19) characterised perceived
service quality as "the degree and direction of discrepancy between customers'perceptions and expectations". The services marketing literature reveals that "service
quality has been variously defined as focusing on meeting needs and requirements, and
how well the service delivered matches customers' expectations" (Lewis 1993: p 22).They also proposed that "service quality is a global consumer judgement or attitude,
relating to service and results from comparisons by consumers expectations of service
with their perception of actual service performance" (Lewis, 1991; p 53).Service quality is the distinction between consumers' expectations for service
performance and their perceptions of the service received. Zeithaml and Bitner (1996, p
45) defined perceived service quality as the judgement of a customer about the overall
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excellence or superiority of a product or service. They also defined service quality as,"the delivery of excellent or superior service relative to customer expectations".
Avkiran (1999) identified the following four discriminating factors of service quality in
the banking sector:
Staff Conduct: Responsiveness, civilised conduct and presentation of branch staff
that will project a professional image to the customers.
Credibility: Maintaining bank staff-customer trust by rectifying mistakes, andkeeping customers informed.
Communication: Fulfilling banking needs to customers by successfullycommunicating financial advice and serving notices timely.
Access to Teller Services: The adequacy of number of branch staff serving
customers throughout business hours and during peak hours.
According to Parasuraman (1988) service quality has been defined as the difference
between customer expectations of service to be received and perceptions of the service
actually received.According to Bolton, Drew, 1992; Parasurman 1988; Cronin & Taylor( 1992) quality
is a form of an attitude that results from the comparison of expected service levels with perceived performance In other words, customers enter a consumption experienceexpecting a certain level of service and during this consumption period they experience
actual service performance.
According to Woodruff (1983) Parasurman (1988) Cronin & Taylor (1992), the
consumers subjective evaluation of how well (or poorly) that actual performancecompares to expected performance results in the perceived service quality
According to Reidenbach & Sandifer- Smallwood, 1990; Cronin&Taylor, 1992;
Reichheld & Sasser, 1990-Quality is the component of service satisfaction.According to Bitner & Zeithaml (2003), service quality measurement is important as it
has the potential to offer insights into areas of service quality strengths and weakness.
The overall service quality includes interaction quality, product quality and outcomequality. They also proposed the use the SERVQUAL dimensions to assess a companys
service quality.
Parasuraman (1989) suggested that there are five specific dimensions of service quality
which include-
Reliability: Reliability means ability to perform the promised service dependably
and actually.
Responsiveness: Responsiveness means willingness to help customers andprovide prompt service.
Assurance: It means employees knowledge and courtesy and their ability to
inspire confidence.
Empathy: It means caring, individualized attention given to customers.
Tangibles: It means appearance of physical facilities, equipment, personnel, and
written materials.
Social responsibility: Good service at a reasonable cost Staff 's sense of public
responsibility.
According to Lo & Hui, (2003) service quality factors (such as reliability andresponsiveness) are the antecedents to customers overall evaluation of service quality,
rather than conceptualizing them as dimensions or components of the construct.
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Reliability and Overall Service Quality
According to Berry, Zeithaml & Parasuraman (1990), service reliability is the service
core to most customers and managers should use every opportunity to build a do-it-
right-first attitude. Especially managers are encouraged to include reliability issues intheir mission statements, set reliability standards, teach the importance of reliability in
training programs, appoint reliability teams to study specific services and recommend
ways to improve reliability, measures error rates and reward error free service.Reliability of service can be better established with a relative emphasis on technology
(high tech) in developed countries and a relative emphasis on personnel (high touch) in
developing countriesAccording to Heskett, Jones, Loveman, Sasser, & Schlesinger, 1994 building the
management caliber is important for developing the service quality ethics.
Berry and Parsasuraman (1991) identified that continuous improvement is the key toproviding reliable service.
Responsiveness and overall Service Quality
According to Hart, Heskett, & Sasser, 1990; dabholkar, Thorpet Rentz, 1996;Swanson and Kerlley, 2001, service recovery and problem solving have long been
recognized as important parts of service quality Responsiveness was perceived to be themost important dimension as opposed to the reliability from published literature
According to Zenithal (1990), responsiveness perceptions diminish when customers find
difficulties to access a company through telephone and put on hold, or have troubleaccessing the companys website. All these circumstances gradually diminish customers
overall evaluation of service quality.
Tangibility and Overall Service Quality
According to Parasuraman (1990), tangibility refers to the physical evidence of theservice, consisting of physical facilities, appearance of personnel, tools or requirements,
physical presentation of the service, and other customers in the service facility. All of
these provide physical representation or images of the service that both existing and newcustomers will use to evaluate quality.
According to Oberoi and Hales (1990) the importance of tangibles in a conference
hotel is a measure of performance which, when purchased, provides nothing tangible thatthe consumer can posses.
Parasuraman (1988) proposed that consumers perception of tangibles is more
important in the case of hospitals than in security brokerage, and product repair and
maintenance.
Tangibles of service (service scapes) in the banking sector includes the ambient
conditions such as temperature, ventilation, noise and odour prevailing in the bank's premises, extent of the physical layout of equipment and other furnishings being
comfortable for customers to interact with bank staff, visually appealing signs, symbols,
advertisement boards, pamphlets and other artefacts in the bank, bank staff who have aneat and professional appearance, visually appealing materials and facilities associated
with the service etc.
Assurance and Overall Service Quality
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especially in the banking sector. To accomplish this, the study has covered the followingspecific objectives:
1. To evaluate different dimensions of service quality
2. To find out possible approach to examine quality service dimensions
3. To propose an instrument concerning dimensions of service quality
4. To understand and analyze the dimensions customer satisfaction level of the services
provided by the selected branches of the hospitals operating in the city of Jodhpur.
5. To ascertain the relevant dimensions of service quality in hospitals.
6. To frame the strategy for the enhancement of customer satisfaction.
Research Methodology - The researcher contacted the respondents personally with well-
prepared sequentially arranged questionnaire. The questionnaire prepared, was dividedinto two parts, of which part one was used to gather demographic details of the
respondents using the hospital facilities of the Jodhpur city and the second was related to
customer preferences for the various attributes of the services available in the hospitals...
Research Design
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Demographically classified
customers
age
sex
occupation
LEVEL OF
SATISFACTION
Variables related
To
Customer satisfaction
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Sampling Area - The study is conducted on the respondents i.e. the customers using thebanking facilities of the Jodhpur city
Population
All the customers using the banking facilities of the Jodhpur city.
Sample size The research focused on the participants who willingly wanted tocomplete the instruments in their entirety. Total 100 respondents filled the questionnaire.
Sampling Design The sample was designed by the convenience based random
sampling method.Primary Data - Most of the data collected by the researcher was primary data through
a structured questionnaire, which was operated on the samples of the tourist visiting the
destination of Jodhpura.) Demographic Characteristics- gender, age and occupation of the respondents.
b.) Dimension of customer satisfaction for service facilities
Secondary data- The secondary information was collected from the published Sources
such as Journals, Newspapers and Magazines and websites...
Research instruments - A summated rating scale format was used, with five choices
per item ranging from "completely dissatisfied to "completely satisfied ". . . In this allthe questions were positively framed to study the impact of independent variable like age,
gender and occupation on the dependent variable which is student development through
knowledge.
Analysis of Data - All the data collected from the respondents was feeded and tabulated
and the analysis was done through the software of SPSS version 16...
Research period - The research period of the study has from april 24, 2011 to may 12,2011
Hypothesis
Null hypothesis
H101: There is no significant difference about facilities provided by the banks andcustomer satisfaction amongst customers classified by age coming to the banks of
Jodhpur.
H1a1: There is significant difference about the facilities provided by the banks and theand customer satisfaction amongst customers classified by age coming to the
banks of Jodhpur
H102: There is no significant difference about facilities provided by the banks and
customer satisfaction amongst customers classified by gender coming to the
bankss of Jodhpur.
H1a2: There is significant difference about the facilities provided by the banks and the
and customer satisfaction amongst customers classified by gender coming to the
banks of Jodhpur
H103: There is no significant difference about facilities provided by the banks andcustomer satisfaction amongst customers classified by occupation coming to the
banks of Jodhpur.
H1a3: There is significant difference about the facilities provided by the banks and theand customer satisfaction amongst customers classified by occupation coming to
the banks of Jodhpur
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H104: There is no significant difference about facilities provided by the banks and
customer satisfaction amongst customers classified by income coming to the
banks of Jodhpur.
H1a4: There is significant difference about the facilities provided by the banks and theand customer satisfaction amongst customers classified by income coming to the
banks of Jodhpur
Data analysis
1. Anova Linearity and Non-Linearity Test:-
Aim here is to find how Total Satisfaction varies in accordance to change in each
dimension, linearly or non-linearly, here both are scale variables dependent andindependent variable.
The test for linearity if has a significance value smaller than 0.05, indicates that
there is a linear relationship.
The test for deviation from linearity if has a significance value smaller than
0.05, indicates that there is a non-linear relationship. If both relationships are present and if R2
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REFERENCES
1. Avkiran, N.K. (1999), Quality customer service demands human contact,
International
Journal of Bank Marketing, 17, 2, 61-71
2. Berry, L.L. and A. Parasuraman (1991), Marketing Services, The Free Press, New
York.
3. Bloemer, J., K. D. Ruyter, and P. Pascal (1998), Investigating drivers of bank
loyalty:the complex relationship between image, service quality and satisfaction,
The International Journal of Bank Marketing, 16, 7, 276-286.
4. Bolton, R.N. and Drew, J.H. (1991), A longitudinal analysis of the impact of service
changes on customer attitudes, Journal of Marketing, Vol. 55, pp. 1-9.
5. Caruana, A. (2002), service loyalty: The effects of service quality and the mediating
role of customer satisfaction,European Journal of Marketing, 36, 7/8, 811-828.
6. Cronin, J.J. and Taylor, S.A., (1992), "Measuring service quality: a re-examination and
extension",Journal of Marketing, 56, 55-68.
7. Kennor & Taylor (1997), Marketing Research, Wiley Eastern Ltd., p. 440-442.
8. Lewis, B.R. (1991), Service quality: an international comparison of bank customersexpectations and perceptions,Journal of Marketing Management, Vol. 7, pp. 47-62.
9. Lewis, B. (1993), Service quality: recent developments in financia l services,
International Journal of Bank Marketing, Vol. 11 No. 6, pp. 19-25.
10. Oliver, R.L. (1980), ``A cognitive model of the antecedents and consequences of
satisfaction decisions,Journal of Marketing Research, Vol. XVII, November, pp.460-469.
11. Parasuraman, A., Zeithaml, V.A. and Berry, L.L. (1988), ``SERVQUAL: a multiple Item scale for measuring consumer perceptions of service quality,Journal of
Retailing, Vol. 64 No. 1, Spring, pp. 12-40.
12.Zeithaml, V.A., Parasuraman, A. and Berry, L.L. (1990), Delivering quality service:Balancing Customer perceptions and expectations, Free Press, New York.
13. Zeithaml, V.A. and Bitner, M.J. (1996), Services Marketing, international edition,McGraw Hill, New York, NY and London.
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