Islam, Rafikul and Ahmed, Selim and Rahman, Mahbubar and Al Asheq, Ahmed
(2021)
Determinants of service quality and its effect on customer satisfaction and loyalty: an empirical study of private banking sector.
The TQM Journal, 33 (6).
pp. 1163-1182.
ISSN 1754-2731
Abstract
Purpose – The main purpose of this study is to investigate the impact of various service quality dimensions,
namely reliability, responsiveness, visibility, employee commitment and access to service on customer
satisfaction in the private banking sector of Bangladesh. The research also investigates the relationship
between customer satisfaction and loyalty and effect of demographic variables on customer satisfaction.
Design/methodology/approach – The researchers distributed 320 self-administered survey questionnaires
among private banks’ customers in Bangladesh and obtained 200 useable responses with a 62.5% valid
response rate. The research data were analysed using confirmatory factor analysis (CFA) and structural
equation modelling (SEM) approaches. Analysis of variance and logistic regression have also been used to
obtain the supplementary findings.
Findings – The research findings indicate that visibility, responsiveness and employee commitment have positive
and significant effect on customer satisfaction, whereas reliability and access to service are found to have
insignificant influence on customer satisfaction of private banking services. The findings of this study also revealed
that customer satisfaction has positive and significant relationship with customer loyalty. But except respondents’
occupation type, all other demographic variables have no statistically significant relation with customer satisfaction.
Research limitations/implications – The research focused solely on the private banking sector of
Bangladesh, and thus the results may not be applicable to other service sectors.
Originality/value – This study conducted on customers’ perception of private banking services is based on
extended service quality dimensions and its relationship with customer satisfaction towards loyalty. The
present research findings are anticipated to offer the guidelines for improving the customer satisfaction and
loyalty of private banking services in Bangladesh as well as other countries.
| Item Type: |
Article
|
| Keywords: |
Private banking; Service quality; Customer satisfaction; Customer loyalty; Structural equation
modelling; |
| Academic Unit: |
Faculty of Social Sciences > School of Business |
| Item ID: |
18680 |
| Identification Number: |
https://doi.org/10.1108/TQM-05-2020-0119 |
| Depositing User: |
IR Editor
|
| Date Deposited: |
20 Jun 2024 13:50 |
| Journal or Publication Title: |
The TQM Journal |
| Publisher: |
Emerald Insight |
| Refereed: |
Yes |
| URI: |
|
| Use Licence: |
This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available
here |
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