An Empirical Study on the Service Quality Gap in selected Private and Public Sector Banks in National Capital Region

Mr. Surinder Singh; Dr. Navdeep Kaur

doi:https://doi.org/10.51976/gla.prastuti.v7i1.711801

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An Empirical Study on the Service Quality Gap in selected Private and Public Sector Banks in National Capital Region

Surinder Singh, Navdeep Kaur

https://doi.org/10.51976/gla.prastuti.v7i1.711801

Published Online: July 18, 2018

Author Details ( * ) denotes Corresponding author

1. * Surinder Singh, Research Scholar, I.K. Gujral Punjab Technical University, Kapurthala, Punjab, India

2. Navdeep Kaur, Assistant Professor, Guru Nanak Dev Engineering College, Ludhiana, Punjab, India

Revolution in the field of Information Technology and digitization has impacted the service sector including Banking Industry; that is one of the major contributors to India’s GDP. However, even this industry is not devoid of experiencing the Gaps between the Customers’ Expectations and Customers’ Perceived Service Delivery. This causes dis-satisfaction and seems to result in Customers’ grievances/complaints. All Indian Banks following the guidelines of Reserve Banks of India and operating under the jurisdiction of Banking Ombudsman offer similar services but still there is likelihood of variation in terms of service quality. Excellence in customer service is the most important tool for sustained growth.

Sample of 1000 bank customers including 500 customers from top 5 private sector banks and 500 customers from top 5 public sector banks are surveyed in National Capital Region. SERVQUAL service quality model of five factors developed by Parasuraman et al. (1988) is used to to prepare thirty statements for collecting primary data for factor analysis. Three prominent factors (each with eigen value more than one) are extracted from the data. These three factors resulting from factor analysis (labelled as “Caring and Personal Attention by Bank Staff”, “Updation Regarding Services Provided” and “Tangibility”) explain a total of 56.80 percent of variations in the entire data set and are further used to analyse the gaps between customers’ expectations and customers’ perceived service delivery. And these factors are also used to compare the levels of service quality provided by private and public sector banks. We conclude from this study that there exist significant service quality gaps in terms of “Caring and Personal Attention by Bank Staff” and “Tangibility”. Also the public sector banks lag behind the private sector banks on these dimensions of service quality. This research paper reveals that service quality is not too much significant in minimizing the complaints raised by customers.

Keywords

SERVQUAL, Service Quality, Service Quality Gap, Customer Complaints.

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