Service Quality Transformation and Its Impact on Customer Satisfaction and Loyalty in Malaysian Retail Banking Sector PDF Download

Author: Sanmugam Annamalah
Publisher:
ISBN:
Category :
Languages : en
Pages : 8

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Book Description
This paper investigates the importance of antecedents of customer loyalty such as customer satisfaction and service quality dimensions. It addresses whether the dimensions of service quality impacts customer satisfaction eventually leading to customer loyalty. The Structural Equation modeling technique was used in this analysis to determine customer satisfaction and customer loyalty. The results suggest that empathy and assurance are the key factors in delivering customer satisfaction, whereas, tangibility, reliability and responsiveness are found to least impacting customer satisfaction. The relationship between customer satisfaction and customer loyalty is also found to be very significant. Therefore, the bank managers should focus their resources on improving customer care and assuring the services provided to the bank customers will eventually create customer loyalty towards their banks.

Author: Lee Siew Peng
Publisher:
ISBN:
Category :
Languages : en
Pages : 32

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Book Description
Banking is an important industry in a nation but with the intense competition of various banks available, it is the services provided that crucially distinguishes the banks. Previous studies have examined the relationship between service quality, customer satisfaction, perceived value, loyalty, trust and image. These studies adopted the SERVQUAL model to measure service quality in banks which may be five dimensional. This study proposes to measure service quality by applying six dimensions: tangibles, empathy, reliability and security, price, online banking and convenience. These six dimensions are used to examine the relationship between service quality, perceived value, customer satisfaction, bank image, customer loyalty and customer trust among bank customers in the Klang Valley, Malaysia. Data were analysed by structural equation modelling (SEM) in order to test all the relationships between the variables in the model. The findings support the proposed hypotheses, which are consistent with the theoretical framework. The results indicate that the dimensions of tangibles, empathy, reliability and security, and online banking have a significant positive relationship with perceived value. The analyses show that service quality, customer satisfaction, bank image and trust are important determinants of loyalty.

Author: Valarie A. Zeithaml
Publisher: Simon and Schuster
ISBN: 1439137471
Category : Business & Economics
Languages : en
Pages : 185

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Book Description
Excellence in customer service is the hallmark of success in service industries and among manufacturers of products that require reliable service. But what exactly is excellent service? It is the ability to deliver what you promise, say the authors, but first you must determine what you can promise. Building on seven years of research on service quality, they construct a model that, by balancing a customer's perceptions of the value of a particular service with the customer's need for that service, provides brilliant theoretical insight into customer expectations and service delivery. For example, Florida Power & Light has developed a sophisticated, computer-based lightening tracking system to anticipate where weather-related service interruptions might occur and strategically position crews at these locations to quicken recovery response time. Offering a service that customers expect to be available at all times and that they will miss only when the lights go out, FPL focuses its energies on matching customer perceptions with potential need. Deluxe Corporation, America's highly successful check printer, regularly exceeds its customers' expectations by shipping nearly 95% of all orders by the day after the orders were received. Deluxe even put U.S. Postal Service stations inside its plants to speed up delivery time. Customer expectations change over time. To anticipate these changes, Metropolitan Life Insurance Company regularly monitors the expectations and perceptions of their customers, using focus group interviews and the authors' 22-item generic SERVQUAL questionnaire, which is customized by adding questions covering specific aspects of service they wish to track. The authors' groundbreaking model, which tracks the five attributes of quality service -- reliability, empathy, assurance, responsiveness, and tangibles -- goes right to the heart of the tendency to overpromise. By comparing customer perceptions with expectations, the model provides marketing managers with a two-part measure of perceived quality that, for the first time, enables them to segment a market into groups with different service expectations.

Author: Zahir Osman
Publisher:
ISBN:
Category :
Languages : en
Pages : 9

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Book Description
The aim of this study is to develop a direct effect understanding of service quality, customer satisfaction and image on customer loyalty in Malaysian commercial banking industry. The Structural Equation Model (SEM) adopted to analyze the casual relationships between exogenous variables and endogenous variable. The model was developed and later tested by using the Partial Least Square (PLS) procedure on data collected from a survey that yielded 512 usable questionnaires. The findings demonstrated that service quality, customer satisfaction and image have significant and positive influence on customer loyalty in Malaysian commercial banking industry. It is important to do the study employing experimental design by capturing longitudinal data in Malaysian commercial banking industry using robust measures. The findings imply that the relationship of service quality, satisfaction and trust on customer loyalty will lead to commercial banks' profitability.

Author: Zahir Osman
Publisher:
ISBN:
Category :
Languages : en
Pages : 6

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Book Description
The aim of this study is to establish understanding of a mediating effect of customer satisfaction on service quality satisfaction and customer loyalty relationship in Malaysian commercial banking industry. To analyze the casual relationships among customer satisfaction, customer trust and customer loyalty, the Structural Equation Model (SEM) was adopted. The model was designed and later analyzed by utilizing the Partial Least Square (PLS) procedure on data collected from a survey that yielded 521 usable questionnaires. The results showed that service quality enhances customer satisfaction in Malaysian commercial banking industry. It was also exposed that customer satisfaction partially mediates the relationship between service quality and customer loyalty. In future more research needs to be done to investigate the role of customer satisfaction in Malaysian commercial banking industry. It is vital to do the research utilizing experimental design by using longitudinal data in Malaysian commercial banking industry via vigorous measures. The findings suggest that the relationship between customer satisfaction and profitability may reside in customer satisfaction's influence on customer loyalty, and the customer satisfaction plays a crucial role within the Malaysian commercial banking industry. This research is one of the first known efforts to use PROCESS to test the mediation effect.

Author: Laly Antoney
Publisher: Prem Jose
ISBN: 1711053279
Category : Reference
Languages : en
Pages :

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Book Description
Quality and satisfaction are the key indicators of corporate competitiveness. Measurement of customer satisfaction based on the service quality is to be done independently and objectively to establish baseline for improvements in service delivery. Assessing customer satisfaction periodically allows bank management and policy makers to identify customers’ needs, expectations, perception and the perception- expectation gaps. The current study covers a comparative analysis of service quality and customer satisfaction among the customers of public and private sector commercial banks in Kerala. The research questions that are addressed in this study are on expectations and perceptions of retail customers from their preferred banks, relationship between service quality and customer satisfaction and the difference between the satisfaction level among private and public- sector banks in Kerala. In order to answer the above research questions, the problem is stated as “Service Quality and Customer Satisfaction- a Comparative Study between Public Sector and Private Sector Banks of Kerala.” A descriptive and analytical research was carried out by collecting responses from customers of three prominent banks from private and public sector each. This was done through an online structured questionnaire based on SERVQUAL model during July 2015 to July 2016, prior to SBI consolidation. Primary data is analysed using SPSS (V.21). Kolmogorov- Smirnov Test for the Normality is used to ensure normality of data distribution, Cronbach Alpha coefficient is used to measure reliability and validity is tested with the panel of experts. Mean, S.D. percentage, cross tabulation are used for descriptive and univariate analysis. Structural Equation Modelling, Confirmatory Factor Analysis and regression path analysis are used to conduct inferential and multivariate analysis. Z-test, Independent T-Test, Chi-Square, ANOVA Pearson Correlation, and post hoc tests are used for testing of hypothesis and comparative analysis. Modelling is done using Structural Equation Modelling approach and Path Analysis. The study reveals that the antecedents of customer satisfaction of retail banking customers of Kerala are reliability, assurance, empathy and tangibles. Responsiveness dimension do not affect customer satisfaction of banks in Kerala. There exists a gap between expected service quality and perceived service quality. Study reveals that there is significant positive correlation between service quality and customer satisfaction in the retail commercial banking services in Kerala. The level of customer satisfaction in public sector banks and private sector banks are not significantly different but same. Similarly, it is also found that, there is no significant difference in the customer satisfaction between sample banks like State Bank of India, State Bank of Travancore, Canara Bank, from public sector and Federal bank, South Indian bank and ICICI bank from private sector.

Author: Siti Zainuddin
Publisher:
ISBN:
Category :
Languages : en
Pages : 30

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Book Description
Purpose - The main purpose this study is to provide managers and researchers a comprehensive view of the root causes of failed service quality in the Malaysia retail banking sector.Design/methodology/approach - A quantitative research design was conducted among retail banking customers who had defected from a large retail bank provider. A total of 300 questionnaires were distributed and received 100 valid replies.Findings - The results discovered that the determinants of failed service quality from retail bank with customer dissatisfaction, lack of commitment and loyalty. Both customer dissatisfaction and lack of commitment have significantly and positively affect the failed service quality. While loyalty on the contrary, it is not significantly and negatively related. Research limitations/implications - The findings of this paper primarily pertain to the operational level of the organization. Further research could also attempt to isolate the other factors that influence failed service quality on the bank performance. Practical implication - Key areas causing customer dissatisfaction and eventually defection are shown to bank managers, providing direction for implementing strategies and mechanisms in order to effectively reduce the defection rate.Originality/value - The theoretical model, which was in large confirmed through the empirical data, offers for the first time empirical evidence regarding the extent to which the general categories of reasons to defect in a service context identified in the literature are indeed causing customer exit.

Author: Ford Lumban Gaol
Publisher: CRC Press
ISBN: 135137270X
Category : Business & Economics
Languages : en
Pages : 346

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Book Description
Issues and Trends in Interdisciplinary Behavior and Social Science contains papers presented at the 6th International Congress on Interdisciplinary Behavior and Social Science 2017 (ICIBSoS 2017), held 16—17 December 2017 in Yogyakarta, Indonesia. The contributions cover every discipline in all fields of social science, and discuss many current trends and issues being faced by 21st century society especially in Southeast Asia. Topics include literature, family culture studies, behavior studies, psychology and human development, religion and values, religious coping, social issues such as urban poverty and juvenile crisis, driving behavior, well-being of women, career women, career performance, job stress, happiness, social adjustment, quality of life among patients, the cosmetics business, etc. The issues are discussed using scientific quantitative or qualitative methods from different academic viewpoints.

Author: Sandhu, Kamaljeet
Publisher: IGI Global
ISBN: 179985177X
Category : Business & Economics
Languages : en
Pages : 282

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Book Description
In a world dependent on digital technologies, business corporations continually try to stay ahead of their competitors by adopting the most updated technology into their business processes. Many companies are adopting digital transformation models, data analytics, big data, data empowerment, and data sharing as key strategies and as service disruptors for information delivery and record management. Higher education institutions have adopted digital service innovation as a core to driving their business processes. Such services are key to ensuring efficiency and improving organizational performance. Digital Transformation and Innovative Services for Business and Learning is a collection of innovative research on the latest digital services and their role in supporting the digital transformation of businesses and education. While highlighting topics including brand equality, digital banking, and generational workforce, this book is ideally designed for managers, executives, IT consultants, industry professionals, academicians, researchers, and students.

Author: Dr. Sheerali Arya
Publisher: GRIN Verlag
ISBN: 3346329402
Category : Business & Economics
Languages : en
Pages : 170

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Book Description
Academic Paper from the year 2019 in the subject Business economics - Customer Relationship Management, CRM, , language: English, abstract: This research tries to examine the impact of service quality on customer satisfaction in Banking Industry of India. The researcher has collected primary data from 850 customers of public, private and foreign sector banks operating in the northern region of India namely Delhi NCR, Uttar Pradesh, Rajasthan and Punjab. The researcher also took feedback from 50 bankers including one Senior Manager from each Bank to analyze their perspective and initiatives taken at strategic level to ensure optimum customer satisfaction is provided. The data was collected through a structured questionnaire for both customers and bankers. The secondary data was collected from academic journals, bank annual reports and credible websites. The aim of this research is specifically to analyze the dimensions of the perceived and expected service quality and its effects on customer satisfaction. Customer satisfaction is paramount to any sector which provides service and needs to sustain its advantage over the competitors. The Banking Industry of India is highly competitive with the advent of recent entrants into the market functioning along with well-established Banks. It becomes imperative for senior management of banks to focus on quality of services and products offered to customers to ensure their growth and retention Banks need to continuously innovate their methodologies and techniques to remain at the fore front. Even though the different sector of Banks in India are making huge efforts in achieving this objective, there is not enough proof to demonstrate comparative analysis of how customer satisfaction is impacted by the quality of their services, leaving a major gap in Indian literature.