Abstract:
This study examines the impact of service quality on customer satisfaction and Loyalty in Indian Banking sector by applying SERVPERF scale. A total of 50 customers of State bank of India, Mohan Nagar Township branch of Salem District in Tamilnadu were interviewed on convenient basis for the above purpose. Tools like Exploratory factor analysis. Inter-Correlation, Analysis of variance, Multiple Regression analysis are carried out and the result revealed that out of five service quality factors considered, Assurance is having a highest Mean score of SERVPERF (P) score and the bank should concentrate on Reliability as it has the least mean score of SERVPERF. Regarding the association between the Demographic variables and the service quality factors, it is seen that there is no significant association found between them except income in case of Empathy and Marital status in respect of all service quality factors. It is also observed that there is a significant association found between all the Service quality factors and the customer satisfaction as well as with customer Loyalty. While analyzing the antecedents of Customer satisfaction and Loyalty, factors like Responsiveness, Reliability and Empathy are significantly influenced and also explained respective percentage of relevant changes in the Independent variables considered
Machine summary:
While analyzing the antecedents of Customer satisfaction and Loyalty, factors like Responsiveness, Reliability and Empathy are significantly influenced and also explained respective percentage of relevant changes in the Independent variables considered ABSTRACT: .
(Cronin and Taylor, 1992; Teas, 1993; Brown et al.
The first part contains the demographic details like Status of area, age, gender, Marital status, educational qualification, Type of family, occupation, income and Minimum investment and frequency of visit to bank and the second part contains twenty four items compiled with service quality variables (Tangibility- (4), Reliability-(5), Responsiveness- (5), Assurance- (3), Empathy-(5) and Value added services(2), The Third part contains five variables for Customer satisfaction and fourth part contains five variables for customer Loyalty .
Service Quality Dimensions SERVPERF (P) score Source: Primary Data Association between the Profile of the Customers and Their Level of Perception on Service Quality in State Bank of India, Mohan Nagar Township Branch For this purpose, the demographic variables like Status of the area, Age, Educational Qualification, occupation, Income and Visit to Bank are considered with Service Quality factors extracted.
In table 7, it is observed that there is no significant association between the demographic variables and the service quality factors except Marital status in case of Empathy, Responsiveness, Assurance, Tangibility and Reliability since the Chi-square value is significant at 5% level.
From the result of this study, it is clearly seen that the performance of quality in service of State Bank of India, Mohan Nagar Town ship branch of Salem in Tamilnadu is having a positive impact on customer satisfaction and Loyalty.