Impact Of Service Quality In Banking Sector

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Background of Study
In the age of globalization accomplishing the higher level of customer satisfaction is the challenging task especially for service sector. In order to face this challenging task many organization are now focusing on improving service quality. Service quality is one of the serious component in any service sector. They helps to maintain their competitive advantages in the market place. Service quality is the strategic tool to reinforce competitive advantages and increase profitability in business (Tam, J, 2004). Therefore many service sector are using this strategic component to attract and retain customer. Hence service quality is determined by customer satisfaction and customer satisfaction is determine through customer …show more content…

In case of banking sector client are attracted by high quality services. More over, advancement in technology helps banking sector to upgrade their service quality( example: ATM, Online Banking, Mobile Banking, and Visa card). The fact thing is that client are loyal to those product which have a greater value as compare to other competitor product. Therefore, bank can earn higher profit if they are one step a head of their competitor in terms of services provided by them. Hence, every banking intuition should focus on service quality so as to satisfied customer and retain customer loyalty. Like wise empirical studies conducted by Mosahab, R et al.,(2010) in Tehran, Iran found out that customer expectation are always high and service offered by banking is low as well as customer satisfaction can plays role of mediator that bridges gap between service quality and customer loyalty. In Bangladesh customer satisfaction are positively related to customer loyalty in banking sector (Siddiqi, K. O.,2011). In Jordan and Hong Kong banking sector service quality dimension have positive affect on customer satisfaction. So in Jordan banking sector service quality dimension is important instrument to measure quality of services.( …show more content…

Nepal is the land locked country situated in between India in the south, east and west and China in the north. Nepal is one of the poorest country in the world and the poorest in the South Asia region. With the area of 147,181 square kilometers. Nepal is divided into three geographical regions( Terai region, Hilly region and Himalayan region).( http://www.geographia.com/nepal/) Total estimated population of Nepal is 29302938, (http://countrymeters.info/en/Nepal) which is one of the fastest growing population in South Asia. Nepali is the national language while English is officially used in almost all business organization. Nepalese economy is largely depend on service sector. Service sector contribute higher percentage in Gross Domestic Product. It is marked that scholar have ignored researched in service sector especially in identifying service quality .customer satisfaction and customer loyalty in Nepal. In this circumstances, study on service sector with respect to customer satisfaction, service quality and customer loyalty will add value to the country

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