IMPACT OF SERVICE QUALITY DETERMINANTS ON CUSTOMER SATISFACTION IN THE SRI LANKAN RETAIL BANKING SECTOR

Abstract

This paper attempts to identify the degrees of impact of human related factors and non-human related factors of perceived service quality on Customer Satisfaction. ‘Satisfaction’ is a person’s feelings of pleasure or disappointment, resulting from comparing a product’s perceived performance (or outcome), in relation to his/her experience (Kotler 1997). Today the banks offer similar type of products and services, but the differentiator is how they offer it and how the customers perceive it. A survey questionnaire and 230 retail customers were used from two local private commercial banks in the study. The findings revealed that human related factors of perceived service quality have a greater impact on customer satisfaction (.509** positive correlation) than that of non-human related factors (.295** positive correlation), in retail banking. Further, multiple regression analysis revealed high Beta values: ‘providing service at the promised time (0.348)’, ‘employee willingness to help ( 0.339)’ and ‘employee understanding the customers’ specific needs ( 0.319)’, establishing them as most sensitive factors on customer satisfaction in retail banking.

Keywords: Service Quality, Human related factors, non-human related factors, Satisfaction, Retail Banking

For full paper: fmscresearch@sjp.ac.lk