In this way, companys performance may be evaluated in relation to a set of satisfaction dimensions that indicate the strong and the weak points of a business organisation. Customer perception of banking services a comparative study of rural and urban branches show all authors. Customer satisfaction measurement in the private bank sector article in european journal of operational research 2. Measuring customer satisfaction and factors affecting it. Customer satisfaction measurement must be undertaken with an understanding of the gap between customer expectations and. They want to form a relationship with their bank, and they want their bank to make an effort to get to know them instead of just pushing a product. What about the relationship between customer satisfaction and service quality dimensions. A study on customer satisfaction and preference towards. This study also compares the crm performance between the public and private sector banks. Pdf customer satisfaction measurement in the private bank sector.
Difference between private and public sector banks. To attain the high level of customer satisfaction and to retain the customer base, it is important for the banks to deliver quality services to its customers. Therefore, customer satisfaction must be translated into a number of measurable parameters directly linked to peoples job in other words factors that people can understand and influence deschamps and nayak, 1995. P 200210 in his study on customer satisfaction towards private sector banks determines the changing dynamics of banking industry driven by the growth.
Anna alapeteri term and year when the thesis was submitted. The customer satisfaction in private bank is more as compared to public sectors banks. To understand the dimensions of service quality and for measurement of customer satisfaction it is important to know under which typology commercial banks are belong. Malandrakis 2 1 commercial bank of greece sofokleous 11, 10235 athens, greece 2 technical university of crete decision support systems laboratory university campus. The aim of this research is to analyze the impact of service quality on customer satisfaction. In order to fulfill the research on measuring and evaluating customer satisfaction towards customer service provided at the three mobile telecommunication companies, acsi for measuring the overall satisfaction was chosen. Comparative study between public sector banks and private sector banks in atm, internet banking, telephone banking, mobile banking problems of technology usage. Service quality perception and customers satisfaction in. But low customer satisfaction is a major encumbrance to depress development of ebanking service in chinese commercial bank sector. Service quality perception and customers satisfaction in internet banking service. To analyze employee satisfaction of private sector banks and public sector banks.
This paper presents an original customer satisfaction survey in the private bank sector. Customer satisfaction in the banking industry tesis doctorals en. Growth of public sector and private sector banks in india bank ofice wise. Customer satisfaction is an indicator of customer purchase intensions and brand loyalty. Comparative study between private sector and public sector. Moreover, customer satisfaction measurement provides a sense of achievement and accomplishment for all employees involved in any stage of the customer. For both government and privatesector measurement, the acsi uses customer interviews as input to a multiequation econometric model. Customer delight, customer satisfaction, customer retention. Customer satisfaction in public private banks in a study, nirmaljeet virk, prahhjot kaur mahal 2012 has identified that private sector banks are preferred by most of the customers as they emphasize relationship building with their clients and are better equipped with modern infrastructure as bompared to public sector banks. If your bank prides itself on service then it should be tracking satisfaction in some fashion in order to improve. Customer satisfaction, in banking sector of pakistan. Customer satisfaction used as an indicator success of the mobile banking.
The results indicate that the private sector bank was better in terms of providing services and creating awareness about their products and services. Determinants of customer satisfaction of banking industry in. Factors affecting customer satisfaction in banking sector of. Customer relationship management crm can help organizations to manage customer interactions more effectively to maintain competitiveness in the present economy. Crm is a combination of people, processes and technology that seeks. Final thesis for master of business administration in business management author. Empirical results reveal that cutomer satisfaction in the banking sector depends on good and firm relations, building trust between customers and bank emloyees. Private sector banks were comparatively more reliable due to proficiency in service delivery. Customer satisfaction and its measurement in islamic banking sector. Customer satisfaction measurement in the private bank sector. Measuring the level of customer satisfaction in private. Now a day customer satisfaction and customer retention are the most important challenges faced by most of banking. The implemented methodology is based on the principles of multicriteria.
Impact of service quality on customer satisfaction in private and public sector banks. Customer relationship management in banking sector and a. The objectives of this study are firstly, to recognize the influencing factors of customer satisfaction and postpurchase intentions. Citeseerx document details isaac councill, lee giles, pradeep teregowda. Organizations realized the significance of becoming customercentric in todays competitive era. Customer satisfaction and service quality in uk financial services abstract this paper reports the results of a longitudinal study into the drivers of customer satisfaction in a large uk bank.
Pdf customer satisfaction measurement in the private. Introduction currently banks are concentrating on satisfying the customers from their services but in todays fast moving world, customers cant only be satisfied in just one single way in order to remain loyal to the bank. This chapter summarises the important dimensions that directly or. Knowing the factors that influence customers satisfaction with atm banking is of significance when it comes to deployment of atm technologies. A study on customer satisfaction of commercial banks.
Quality acts as a relatively global value judgment. This is the reason why banks listen to customer requirements and complains. To analyze employee satisfaction of private s ector banks and public sector banks. The present investigation was planned with the objective to assess the extent of use of services especially the it enabled services in these banks and to analyze the constituent factors affecting customer satisfaction with the quality of services. Similarly, in chapter four methods of managing customer relationships are described. College,vikrama simhapuri university,india abstract. The impact of service quality, customer satisfaction and. Sep 24, 2012 customer satisfaction in public sector banks 1. While on other hand customer of private sector bank perceived highest value in tangible dimension and the in reliability dimension. Hence for this study following objectives have been formed. A study on customer satisfaction and preference towards net banking services in private sector banks with reference to coimbatore city of india p. Measuring customer satisfaction with service quality using. Banks use predominately one or more of four key measures. Findings by using factor analysis, 52 measurement items with a factor loading greater than 0.
The aim of this research is to analyze the impact of service quality on customer. The findings confirm the significance of staff satisfaction and service quality, suggested by the service profit chain literature, but. The importance of customer satisfaction in the banking. The study was carried out in mumbai city based commercial banks. It has been proven by some researchers that service quality is related to customer satisfaction.
Being descriptive study, survey method was adopted for data collection to find out the factors. The research is relevant to customer satisfaction, atm banking, atm features, and atm service quality. Empirical studies have shown that customer satisfaction is an antecedent to customer loyalty. That is, service quality dimensions are crucial for customer satisfaction in banking sector in bangladesh. The purpose of this study is to measure the level of customer satisfaction in private banking sector by discussing variables such as service quality and loyalty. Pdf customer satisfaction trends in banking industry a. A comparative study of public and private sector banks of india in regard to customer satisfaction. Banking is a customer oriented service industry and customer satisfaction has become the most important aspect of any banking business due to immense competition. From the above details 1,2, it is obvious that the numbers of offices of public sector are five times more than the private sector bank offices. Factors affecting customer satisfaction in banking sector. A project report oncustomer satisfaction in public sector banks submitted to alpine institute of management, ujjain towards partial fulfillment of the requirement for the award of degree of master of business administration of vikram university, ujjain m. Customer satisfaction impact on banking services and. To analyze employee satisfaction have been recognized to have a major impact on many economic and. The relationship between customer satisfaction and service.
Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction represents a modern approach for quality in enterprises and organisations and serves the development of a truly customerfocused management and culture. Categorized service quality, customer satisfaction, banks of bangladesh, correlation and multiple regression analysis. Survey on customer satisfaction, adoption, perception. Customer satisfaction westbrook and oliver 1991 define customer satisfaction as a mental state which results from customers comparison of expectations prior to a purchase with performance after a purchase. A questionnaire was designed and survey was conducted to collect the data from 331 customers having bank.
Factors affect the customer satisfaction of internet banking. Customer satisfaction measurement in the private bank. A study on customer satisfaction towards public and private sector banking 289 to know in which service quality dimension the bank is performing well and in which dimension it needs improvement. The purpose of this paper is to evaluate the customer satisfaction of the banks sector in libya, based on customer perception regarding service quality. Malandrakis 2 1 commercial bank of greece sofokleous 11, 10235 athens, greece 2 technical university of crete decision support systems laboratory university campus, 73100 chania, greece abstract customer satisfaction. Measuring customer satisfaction and factors affecting it in banking sector. Employee satisfaction is an important success factor for all organizations. Customer satisfaction is one of the most important factors in business. The significant effects of customer satisfaction on bank performance also differ from islamic to conventional banks. Aug 27, 2014 over the past month, we received lots of questions about better defining what we mean when we talk customer satisfaction. The aim of this paper is to present an original customer satisfaction survey conducted in the greek private bank sector. These measurement models are used because their use is appropriate and corresponds to the research problem. Identification of factors that affect customer satisfaction is the main objective of the research. The results reveal significant differences between public and private sector banks with regard to customer satisfaction.
Quality is a form of overall evaluation of a product, similar in many ways to attitude. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Modern management sciences philosophy considers customer satisfaction as a baseline standard of performance and a possible standard of excellence for any business organisation gerson, 1993. International journal of bank marketing, 204, 146160. This study will try to analyze employee satisfaction with office environment. The service quality dimensions that affect customer. Factors influencing customer satisfaction with atm banking.
Customer satisfaction has been one of the main concerns of banks of late. Customer satisfaction measurement for the stateowned banks in the. A comparative study of banking services and customer. May 06, 2016 a study on customer satisfaction in icici bank 1. The main aims are to summarise existing research and literature, and to inform the growing interest in measuring satisfaction with public services. To know the various important service quality dimension in banking industry. Measuring customer satisfaction offers an immediate, meaningful and objective feedback about clients. A study on customer satisfaction towards public and.
Hence, the study analyzed relative customer satisfaction levels of private and public sector banks. Public sector bank private sector service quality no. Recent findings suggest that while private banks have been able to attract the younger customers with higher educational levels, who are comfortable with multi channel banking, the customers of the national bank. Importance of customer satisfaction in an organisation customer satisfaction is increasingly becoming a corporate goal as more and more companies strive for quality in their product and servicesbitner and hubbert, 1994, p. Before initiating on impact of internet banking on customer satisfaction and business performance. If not, you never really know that your main value proposition is any better or any worse than it was. An assessment of some of the key antecedents of customer satisfaction in retail banking. A study of customer satisfaction in private and public sector banks. Survey questionnaire are based on office environment e. In todays time banking sector is increasing in a fast manner, according to asurvey it was found out that banking sector share in gdp is 6% or more. Stakeholders have ventured into the use of virtual banks, mobile banking and internet banking to reduce their users costs as well as improve on customer satisfaction, 34.
The private sector banks and the public sector banks are differentiated mainly on the basis of the persons who are holding its majority of the shares where in case of the private sector banks majority of shares are held by the private individuals and corporations whereas in case of the public sector banks, majority of shares are held by the government. Internet banking on customer satisfaction and business performance. Determinants of customer satisfaction of banking industry. The aim of the thesis is to measure the level of customer satisfaction for pao. Customers responses about a government agency are aggregated to produce its acsi benchmark, thus results are specific to each individually measured organization. In this study a comparative research design has been chosen to explicate the determinants of customer satisfaction. Same rule applies in banking sector hence this research focuses on finding the impact of service quality, customer satisfaction and loyalty programs on customer s loyalty in banking sector of pakistan. To check the expectations and the satisfaction levels regarding the various services quality dimensions between public and private sector banks. This study was undertaken to analyze the customers satisfaction with banking services with specific focus of standard chartered bank in tanzania. Therefore i want to do the survey on bank, which will help me too know whetherthe customer are satisfied with the banking. Case study on state bank of india amruth raj nippatlapalli business management,v. The study also proves that an increase in service quality will most likely lead to customer satisfaction.
The research method will help in examining the various factors those results in satisfaction in retail banking. In addition, factors influencing customer satisfaction and loyalty, measuring customer satisfaction, importance and approaches are explored. We have also incorporated conclusions and lessons from our own experience of measuring service quality and satisfaction for a large number of public and private organisations. Introduction customer satisfaction cs has become an important measure of firm performance and consequently. Pdf customer relationship management in banking sector. Customer expectations are key drive behind customer satisfaction. The present study was conducted in public sector, private sector and foreign banks of delhi. But, the compound annual growth rates cagr of private sector banks are higher than two times of public sector banks offices. When it comes to commercial banks, customer satisfaction level differentiates one bank from another, thus measuring customer satisfaction is exceedingly important.
In this regard, the classification given by schmenner 1986 is important. Applying to the hospitality industry, there have been numerous studies that examine attributes that travellers may find important regarding customer satisfaction. Banking sector, customer satisfaction, service quality, awareness. Customers satisfaction in public and private sector banks. In our experience, the relationship between a bank and their customer has the biggest impact on customer satisfaction.
A study on customer satisfaction towards public and private. The method of the study validity and reliability testing of questionnaire using spss. Customer perception of banking services a comparative. Assessing customer satisfaction in the banking sector poses a few challenges, particularly. How and why to measure customer satisfaction at banks. Appendix1 customer satisfaction survey questionnaire part. Request pdf customer satisfaction measurement in the private bank sector customer satisfaction represents a modern approach for quality in enterprises. Aug 21, 2015 customer satisfaction measurement, customer satisfaction measurement process, customer satisfaction measurement system, customer satisfaction measurement tools, customer satisfaction measurement.
Customers satisfaction in public and private sector banks in. Malandrakis2 1 commercial bank of greece sofokleous 11, 10235 athens, greece 2 technical university of crete decision support systems laboratory university campus, 73100 chania, greece abstract. Companies are trying to have high customer satisfaction and trying to keep their current customers rather than spending additional resources to attract potential new customers. Service quality and customer satisfaction in the banking. There is an intense competition in the market to capture the customers. Others used service quality dimensions to evaluate service quality.
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