alexa
Reach Us +441474556909
Service Quality Gap Analysis: Comparative Analysis of Public and Private Sector Banks in India | OMICS International
ISSN: 2168-9601
Journal of Accounting & Marketing

Like us on:

Make the best use of Scientific Research and information from our 700+ peer reviewed, Open Access Journals that operates with the help of 50,000+ Editorial Board Members and esteemed reviewers and 1000+ Scientific associations in Medical, Clinical, Pharmaceutical, Engineering, Technology and Management Fields.
Meet Inspiring Speakers and Experts at our 3000+ Global Conferenceseries Events with over 600+ Conferences, 1200+ Symposiums and 1200+ Workshops on Medical, Pharma, Engineering, Science, Technology and Business

Service Quality Gap Analysis: Comparative Analysis of Public and Private Sector Banks in India

Sai Akhilesh P*1 and Vinay CV2

1School of Management, NIT Warangal, Telangana, India

2Andhra Pradesh Productivity Council, Hyderabad, Telangana, India

*Corresponding Asuthor:
Sai Akhilesh P
School of Management, NIT Warangal
Warangal-506004, Telangana India
E-mail: [email protected]

Received date: April 22, 2015; Accepted date: May 01, 2015; Published date: May 08, 2015

Citation: Akhilesh PS, Vinay CV (2015) Service Quality Gap Analysis: Comparative Analysis of Public and Private Sector Banks in India. J Account Mark 4:128. doi:10.4172/2168-9601.1000128

Copyright: © 2015 Akhilesh PS, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

Visit for more related articles at Journal of Accounting & Marketing

Abstract

As economic globalization intensifies competition and creates a climate of constant change, winning and keeping customers has become all the more important. Now a days banks have realized that cost of attracting a new customer is much more than retaining existing customers, so banks are more emphasizing upon customer satisfaction. These days customers demand for top quality services and products served with minimum wait time, so customers prefer techno- savvy banks as well bankers. This paper attempts to make a comparative analysis of level of customer satisfaction towards the services provided by YES Bank and UCO bank. The study has been conducted in Warangal city based on questionnaire method and a sample of each 30 customers and employees of respective banks has been selected using convenient sampling method. The servqual model analysis is conducted with its all five service dimensions and Gap analysis. This study concludes that private sector banks are more preferred by majority of the customer as they emphasize more upon relationship building with their clients and are better equipped with modern infrastructure as compared to public sector banks.

Keywords

Banks; Quality service; Customer satisfaction; The servqual model; Gap analysis

Introduction

The banking sector in India plays a significant role and it’s rapidly growing from few decades. Banks will provide a variety of services ranging from opening a savings account, current account, internet banking, retail banking, financial consulting, providing loans, locker facilities, foreign money transfer etc. The banks have to satisfy the customers belonging to all different classes. A study on the comparative analysis of services of private and public sector bank and customer’s satisfaction is very important. Such analysis will provide the banks with a quantitative and qualitative estimate of their services as perceived by their customers. Servqual Model is chosen in our study to assess the service quality and customer satisfaction. Servqual can be used to measure service quality in variety of service settings and can be used to compare with the competitors. This model of service quality identifies the reasons for any gaps between customer expectations and perceptions. The banks are chosen to identify the service quality gaps and customer perception and satisfaction in which Servqual model will fit to do the better gap analysis and to identify the factors for poor quality service.

Literature Review

The Servqual model was developed by a group of American authors, Parsu Parasuraman, Valarie Zeithaml and Len Berry in1988 for measuring the customer expectations of service quality in term of the five dimensions. Many of the management researchers has given their views in terms of service quality, customer service etc. The four dimensions of service quality namely, attitude, competence, tangibles and convenience are very important in the view of the customer’s differentiation and also the bank managers should enhance the skills and attitudes of the employees to initiate a better customer-service culture which is revealed by the Koushiki Choudhury [1] in their research. Sandip Gosh Hasra and Srivastava [2] also suggested about the attention factor in their study that the bank should pay the attention to dimension of service quality and assurance-empathy to increase the loyalty to a company, willingness to pay, customer commitment. The public sector banks are facing the poor service quality in terms of tangibility, lack of responsiveness, empathy and on the other hand private sector banks are far better which is noted by the Sudesh [3] and also his study revealed that management of banks should pay more attention to the potential failure points and to provide better solutions to the customer problems. The Expectation and perception of service quality in old and new generation banks was observed by Joshua and Koshi [4,5] in their research study that the performance of all service quality dimensions of the new generation banks are better than old generation banks.

Servqual model

The main instrument in analyzing the service quality is “The gap model” of service or Servqual model which is developed by Parshuraman et al. [6]. This model is mainly used to determine average gap score (between customer’s perceptions and expectations) for each service attribute and also to evaluate the company’s service quality.

The five servqual dimensions are:

• Tangibles-Appearance of physical facilities, equipment, personnel, and communication materials.

• Reliability-Ability to perform the promised service dependably and accurately.

• Responsiveness-Willingness to help customers and provide prompt service.

• Assurance-Knowledge and courtesy of employees and their ability to convey trust and confidence.

• Empathy-Caring, individualized attention the firm provides its customers.

The study has few of the limitations like the project is limited to 2 months only. The sample size is small and people are unlikely to provide accurate answers for the collection of data.

Methodology

The SERVQUAL model questionnaire was to evaluate the customer’s service quality gap analysis and data is collected through survey in the selected Private and public sector bank in Warangal district in Andhra Pradesh. The data is collected for customers’ expectations and customers’ perception each consisting of 21 questions of 5 dimensions. The respondents were asked to rate their expectations and perceptions of service offered by the respective banks. A seven point Likert scale is linked to this study to evaluate the service quality. The useful survey data is also collected from the related books of marketing, magazines, catalogs, newspapers and also from the Internet.

Results and Discussions

The Table 3 represents the attributes having the highest gap scores observed from the Table 1 and the Unweighted gap score from the Table 2. There exist highest gap between customer expectations and perceptions of bank services in these attributes. This indicates the customers are not satisfied with the few of the services in these attributes. Hence it was observed that the more gaps are identified in empathy dimensions in the UCO bank. The Table 6 represents the attributes having the highest gap scores observed from the Table 4 and the Unweighted gap score from the Table 5. There exist highest gap between customer expectations and perceptions of bank services in these attributes. This indicates that the customers are not satisfied with the few of the services in these attributes. Hence it was observed that the more gaps are identified in Responsiveness dimensions in the YES bank. Figure 1 shows the Pie chart explaining the Service Quality differences between UCO Bank and Yes Bank.

Statements Exception Perception Service gap (E-P)
Tangibility 6  
Modern looking equipment 6.3 4.6 1.4
Physical Facility 6 3.6 2.7
Employees are well dressed 6.2 4.4 1.6
Materials are visually appealing 4.1 2.1
  Avg Gap score 1.95
Reliability 6.2  
Delivers service at promised time 6 4 2.2
Interest in solving problem 6 3.5 2.5
Perform service right first time 6.5 4.9 1.1
Follows the promised time 6.3 3.8 2.7
Maintain error free records 4 2.3
  Avg Gap score 2.16
Responsiveness 6.3  
Tell you about performance of service 6.9 3.9 2.4
gives prompt service 6.73 3.7 3.2
Willingness to help 6.8 4.4 2.33
Not busy to respond queires 4.2 2.6
  Avg Gap score 2.6325
Assurance 6.9  
Instills confidence 6.6 3.3 3.6
Safe transactions 6.2 4 2.6
Employees are consistently courteous 6.1 3.2 3
Employees have enough knowledge 5.2 0.9
  Avg Gap score 2.525
Empathy 6.9  
Gives individual attention 6.6 3.2 3.7
Conveinent operating hours 6.3 4.2 2.4
Gives personal attention 6.3 4.2 2.1
Best interest in heart 6.3 3.6 2.7
Understand customer's specific needs   4.1 2.2
    Avg Gap score 2.62

Table 1: Gap Analysis Score- UCO Bank.

  Dimensions  
NO. Average scores for Tangibles Gap scores
1 Average scores for reliability 2
2 Average scores for Responsiveness 2.1
3 Average Score for Assurance 2.6
4 Average scores for Empathy 2.5
5 TOTAL 2.6
  2.36 11.8

Table 2: Average Gap Score of UCO Bank.

No. Attributes Dimensions Gap scores
1 Gives individual attention Empathy 3.7
2 Instills Confidence Assurance 3.6
3 Gives prompt service Responsiveness 3.2
4 Best interest in Heart Empathy 2.7
5 Physical Facility Tangibility 2.7

Table 3: Highest Gap Scores of UCO Bank

Statements Expectation Perception Service gap(e-p)
Tangibility  
Modern looking equipment 6.4 5.1 1.3
Physical Facility 6.5 5 1.5
Employees are well dressed 6.5 4.7 1.8
Materials are visually appealing 6.4 5 1.4
  Avg Gap score 1.5
Reliability  
Delivers service at promised time 6.5 4.7 1.8
Interest in solving problem 6.3 4.9 1.4
Perform service right first time 6.3 5.3 1
Follows the promised time 6.7 5 1.7
Maintain error free records 6.6 5.2 1.4
  Avg Gap score 1.46
Responsiveness  
Tell you about performance of service 6.6 5 1.6
gives prompt service 6.9 5 1.9
Willingness to help 6.9 5.3 1.6
Not busy to respond queires 6.8 5.3 1.5
  Avg Gap score 1.65
Assurance  
Instills confidence 6.9 4.9 2
Safe transactions 6.6 4.7 1.9
Employees are consistently courteous 6.5 4.9 1.6
Employees have enough knowledge 6.1 5.5 0.6
  Avg Gap score 1.525
Empathy  
Gives individual attention 7 5.5 1.5
Convenient operating hours 6.8 5 1.8
Gives personal attention 6.3 5.2 1.1
Best interest in heart 6.5 4.7 1.8
Understand customer's specific needs 6.4 5 1.4
    Avg Gap score 1.52

Table 4: Gap Analysis Score-Yes Bank.

No. Dimensions Gap scores
1 Average scores for Tangibles 1.5
2 Average scores for reliability 1.4
3 Average scores for Responsiveness 1.6
4 Average Score for Assurance 1.5
5 Average scores for Empathy 1.5
  TOTAL 7.5
Average Unweighted Score 1.5

Table 5: Average Gap Score of Yes Bank.

No Attributes Dimensions Gap scores
1 Instills confidence Assurance 2
2 gives Service Responsiveness 1.9
3 Safe Transactions Responsiveness 1.9
4 Employees are well dressed Tangibility 1.8
5 Delivers service at promised time Reliability 1.8

Table 6: Highest Gap Scores of Yes Bank.

accounting-marketing-service-quality-differences

Figure 1: Service Quality differences between UCO Bank and Yes Bank.

Conclusion

Banks have to understand the changing needs of customers, their aspirations and expectations to create a brand value. Banks should also have a strong customer relationship management system that would indicate the worth of the customer and be able to understand their needs while interacting with them, so as to cross sell their products. This research survey concludes the service quality gay analysis is having more gaps between customer expectation and perception of service quality in the UCO bank. The bank has to reduce this gap giving individual personal attention to understand the customer specific needs and in the YES bank more gap is identified for Responsiveness. To manage growth and continuity in business, human resources play an important role. The new generation private sector banks and foreign banks enjoy a lead in this regard when compared to PSBs and old generation private sector banks. Banks may follow a feedback system to know the customer expectations for improving the level of customer satisfaction to maximum level. Remarks on service responsiveness and empathy should be continuously obtained from customers. This will enhance their service quality to a large extent.

Acknowledgement

The author was thankful for the guidance and support from the Professors and other staff of the School of Management, NIT Warangal for providing the necessary facilities for the preparation of the paper and supporting for completion of the research article. The research article is a result of the Quarter system based Academic Curriculum Mini Projects in the NIT Warangal.

Conflict of Interest

The manuscript represents the valid work and I hereby confirm that the disclosure made above are complete and correct to the best of my information and belief. I shall not be participating in the discussion and decision making of this matter. The author certifies that they have NO Affiliations or involvement in any organization or entity with any Conflicts of interest in the subject matter or materials discussed in this manuscript.

References

Select your language of interest to view the total content in your interested language
Post your comment

Share This Article

Article Usage

  • Total views: 18292
  • [From(publication date):
    August-2015 - Feb 26, 2020]
  • Breakdown by view type
  • HTML page views : 13954
  • PDF downloads : 4338
Top