Service quality and customers’ purchase intentions: an empirical study of the Indian banking sector

Purpose – The purpose of this paper is to understand the dimensionality of customer-perceived service quality and investigate the influence of service quality on customers’ purchase intentions. Design/methodology/approach – A modified SERVQUAL instrument was used to capture customers’ perceptions of service quality followed by exploratory factor analysis to study the dimensionality of service quality in retail banking. Multiple regression was used to probe the influence of the dimensions of service quality on purchase intentions. Findings – The results of the study provide strong support for the predictive power of perceived service quality on customers’ purchase intentions and shows that reliability is most important for influencing customers’ purchase intentions, followed by employee behaviour, tangibles and convenience. Research limitations/implications – Refinement of the scale for measuring service quality in retail banking is possible based on future newer trends in retail banking. Multiple measures...

[1]  A. Parasuraman,et al.  Refinement and reassessment of the SERVQUAL scale. , 1991 .

[2]  B. Dale,et al.  Service quality and e‐commerce: an exploratory analysis , 2001 .

[3]  Y. Ko,et al.  A hierarchical model of service quality for the recreational sport industry. , 2005 .

[4]  L. R. Comesaña,et al.  Assessing tourist behavioral intentions through perceived service quality and customer satisfaction , 2007 .

[5]  Steven A. Taylor,et al.  Measuring Service Quality: A Reexamination and Extension , 1992 .

[6]  E. D. de Run,et al.  Private healthcare quality: applying a SERVQUAL model. , 2010, International journal of health care quality assurance.

[7]  L. F. Cunningham,et al.  Sorenson Best Paper Award Recipient CROSS-CULTURAL PERSPECTIVES OF SERVICE QUALITY AND RISK IN AIR TRANSPORTATION , 2002 .

[8]  A. Parasuraman,et al.  The Behavioral Consequences of Service Quality , 1996 .

[9]  C. Lamb,et al.  An Evaluation of the Servqual Scales in a Retailing Setting , 1991 .

[10]  R. Teas,et al.  Expectations, Performance Evaluation, and Consumers’ Perceptions of Quality , 1993 .

[11]  Chandrasekharan Rajendran,et al.  Dimensions of service quality in tourism – an Indian perspective , 2009 .

[12]  J. Iwaarden,et al.  Applying SERVQUAL to Web sites: an exploratory study , 2003 .

[13]  R. Sitgreaves.  Psychometric theory (2nd ed.). , 1979 .

[14]  K. Choudhury.  Service Quality: Insights from the Indian Banking Scenario , 2008 .

[15]  J. Baker,et al.  The effects of appropriateness of service contact personnel dress on customer expectations of service quality and purchase intention: The moderating influences of involvement and gender , 2004 .

[16]  Wei-Jaw Deng,et al.  The relationships among service quality, perceived value, customer satisfaction, and post-purchase intention in mobile value-added services , 2009, Comput. Hum. Behav..

[17]  A. Parasuraman,et al.  Alternative scales for measuring service quality: A comparative assessment based on psychometric and diagnostic criteria , 1994 .

[18]  S. Bogomolova.  Service Quality Perceptions of Solely Loyal Customers , 2011 .

[19]  C. Rajendran,et al.  A conceptual framework of service quality in healthcare , 2009 .

[20]  A. Su,et al.  Customer satisfaction measurement practice in Taiwan hotels , 2004 .

[21]  Halil Nadiri,et al.  Diagnosing the zone of tolerance for hotel services , 2005 .

[22]  G. Mcdougall,et al.  Determinants of customer satisfaction in retail banking , 1996 .

[23]  Isaac Wasswa Katono.  Student evaluation of e‐service quality criteria in Uganda: the case of automatic teller machines , 2011 .

[24]  Mosad Zineldin,et al.  The royalty of loyalty: CRM, quality and retention , 2006 .

[25]  A. Akbaba.  MEASURING SERVICE QUALITY IN THE HOTEL INDUSTRY: A STUDY IN A BUSINESS HOTEL IN TURKEY , 2006 .

[26]  L. F. Cunningham,et al.  Perceptions of Airline Service Quality , 2004 .

[27]  Barrie Dale,et al.  Key quality factors in Web site design and use: an examination , 2002 .

[28]  V. Zeithaml,et al.  A Dynamic Process Model of Service Quality: From Expectations to Behavioral Intentions , 1993 .

[29]  R. N. Anantharaman,et al.  The relationship between service quality and customer satisfaction – a factor specific approach , 2002 .

[30]  I. Chen,et al.  IT‐based services and service quality in consumer banking , 2002 .

[31]  A. Parasuraman,et al.  SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. , 1988 .

[32]  M. Balaji,et al.  Does successful recovery mitigate failure severity , 2013 .

[33]  A. Parasuraman,et al.  A Conceptual Model of Service Quality and Its Implications for Future Research , 1985 .

[34]  Isabelle Szmigin,et al.  Service quality in higher education: The role of student expectations , 2007 .

[35]  Hatice Camgoz Akdag,et al.  Strategic positioning and quality determinants in banking service , 2011 .

[36]  P. Kangis,et al.  Private and public banks: a comparison of customer expectations and perceptions , 1997 .

[37]  Faisal Talib,et al.  A Critical Study of Quality Parameters in Health Care Establishment: Developing an Integrated Quality Model , 2012, International journal of health care quality assurance.

[38]  J. Carman.  Consumer perceptions of service quality: an assessment of the SERVQUAL dimensions , 1990 .

[39]  Walfried M. Lassar,et al.  Service quality perspectives and satisfaction in private banking , 2000 .

[40]  A. Caruana.  Service loyalty: The effects of service quality and the mediating role of customer satisfaction , 2002 .

[41]  Joseph O. Rentz,et al.  A measure of service quality for retail stores: Scale development and validation , 1996 .

[42]  A. Parasuraman,et al.  Reassessment of expectations as a comparison standard in measuring service quality: Implications , 1994 .

[43]  K. Newman,et al.  Interrogating SERVQUAL: a critical assessment of service quality measurement in a high street retail bank , 2001 .