Service quality dimensions and customer satisfaction in Nepalese Banking Sector

Abstract

This study examines the impact of service quality dimensions on customer satisfaction within the Nepalese banking sector. Utilizing a descriptive and explanatory research design, the research analyzes data from 375 bank customers in Kathmandu, collected through structured questionnaires based on a five-point Likert scale. The study focuses on five key dimensions of service quality: tangibility, reliability, responsiveness, assurance, and empathy, and their relationship to overall customer satisfaction. Descriptive statistics reveal high performance in responsiveness and assurance, indicating strong satisfaction in these areas, while empathy shows more variability. Correlation analysis indicates significant positive relationships between customer satisfaction and each service quality dimension, with assurance exhibiting the strongest correlation. Regression analysis further confirms that assurance and responsiveness have the highest impacts on customer satisfaction. The model explains a significant portion of the variance in customer satisfaction. These findings underscore the critical role of service quality in enhancing customer satisfaction and highlight areas for improvement in the banking sector. The study's implications suggest that banks should prioritize enhancing assurance and responsiveness to maintain and improve customer satisfaction levels