Customer Satisfaction Towards Service Quality of Nepalese Commercial Banks

Abstract

Customer satisfaction is considered as the emotional response to the experiences associated with the quality of products, services, timeliness, efficiency, ease of access, environment, other facilities including the behavior and attitude of the service providers in comparison to the customer’s expectations . It is the transaction specific effective response to the evaluation of discrepancy between the prior expectations and actual experience relating to banking services. Quality is such an important issue that it is considered a really significant concept in our real life. It is regarded as a strategic organizational weapon. And, the pressing need of developing service organizations and upgrading their services necessitates the measuring of service quality. Service quality has a significant impact on a bank’s success and performance. Service quality is particularly essential in the banking services context because it provides a high level of customer satisfaction, and hence it becomes a key to competitive advantage. The studies devoted to customer satisfaction and service quality, service quality is of greater significance for customers’ satisfaction. Hence, this study focuses on examining customer satisfaction towards service quality of Nepalese commercial banks. The study is based on the primary data. The data obtained from the questionnaires survey are analyzed through SPSS. The instruments are descriptive statistics and inferential statistics. To analyze the reliability and validity of the data Cronbach’s alpha (α) is used. Frequencies, percent, mean, medium, standard deviation, correlation and test of significance are used in this study to measure the determinants of customer satisfaction. To achieve the purpose of the study, structured questionnaire was prepared. Out of 235 questionnaires, only 182 numbers of customers’ response were received. Subjects were asked to assess their perceptions of various items representing customer satisfaction towards service quality of Nepalese commercial banks. The study reveals that all the service quality variables (reliability, responsiveness, empathy, assurance and communication) and customer satisfaction is positively related. It means an increase in service quality variables will lead to an increase in customer satisfaction. The study also concludes that empathy is ranked in first position on the basis of calculated mean value. Similarly, reliability, assurance, responsiveness and communication are ranked second, third, fourth and fifth position respectively as far as factors affecting customer satisfaction is concerned. Service quality is an essential aspects that satisfy customers.