Service Quality and Customer Satisfaction of Commercial Banks of Nepal

Abstract

The main purpose of this study to identify the service quality of selected commercial banks, to examine the level of customer satisfaction of selected commercial banks and to identify the relationship between service quality and customer satisfaction To Examine the impact of service quality on customer satisfaction. This thesis measures service quality and customer satisfaction variables. The research methodology provides a clear description of the specific steps that were taken to address the research problem. 150 respondents completely filled questionnaires were collected from the customers different 5 commercial banks. likewise (NIC Asia bank, Kumari Bank, Global IME Bank, Prabhu bank, Sanima bank. These dimensions are tangibility, responsiveness reliability, empathy, and security. Statistical packages for social sciences were used for the purpose of data analysis such as descriptive analysis (mean and standard deviation), correlation and regression analysis. Methodology is the systematic, descriptive analysis of the methods applied to a field of study. Correlation matrix between the dependent variable and independent variables, where dependent variables customer satisfaction and independent variables are Empathy, responsiveness, tangibility, Reliability, Assurance, are independent variables that determine service quality and customer satisfaction. Which is positive correlation between empathy and responsiveness, .548. empathy and tangible is .406, reliability and empathy .475. empathy and assurance .292 and empathy and customer satisfaction is .438 The corresponding p-value is 0.00, which is less than the level of significance (α) = 0.05, signifying that there is a significant relationship between, variables. In the regression analysis, the beta coefficients are used to explain the relative importance of the independent variables in contribution to the variance in dependent variable. Assurance (β5 =0.294, p=0.000) carries the heaviest weight for customer satisfaction, followed by Reliability (β4 =0.170, p=0.016), responsiveness (β2 =0.124, p=0.053), empathy (β1 =0.121, p=0.071), tangibility (β3 =0.025, p=0.674). The results showed that a one-unit increase in assurance would lead to a 0.294 unit increase in customer satisfaction keeping other variables constant. Thus, there is positive relationship between independent variables and dependent variable in customer satisfaction. R 2 explains the variable included int the model. The value of R 2 is 0.476 meaning the 47.6 % variation on customer satisfaction explained by variables included in the model.