Service quality and customer satisfaction of Commercial bank in Nepal (With reference to citizens bank international limited)

Abstract

This study discussed the critical relationship between service quality and customer satisfaction within the context of Nepalese commercial banks. The banking sector relies heavily on these dynamics, making it crucial to understand the factors that drive customer satisfaction. The problem revolves around the need to comprehensively assess the current state of service quality and its direct impact on customer satisfaction in Nepal's commercial banks. This study aims to bridge existing research gaps and provide valuable insights into these complex dynamics. To achieve its objectives, the research method employed a quantitative approach, utilizing both descriptive and causal comparative research designs. The study focused on the entire customer base of Citizen Bank International Ltd. in Nepal, with a sample size of 400 customers. The convenience sampling approach facilitated practical data collection, with structured questionnaire surveys using a five-point Likert scale as the primary instrument for data collection. Statistical software, including Microsoft Excel and SPSS, played a pivotal role in the data analysis. The research scrutinized descriptive statistics, correlation analysis using the Pearson correlation coefficient, and multivariate regression analysis to unravel the intricate relationships between service quality dimensions and customer satisfaction. The findings revealed generally positive customer perceptions of service quality in Nepalese commercial banks. Key dimensions like reliability, empathy, responsiveness, tangibility, assurance, and communication were assessed. These dimensions collectively contributed to customer satisfaction, with reliability, empathy, responsiveness, assurance, and communication emerging as significant determinants. Notably, reliability, responsiveness, and communication strongly influenced customer satisfaction, while tangibility exhibited a negative impact. This study sheds light on the vital relationship between service quality and customer satisfaction in Nepalese commercial banks. It provides practical insights for bank management to enhance these dimensions strategically and future researchers. Key Words: service quality, customer satisfaction, reliability, empathy, responsiveness, tangibility, assurance, communication