EFFECT OF SERVICE QUALITY ON CUSTOMER SATISFACTION OF COMMERCIAL BANK
Date
2024
Authors
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Publisher
Shanker Dev Campus
Abstract
Customer satisfaction refers to the emotional response to experiences related to product and service quality, efficiency, environment, and service provider behavior in comparison with requirements. Service quality is a crucial instrument for success in the service industry sector, such as banking. Quality is so essential that it plays a key role in our daily lives and is viewed as a strategic asset for organizations. Measuring service quality is crucial for building and improving service businesses. The specific objectives of the study were to assess the effects of service quality on customer satisfaction, to examine the relationship between service quality and customer satisfaction, and to analyze the impacts of tangibility, reliability, responsiveness, assurance, and empathy, on customer satisfaction of Bardiya district‟s commercial banks in Nepal. The study included 400 respondents from various professions. The study was conducted using 28-item questionnaires. A survey was conducted utilizing convenience sampling, and the sample was from Bardiya district in Nepal. This study utilized descriptive statistics and a correlational research designs. In this study, data collected through questionnaires from 400 respondents has been analyzed using a five-point Likert scale. The primary data was analyzed through correlation and regression methods using SPSS software to analyze the effect of service quality dimensions on customer satisfaction. The results indicated a positive correlation between all five service quality dimensions (tangibility, reliability, responsiveness, assurance, and empathy) and customer satisfaction, suggesting that improvements in these dimensions are likely to enhance customer satisfaction. Regression analysis further revealed that tangibility, reliability, assurance, and empathy significantly and positively influence customer satisfaction in the commercial banking sector of Bardiya district in Nepal, while responsiveness did not have a significant effect.