The influence of SERVQUAL dimensions on customer loyalty in banking sector, India - an empirical study

Abstract

Banking sector offers excellent service to customers in order to sustain in the competitive business environment. Customer satisfaction that leads to customer loyalty is the backbone of any bank. Hence, an empirical study was conducted with main focus on the various dimensions of service quality (SERVQUAL) of a Scheduled Bank that ultimately leads to customer loyalty. Data was collected through a survey research from 250 customers of five district bank branches, 50 from each branch in Tamil Nadu, India. From the findings of the research, it's vivid that the customers are satisfied with the reliability, responsiveness and tangibility dimensions of SERVQUAL rendered by the staff members of the Scheduled Bank. The empathy and assurance dimensions of SERVQUAL need more improvement to enhance customer satisfaction which in turn would pave way for customer loyalty.

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