Service Quality Effects on Customer Satisfaction in Banking Industry

Abstract

This study contributes to the literature by considering a model for testing the quality of deposit services in the banking industry.The results indicating support for the hypotheses suggest that the five SERQUAL factors can be used to test banking services based on the whole system.Previous studies have shown that satisfying customers is not enough to retain them because even satisfied customers may defect at a high rate in many industries.Vietnam is a developing economy, and its banking sector has wide geographic reach catering to needs of a diverse range of customers.In this regard, the Vietnamese context offers a good opportunity for examining the issue of banking quality.Most customers have difficulty in understanding the complex nature of financial products and thus tend to focus on brand names, which are generally built on quality services.

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