Professional Documents
Culture Documents
Chapter III
sample of their customer base, this study examines service quality gaps in a
established are set out in this chapter. The objective of this chapter is to
determine the objectives of the study based on the statement of the problem
are:
satisfied.
behavioural intentions.
3.2 Hypotheses
On the basis of the objectives of the study, the following hypotheses are
but not every bank manages to treat customers in a way that they are pleased.
customers expect banks to provide the basic banking services, and also expect
different levels of services to maximize the value they can obtain from banks.
From these statements, it is clear that banks can offer similar retailing services,
indeed all the sample banks restrained to this study do as they all are
nationalised banks regulated by RBI. But, not in the way services are delivered,
which is in the hands of the employees responsible for handling issues relating
themselves from others the way services are delivered. However, the ever
raising expectations of the customers makes the bankers kindle to strive hard
banks on its services perceived by the customers, but there is a scarcity for
sample banks.
literature does not specifically address the unique relationship among service
1
K.A. Venetis, Service Quality and Customer Loyalty in Professional Business Services Relationships:
An empirical investigation into the customer-based service quality concept in the Dutch advertising
industry, Thesis, Maastricht University, Maastricht (1997).
2
9DOHULH $ =HLWKDPO /HRQDUG / %HUU\ DQG $ 3DUDVXUDPDQ The Behavioural Consequences of
6HUYLFH4XDOLW\Journal of Marketing, 60, (1996), 31-46.
109
customers.
It was noted from the review of literature that there is a lack of evidence in
perceived service quality and satisfaction of the customers, and posit that:
satisfaction.
1
D. Iacobucci, A.L. Ostrom, B. Baig, and A. Beezjian-Avery, (1996). A canonical model of consumer
evaluations and theoretical bases of expectations. In: Swartz A.T., Bowen D.E., Brown S.W. (Eds.),
Advances in Services Marketing and Management, vol. 5. JAI Press, Greenwich, CT, pp. 1-44.
110
service quality and indeed customer satisfaction too. The theory on the
their bankers. As the perception and expectation are the basis for classifying
customers.
customers.
was entrusted upon the service quality dimensions and constructs perceived by
the customer, and ultimately the dissatisfied and satisfied customers would
and satisfied.
and satisfied.
quality, location, and other selection options, the literature review did not
factors including service quality and location were listed alphabetically for
their choosing. Respondents were asked to rank each of the five elements.
follows:
derived from the service encounter. However, it was observed that the literature
does not distinctively deal with the issue related to the influences of service
number of VHUYLFHHQFRXQWHUVDQGFXVWRPHUVVDWLVIDFWLRQ
satisfaction.
whether demographic data such as age, gender, income, and education will
1
0DU\-R%LWQHU(valuating Service Encounters: The Effects of Physical Surroundings and Employee
5HVSRQVHVJournal of Marketing, 54 (April 1990), pp. 69-82.
113
even though Howcroft1, et al (2002) found variables such as age and other
This study has included specific questions relating to age, gender, income, and
overall service quality outcomes. Therefore, the eighth hypothesis will examine
respondents.
respondents.
1
%DUU\ +RZFURIW 5REHUW +DPLOWRQ DQG 3DXO +HZHU &RQVXPHU $WWLWXGH DQG 7KH 8VDJH DQG
Adoption of Home-Based BaQNLQJLQWKH8QLWHG.LQJGRPInternational Journal of Bank Marketing,
20/3, (2002), 111-121.
114
service industries.4
the customer may decide to remain loyal to the service organization. 5, 6 Indeed,
OLWHUDWXUHVGLGQWFRPHWRDFRQVHQVXVWKDWVRPHGLPHQVLRQVRIVDWLVIDFWLRQPD\
of the customers.
1
Roland T. Rust, and A.J. Zahorik, Customer Satisfaction, Customer Retention, and Market Share
Journal of Retailing, vol. 69, (1993), pp. 193215.
2
A. Parasuraman, Valerie A. Zeithaml, and Leonard L. Berry, A Conceptual Model of Service
Quality and its Implications for Future Research, Journal of Marketing, vol.49 (1985), pp.41-50.
3
. Parasuraman, Valerie A. Zeithaml, and Leonard L. Berry, Reassessment of Expectations as a
Comparison Standard in Measuring Service Quality: Implications for Further Research Journal of
Marketing, vol.58 (1994), pp.111-124.
4
Jaishankar Ganesh, Mark J. Arnold, and Kristy E. Reynolds, Understanding the Customer Base; in
Atila Yksel and Fisun Yksel, Measurement of Tourist Satisfaction with Restaurant Services: A
Segment-Based Approach Journal of Vacation Marketing, vol. 9, no. 1, (2002): pp. 52-68
5
-RKQ (* %DWHVRQ 3HUFHLYHG &RQWURO DQG WKH 6HUYLFH (QFRXQWHU ,n Czepiel, John A.;
Solomon, Michael R. and Suprenant, Carol F. (Eds.). The Service Encounter: Managing
Employee/Customer Interaction in Service Businesses. Massachusetts: Lexington Books, pp.67-82.
6
John A. Czepiel, Michael R. Solomon, Carol F. SuprenantDQG(YHO\Q**XWPDQ6HUYLFH
(QFRXQWHUV$Q2YHUYLHZ,Q&]HSLHO-RKQ$6RORPRQ0LFKDHO5DQG6XSUHQDQW&DURO)(GV
The Service Encounter: Managing Employee/Customer Interaction in Service Businesses.
Massachusetts: Lexington Books, pp.3-15.
115
of the customers.
Satisfaction
behavioural intentions.
In this study, the study design adopted for quantitative data collection
study.
The calculation of sample size depends on the sampling design and the
n = [Z2 x (p x q) / d2]
q = 1- p (expected non-prevalence)
The research sample was restrained to three banks and its branches
spread across seven different taluks and Madurai city in Madurai district,
Tamilnadu state, India. These details were collected from the secondary source
namely: Annual Credit Plan published by the district lead bank Canara bank.
These sample banks were chosen on the basis of their status as nationalised
location. The total number of branches of sample banks existing during the
Indian
Canara Indian
Overseas Total
Bank Bank
Bank
Madurai City 19 17 14 50
Madurai North 4 5 3 12
Madurai South 1 2 2 5
Melur 1 2 1 4
Madurai
District Vadipatti 2 2 37
Taluks
Usilampatti 3 2 5
Peraiyur 3 1 1 5
Thirumangalam 3 1 4
Total 36 28 23 87
Twenty percent of the sample bank branches (with regard to city and
taluk areas in Madurai district) were systematically selected and taken into
in table 3.2.
119
Indian
Canara Indian
Overseas Total
Bank Bank
Bank
Madurai City 4 3 3 10
Madurai North 1 1 2
Madurai South
Melur 1 1
Madurai
District Vadipatti 08
Taluks
Usilampatti 1 1 2
Peraiyur 1 1 1 3
Thirumangalam
Total 7 6 5 18
the bank, on a given day. Providing the sample questionnaire to every fifth
customer at bank premises will provide a randomly selected sample for the
questionnaires in all respect were 1428 with the percentage of respondent was
120
Indian Overseas
Canara Bank Indian Bank Total
Bank
Number of
580 470 378 1428
Respondents
Percentage of
40.6 32.9 26.5 100
Respondents
Source: Primary Data
3.5 SERVQUAL
As pointed out in the second chapter of this study, SERVQUAL examines five
relate to the various five GLPHQVLRQV 7KH LQVWUXPHQWV GHVLJQ FDXVHV LW WR EH
best suited for use as a diagnostic methodology utilized for determining large
However, this study will attempt to further evaluate and refine the
frequency of bank use, and items influencing the selection of the bank.
Parasuraman et al. (1991) suggested that items not fitting in the five
the survey data since they do not fall under the conceptual domain of service
quality.
The SERVQUAL scale was selected for the customer survey instrument.
agreement for two sets of identical twenty-two statements. One set of questions
asked the customer to state theiU H[SHFWDWLRQV DERXW WKH EDQNV VHUYLFHV
Another set of questions asked the customer to state their perceptions about
WKHLU EDQNV VHUYLFHV $ VHYHQ-point Likert scale was used to evaluate the
constructs. The third section of the survey instrument asked the customer to
allocate 100 points among five categories, based upon the importance of each
FDWHJRU\7KRVHFDWHJRULHVDUHWKHDSSHDUDQFHRIWKHEDQNVSK\VLFDOIDFLOLWLHV
willingness to help customers and provide prompt service; the knowledge and
FRXUWHV\ RI WKH EDQNV HPSOR\HHV DQG WKHLU DELOLW\ WR FRQYH\ WUXVW DQG
confidence; and the caring, individualized attention the bank provides its
customers.
122
In this study, the behavioural intention too of the customers was studied,
was also confined to measuring the bank visit frequency and reasons for
industry.
123
3.7.1 Reliability
were tested and retested for the same set of customers. The degree to which
3.7.2 Validity
instruments, although they are not without their detractors, tends to reduce
some of the issues raised concerning validity. With a thorough review of the
wording of the questionnaire documents, this researcher felt that there was a
the questionnaires. The bilingual is a qualified and skilled practitioner who has
in questionnaire design principles, the study design and topic, and also familiar
relations between attitudes and societal facts, and to define differences between
battery is thus translated to the native language Tamil with the assistance of
linguisW IRU HQDEOLQJDOOFODVVHV RI FXVWRPHUV WR XQGHUVWDQG EHWWHU RI YDULRXV
constructs in the survey instrument. The survey instrument in both the English
and Tamil versions were tested for its convergent validation and internal
one after other interspersed with a week long, and the data thus obtained were
validation, and intraclass correlation for testing the internal consistency of the
statements is given in Table 3.4 and for the behavioural intentions is given in
125
items were modified and items were added to the survey. A copy of the survey
as Appendix I.
significant at P < .05, and evenly the intraclass correlation exhibits a high
coefficiency for each of the behavioural intention facets. These findings imply
127
that the behavioural intention facets in the translated Tamil version assumed no
substantial change in the construct being measured with that of the English
systematic random basis to the bank customer with the assistance of friends and
bankers.
The choice of the statistical techniques to use in analyzing the data was a
function of the objective of the research. In this study, the main objectives were
study will attempt to reinforce the concept that elements such as age, gender,
income, education, where they obtain their services, and frequency of use could
analysis to test the statistical significance of the individual parameters and the
128
overall model, univariate and multivariate analysis of variance for the purpose
found to be statistically significant, the Scheff S post hoc tests were applied to
find the paired mean differences. Furthermore, percentage analysis was carried
out to facilitate the identification and ranking of factors that influence the bank
score to represent the tangible factor of the perceptions responses and measured
against the tangible factor of the expectation responses for questions one
against the expectation responses for questions five through nine to determine
the difference gaps in the reliability factor. Questions ten through thirteen will
thirteen. Once again, the resultant differences in the gap will result in the
two will be measured against the expectation responses for questions eighteen
was subjected to reliability analysis, and the results thus obtained are shown in
Table 3.6.
130
N of N of &URQEDFKV N of &URQEDFKV
SQ Dimensions
Cases Items Alpha Items Alpha
Responsiveness 4 .8335
Assurance 4 .8475
Empathy 5 .8652
Responsiveness 4 .8579
Assurance 4 .8625
Empathy 5 .9054
External
3 .7850
response
Internal
1
response
From Table 3.6, it is understood that the reliability checks when applied
&URQEDFKV $OSKD FRHIILFLHQW DQG , which indicates the very
131
good scaling of the instrument. Alpha coefficients were calculated for every
one of the original five quality dimensions and the results support that all 22
were calculated for every one of the original five behavioural and intention
facets and the results support that all 13 items present a strong composition
banks in Madurai district, yet, this study has its limitations. There are several
In spite of the intensive effort, the variables confined to this study may
have been influenced by the interests and the knowledge limitations of the
The next limitation is the cost and time constraints that did not allow for
a more extensive data collection. A larger and more representative sample may
expectations gaps. Finally, the study assumed that the respondents were all
132
generalized for joint satisfaction or lack thereof of the joint account holders,
This chapter outlined the structure of the study, the materials and
methods used. In the next chapter, it confers about the development of banking
in India, and the profiles of the banks selected for this study.