An Evaluation of Customer Perception on Service Quality in Retail Banking

M. Kailash .


In this new customer era, Banks need to deliver a more efficient, customer-focused and inventive offering than ever before to reconnect with their clients. To compete, differentiate and grow they must swiftly accelerate their innovation around banking products and service offerings. The present study evaluates the service quality in retail banking in Vijayawada city, based on different levels of customers’ perception. A sample of 250 individual customers from different bank service counters have been targeted for this study. The study focused SERVQUAL questionnaire developed by Parsuraman et al consisting of 23 statements of 5 key dimensions of tangibles, reliability, responsiveness, assurance and empathy. The result indicates that customers’ perception is maximum in the tangibles area and minimum in the Responsiveness area. It is top in the point of ‘error free records’ of the bank followed by ‘making customers feel safe in their transactions’ while customers have least ranked ‘giving customers individual attention’ and ‘employees who have a neat, professional appearance’.  Efforts by banks to improve the quality of service they deliver have not yet resulted in improved customer perception.  Banks that can offer the growing ranks of discerning customers with a high quality service, while being personalized and competitively priced, will be the ones that succeed in the new post-crisis world. Enhancing customer experience is a crucial component of attracting and retaining customers in order to grow and protect a profitable business.


Customer, Service quality, Perception, Banks, Vijayawada

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