Key Determinants of Service Quality in Retail Banking
EuroMed Journal of Business, Vol. 5, No. 1, pp. 85-100, 2010
Posted: 20 Dec 2009Last revised: 30 Apr 2011
Date Written: May 10, 2010
Abstract: Purpose – This study intends to build a retail-banking specific quality scale and, through its examination and comparison to the SERVQUAL and BSQ metrics that are currently used in banking, to deepen our understanding of quality determinants in the industry. Furthermore, the study is set to provide additional input to the debate over generic against setting/industry/time specific quality metrics.
Design/methodology/approach – The study is implemented trough a two stage proc-ess of literature review and empirical survey. Evidence drawn from Greek retail bank-ing, through a specially designed research tool, is analyzed through Reliability, Factorial and Regression analysis to determine the scale’s item and factorial structure and assess its reliability and validity.
Findings – The BANQUAL-R metric is introduced, with key elements Assurance/Empathy, Effectiveness, Reliability and Confidence, a combination of SERVQUAL and BSQ dimensions. Findings back the setting-specific approach of service quality and the notion that SERVQUAL provides the skeleton on which setting-specific scales should be built. Practical implications – Bank managers are provided with a reliable and valid metric of service quality in retail-banking. Its dimensionality implies that under credit-crunch conditions service delivery should be directed towards reinstating customers’ trust and confidence that are put to danger. Banks should redirect resources from Tangibles to the human contact related service elements.
Originality/value – Although the subject of “service quality measurement” is extensively researched the continuously changing marketing environment calls for an ongoing assessment of quality factors. With respect to its academic value, this study piles-up knowledge that will eventually exceed the boundaries of academia and pervade management.
EuroMed Journal of Business, Vol. 5, No. 1, pp. 85-100, 2010, Outstanding Paper Award Winner at the Literati Network Awards for Excellence 2011
Keywords: Service Quality Measurement, Retail Banking, SERVQUAL, BSQ, Greece, BANQUAL-R
Suggested Citation:Suggested Citation
Tsoukatos, Evangelos and Mastrojianni, Evmorfia, Key Determinants of Service Quality in Retail Banking (May 10, 2010). EuroMed Journal of Business, Vol. 5, No. 1, pp. 85-100, 2010 . Available at SSRN: https://ssrn.com/abstract=1525891
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