Abstract

Service quality in the banking sector is an important issue in an era where financial crisis is dominating the world economy. This paper assesses customer’s expectations and perceptions of service quality in the banking sector in Mauritius through the use of the Servqual questionnaire which was circulated among the customers of two major banks in Mauritius which hold more than 2/3 of the market share in the Mauritian Banking Business. The customers were assessed on the tangibility, reliability, responsiveness, assurance and empathy via the Principal component analysis (PCA). From the analysis, it was clear that these major banks should re-design their strategies linked to staff training, employee involvement and rewarding system.

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