Confirmatory factor analysis for service quality in private and public banks of NCR

Abstract

Service quality is an important factor for the success or failure of any industry. In order to be effective service industry needs to strike the right chord with the customer and live up to their perception and expectations. In the present study service quality has been assessed for banking industry keeping in mind the rise in interest in the particular industry. The SERVQUAL model developed by Parasuraman et al. (1988) has been employed to assess the perception and expectations of customers on five dimensions i.e. tangibility, assurance, reliability, responsiveness and empathy with a sample of 200 customers from NCR with 100 customers from public banks and 100 from private banks. Confirmatory Factors Analysis was employed to find the fit of the model and also a comparison between the expectations and perceptions of public and private banks was made using mean values using SPSS and AMOS. Through the analysis it was found that the model is fit for the present study. It was also clear from the mean values that people had higher expectations from private banks.