Customers’ Socio-economic Characteristics and the Perception of Service Quality of Bahraini Commercial Banks

Wathek Shaker Ramez

doi:10.5539/ijbm.v6n10p113

Abstract

This study aims: to apply the SERVQUAL instrument to evaluate the service quality of commercial banks of Bahrain, and to investigate the relationship between customers’ socio- demographic characteristics and the overall service quality and its dimensions. Based on a questionnaire survey of 195 customers, the results indicate that SERVPERF scale explains more of the variance in service quality than SERVQUAL scale. Three – factor solutions were produced, the first factor includes: reliability, responsiveness and assurance dimensions, which have the largest influence on the overall service quality. In addition, no significant relationships were found between customer’s socio- demographic characteristics and the overall service quality. However, significant differences were observed in the perceptions of customers’ nationality and duration of experience groups and the reliability and empathy dimensions.

Highlights

Service quality has become a major topic of concern to academic researchers and professional managers for the past two decades
Based on a questionnaire survey of 195 customers, the results indicate that SERVPERF scale explains more of the variance in service quality than SERVQUAL scale
The purpose of this research is to: (1) apply SERVQUAL and/ or SERVPERF instrument for evaluating the service quality of commercial banks of Bahrain. (2) assess the relative importance of service quality dimensions according to a banks' customers. (3) examine the relationship between customers' socio- demographic characteristics and the overall service quality of Bahraini commercial banks

Summary

Introduction

Service quality has become a major topic of concern to academic researchers and professional managers for the past two decades. The primary goal of these models is to offer managers insights into the components of service quality for improving their organizations' offering. Improving the customers' perceptions of service quality offers a firm an opportunity to differentiate it’s self and gain a competitive advantage in the market (Wang et al, 2003). This is certainly true in the banking industry around the world. The role of banking sector of Bahrain is expected to increase after the opening of the financial harbor

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