Linking perceived service quality dimensions, customer satisfaction and perceived value with behavioural intentions in Indian retail banking: an SEM study

Abstract

This research paper empirically tests the effect of perceived service quality dimensions on behavioural outcomes of customers of retail banking services in India. The dimensions of perceived service quality are extracted by exploratory and validated through confirmatory factor analysis using AMOS ver 4.0. They attributes with significant loading on dimension one are privacy of automated teller machine transactions, terms and conditions being flexible and well explained and for dimension two are well-designed and clean bank environment and staff being well dressed. The interactive and causal effects of the service encounter variables were empirically tested using structural equation modelling with retail banking customers in the National Capital Region of Delhi, India. The results provided empirical support for a modified model wherein service quality, customer satisfaction and value perceptions are antecedents of future intentions of customers and the need for a comprehensive approach to service quality in retail banking services that includes the direct and indirect effects of perceived service quality, value perceptions and overall customer satisfaction on customer future intentions of repurchase and positive recommendations.