Abstract
Banks are very important financial services sector, and in banking sector there is an intense competition amongst the local and foreign banks throughout the world. The objective of this research is to analyse the effects of perceived value and customer trust, and role of technology in banking service qualities and customers’ satisfaction in Pakistani context. For this purpose we employed modified SERVQUAL model with four dimensions such as empathy, competence, reliability, and online service. An adapted questionnaire was used to carry out this survey research, and collected 830 responses from the customers of Pakistani banking industry. We used factor analysis, confirmatory factor analysis, and bootstrapping methods to carry out this research. The results of the study demonstrated that our four-dimensional model of modified SERVQUAL has a significant impact on overall customer satisfaction. It is further concluded from the bootstrapping method that modified SERVQUAL dimensions and customer satisfaction are positively mediated by the perceived value and trust. Finally, it is also concluded that the implementation of technology serves as moderating variable in the banking sector. The outcomes of this research are beneficial to the senior management of banking sector in order to implement the effective and customised online banking structure to gain competitive advantages, and provide vibrant online banking services that enhance the standard and ease of services to the customers and earn their confidence. The originality and novelty of this research provide a significant contribution in the application of SERVQUAL model specifically for the banking service quality dimensions and customer satisfaction in marketing research.
Highlights
The customers are the premier in any service or manufacturing industry, especially, in service industries like banking sector where customers are directly associated with the organization’s services and with it’s earning capacity
We have examined the nature of a relationship between service quality dimensions and customer satisfaction by using modified SERVQUAL model in commercial banking sector of Pakistan
It was found that coefficient value of reliability dimension was 0.692, the highest among all dimensions of service quality; the results of this study confirm that service quality along with all four dimensions carries consistent reliability and each of them is significantly and positively related to conventional banking service quality dimensions
Summary
The customers are the premier in any service or manufacturing industry, especially, in service industries like banking sector where customers are directly associated with the organization’s services and with it’s earning capacity. In the context of Chinese banking sector, Guo et al (2008) have proposed the four-dimensional (communication, technology, human capital, and reliability) SERVQUAL, model This state of affairs seems to make the researchers believe that different dimensions have novel and different outcomes in several sectors and countries. We incorporated two mediating variables such as customer trust and perceived value, and technology as moderating variable, and examined the influence of these variables in a relationship of modified SERVQUAL dimensions (empathy, reliability, competence, and online banking services) and customers’ satisfaction in Pakistani commercial banking context. The pioneers of the SERVQUAL model narrate that technology has a significant role in shaping the customer relationship and service quality (Apornak 2017; Long 2016; Parasuraman, Grewall 2000) and recommend further investigation, and the same has been carried out in the current study. The banking system is compelled to adopt the technological processes, and integrate its daily business regulations both locally and globally (Apornak 2017; Bourne 2016; Guo et al 2008; Newman, Cowling 1996; Raza et al 2015)
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