Abstract
Vision 2030 of the Kingdom of Saudi Arabia (KSA) requires numerous national and multinational organizations to re-engineer themselves to achieve the required targets for the upturn of the Saudi economy. In this respect, the quality of indigenous goods and services has been the biggest challenge to satisfy consumers of Saudi businesses. The banking and finance sector, specifically, has a great deal of responsibility to put in place a strong financial system that is capable of attracting capital from both local and foreign investors. SERVQUAL, with the five conventional dimensions—tangibility, reliability, responsiveness, assurance and empathy—offers a great deal of flexibility in modifying the model to the specific requirements of a service in carrying out gap analysis. In this context, we have applied SERVQUAL by adding two new dimensions—functional and technical—to the conventional five dimensions. We applied SERVQUAL using a “performance-only approach” to identify quality gaps present in the services of national and multinational banks. Our analysis shows that gaps exist in the service quality—both in national and multinational banking systems. We therefore present weighted gap scores to assist service managers in setting up priorities to improve the quality of their services. This study suggests that there is much to be done to improve retail banking quality and gain customers’ confidence, both from within and outside the KSA.
Highlights
Saudi Arabian economy is shifting from oil export to the development of an indigenous industry that delivers goods and services of a high quality
According to the objectives we have designed, we developed three hypotheses with the following resolves: (1) statistical justification for modifying SERVQUAL, (2) determine quality gaps using extended SERVQUAL and (3) compare service quality between national and multinational banking systems operating in Kingdom of Saudi Arabia (KSA)
SERVQUAL was applied in the marketing sector, in recent times, SERVQUAL has been applied in numerous industries, such as traveling, healthcare, airlines, information technology (Nimako et al 2012), hotels and insurance
Summary
Saudi Arabian economy is shifting from oil export to the development of an indigenous industry that delivers goods and services of a high quality. Announced in 2016, the Saudi Vision 2030 (Kingdom of Saudi Arabia 2019) shows that the Kingdom of Saudi Arabia (KSA) realizes that the quality of goods and services always remains a prime concern for customers. Supporting other similar studies, Zhang et al (2019) demonstrate that service quality results in consumer satisfaction and consumer loyalty that renders financial benefits; poor quality has been found to cause financial distress (Palmer 1995; Zeithaml et al 1996). Within this context, our study concentrates on a highly complex and sensitive Saudi Arabian retail banking system and its related quality issues
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