Satisfaction and loyalty of clients towards banking products and services

The economic crisis and the emergence of an increasing number of competitors in the banking sector have led to the need for banks to better understand their clients and to work more closely together with them. The basis of survival and profitable business of banks is the achievement of high quality offer that is the asset for developing long-term relationships. The aim of the paper is to determine the effects of the banking services quality dimensions on satisfaction and loyalty of clients using modified SERVQUAL model. The main research question is to examine which dimensions of banking services quality have an effect on the satisfaction and loyalty of clients, what is the nature and the intensity of this impact. For the purpose of measuring clients’ attitudes regarding banking services quality, the survey method, questionnaire technique was applied. The questionnaire was distributed to clients of banks operating in the territory of Kragujevac, Central Serbia, in the period from September to October, 2018. Simple random sample technique for sampling was applied. The analysis was conducted by processing the primary data in statistical software SPSS where several statistical analyses were conducted. Based on multiple regression analysis, it came to the result that the strongest influence on clients’ satisfaction has variable empathy and the weakest variable tangibility, while variable reliability has no influence. On the other hand, clients’ loyalty is most strongly influenced by variable responsiveness while the weakest influence, as well as on satisfaction, has variable tangibility. The paper points to the significance of improving banking services quality in order to achieve higher level of satisfaction and long-term clients’ loyalty, which is particularly important when it comes to dimensions that have weak or no influence on the observed aspects of consumer behaviour.

Purpose: The main purpose of this study was to determine the effect of enhanced quality of bank products and services on the performance of commercial banks in Makueni County.
 Methodology: This study adopted a descriptive research design. The target population was all the 219 employees from the commercial bank branches in Makueni County from which 130 study participants were sampled; 65 bank managers and 65 assistant managers. A questionnaire was designed, piloted and used to collect data from the study participants. All necessary ethical issues were considered during and after data collection process. Statistical Package for Social Scientists Version 21 was used in data analysis to generate both descriptive and inferential statistics.
 Findings: There was a positive relationship between the quality of services and products and performance of commercial banks in Makueni County. The regression results also revealed that quality of products and services had a significant influence on the performance of commercial banks at p = 0.015. 
 Unique contributions to theory, practice and policy: The quality of bank services and products is a major determinant of the performance of commercial banks in the area of study. The findings were similar to those of another study carried out by Odeny (2016). Since contingency theory argues that there is no single best approach in the management of institutions, the study recommends that continuous research is necessary in commercial banks to establish areas of service and product improvement for their continued high performance.

The goal of this study is to identify the interrelationships between service quality, customer satisfaction and customer loyalty in the retail banking sector in Hong Kong. The study also aims to find out the most important attributes of service quality in retail banks, which can be used to evaluate the characteristics of banking service quality as perceived by customers. A sample of 119 retail banking customers was drawn from the Hong Kong and Shanghai Banking Corporation (HSBC) in Hong Kong. The questionnaire developed for this study was based on a SERVQUAL model that identified the influence of five dimensions (i.e. tangibility, responsibility, reliability, assurance and empathy) in banking service environments on customer satisfaction. The results indicate that the five SERVQUAL dimensions have a positive influence on customer satisfaction. Tangibility, responsibility, reliability and assurance were more significant in contributing to customer satisfaction, while empathy was the least significant. This study suggests that SERVQUAL is a suitable instrument for measuring service quality in the retail banking sectors in Hong Kong. Hence, banking industry practitioners can consider this instrument as a tool to assess and help improve their service quality. Keywords: SERVQUAL, Service Quality, Customer Satisfaction, Customer Loyalty, Banking Industry, Hong Kong To cite this document: Mei Mei Lau, Ronnie Cheung, Aris Y. C. Lam, and Yuen Ting Chu, "Measuring Service Quality in the Banking Industry: A Hong Kong Based Study", Contemporary Management Research, Vol.9, No.3, pp.263-282, 2013. Permanent link to this document: http://dx.doi.org/10.7903/cmr.11060

Technological advancements have significantly transformed the banking landscape, influencing competition and consumer behavior. Researchers explore the impact of innovations such as digital banking, mobile payments, and fintech solutions on the competitive landscape. They assess how banks leverage technology to enhance operational efficiency, customer experience, and product offerings, and examine the implications for market competition. Additionally, the entry of non-traditional players, such as fintech firms and tech giants, into the banking sector is analyzed in terms of its impact on traditional banks’ competitiveness. Competition in the banking sector influences access to financial services, particularly for underserved populations or regions. Researchers examine how competition drives innovation and expands the availability of financial products and services. They assess the impact of competition on pricing, fees, and the overall affordability of financial services, as well as its implications for financial inclusion and economic development. The purpose of the article is to analyze and understand the competitive dynamics within Moldova’s banking industry. To achieve this goal, we underline the following objectives: to analyze the level of concentration and market structure within Moldova’s banking sector to understand the competitive landscape; to investigate the factors influencing competition, such as regulatory frameworks, technological innovation, and market conduct, to identify key drivers of competitiveness; to investigate the impact of digitization on competition within the banking sector, analyzing how technological advancements influence competitive dynamics. Competition in the banking sector directly affects consumers by influencing the availability, affordability, and quality of banking products and services. Researching competition can help evaluate the impact of competitive forces on consumer welfare, including access to financial services, pricing, and innovation, thereby informing policies aimed at protecting consumer interests. The article was developed within the framework of Subprogram 030101 „Strengthening the resilience, competitiveness, and sustainability of the economy of the Republic of Moldova in the context of the accession process to the European Union”, institutional funding.

In this modern and competitive period, the banking sector has found it necessary to provide financial services to know and meet the client’s needs and expectations to remain competitive in the present market conditions. Without satisfying the clients, the banking sector cannot obtain sustainable growth. Delivering superior quality banking services to the bank clients is often ensured and advised to satisfy bank clients and guarantee ongoing development. Guaranteeing better and quality financial services has become a key strategic tool for the banking sector. This study evaluates and investigates the effect of several dimensions of service quality of banking service on a client’s satisfaction in Dinajpur City, Bangladesh. This study was quantitative in nature and distributed a structured, self-administered questionnaire, which is based on a convenience method, to 203 clients of various public and private banks in Dinajpur City, Bangladesh. The research questionnaire was enhanced in accordance with previous research. The data analysis was conducted using SPSS-25, and a five-point Likert scale was employed in this investigation. The hypothesis was proposed and developed, and the internal consistency of all items was accurate. For testing, a 5% level of significance is used for acceptance of the hypothesis. This study evaluates and shows that all service quality dimensions, such as tangibility, reliability, responsiveness, assurance, empathy, convenience, and compliance, have a positive impact and influence on bank client satisfaction and achieving sustainable banking growth. Because client value is considered an asset to organizations and organizations must ensure that they provide better financial services. This research has policy implications for the management authorities of the banking industry in order to achieve sustainable growth.

Service quality is believed to be one of the main determinants of customer satisfaction and purchase intention. However, there are very few studies that have been conducted to identify the important dimensions of service quality specific to banking sector. The present study is aimed to assess and compare the perceived level of bank service quality and to investigate the dimensions of quality banking service in private and public sector bank using an instrument banking service quality scale (BSQ) specifically designed for measuring service quality in banks. The study is based on the responses collected from 240 customers banking with private and public sector retail banks in India. The results show that the customers of public sector and private sector banks differ in terms of their service quality perceptions. Private banks are perceived to be superior on the service quality dimensions: effectiveness, access and tangibles whereas, the public sector banks score better on the dimensions of price and reliability. The study concludes that the BSQ instrument appears to be a valid instrument to measure the service quality in Indian retail banks.

This research aims to evaluate the quality of e-banking in Iraq and their impact on client satisfaction, test the relationship between quality of services (QoS) dimensions and client satisfaction, and identify the predominant rate of quality of services which effects client satisfaction in Iraqi banks. So, the importance of research stems from examining the impact of Iraqi banks' e-banking and their effect on client satisfaction, mentioning on the strengths and weaknesses of the e-banking and their effect on client satisfaction. Therefore, the research is based on a basic hypothesis that the quality of banking services can enhance client satisfaction and give a competitive advantage to the bank. The researchers concluded that all determinants of service quality are completely interrelated with client happiness, and Rafidain bank improvements have to be done in all items of service quality with the aim of recovering clients' satisfaction.

The banking sector has become competitive significantly like other service-oriented businesses. Banks are continuously looking for ways to enhance their service and trying to distinguish themselves from competitors. As the quality of service has attracted the major attention of bankers over the recent years understanding its role in customer satisfaction, this study focused on this aspect. Bank is financial intermediary accepting deposits and granting loans (Singh H. B, 2005). It offers the widest menu of financial services to its customers (Singh, 2005). In the contemporary context, the Nepalese banking industry has played a significant role in the development of the economy. Banks of Nepal have adopted liberal policy and have established a strong foundation through quality services (Gautam, 2016). The growing competition in the banking sector has made it essential for bank management to understand customers’ wishes regarding the service quality offered by banks to enhance customer satisfaction and optimize the profitability of banks. In this regard, this study explores to answer the following question; what are the customers’ views and demand on the banking service offered by commercial banks in Nepal? The study identified the possible expectations that customers have on the quality of banking service. The study adopted a descriptive design with population of interested customers of commercial banks in Kathmandu, the capital of Nepal. Questionnaires were administered to customers from a total of 28 commercial banks located within Kathmandu valley. The findings from the study established a positive relationship between service quality and customer satisfaction in Nepalese commercial banks. The conclusion from this study is that customer satisfaction can lead to customer retention in commercial banks. Recommendations based on the findings will help to enhance the satisfaction and retention of customers if they are implemented in the Nepalese banks.

The aim of this study is to see the impact of student understanding of the bank's products and services of Islamic banks on the interest of saving by adding religiosity as a moderating variable. The study uses purposive sampling to select 70 respondents. The study employs the MRA (Moderated Regression Analysis) to analyze the data. The results showed that the students' understanding of savings products have a significant effect on the interests of saving. While the quality of service has no significant effect on the interest of saving. Moderating variables or religiosity is associated with a student's understanding has a significant effect of savings products. Next, religiosity is associated with the quality of bank services also have a significant effect.

Abstract. Bank customer satisfaction is a hot topic of current scientific research for many reasons. In response to the negative impact of the recent financial crisis of 2008, the public has become very sensitive to all aspects of commercial bank activity. Banks are looking for ways to increase their financial performance. Researchers are trying to find the main determinants of bank customer satisfaction and examine these issues from different perspectives. The aim of our research was to investigate the relationship between gender and the major attributes of satisfaction and loyalty of the banking clients. In this context, we investigated at the same time whether there were statistically significant differences between the genders depending on age and education. Bank customer satisfaction research was conducted through a questionnaire survey on a sample of 459 respondents in the Czech Republic in 2014, of which 44% were men and 56% were women. We found that women relative to men prefer the following satisfaction factors: quality of banking products and services and convenient and friendly service in a branch. More women than men believe that the bank staff has a genuine interest in understanding their financial needs. In our research, women have more often reported that their bank's staff would explain to them the advantages and disadvantages of the bank products that were of interest to them. In addition, it was found that women are more loyal to their banks than men.Keywords: satisfaction of banking customers, loyalty, gender approach, factors of customer satisfaction, purchasing of other productsJEL classification: G21IntroductionCustomer satisfaction monitoring has become one of the priorities of current entrepreneurs regardless the sector they operate in. It is widely accepted that satisfied customers are the basis of a successful company. This issue is even more important in saturated markets with homogeneous products where clients can relatively easily change their provider in case they are not fully satisfied.Compliance with the consumers' needs and requirements (Bilan, 2013), comprehensive customer care, and bank customer satisfaction are currently at the centre of attention of re-10.14254/2071789X.2015/8-1/14 searchers and bankers, as they represent important marketing variables for most of the companies, especially those working in more competitive markets (Munari, Ielasi, Bajetta, 2013; De Matos, Henrique, and De Rosa, 2013).A satisfied customer is of great importance for the current and future performance of commercial banks (Belas and Gabcova, 2014). Koraus (2011) states that a satisfied customer remains loyal and to keep him a company requires five times less effort, time, and money than to get a new one. Such a client is willing to pay a higher price, and to get this customer to leave to a competitor would mean reducing the price of the product by 30% at equal product value. A satisfied customer represents a free form of advertisement and is inclined to purchase other products. This gives back to the bank employees a sense of satisfaction and pride in their work and business.This traditional approach is based on the assumption that satisfied customers are less likely to switch their bank and are more willing to purchase additional products or services. However, various studies (Fraering and Minor, 2013; Murugiah and Akgam, 2015; Cohon, 2007; Zamazalova, 2008) did not confirm this relations and showed that even satisfied customers switch their bank if another one offers them a better product. There are two ways to explain these findings. The first is loyalty. Loyal clients have a more intense, emotionally based connection to their bank. Thus they are more resistant to competitor banksoffers even though these offers are of better technical parameters. The second way to explain the quitting of satisfied customers is that not only objective factors, e.g. conditions of products, price or distribution channels reliability determine their satisfaction but subjective emotions and experience are getting more and more importantCurrent theoretical research on the satisfaction and loyalty of bank customers examines the various attributes of this process. …

The increasing level of public awareness of the alternative banking system with the iB logo (read ai-Bi, Islamic banking) is part of the results of intensive socialization by regulators over the past few years. Like a ripe fruit, this public enthusiasm is ready to be picked by Islamic banks that are observant and quick to capture market opportunities. And if that happens, it is not impossible that iB (Islamic Banking) will accelerate even faster than its growth so far which has been very impressive reaching 46.3% per year. researchers try to confirm the relationship between CARTER+ service quality, satisfaction, and retention in the context of Islamic banks in Indonesia. In addition, it is necessary to study more deeply about customer retention in enjoying Islamic banking products and services. In accordance with the function of the bank, namely establishing relationships with customers, it is able to create value that is felt directly by customers. This can foster long-term satisfaction and encourage customers to remain customers of the bank. one of the most important factors for customers to continue using bank products and services, the company must maintain the level of customer retention. In this study, the measurement model used is expected to, firstly, assist decision making in Islamic banking marketing and to identify determinants of the quality of Islamic banking services, better known as Islamic Banking Service Quality (iBSQ). Secondly, customer satisfaction of Islamic state-owned banks is a direct response given by bank customers to the dimensions of Islamic state-owned bank service quality, which in the end can significantly increase customer retention. Thirdly, customer retention is the ultimate goal of all services from Islamic banking in general and Islamic state-owned banks in particular. In this study, the approach used is a quantitative approach (positivism) supported by informative qualitative. The data used are primary and secondary data. The SEM-PLS method applied to data processing is expected to be able to provide the expected information. In this study, the data sources were taken from 3 different banks, namely: Bank BRI Syariah, Bank BNI Syariah and Bank Syariah Mandiri. Based on the results of the analysis and discussion of this study, the following conclusions can be drawn: (1) Of the seven dimensions of service quality that have a significant influence on customer satisfaction, the Sharia Compliance dimension is 19.3%, the Service System dimension is 28.4%, the Responsiveness dimension is 30.6% and the remaining 21.7% is influenced by other variables that are not included in the model. (2) Customer retention is significantly influenced by Customer Satisfaction by 28.2% while the remaining 71.8% is influenced by other variables.

The objective of this research is to examine the effect of both audit quality and service quality on client satisfaction in perceive of Thai-listed firms. Moreover, the relationships between client satisfaction and client loyalty via the moderator effect of auditor-client relationships are also investigated. The research model and hypotheses are built on resource-based view (RBV) of the firm, and relevance literature of both auditing and marketing research. Thai-listed companies are samples of the research by using questionnaire as an instrument. The results indicate that both audit quality and service quality has a significant effect on client satisfaction. Moreover, client satisfaction has a positive significant on client loyalty via the moderating effect of auditor-client relationships. Overall, the results of this research contribute to motivate audit firms to emphasize on building audit quality and service quality in order to enhance client satisfaction and loyalty in the more competitive environment. Moreover, this research suggests venues for future in audit firm. Keywords Audit Quality, Service Quality, Client Satisfaction, Client Loyalty

Purpose– The purpose of this paper is to examine the quality of the banking services in a rather neglected context, i.e. quality of banking services that target the student population. The goals were: to highlight the importance of student population as in the long run profitable market for personal banking services, to determine whether there are significant differences between student perceptions of and expectations from the quality of banking services as well as which dimensions students find to be the most significant and which the least significant in assessing the quality of banking services.Design/methodology/approach– A summary of the theoretical framework is followed by the results of a research using the SERVQUAL instrument.Findings– Despite a steady increase in the number of students over the past few years, bank managers have not yet realized their full potential. The results point to a gap in the quality of the banking services on all five dimensions of the SERVQUAL model. It is necessary to improve the banking service on all dimensions, and particularly with regard to “reliability,” “assurance” and “responsiveness,” in which the gap was observed to be the largest.Research limitations/implications– The research used a convenient sample. Therefore, it is impossible to generalize research findings based on the data processed, but only point to their being indicative.Practical implications– Banks should by no means neglect the student population that possesses information knowledge, essential for the use of modern banking services. Bank managers should pay more attention to the needs of this growing segment of potential highly profitable customers.Originality/value– The necessity to provide a more flexible response to the needs and requirements of students as a target market segment is discussed, along with potential importance of this segment for banks’ future business operations.

The severity of the last financial crisis for the European financial markets, the economy, and society makes the scientists and financial analysts start to seek answers with great openness not only to the question of how to reduce its negative effects in the future, but also of how the system regulating financial institutions will look like in the future. The article discusses three options of the positions on the future regulatory tendencies: theoretical alternative, option presented in reports and expert studies, and the version arising from observations of the current practices of functioning of the European banks. The aim of the article is to confront the views on the future trends in the regulation of the banking sector from theoretical, consulting point of view, and the view formulated on the basis of evalua-tion of banking practices.

Customer satisfaction & service quality are two critical principles that firms must grasp if they are to expand and remain competitive in the business world. It is critical for businesses to be able to measure these constructs from the perspective of their consumers in order to better understand and meet those customers' requirements. It is widely accepted that service quality is vital to any modern business since it increases customer satisfaction, profitability, reduces costs, and improves customer loyalty and retention. The main purpose of the research paper is to assess the service quality and its impact on customer satisfaction. Service quality of private Banks is measured by the five dimensions of SERVPERF model i.e. reliability, tangibility, assurance and responsiveness .Both primary and secondary data were used to achieve the aim of the study. The secondary data collected through the Annual reports, past facts and figures provided through internet and journals of respective sample study organization. Thus, the purpose of this article is to examine the relationship between customer satisfaction and service quality. The finding of the research proves that customer satisfaction increases by offering high quality service Factor analysis and SEM were used to examine the data gathered from 141 customers in Jammu city. The result of the study proves that apart from reliability all other three variables (tangibility, responsiveness and assurance) plays a vital role in determining the customer satisfaction level. References Al-Slehat, Z. A. F. (2021). Determining the Effect of Banking Service Quality on Customer loyalty Using Customer Satisfaction as a Mediating Variable: An Applied Study on the               Jordanian Commercial Banking Sector. International Business Research, 14(4), 1-58. Anderson, E., & Weitz, B. (1989). The use of pledges to build and sustain commitment in distribution channels. Journal of Marketing Research, 29(1), 18-34. Ayo, C. K., Adewoye, J. O., & Oni, A. A. (2010). The state of e-banking implementation in Nigeria: A post consolidation review. Journal of Emerging Trends in Economics               and Management Services, 1(1), 37-45. Bitner, M., Booms, B., & Tetreault, M. (1990). The service consequences of satisfaction Journal of Marketing, 5(4), 71-84. Booz, A., & Hamilton (1997). Internet banking: A study of potential. INC, New York. Cronin, J. (1998). Banking and Finance on the internet. John Wiley and Sons, NY. Bramantyo, B. A., Sudirman, I., & Umar, F. (2022). The Influence of Service Quality and Customer Satisfaction on the Trust and Loyalty. Hasanuddin Journal of Business               Strategy, 4(1), 62-72. Dixit, N., & Datta, S. K. (2010). Customer’s perception on internet banking and their impact on customer satisfaction and loyalty: A study in Indian context. Journal of Computing, 2(7), 131-145. Furnell, S., & Karweni, T. (1999). Security implications of electronic commerce: A survey of consumers and business. Electronic Networking Applications and Policy, 9(5), 372-382. Ganesan, R., &Vivekanandan, K. (2009). A secured hybrid architecture model for internet banking (e-banking). Journal of Internet Banking and Commerce, 14(1), 1-17. Ganguli, S., & Roy, S. K. (2010). Generic technology based service quality dimensions in banking: Impact on customer satisfaction and loyalty. International Journal of Bank               Marketing, 29(2), 168-189. Gbadeyan R. A., & Akinyosoye Gbonda, O. O. (2011). Customer’s preferences for e-bankingservices: A case study of selected banks in Sierra Leone.  Australian Journal of Business and Management Research, 1(4), 108-116. Ghafori, A. P., & Iranmanesh, A. (2012). New approach to study of factors affecting adoption ofelectronic banking services with emphasis on the role of positive word of mouth. African Journal of Business Management, 6(11), 4328-4335. Gronroos, C. (1996). A service quality model and its marketing implications. European Journal of Marketing, 18(4), 37-44. Hair, Joseph F., Bill Black, Barry Babin, and Rolph Anderson. 2006. Multivariate Data Analysis, 6th ed. Upper Saddle River: Pearson Prentice Hall. Khraiwish, A., Al-Gasawneh, J., Joudeh, J., Nusairat, N., & Alabdi, Y. (2022). The differentialimpacts of customer commitment dimensions on loyalty in the banking sector in Jordan: Moderating the effect of e-service quality. International Journal of Data and Network               Science, 6(2), 315-324. Parasuraman A, Zeithaml VA, Berry L (1988). "SERVQUAL: a multiple-item scale for measuring customer perceptions of service quality", J. Retailing. 64: 12-40. Ravichandran K (2010). Influence of Service Quality on Customer Satisfaction, Application ofSERVQUAL Model, Int. J. Bus. Manage. 5: 117-124 Sarkar, E., & Islam, M. S. (2021). Relationship between banking service quality and customer satisfaction of commercial banks in Cumilla district, Bangladesh. Journal of Public Value               and Administrative Insight, 4(2), 105-127. Stevens, J. (1992), “Applied multivariate statistics for the social sciences”, (2nd). Hillsdale, NJ: Earlbaum. Sugiarto, S., & Octaviana, V. (2021). Service Quality (SERVQUAL) Dimensions on Customer Satisfaction: Empirical Evidence from Bank Study. Golden Ratio of Marketing and Applied Psychology of Business, 1(2), 93-106. Wattoo, M. U., & Iqbal, S. M. J. (2022). Unhiding Nexus Between Service Quality, Customer Satisfaction, Complaints, and Loyalty in Online Shopping Environment in Pakistan. SAGE Open, 12(2), 21582440221097920. Zahoor (2011) SERPERF Analysis in the Banking Services, Unpublished Master theses, Karachi Institute of Economics and Technology