Service Quality Perceptions between Cooperative and Islamic Banks of Britain

Sadek Sadek

doi:10.3844/ajebasp.2010.1.5

Abstract

Problem statement: The objectives of this study were to determine mean comparison all 6 dimensions between Cooperative Bank (CB) and Islamic Bank of Britain (IBB) in Leicestershire, United Kingdom, to compare the ranking for CB and IBB based on the customers preference and lastly to identify the similarities between CB and IBB based on customer preference. Approach: A sample of retail banking customers from CB and IBB was surveyed through a set of questionnaires. The proposed scale is called SERVQUAL and comprises 33 items named ‘CARTER’ with six dimensions (Compliance, Assurance, Reliability, Tangible, Empathy and Responsiveness), which customized for suitability of CB and IBB. The data was analyzed based on SPSS. Results: The study indicated that the mean comparison for all 6 dimensions were compared and shown that the Compliance issues were very important for IBB customers, while the same cannot be mentioned for the CB customers, who gave more importance to Empathy and Responsiveness. On the other hand, the highest ranked between IBB and CB were found, where the customers of IBB chose No interest paid nor taken on saving and loan as a preferred items and CB customers more preferred to chose Run on ethical value as the highest rank. The results also demonstrated that the similarities were found where almost of the items in Assurance have a similar ranking in both of banks. Conclusion/Recommendations: Future research should be conducted with a big number of respondents to ensure the representative and conclusive finding. Next, the new research needs to increase a number of banks to obtain the good result.

Highlights

At the present phenomenon in banking industry, the quality of service is less focused by the bankers
Research design: The study can be categorized as a descriptive and inferential in nature whereby it describes the level of service quality of two banks, Cooperative Bank (CB) and Islamic Bank of Britain (IBB) and the location is in Leicestershire, United Kingdom
Where the highest mean value is only indicate to only one item, for the second and third rank is occupy to the items (Way staff treat customer) and in the same dimension which indicate 3.94 and 3.85 mean value respectively

Summary

Introduction

At the present phenomenon in banking industry, the quality of service is less focused by the bankers. Two quite distinct meaning of quality are relevant in the service context The first of these relates to the attributes which help to define the nature of a particular service and the second usage is a qualifier in assessing or measuring such an attribute (Nightingale, 1986; Lovelock and Wright, 2002; Zeithaml, 1996). Different people will hold a different perception towards the attribute of a service and regard different service characteristics as more or less desirable. This is definitely true for the banking sector and their diversity, services are traditionally been difficult to define. According to (Cronin and Taylor, 1992), they define service as:

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