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The previous chapter reviewed the growth structure of Retail Banking in India and
found that various products like Home loans, Consumer loan, Educational loan, Retail
deposits, ATMs facilities etc. have been expanding at an appreciable rate in India. It
discussed the working of retail banking in India and provided an insight into the
management of various retail products both in public sector banks and private sector
banks. A clear picture of the performance of public sector banks and private sector
banks in recent years came to fore highlighting that retail banking in private sector
The present chapter analyses the data and, with the application of statistical
tools, interprets the facts and figures to test the set hypotheses in order to derive
logical inferences. Since the test of hypotheses involves measurement of the customer
perceptions of Service Quality of retail banking in public and private sector banks,
setting the dimensions of service quality to serve as benchmarks for measurement and
test of hypotheses becomes imperative. Accordingly, the present chapter is split into
two parts. Section-I presents a detailed view of the concept of Service Quality and
also lays down the various dimensions of the SERVQUAL Model applied to survey
and garner data about perceptions of customer satisfaction with retail banking services
in banks of both the sectors-public and private. Section-II on the other hand, is
devoted to the collection of data, its analysis and interpretation as well as to critically
test the hypotheses constructed on the service quality dimensions in retail banking in
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SECTION-I
requires taking all of its conceivable dimensions into consideration. This section
identifies and delineates the different dimensions of service quality. The significant
attributes that can reflect the customers perception with regard to service quality in
5.1. Quality
Quality is the foremost key requirement that influences the formation of perception
and level of satisfaction of the customer with regard to any product and service. In
terms of banking growth, quality plays an important role. The basic concept of quality
can be defined as, meeting to the need of customer. In most generalized way the
quality term can be defined as the inclusion of all specified features and
characteristics as defined for product or service and its ability to satisfy the given
needs as per the requirement of user while using it. Edward Deming (1999) define
Quality as, A predictable degree of uniformity & dependability to low cost and
requirements.
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5.2. Service
something, which can be experienced but cannot be touched or seen. Services offered
by service providers cannot be seen & touched, as they are intangible activities. Some
are:
1. A service is any activity or benefit that one party can offer to another which
with the intention of satisfying the needs, wants and desires of the consumers.
--- C. Bhattachargee
providers. Delivered service will become as the quality service if it meets the
exclusive and abstract concept, which has been defined from different perspective and
orientation. Groonroos (1984) has defined service quality as, the outcome of an
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evaluation process, where the customers compare their expectations with the services
gap between expectations and performance. According to them service quality should
Fogli (2006) define service quality as, a global judgment or attitude relating
judgment.
Service quality is nothing but the difference between the service expectation &
service actually received by the customer. Customer has certain expectation about the
service. If the customers experiences the same service as they expect then this
difference will be zero and we can say that the service quality is very good.
Ostrowski et.al (1993) observed that service quality is a way of thinking about
how to satisfy customers so that they hold positive attitude towards the services they
have received.
Service quality is one of the critical success factors that influence the competitiveness
quality service. Service quality is one of the most attractive areas for researches over
the last decade in the retail banking sector. This study investigates the factors that
enable banks to attract and maintain their customers. In India, customers in the
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banking sector are in a strong bargaining position due to the significant growth of
banks. Therefore banks have to provide, service carefully because of the cut throat
competition among the banks. Banks have to improve the service level continuously.
There is no guarantee that what is excellent service today is also applicable for
tomorrow. To survive in the competitive banking industry, banks have to develop new
strategies which will satisfy their customer. That is why in this competitive banking
of service will result in high customer satisfaction and increase customer loyalty.
countries even though service is among the fastest growing sectors in emerging
countries. The bulk of the researches on service quality in banks has been in the
context of US and European banking institution. However with India now at the path
of growth and aiming global integration has become a source of learning for many
other economies.
has undergone a major transformation from class banking to mass banking. The
banking endeavors to provide effective customer service at lowest costs have been
fund transfer, anywhere-anytime banking, smart cards, net banking, swift etc are no
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all areas relating to customer service has been of prime importance for the banking
sector in India. Global competition has forced Indian bankers to enter the trade-off
extensively, so that they could sustain and grow on the face of stiff competition, by
learning from their counterparts in developed economics like the USA and Europe.
A successful banker must have the ability to anticipate and satisfy customer needs. To
provide faster and more efficient services the Indian banking sector has to realize the
Service quality and customer satisfaction are two closely related terms. Service
satisfaction is related with the type of service quality. If the quality of service
provided by the service provider is good then this leads to higher customer
satisfaction.
organization introduce the quality metrics for improving the quality management
processes. They generally collect metrics on several attributes and defects. The
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Metrics help to identify the strong and weak attributes. Improving upon the weak
areas, several organization are able to make their service quality better, efficient and
product where there is particular specification such as length, depth, width, weight,
addition there is expectation of the customer with regard to the service, which can
vary considerably based on a range of factors such as prior experience, personal needs
5.5. SERVQUAL
1985.
what the customers expect by way of SQ from a class of service providers and their
across different service sectors. It is regarded as the most appropriate tool to measure
and assess service quality in industrial & commercial sectors like banking, telecom,
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hospitals, and healthcare, hotels and fast food chain, travel &tourism, education and
hospitality etc.
assessment of service quality are applicable equally well to all sorts of industrial
sectors, yet the instrument has been developed for use in various service settings and
yields results which are most representative of the factual ascertainment of service
SERVQUAL Model is being made use of by this study to assess and measure the
Service Quality in retail banking services rendered by public and private sector banks
in India.
dimensions. These dimensions are most representative and eliciting of the customer
satisfaction from the quality of a particular service. The relationship between service
quality and customer satisfaction based on SERVQUAL is depicted in the figure 5.1
below
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TANGIBLES
RELIABILITY
Service Customer
Quality RESPONSIVENESS Satisfaction in
Dimensions Retail Banking
SERVQUAL in India
ASSURANCE
EMPATHY
The above diagram brings to fore the five components of the SERVQUAL
provide the measure of service quality. A brief description of each of these five
5.6. TANGIBLES
Tangibles refer to the factors which represents the physical features of the bank. They
are important for banking business as tangibles make the indelible first impression
during face to face contact between the customer and the bank. Impressive tangibles
fill the customers with confidence that they are dealing with the bank where their
financial interests are safe and secure. Examples of tangible factors are the use of
cutting edge technology and equipment, modern amenities and physical facilities for
customers within bank premises, appearance and deportment of bank personnel, and
above all the physical features of bank building and inner layout which presents an
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ambience attractive and appealing to customers. Pamphlets and brochures giving out
important information about product and services offered by bank also make an
important category of tangibles. The elegance and get up of the published material,
banking organization.
Thus, tangibles are always appealing in the banking sector. They form an
important dimension in the perception of customers with regard to the service quality
5.7. RELIABILITY
dimensions are such as, performing what is promised and doing it at the promised
customers mind the belief that the financial records and statements as maintained and
presented to customers by bank are error free, accurate and dependable. Customers
trust in the bank reflects the level of customer satisfaction with regard to reliability of
5.8. RESPONSIVENESS
customers perception with regard to banks attention and action to issues related to
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decision making, disposition of grievance within committed time etc. With the
as soon as possible. Lack of responsiveness would make the customers switch over to
quality dimension.
5.9. ASSURANCE
Assurance refers to the service quality dimension that makes the customer sure that
the transaction dealings are fair and safe with the bank. Assurance involves factors
experience and render answer to customers queries which are genuine and trustworthy
5.10. EMPATHY
The service quality represented by Empathy indicates the ability of the bank to
understand customers feelings and the situations they are in for help and assistance.
give personal consideration and priority attention to customers. It deals with the
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SECTION-II
The foregoing Section-I presented conceptual explanation of the service quality and
delineated on its nature and scope. Also the attributes of service quality and their
explained at length. The various factors included in each attribute that capture and
reflect the customer perception of the service quality have been identified for use in
ascertain service quality in retail banking rendered by public and private sector banks.
The analysis and interpretation of data with the help of statistical tools has also been
carried out in this section. On the basis of logical inferences drawn from the analysis
and interpretation of facts and figures, the hypotheses formulated for the study have
A. DATA COLLECTION
The study bases itself on primary data collected by using the SERVQUAL model for
ascertaining the service quality of retail banking in India. The information has been
of queries on the various service quality attributes and their dimensions as identified
and contained in the SERVQUAL. One additional attribute has been added to the
one of the most important factors that reflects the service quality of banks in retail
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customers availing retail banking services from the private and public sector Indian
banks. The spread of survey covers nine districts of the State of Uttar Pradesh,
presented below.
5.11. UNIVERSE
The universe or population represents the entire group of units concerned with the
particular study. Thus, the population could consist of all the living and non-living
In the present study all the customers of banks in India are considered as
Universe. These are the customers who have their accounts in different banks of the
country whether it is Public Sector Banks or Private Sector Banks. The universe of
this study is specifically concerned with those customers of banks in India who are
As the collection of complete data from all the customers in the universe is not
5.12. SAMPLE
population whose properties are studied to gain information about the whole. When
dealing with people it can be defined as a set of respondents (people) selected from a
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For this research, samples have to be taken since it is not possible to cover
such a vast country as India on account of impediments of time, finance and other
resources required for the purpose. Hence, the geographical area for the survey as
well as the bank customers (respondents) to the questionnaire have been selected in
such a manner that the whole country is represented and the conduct of research work
As regards the geographical coverage, the Northern Region, which stands out
as the biggest region of India, has been chosen. Since this region consists of large
number of cities spread over different States and Union Territory, necessity arose to
further abridge the geographical area selecting a few important cities from the
Northern Region of India. Accordingly, nine big cities with huge banking population
have been taken as sample for survey under this study. These nine cities are spread
over three northern Indian States, namely, Uttar Pradesh, Uttarkhand and Delhi. The
city of Delhi also happens to be the Capital of India. Being a metropolitan and
cosmopolitan city, Delhi alone represents the whole of India and hence makes this
study more representative and reliable. Other selected cities besides Delhi are: Agra,
Respondents have been drawn from the nine cities to a manageable handling
limit of 500, of which 497 responded. The selection of these respondents is at random.
This mode of selection rules out any bias creeping into the opinion survey and lends
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5.13. QUESTIONNAIRE
Descriptive research has been conducted to gain an insight into consumers perceived
1985) has been used for data collection for this research with some modification. The
but substitutes the dimension of Empathy by ATM Service Quality. Thus, the five
unambiguous and capable of seeking objective type of answers through marking a tick
only. The queries that elicit information about the perception of customers under five
dimensions have a direct bearing as the hypotheses of this study. Each of the five
dimensions asks questions specifically related to the dimensions. The customers have
been requested to rate the service quality variables at five point scale on the basis of
their perceived service quality and their satisfaction level towards the banks. Against
every question in each statement, five options of answers are given, i.e Strongly
advised to tick the option that represents the perception most truly and faithfully.
The universe for collection of data consists of the customers of private and public
sector banks spread all over India. Their full coverage being not possible on account
geographical area as explained under Sample technique has been taken for
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customers) and the geographical area covered comprised of nine big cities of three
States in the Northern Region of India and includes the Capital city of Delhi which
alone represents the respondents from all parts of India. Besides Delhi, the other cities
are Aligarh, Agra, Lucknow, Moradabad, Mathura, Noida, Dehradun and Kanpur.
sample population of bank customers comprised of educated persons who could read,
understand and tick their perceptions in the boxes provided for answers in the
collected from them at the pre-fixed time and date. Yet, while getting back the
questionnaire discussions and clarification were made to help get the perceptions
approached, however, obliged by filling the questionnaire face to face. Thus, the
direct investigation method adopted for this study reassures that the information
collected is more accurate, reliable, and trustworthy in reflecting the results of this
research.
5.15. RESPONSE
questionnaires have been distributed out to cover the sample size of 500 out of which
497 completely filled questionnaire have been received from the different customers
of the banks. The response has, thus been more than 80 percent. Moreover, the
respondents took very cooperative and sincere interest and care of appropriately
ticking their perceptions on the scale of preference provided in the questionnaire and
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returned the questionnaire duly and completely. This made the quality of data better
The information collected by means of the questionnaire from the respondents has
been processed and analyzed for testing the hypothesis. The collected data is analyzed
The analysis of data can be divided into two parts. Part one presents the
analysis of demographic profile of the respondents and the part two makes the
It is very essential to reveal the demographic profile of the customers. The profile of
the customers includes their age, gender, educational qualification, profession and
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Age of the customers is one of the important profile variables of the customers. It
shows their level of experience and maturity. In the banking industry, age plays a
predominant role in their level of satisfaction on the service quality of the banks. In
general the youngsters expect more than the elders who are highly experienced and
emotional. The age of the customers in the present study is confined to below 25
years, 25-35, 35-45, 45-55 and above 55. The distribution of the customers on the
From the above table it is clear that the important age group among the
customers is 25 to 35 years which constitute 21.93 percent in Public Sector Banks and
20.93 percent in Private Sector Banks The age group of below 25 years constitutes the
highest number of 134 customer or 26.96 percent in the Public Sector Banks while in
Private Sector Banks the age group below 25 years constitute the zero. The age group
Private Sector Banks yielding a percentage of 8.45 and 6.04 respectively. The age
group above 55 which reveals the senior citizens customer of the banks constitutes 13
with a percentage of 2.61 in Public Sector Bank and 8 with the percentage of 1.61 in
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Private Sector Banks. The analysis of data reveals that the important age groups
The pie chart shows the percentage of each age category of respondent in Public
45-55
12%
35-45 below 25
12% 40%
25-35
32%
45-55
10%
35-45
19%
25-35
66%
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The bar diagram below shows the Public vs Private Banks Sample size of age
160
140
120
100
40
20
0
below 25 25-35 35-45 45-55 above 55
Banks
Gender of the customers plays an important role in their level of satisfaction on the
service quality of the banks. It is included as one of the important variables. The
female customers are usually seeking more service quality from commercial banks
than the male customers. But male customers give more importance to certain service
quality factors than the female customers. The present study analyses the gender
among the customers in the two groups of banks. The results are shown in Table 5.3.
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The pie chart shows the percentage of each gender category of respondent in Public
FEMALE
44%
MALE
56%
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FEMALE
14%
MALE
86%
From the above table it is clear that 66.4 percent of the customers are male out of the
total of 330 customers. Among the customers of Public Sector Banks 187 are male
with a percentage of 37.63 and in Private Sector Banks male customers constitute 143
with percentage of 28.77. In comparison to male customers female customer are 144
in Public Sector Banks and 23 in Private Sector Banks, accounting for 28.97% and
The bar diagram below shows the Public vs Private banks Sample size of
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The level of education provides more knowledge and exposure on the competitive
service offered by the commercial banks with globalised scenario. Hence the level of
education of the customers is included as one of the profile variable. The highly
educated customers may be more aware of competitive service and expect more from
customers is confined to Under Graduate, Graduate, Post Graduate, Ph.D and others
(including less than Under Graduates). The data is computed in Table 5.4.
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The pie chart shows the percentage of each education category of respondent in
OTHERUNDERGADUATE
19% 12%
PHD
8% GRADUATE
25%
POST GRADUATE
36%
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U.GADUATE GRADUATE
OTHER 0% 1%
1%
PHD
46% POST
GRADUATE
52%
Table 5.4 explains the distribution of customer on the basis of their level of education.
The dominant level of education among the customers is Graduation and Post
Graduation which constitute 32.4 percent and 37.82 percent to their respective total.
Sector Banks and 2 or 0.40 percent in Private Sector Banks. The prominent level of
16.5 percent and 23.94 percent in Public Sector Banks and 15.9and 13.88 percent in
Private Sector Banks respectively. The number of customers with education upto
Ph.D. is 26 or 5.23 percent in Public Sector Banks and 1 or 0.20 percent in Private
Sector Banks respectively. The number of customer with the education level below
The bar diagram below shows the Public vs Private banks Sample size of education
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140
120
100
80
60
PUBLIC SECTOR BANKS
40 PRIVATE SECTOR BANKS
20
The occupation of the customer reveals the nature of work done by the customers.
service quality of Retail Banking. It includes as one of the profile variable. The
students, professionals and other jobs. The occupation of the customers is illustrated
in Table 5.5
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The pie chart shows the percentage of each occupation category of respondents in
PROFESSIONAL
OTHERS
5%
10%
GOVT.SERVICE
26%
STUDENT PRIVATE
37% SERVICE
22%
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PRIVATE SERVICE
72%
The important occupations among the customers are Government Service, Private
Service and Students which constitute 21.12 percent 38.63 percent and 26.77 percent
services and students which constitute 17.10 percent and 24.95 percent to their
respective total. In the Pr.SBs, the two important occupations are Private Services and
Government services which constitute 4.02 percent and 24.14 percent respectively. In
case of Public Sector Banks, Private Services constitutes 14.49, professional jobs
constitute 3.32 percent and others which include business constitute 6.84 percent. In
case of Private Sector Banks Government Services constitute 4.02 percent, students
1.82 percent, Professional Jobs constitutes 1.25 percent and others constitute 2.21
percent.
The bar diagram below shows the Public vs Private banks Sample size of occupation
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Chapter-5: Data Analysis and Interpretation
140
120
100
80
60
PUBLIC SECTOR BANKS
40
PRIVATE SECTOR BANKS
20
0
Dig.5.11: Bar Diagram of Occupation profile of Respondents Public vs Private Sector Banks
presented below to compare the mean values of Public sector Banks and private sector
Banks, the mean value analysis of each statement is helpful to compare the various
dimensions on each statement. The findings and statistical analysis for this part one
appearance.
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at the bank.
II. Reliability
6. When you have a problem the bank shows a sincere 3.6405 3.7168
7. Your bank performs the service right the first time. 3.5922 3.7410
8. Your bank provides its services at the right time, it 3.6797 3.7171
promises to do so.
III. Responsiveness
10. Employees of your bank tell you exactly when the 3.5075 3.7228
11. Employees of your bank give you prompt services. 3.6465 3.8674
12. Employees of your bank are always willing to help 3.5891 3.7650
you.
13. Employees of your bank are never too busy to respond 3.4410 3.6746
to your request.
IV. Assurance
confidence in you.
15. You feel safe in your transaction with your bank. 3.9637 4.2108
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16. Employees of your Bank are polite with you. 3.6555 3.8975
18. Your Bank has quick cash withdrawal through ATM. 4.1359 4.0421
20. Your bank has safe and secure ATM transaction. 4.0604 4.3253
As shown in table (5.6) it is found that there is positive attitude towards all question
but with different mean values in public sector Banks and private sector Bank.
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As shown in Table (5.6) the dimension tangible has positive attitude in the
respondents towards private sector Bank. Their mean values were greater than Public
The statement with the high mean in this dimensions is number (3) which
says, your banks reception desk employees are neat in appearance where its mean
(3.8126), whereas the lowest mean noted is (3.6626) in private sector banks and
3.4773) in Public Sector Banks in statement number (1) which said your Bank has
As shown in Table (5.6) there exist a positive attitude in the respondents towards the
Private Sector Banks because their means are greater than the Public sector Banks.
The statement with the high mean in this dimension is number (9) which says,
Your bank invests on error free records. The mean value of private sector banks
Whereas the lowest mean was (3.5619) in statement number (5) in Public
sector banks and (3.7831) in Private Sector Banks which said when your Bank
attitude in the respondents towards the Private Sector Banks in comparison to Public
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The statement with the highest mean in this dimension is number (11) which
says, Employees of your Bank give you prompt services. Its mean is (3.6465) in
Whereas the lowest mean of (3.4410) in Public Sector Banks and (3.6746) in
Private Sector Banks is in case of statement number (13) which said Employees of
As shown in Table (5.6) there exists a positive attitude in the respondents towards the
Private Sector Banks because the mean scores of private sector Banks are greater than
the Public Sector Bank in all the questions under this dimension.
The statement with the high mean in this dimension is number (15) which
says, You feel safe in your transactions with your Bank where its mean has reached
Whereas the lowest mean is (3.4350) in Public sector banks and (3.6686) in
Private Sector Banks in statement number (14) which said, The behavior of your
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As shown in Table (5.6) there exists a positive attitude in the respondents towards the
Public Sector Banks as is evident from their means which are greater than the Private
The statement with the high mean in this dimension ATM Service Quality is
number (18) which says, Your bank has quick cash withdrawal through ATM.
Where the mean values is (4.1359) in Public Sector Banks which is greater than in
Whereas the lowest mean was (3.8429) in Private Sector Bank and (3.8072) in
Public Sector Bank in statement number (23) which said Your Bank has excellent
quality of Currency.
The following Table 5.7 shows the mean values of five service quality
dimension used in analysis of data for this research. The highest mean score of 3.94 is
of ATM Service Quality in Public Sector Banks and 3.90 in Private Sector Banks.
There is small variation in the mean score of reliability, responsiveness & assurance.
The following diagram represents the mean values of all the five dimensions through
the graphs between Public Sector Banks and Private Sector Banks.
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3.9
3.8
3.7
3.3
Dig.5.12: Mean Scores of Service Quality Dimensions in Public vs Private Sector Banks
instrument measures the same way each time it is used under the same condition with
the same subject. In the present study Cronbachs alpha () is used to measure the
reliability of data. Cronbach (1951) gave a measure to that which is loosely equivalent
to splitting data in two in every possible way and computing the correlation
coefficient for each split. The average of these values is equivalent to Cronbachs
alpha () which is the most common measure of scale reliability. Kline (1999)
indicates that interpretation of Cronbachs alpha is estimated such that a value of 0.7-
0.8 is an acceptable value for Cronbachs alpha. Values substantially lower indicate
statements.
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does so.
6. When you have a problem the bank shows a sincere interest in 0.894
solving it.
7. Your bank performs the service right the first time. 0.894
8. Your bank provides its services at the right time, it promises to 0.893
do so.
10. Employees of your bank tell you exactly when the services 0.895
will be performed.
12. Employees of your bank are always willing to help you. 0.894
13. Employees of your bank are never too busy to respond to your 0.897
request.
you.
15. You feel safe in your transaction with your bank. 0.899
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17. Employees of your Bank have the knowledge to answer your 0.895
questions.
18. Your Bank has quick cash withdrawal through ATM. 0.896
20. Your bank has safe and secure ATM transaction. 0.897
alpha. The items where the value of alpha is more than 0.7 are considered significant
for this research. The reliability table shows the statement wise values of alpha, which
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The Cronbachs alpha () values of the 23 items are narrated into five dimensions
These result of Cronbachs alpha for five dimensions are given in Table (5.9)
2. Reliability 5 0.842
3. Responsiveness 4 0.865
4. Assurance 4 0.807
The reliability of five dimensions gets confirmed from the above table since
the reliability coefficients are higher than the standard minimum of 0.70 in each
dimension. The overall composite reliability of the variables is also higher than the
Campbell (1979) define it as the best available approximation to the truth or falsity
The test of validity of data for factor analysis has been conducted with the help
factor analysis. The KMO statistics varies between 0 and 1. A value 0 indicates that
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the sum of partial correlations is large relative to the sum of correlations, indicating
correlation are relatively compact and so factor analysis should yield distinct and
acceptable, values between 0.5 and 0.7 are mediocre, values between 0.7 and 0.8 are
good, values between 0.8 and 0.9 are great and values above 0.9 are superb. For these
data the value is 0.865 which falls in the range of being good. So the validity of data
Approx.chi-square 782.948
Sig. 0.000
Bartletts measure tests the null hypotheses that the original correlation matrix
is an identity matrix. For factor analysis to work we used some relationships between
variables and if the R-matrix were an identity matrix then all correlation coefficient
would be zero. Therefore, we want those tests to be significant (i.e. have a significant
value less than 0.05). A significant test tells us that the R-matrix is not an identity
matrix. Therefore, there is some relationship between the variables to include in the
analysis. For these data, Bartletts test is highly significant (P<0.001), and therefore,
factor analysis is approximate. Table 5.11 shows the results of rotated component
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matrix. All the values of extraction are more than 0.40. Therefore, the data is found
Component Matrix
Statement Extraction
appearance.
it does so.
7. Your bank performs the service right the first time 0.589
8. Your bank provides its services at the right time, it promises 0.542
to do so.
10. Employees of your bank tell you exactly when the services 0.528
will be performed.
12. Employees of your bank are always willing to help you. 0.522
13. Employees of your bank are never too busy to respond to 0.631
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your request.
you.
15. You feel safe in your transaction with your bank. 0.671
your questions.
18. Your Bank has quick cash withdrawal through ATM. 0.607
20. Your bank has safe and secure ATM transaction. 0.774
C. TESTING OF HYPOTHESES
Hypotheses testing are very important phase of the research process which determines
the results of the analysis. The primary data collected has been tabulated and
transferred to SPSS (Statistical package for Social Science) from Microsoft Excel
File. SPSS software has been used to analyze the primary data to test the hypotheses
of the study. Necessary statistical tools have been applied for the analysis of this
research while using SPSS software. The mean, One-Way ANOVA (analysis of
variance) and other statistical tests were used to compute the result.
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For hypothesis testing mostly independent t-test and one way analysis of
variance (ANOVA) has been used for the analysis of data. In the present study
hypothesis were tested with the help of these two statistical tools.
Independent samples t-test is used on the data if there are two independent samples
(or groups). It is used to compare the values of the means from two samples and test
whether it is likely that the samples are from populations having different mean
values. The independent t-test also called unpaired or the two samples t-test or
statistically significant difference between the mean in two groups (Cohen, 1998).
internal independent variable for two independent groups. When the two samples are
taken from the same population, it is very unlikely that the mean of the two samples
will be identical. When two samples are taken from two groups with different mean
scores, it is likely that the means of the two samples will differ.
For the present study comparing the mean values of the Public Sector banks
and Private Sector Banks on the different service quality dimensions of Retail
Banking in India. Independent t-test is used to signify the Hypothesis testing. When
value, the degree of freedom and the significance value of the test (P-value).
For computing the results statistical packages like SPSS is used. The data are
transferred to SPSS package and then compared the results. Statistical tests are
available to assess whether the two sample variance are significantly different. All
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statistical tests produce a p-value and this is equal to the probability of obtaining the
observed difference, or one more extreme, if the null hypothesis is true. To put it
another way- if the null hypothesis is true, the p-value is the probability of obtaining a
hypothesis, if the p-value is large the data support the null hypothesis. A p-value of
the p-value is larger than 0.01 then the null hypothesis is accepted. The significance
value considered for the present statistical test is 0.05(5%). The 1% value is also
In the present study there are only two levels of the independent variables (e.g.
Public Sector Banks and Private Sector Banks). If the data contains more than two
variables then t-test is inappropriate. For that purpose another statistical tool of
One way analysis of variance (ANOVA) is used to determine whether there are any
groups. So it is used where there are more than two groups (Onwnegbuzie, 2002).
that it compares the amount of systematic variances in the data to the amount of
unsystematic variance.
different groups with the variability within each group. An F ratio is calculated
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which represents the variation between groups, divided by within the groups. A large
To achieve the objects of the study, the following hypothesis were developed
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HYPOTHESES (1)
Service Quality dimension of tangibles between Public Sector Banks and Private
quality dimension of tangibles in Public Sector Banks and Private Sector Banks
in Retail Banking.
Table 5.12: Showing the mean, std. deviation and std. error of tangibles in Public
and Private Sector Banks.
Tangibles
From the above table descriptive statistics is shown. This table indicates the
mean value and standard deviation obtained by Public Sector banks and Private Sector
It is found from the above table that the Private Sector banks have the highest
mean value of 3.92 on five point scale and std. deviation of 0.51. This is clear
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indication that the customers of Private Sector Banks have a positive perception on
Table 5.13: Showing the F-value and sig. value of Tangibles between Public and
Private Sector Banks.
Table 5.13 shows the results of independent samples test used to access the
ground of Service Quality in Public Sector Banks and Private Sector Banks.
The t-value is -4.884 and sig. value is 0.000 which is less than 0.05 (95
Percent Confidence Internal), which indicates that there exists difference in the
and Private Sector Banks stands rejected and alternative hypotheses is accepted.
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HYPOTHESES (2)
Service Quality dimension of reliability between Public Sector Banks and Private
quality dimension of reliability in Public Sector Banks and Private Sector Banks
in Retail Banking.
The hypothesis seeks to test whether there is any significant variation in the
Sector Banks and Private Sector Banks. To test this hypothesis, Independent Samples
Table 5.14: Showing the mean, std. deviation and std. error of reliability between
Public and Private Sector Banks.
Reliability
From the above table descriptive statistics is shown. This table indicates the
mean value and standard deviation obtained by Public Sector banks and Private Sector
It is found from the above table that the Private Sector banks have the highest
mean value of 3.80 on five point scale and standard deviation of 0.71. This is clearly
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an indication that the customers of Private Sector Banks have a positive perception on
Table 5.15: Showing the F value and sig. value of Reliability between Public and
Private Sector Banks
Table 5.15 shows the results of independent samples test used to access the
ground of Service Quality in Public Sector Banks and Private Sector Banks.
The t-value is -2.117 and sig. value is 0.035 which is less than 0.05 (95
Percent Confidence Internal), which indicates that there exists difference in the
and Private Sector Banks stands rejected and alternative hypotheses is accepted.
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HYPOTHESES (3)
The hypothesis seeks to test whether there is any significant variation in the
Public Sector Banks and Private Sector Banks. To test this hypothesis, Independent
Table 5.16: Showing the mean, std. deviation and std. error of Responsiveness
between Public and Private Sector Banks.
Responsiveness
From the above table descriptive statistics is shown. This table indicates the
mean value and standard deviation obtained by Public Sector banks and Private Sector
It is found from the above table that the Private Sector banks have the highest
mean value of 3.76 on five point scale and standard deviation of 0.64. This is a clear
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Chapter-5: Data Analysis and Interpretation
indication that the customers of Private Sector Banks have a positive perception on
Banks.
Table 5.17: Showing the F value and sig. value of responsiveness between Public
Sector Banks and Private Sector Banks
Table 5.17 shows the results of independent samples test used to access the
The t-value is -3.200 and sig. value is 0.001 which is less than 0.05 (95
Percent Confidence Internal), which indicates that there exists difference in the
between Public Sector Banks and Private Sector Banks stands rejected and alternate
hypothesis is accepted.
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HYPOTHESES (4)
Quality dimension of Assurance between Public Sector Banks and Private Sector
The hypothesis seeks to test whether there is any significant variation in the
Public Sector Banks and Private Sector Banks. To test this hypothesis, Independent
Table 5.18: Showing the mean, std. deviation and std. error of Assurance between
Public Sector Banks and Private Sector Banks.
Assurance
From the above table descriptive statistics is shown. This table indicates the
mean value and standard deviation obtained by Public Sector Banks and Private
India.
It has been found from the above table that Private Sector Banks have highest
mean value of 3.93 on five point scale and standard deviation of 0.61. This is a clear
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indication that the customers of Private Sector Banks have a positive perception on
Table 5.19: Showing the F value and sig. value of assurance between Public
Sector Banks and Private Sector Banks.
Table 5.19 shows the results of Independent Samples Test used to access the
Assurance between Public Sector Banks and Private Sector Banks in Retail
Banking.
The t-value is -3.455 and sig. value is 0.001 which is less than 0.05 (95
Percent Confidence Interval), which indicates that there exists difference in the
Public Sector Banks and Private Sector Banks stands rejected and alternative
hypothesis is accepted.
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HYPOTHESES (5)
Service Quality dimension of ATM Service Quality between Public Sector Banks
Quality dimension of ATM Service Quality between Public Sector Banks and
The hypothesis seeks to test whether there is any significant variation in the
Table 5.20: Showing the mean, std. deviation and std. error of ATM Service Quality
between Public Sector Banks and Private Sector Banks.
From the above table descriptive statistics is shown. This table indicates the
mean values and standard deviation of Public Sector Banks and Private Sector Banks
on the Service Quality dimension ATM Service Quality in Retail Banking in India.
It has been found from the above table that Public Sector Banks have highest
mean value of 3.95 on five point scale and standard deviation of 0.67. This is a clear
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indication that the customers of Public Sector Banks have a positive perception on the
Banks.
Table 5.21: Showing the F value and sig. value of ATM Service Quality between
Public Sector Banks and Private Sector Banks
Table 5.21 shows the results of Independent Samples Test used to assess the
ATM Service Quality between Public Sector Banks and Private Sector Banks in
Retail Banking.
The t-value is 0.659 and sig. value is 0.510 which is greater than 0.05 (95
Percent Confidence Internal), which indicates that there exists no difference in the
between Public Sector Banks and Private Sector Banks stands accepted and
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In order to test the significant difference between Public Sector Banks and
Reliability, Responsiveness, Assurance and ATM Service Quality) one way ANOVA
is applied.
Table 5.22: Showing the mean, std. deviation and std. error of Service Quality
dimension between Public Sector Banks and Private Sector Banks.
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Table 5.23: Showing the F value and sig. value of Service Quality dimension
between Public Sector Banks and Private Sector Banks.
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Table 5.24 presents summary of the hypotheses that were generated for this study and
the results obtained after analysis of data for various dimensions of Service Quality.
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The table below is shows the results of t-value and F-value in each statement,
Table 5.25: Showing the results of t-value, f-value and significance value in each hypotheses.
5.26. SUMMARY
Data from primary sources has been collected for this study through a well designed
service quality of retail banking offered by public and private sector banks in India.
The service quality has been measured on five dimensions of SERVQUAL, namely,
selected from nine big cities from the largest Northern Region of India. The cities are
spread over three States and include Delhi the Capital of India which alone represents
the characteristics of the whole population of the sample. The questionnaire seeking
information on five counts under each of the five dimensions has been served on the
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sampled respondents and data collected from them. With the application of statistical
tools, the data has been analyzed and interpreted. The results have been applied to test
the hypotheses formulated for this study. The outcome revealed that of the five
hypotheses framed, four null hypotheses have been tested negative and the fifth one
stands accepted.
The next chapter concludes this study. It consolidates the findings derived
from the analysis and interpretation of the data and formulates suggestions for making
up the deficiencies and upgrading the service quality in retail banking segment of
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REFERENCE:
Cronin, J.J. and Taylor, S.A., (1992), Measuring service quality: A re-
Parasuraman, A., Zeithaml, V.A. and Berry, L.L. (1985), A conceptual model
Pg. 33.
253-268.
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pp. 33-55.
44.
model of service quality and its implications for future research, Journal of
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Chapter-5: Data Analysis and Interpretation
the SERVQUAL scale, Journal of Retailing, Volume 67, Number 4, pp. 420-
450.
Parasuraman, A., Zeithaml, V.A., and Berry, L.L. (1994), Alternative scales
Rust, R.T. and Oliver, R.L. (1994), Service Quality: New Directions in
Seth, N., Deshmukh, S.G., and Vrat, P. (2005), Service quality models: a
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