Introduction

The service sector is expanding at an increasing rate and is becoming intensely competitive. Services can
be deIined as any activity or beneIit that one party oIIers to another that is essentially intangible and does
not result in ownership oI anything. Its production may or may not be tied to a physical product. A
company`s oIIerings oIten include some services. The nature oI most services is such that the customer is
present in the delivery process. This means that the perception oI quality is inIluenced not only by the
service outcome` but also by the service processes`.
Service quality is so important that companies have gone to great eIIorts to evaluate and keep records oI
service quality levels. Not surprisingly, there are strong linkages between service quality dimensions and
overall customer satisIaction. Many industries are paying greater attention to service quality and customer
satisIaction, Ior reasons such as increased competition and deregulation. The academic literature proposes
that customer satisIaction is a Iunction oI the discrepancy between a consumer`s prior expectation and his
or her perception regarding the purchase. As reported in the relevant literature high quality service helps
to generate customer satisIaction, customer loyalty, and growth oI market share by soliciting new
customers, and improved productivity and Iinancial perIormance.
Parasuraman and his colleagues developed the service quality measurement model known as
SERVQUAL. This model is based on a comparison between the customer's expectations oI the standard
oI service he/she will receive and his/her perception oI the standard oI service that is actually delivered.
Furthermore, Parasuraman et al. see their service quality measurement model as one oI the models that
have been shown to enjoy a high degree oI validity and stability. The most well known model is the
model oI Parasuraman et al. (1985) which is widely utilized in the literature. The model attempts to show
the salient activities oI the service organization that inIluence the perception oI quality. Moreover, the
model shows the interaction between these activities and identiIies the linkages between the key activities
oI the service organization or marketer, which are pertinent to the delivery oI a satisIactory level oI
service quality. The links are described as gaps or discrepancies: that is to say, a gap represents a
signiIicant hurdle to achieving a satisIactory level oI service quality(Ghobadian et al., 1994)
The upper part oI the model (Figure 1.) includes phenomena tied to the consumer, while the lower part
shows phenomena tied to the supplier oI services. The expected service is the Iunction oI earlier
experiences oI the consumer, their personal needs and oral communication. Communication with the
market also inIluences the expected service. Experienced service, here called perceived service, is the
result oI a series oI internal decisions and activities. The management`s perceptions oI the consumer`s
expectations are the guiding principle when deciding on the speciIications oI the quality oI service that
the company should Iollow in providing service. II there are diIIerences or discrepancies in the
expectations or perceptions between people involved in providing and consuming services, a 'service
quality gap can occur, as shown in Iigure 1. Since there is a direct connection between the quality oI
service and the satisIaction oI clients in banking industry, it is important Ior the company to spot a gap in
the quality oI service. The primary thesis oI this model is that the service quality shortIall (i.e. Gap 5, the
gap between customer service expectations and perceptions) is the result oI a series
oI shortIalls within the service provider`s organization (i.
e. Gaps 1-4). Thus, improving the quality oI service experienced by customers (i.e. closing Gap 5)requires
diagnosing the causes oI and correcting the internal deIiciencies (i.e. Gaps1-4) (Parasuraman, 2004).Luk
and Layton (2002) developed the traditional model oI Parasuraman et al.(1998) by adding two more gaps.
They reIlect the diIIerences in the understanding oI consumer expectations by manager and Iront-line
service providers and the diIIerences in consumer expectations and service providers' perception oI such
expectations. This model is illustrated in Figure 2
These seven gaps are described below brieIly.





! 1: Customers` expectations versus management perceptions
This gap occurs because oI the lack oI a marketing research orientation, inadequate upward
communication and too many layers oI management.
! 2: Management perceptions versus service specifications
It happens because oI inadequate commitment to service quality, a perception oI unIeasibility, inadequate
task standardization and an absence oI goal setting.
! 3: Service specifications versus service delivery
The third gap takes place because oI role ambiguity and conIlict, poor employee-job Iit and poor
technology-job Iit, inappropriate supervisory control systems, lack oI perceived control and lack oI
teamwork.
! 4: Service delivery versus external communication:
It arises Irom inadequate horizontal communication and propensity to over-promise.

a. Management`s unawareness about customers` expectations (! 1)
hether the managers perIectly understand customers` expectations
hether the management emphasizes on customer relationship
hether the marketing research conducted in the company concerns service quality
b. Not selecting right service designs & standards (! 2)
hether quality standards oI service reIlect managers` perception oI customers` expectations
hether there is the same pressure on the quality improvement like on the sale oI services
hether equipments to deliver service are modern looking
hether physical Iacilities are visually appealing
c. Not delivering to service standards (! 3)
hether the service is provided perIectly according to the set standards and speciIications
hether employees have appropriate skills to realize the service well
hether employees know which aspects oI service are particularly important Irom customer point oI
view
hether employees are eager to learn new things Ior better serviceproviding
d. Not matching performance to promises (! 4)
hether advertisement and other communications perIectly reIlect services which are provided
hether advertisement announcements have an eIIect on the contact personnel

Conclusion and Recommendation
Since Sonali Bank is the largest commercial bank in Bangladesh, its clients expect something more Irom
it. But it cannot meet the ever-increasing demand oI the clients. In the competitive banking industry to
compete with other banks, Sonali Bank has to improve its capability and remove the internal problems.
From this study, we can learn that there is a huge gap in service providing process. To remove this gap,
the overall organizational system should be changed and improved. Following criteria are recommended
Irom clients` viewpoint to reduce the service gaps and increase customer satisIaction.
The company mission should include a Iocus on customers and every client should be Iocused
individually.
A strong relationship with existing customers prevents Gap 1 Irom occurring and companies are more
able to understand the changing needs and expectations oI their existing customer base. To do this,
the bank can consider 'Customer Involvement Program.
Employees have to express solidarity with the customer and employees have to be aware oI customer
expectations and to meet the demand oI increasing number oI clients, work Iorce has to been
larged.
As this is the largest commercial bank oI country, more employees have to be engaged here to serve
the customers properly and Employees should have a Iriendly interaction with the clients.
Skilled personnel have to be employed here and training and motivational programs should be
introduced to improve the employee skill.
Smart and polite personnel should be engaged in the cash counters.
The bank should take steps to minimize the operation time and service providing procedure should
be simple and easy
The bank should establish suIIicient number oI counter to reduce the long queue and to reduce
customer queue time, token system may be introduced.
The bank should be Iast to provide service to the clients. More counters have to be
established to aIIord quick service. Front desk service may be introduced here.
More modern equipments have to be introduced here to provide better service and clients` problems
should be solved swiItly.
The bank should give not only attention to the contemporary services but also certainty to
provide these services.
The bank should give special attention to 'One Stop Service and Retail banking Iunctions
should be more expanded.
The bank has to start any branch banking service properly and E-banking Iacilities oI this
bank have to be more improved.
The bank should provide technological Iacilities incessantly.
The bank should develop own ATM or CDM system to provide service quickly and
comIortably. The number oI ATM booth should be increased immediately.
There is a messy environment in this bank. There should have a disciplined work procedure.
There is a bureaucratic practice in this bank. This bureaucratic relationship between the management
and Iront line personnel should be removed.