Measuring the Service Quality in Banking Industry

PRESENTED BY:ABHAY JAIN M.B.A (GEN) IV SEM

INTRODUCTION

About the Banking Industry

About the Research Topic About the Selected Banks

RESEARCH OBJECTIVES
To make a comparative study of service quality and its dimensions between SBI and ICICI bank through SERVPERF SCALE so as to suggest ways and means of improving service quality in banks and make banking service more efficient and effective.

LITERATURE REVIEW AND RESEARCH HYPOTHESIS

Service Quality: It is an evaluation process ,where the Consumer Compare his/her expectations with the actual service and his perception is received. It generally based on 5 dimensions
Tangibles

Reliability Responsiveness

Assurance
Empathy.

Reliability Responsiveness Assurance

the service company ability to deliver promises on time.

the degree to which customers perceive service providers readiness to assist them promptly.

the degree of courtesy of service providers workers and their ability to communicate trust to customers.

Empathy
Tangibility

the care and importance the service provider gives to an individual customer. the evidence of facilities, personnel, and communication materials used by the company while offering services to customers

RESEARCH METHDOLOGY

Research Method Research Instrument

: :

Survey Questionnaire
(includes 7- Point likert type scale . The response anchors of 1= Strongly disagree and 7= strongly agree were defined)

Sample Size
Sample Unit Sampling Technique

:
: :

60
Individual Convenient (Non random)

Investigation
Research Type

:
:

Group Differences
Descriptive and Comparative

DATA ANALYSIS AND INTERPRETATION

Gender Male Female Bank SBI ICICI Frequency 27 33 Frequency 32 28

Education
UG PG

Frequency
35 25

Comparison of Service Quality Descriptives

Group Statistics
BANK NAME N Mean Std. Deviation Std. Error Mean

TA RL RP A

SBI ICICI SBI ICICI SBI ICICI

32 28
32

4.5156 4.3929
4.5063

.79296 1.17935
.85758

.14018 .22288
.15160

28
32 28 32 28 32 28

4.2357
4.5625 4.2411 4.6875 4.3482 4.6125 4.6286

.97076
.83037 .95617 .84481 .96786 .84386 1.18723

.18346
.14679 .18070 .14934 .18291 .14917 .22437

SBI
ICICI SBI

ICICI

Service Quality Perception SBI

Variables Weight Mean Score Weighted Score

Tangibility

12

4.51

54.1

Reliability
Responsiveness Assurance Empathy Total

29
23 17 19 100

4.50
4.56 4.68 4.61 22.86

130.5
104.8 79.5 87.5 456.4

Service Quality Perception ICICI

Variables Tangibility Reliability Responsiveness Assurance Empathy Total Weights 14 30 23 17 16 100 Mean Score 4.39 4.23 4.24 4.34 4.62 21.82 Weighted Score 61.4 126.9 97.5 73.7 73.9 433.4

FINDINGS
Tangibility weighted average SBI is 54.1 & ICICI bank is 61.4 hence customer perception is more positively inclined for ICICI bank Reliability - weighted average is for SBI is 130.5 & ICICI bank is 126.9 hence customer feels that SBI bank is more reliable . Responsiveness - weighted average for SBI is 104.8 & ICICI bank is 97.5 hence customer feels that SBI bank is more responsive than ICICI bank . Assurance weighted average for SBI is 79.5 & ICICI bank is 73.7 hence customer feels that SBI bank is more responsive than ICICI bank . - weighted average for SBI is 87.5 & ICICI bank is 73.9

Empathy

CONCLUSION
Referring to this study, both state bank of India and ICICI bank customers seeks improvement with their banking services. Their ideal and actual bank services have differences. In terms of quality dimensions, they seem to put proportionate emphasis on tangibility , reliability, responsiveness, assurance and empathy. Both banks customers have given highest importance to reliability but the area of concern varies since the weights are attached to the 5 parameters and the areas of concern change for both.

LIMITATIONS
Due to the Sample taken was from a small region of India, these findings may not rigorously represents the relationship among construct unveiled in this study. The research is purely Quantitative so the level of difficulty is low . Generally , expectations , perceived performance and satisfaction level shift over time and this study looked at one specific point of time and hence , the result is only true at the time of completion of questionnaire.