Contributions of Service Quality Dimension in Building Positive Attitude Towards Banks

CONTRIBUTIONS OF SERVICE QUALITY DIMENSION IN BUILDING POSITIVE ATTITUDE TOWARDS BANKS

Abstract: bank is a fastest growing service industry. This industry is facing intense competition now-a-days. Qualities of service provided can differentiate one bank from another in the marketplace. We studied different dimensions of the service quality to understand the behavior of customer and to find out the dimensions that contributes to the perception of service quality among customers. We conducted a survey and we analysis our survey using multiple regression analysis. From the analysis we found that reliability & responsiveness in the servqual model contribute to the perception of the service quality among customers. These findings can be used in the banking industry to formulate the marketing strategy to improve the perception of service quality among customers.

INTRODUCTION:

The banking industry in Bangladesh is highly competitive. According to International Finance Corporation - IFC (2009), the financial sector in Bangladesh consists of a central bank (Bangladesh Bank), 4 state-owned banks, 5 Government owned specialized banks, 30 Domestic Private Commercial Banks, 9 Foreign-Commercial Banks, and 29 Non-Bank Financial Institutions. 6562 branches of 49 banks operate in the country (Bangladesh Bank, 2006). According to IMF (2007), Private Commercial Banks command the greatest market share in terms of both industry assets and deposits. In late 2006, the contribution of financial sector assets to GDP was roughly 69%; out of them, the banking sector accounted for 58%. Data shows that retail banking is one of the most important sectors in the Bangladesh economy. The interrelationships between service quality and positive customer attitude may provide creative ideas for improving services in order to gain a competitive advantage in the retail banking sector in Bangladesh.

Service quality is one of the critical success factors that influence the competitiveness of...