An Analytical Study of Customers’ Loyalty towards Service Quality of New Generation Banks in Chennai

Author Name : Dr. A. Sujatha, Dr. C. Chitra

ABSTRACT

Service quality is extensively considered as a very important factor for the bankers to flourish customer relationships. Customers are not only satisfied by the number of products offered but also by the quality of services provided to them. Therefore, the banks must assess and reassess how customers perceive the services, what are the new and emerging customers’ expectations and their needs before providing the services or else the customers may switch over to any other competitor who may offer better services. The bank are able to provide diversified products and good quality services to different kinds of customers, it is also imperative any gabs in service quality because the banking industry is highly competitive. A focus on service excellence can help bank to cut down their costs and increase efficiency of their operations leading to a boost in revenues and increased customer Loyalty. Provision of high quality service will enhance higher customer satisfaction and it leads to customer loyalty. In this study, SERVQUAL is used primarily and it is modified to suit the research requirements. The present study makes a systematic attempt to assess the impact of Service Quality on Customer Loyalty in New Generation Banks in Chennai. Statistical tools like percentage, Mean and Regression Analysis was used for the study. The result shows that Assurance and Empathy dimensions of service quality have more impact on Customer Loyalty.

Keywords: SERVQUAL, Service Quality, Customer Loyalty, Customer Satisfaction, Customer Expectation, New Generation Banks