The paper "Competition in the Service Industry" is an excellent example of a research paper on business. The quality of services provided to customers is very vital in determining the competitive advantage of a bank. This is because university students like any other customer will be more inclined to transacting in a bank that provides them with high-quality customer services. As indicated by Barbara, Jayne, and Vincent-Wayne, the quality of customer services has been increasingly recognized as a very crucial aspect of the success of any business (4). The banking sector is not exceptional in this sector means that it is also impacted by the quality of services offered.
Banks usually earn higher if they are capable of positioning themselves in a better position in as far as service quality is concerned that their competitors within a particular market. As reported by Hossain and Leo, service quality is a very imperative strategy that banks should focus on majorly (339). The behavior of students moving from bank to the other in a particular market may be a result of the services provided by these banks.
This shows that customers’ behaviors are a result of the customer services provided in a bank (East et al 98). Customers usually perceive differences in the level of services provided in banking institutions and evaluate the performances of these banks in relation to their personal contact and interaction (Mokhlis et al 258). In spite of the fact that most of the university students are not employed and therefore most of their finances are derived from educational loans, they offer excellent business opportunities for banks. This is because all their loans are provided through banks.
It is, therefore, the role of banks to ensure that they attract university students to transact in their banks in order to make more money. It has been reported by Blythe (33); students’ market is increasingly growing and has become very lucrative making many banks to venture into that market. In developing and developed countries, education is considered a tool for development and hence the numbers of public and private universities are increasing drastically hence increasing the number of students. This shows that the number of students to be targeted is very large and hence a bank can make handsome profits out of this market (Hoffman & Bateson 323).
This has increased competition in this market and hence a bank that is to excel in this market has to focus on the provision of high-quality customer services. It is the expectations of students’ customers that a bank should have modern and advanced information and communication technology in order to ease the process of transferring money (Zopounidis 4). Students would not be interested in transacting in a bank that takes very long before transferring money.
The interaction that is created by the employees of a bank with the students is very vital in making sure that customers feel being recognized (Ramesh 274).