The paper "Understandings of the SERVQUAL Model in Relation to the Banking and Finance Services" is an outstanding example of a marketing case study. Bank managers all over are concerned in delivering quality service to their clients. They know that this is the only way that you can grow the client base and retain it as well. Customer satisfaction creates loyalty amongst customers and strengthens the brand of reputable force in the market it is a very effective competition tool to use especially in a sector that offers homogeneous commodity that is being offered by others players in the industry.
This review report attempts to bring out the various understandings of the SERVQUAL model in relation to the banking and finance services. The report has particularly interested in relating the various expectations and perceptions of both customers and management in the banking and finance sector to the five dimensions of focus; tangibility, reliability, responsiveness, empathy, and assurance. Creation of Customer-centred philosophies created upon identification of gaps in service delivery is the only way that managers in the banking sector can be able to balance between finance and other resources constraints in running the organizations and satisfying the expectations of the customers.
SERVQUAL model has been used for various purposes in retail and pure service sectors. It is an effective tool especially for sectors such as banking and finance since measuring the quality of service is quite complex than measuring the quality of goods (Nigel $ Alexander, 2006). Scope and objectives This report is intended to review at least five relevant literary journals relating to utilization of the SERVQUAL model in the banking and finance sectors.
In particular, the paper will put a lot of emphasis on identifying the major gaps in expectations and perceptions in the sector in regards to the provision of quality service and customer satisfaction. This review of SERVQUAL models within the banking sector, however, does not include the implementation of SERVQUAL in other sectors in the service industry. It is worthy to note that service delivery concept is almost similar across the industry and can, therefore, be measured using the same dimensions. In light of this, therefore, this review might tend to be almost referring to the service industry in general but a lot of care has been taken to ensure the focus is in the banking and finance sector. The overall objective of this review is to identify the major issues in the following SERVQUAL dimensions which are particularly of a big impact in relation to service delivery and service improvement in the banking and finance sector; The tangibility dimension The reliability dimension The responsiveness dimension The empathy dimension The assurance dimension Methodology This review report is actually a compilation of various main findings of five journal articles.
Great consideration was taken in selecting the journal ar5ticles in order that relevant and up to date information was acquired for the purposes of compiling the most useful data that will give the real picture of SERVQUAL in the banking and finance sector. The articles have exhaustively expounded on the concept of SERVQUAL model implementation in the banking and finance sector. Although there is little or no consensus of opinions and agreements in the best way to measure service quality in this sector, the SERVQUAL model which was developed by Parasuraman, Valarie $ Leonard (1988) has been extensively utilized to measure service quality and provide a basis of improving service quality provision in the banking and finance sector.
Arash .S, (2006), SERVQUAL and Model of Srvice Quality Gaps: A Framework for Determining and Prioritizing Critical Factors in Delivering Quality Services, [e-journal] Available at http://epi.univ-paris1.fr/servlet/com.univ.collaboratif.utils.LectureFichiergw?ID_FICHE=44733&OBJET=0008&ID_FICHIER=121065 [accessed on 21-oct-2012]
Rakesh. R, (2012), Quality assessment of Banking Industry Using the SERVQUAL model: Indian Streams Research Journal, [e-journal] available online at http://www.isrj.net/publishArticles/615.pdf [accessed on 21-oct-2012)
Krishna .N, Swapna. B, Gantasala. P, (2010), Service quality and its effect on customer jsatisfaction in Retailing: European journal of social sciences –vol.16, [e-journal] accessed online at http://www.eurojournals.com/ejss_16_2_08.pdf [accessed on http://www.eurojournals.com/ejss_16_2_08.pdf 21-Oct 2012]
Parasuraman. A, Valarie.A, Leonard. L, (1988), SERVQUAL: A multiple-Item Scale for Measuring Consumer Perceptions of Service Quality, [e-journal] accessd online at http://areas.kenan-flagler.unc.edu/Marketing/FacultyStaff/zeithaml/Selected%20Publications/SERVQUAL-%20A%20Multiple-Item%20Scale%20for%20Measuring%20Consumer%20Perceptions%20of%20Service%20Quality.pdf [accessed on 21-oct-2012]
Ravichandaran. K, Arun. K, (2010), Application of Servqual Model on Measuring Service Quality: A Bayesian Approach, [e-journal] accessed online at http://www.macrothink.org/journal/index.php/erm/article/download/341/236 [accessed on 21-oct-2012]
Lianxi. Z, Ye.Z, Jia. X, (2002). A Critical assessment of Servqual’s Applicability in the Banking Context of China: Asia Pacific Advances in Consumer Research Vol.5 [e-journal] available online at http://www.acrwebsite.org/search/view-conference-proceedings.aspx?Id=11754 [accessed on 21-oct-2012]
Sahney. S, Banwet.D, Karunes. S, (2004), A Servqual and QFD approach to total quality education: A student perspective. International Journal of Productivity and performance
Kang .G, James. J, Alexandris. K, (2002) Measurementt of internal service quality: Application of the SERVQUAL battery to internal service quality.Vol.12
Van Iwaarden. J, Wiele. T, Millen.R, (2003), Applying SERVQUAL: An explatory study, international Journal of Quality $ Reliability Management- Vol.20
Nigel. H, Alexender. J, Eds., (2006), The Handbook of Customer Satisfaction and Loyalty Measurement, Gower Publishing Ltd