Page 1 of 9

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 03 Issue 01

January 2017

Available online: http://internationaljournalofresearch.org/ P a g e | 162

A Study on Service Quality Perception of Customers

About Select Public and Private Sector Banks in Tirunelveli District

*Ms.V.P. Sharmi, & **Dr.C.Eugine Franco,

Ph.D., Research Scholar (Full Time), Commerce Research Centre, St.Xavier’s College

(Autonomous), Palayamkottai, Tirunelveli.

**Associate Professor of Commerce, St.Xavier’s College (Autonomous),

Palayamkottai, Tirunelveli

Abstract

Quality of service is very

important, especially for the growth and

development of service sector. Due to

increasing importance of the service sector

in the economy, the measurement of

service quality became important.

Undoubtedly owing to the belief that

delivery of high service quality is a must

for attaining customers’ satisfaction and a

number of other desirable behavioural

outcomes, recent years have incensed a

flurry of research exploring the

interrelationship between service quality,

satisfaction and behavioural outcomes.

This study was undertaken to know the

Customers’ Attitude towards Service

Quality of Private Sector Banks in

Tirunelveli District.

Keywords: Service Quality, Satisfaction

& Private Banks.

INTRODUCTION

Banking is essential one in service

industry. As customer is the kind of the

Marker, Customer service is the first

casualty. Satisfying the customers is the

main purpose of every business, but, in

banking sector, it is generally found that

the customers are not satisfied with the

existing banking facilities and services. So

that the government of India has been

appointed committees from time to time

probe into the nature of customer service.

The committee found one identical finding

that the customer service in the Private

sector banks was not up to the mark.

Hence, necessary steps are being taken to

improve the banking system to suit the

changing requirement of the customers.

All these issues can be addressed by

implementation of the right type of

technology for the right purpose. The

focus on the use of computerization has

refused the predominance of its

*

Page 2 of 9

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 03 Issue 01

January 2017

Available online: http://internationaljournalofresearch.org/ P a g e | 163

applications from business orientation to

customer orientation. It has facilitated the

banks to reach to their customers without

the physical presence. Computer resources

provide anywhere and anytime services.

Further, the various committees

established by RBI over the year with

customer service recommended banks

offer excellent customized service and to

enhance the satisfaction level of the

customers. On the other hand, the bank

with respect to retaining the existing

customers, rendering innovative,

technology- base, value- added,

customized services to fulfil the

customers‟ expectations and to enhance

the customer level of satisfaction for

sustainable development of the banks.

Currently, Indian banking industry

has a dynamic and complex environment.

Increasing development of Private and

private commercial banks and

improvements in the kind and way services

have been offered, increasing expansion of

financial and credential institutions and

organs to provide financial and non

financial services, and increasing

development of technology in banking

industry offers a competitive and special

environment to any organization. It

requires that an active organization in the

banking industry of the country pays more

attention to customer satisfaction. This

goal will not be achieved without localized

models and indicators through which one

can make sure of customer satisfaction.

However, appropriate studies have not

been done to realize the dimensions of

service quality. So this study aims to

estimate and evaluate indicators of

Parasuraman model of service quality

through a survey from customers of Melli

bank to have a better understanding of

these dimensions.

Service quality is a recent and more

dynamic, decisive issue in the marketing

thought. It also helps control the

competitive position and consequently

determines the market share and profits

(Shabib, 2002). Therefore, the ability of

banks to continue and survive in the

market depends on their ability to respond

to the requirements of change and interact

with the output of it. As the customers'

needs and wishes are shaped and formed in

the light of their economic, social and

civilisation conditions, there is a close

relationship between the banks' ability to

continue and survive and their ability to

produce services that fit in with the

increasing and changing needs of the

customers. Hence, service organizations,

especially banks, work hard to find

effective ways to counter external changes

Page 3 of 9

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 03 Issue 01

January 2017

Available online: http://internationaljournalofresearch.org/ P a g e | 164

in order to survive and they enhance their

effectiveness by means of activating their

services and creating and developing new

ones. Thus, The importance of achieving

high levels of quality lies in the number of

economic and non-economic benefits

resulting from quality commitment and

lies in eliminating its problems and the

causes of these problems.

IMPORTANCE OF THE STUDY

This study was conducted to

understand the perception of service

quality in the private sector banks in

Tirunelveli district and also to evaluate

how it helps in enhancing the reputation

and attract customer loyalty. With the

increased competition among the private

sector banks, this study would help in

defining a strategy to achieve the

competitive edge and also satisfied

customers. And hence service quality has

been used to position the banks in the

tough market. The study has taken the

SERVQUAL tool for measurement of the

service quality offered by the private

players in the banking industry. The main

assumption is Service quality is multi

dimensional concept and these dimensions

help in measuring the service quality. The

responses were collected based on the five

dimensions, namely assurance, reliability,

responsiveness, tangibility and empathy.

The study identifies that Reliability and

Responsiveness are the most relevant

factors for the service quality perception

and they have compared the individual

scores with the average mean value scored

by the private banks under the study.

STATEMENT OF THE PROBLEM

The strategies adopted by the

Private Sector Banks are more in tune with

those of the foreign banks, where emphasis

is given to establishing superior

benchmarks of efficiency, focusing on

niche customers, providing impressive

customer service and bringing about

operational efficiencies by using high-end

technology. The Private Sector Banks

recruit the finest manpower, employ state- of-the-art technologies and are oriented

towards building a strong brand image.

The Private Sector Banks have made

banking more efficient and customer

friendly. Undoubtedly, being tech-savvy

and full of expertise, the Private Sector

Banks have played a major role in the

development of the Indian banking

industry. The Private Sector Banks always

try to introduce new products and make

the industries achieve expertise in their