The Impact of Service Quality on Customer Satisfaction and Loyalty in Indian Banking Sector: An Empirical Study through SERVPERF

This study examines the impact of service quality on customer satisfaction and Loyalty in Indian Banking sector by applying SERVPERF scale. A total of 50 customers of State bank of India, Mohan Nagar Township branch of Salem District in Tamilnadu were interviewed on convenient basis for the above purpose.  Tools like Exploratory factor analysis. Inter-Correlation, Analysis of variance, Multiple Regression analysis  are carried out and the result revealed that out of five  service quality factors considered,  Assurance is having a highest Mean score of SERVPERF (P) score  and the bank should concentrate on Reliability as it has the least mean score of SERVPERF. Regarding the association between the Demographic variables and the service quality factors, it is seen that there is no significant association found between them except income in case of Empathy and Marital status in respect of all service quality factors. It is also observed that there is a significant association found between all the Service quality factors and the customer satisfaction as well as with customer Loyalty. While analyzing the antecedents of Customer satisfaction and Loyalty, factors like Responsiveness, Reliability and Empathy are significantly influenced and also explained respective percentage of relevant changes in the Independent variables considered.