Quality of Service in the Banking Sector

Abstract

While observing the various financial institutions in our country we notice the existence of multiple varieties such as: insurance institutions, banks, institutions of social services etc. Among the financial institutions mostly used by businesses and people in general we distinguish the banks. In addition, today’s market tendencies have increased the request for financial bank services. As a result, lately the number of banks in our country has increased. This phenomenon has increased customer service, the quality of service and higher competition among banks. Under these conditions it is necessary that banks use aggressive marketing strategies in order to be successful and competitive among their own kind. Due to the increase in market competition, identifying consumer’s needs and increasing the quality of service has become a very important trend in today’s marketing world. Research has shown that good quality customer service generates better income. While trying to determine what marketing strategies give the edge, academic researchers are trying to figure out what kind of customer service works best in today’s environment so that they can improve it. Based on various studies the quality of service has a huge impact on consumer’s satisfaction and their loyalty, at the same time it is established as a result of comparison that clients do between the expectations they have for service and their perception of the quality of service rendered. (Parasuraman et al., mentioned in Caruana, 2002).The quality of service has a positive effect in the performance of a bank; as a result it gains competitive advantages due to the improvement of quality of service. As such, what clients think of a service overpasses their expectations for the same service. Caruana, 2002; Chumpitaz, 2004). Due to higher internet access in today’s world, the way businesses are managed including the banking business has changed. Consumers are expecting better quality of service, shorter transaction times and better service conditions. However, because the nature of the services, susceptibility, indivisibility, heterogeneity and the quality of services become difficult to be appreciated.

DOI: 10.5901/mjss.2013.v4n9p418