Short communication: 2022 Vol: 14 Issue: 4
E-Service quality of banking sector: A literature review
Manjula Gupta, Maharaja Agrasen University Baddi
Citation Information: Gupta, M. (2022). E-Service quality of banking sector: A literature review. Business Studies Journal, 14(4), 1-10.
Abstract
Banking Sector is prepping with dynamic ICT administrations now days. In this universe of dynamism Service quality turns into the essential issue for banking industry after the introduction of technology in banking sector as they are providing e-services. Now a customer doesn’t have to stand in long queues for deposit or withdrawal of money. They do not have to depend upon others for paying the bills. E-services have replicated most of the physical services of banks During the most recent couple of a very long time there is remarkable change experienced in the financial business and the explanation being is Service Quality as quality is the only feature which associates a customer with a specific bank. Realizing that both help quality and worth is hard to gauge, banking organizations intensely depend on client’s quality insight and assumptions. It very well may be accomplished by asking them inquiries identified with assumptions and their view of the help quality through painstakingly planned overviews. Different examinations have been done to merge the elements of administration quality and SERVQUAL has been acknowledged too built instrument to gauge administration quality. The observational examination being developed of administration quality hypothesis proposes that further developed assistance quality assumes significant part in generally consumer loyalty. Study would zero in on different examinations on Service Quality led by before scientists in a variety of ventures. Consequently, present investigation is one of a kind as in it is new to Indian inn industry. The paper investigates the review of various researches conducted on Service Quality by using SERVQUAL Method. And tried to explore what the researchers have concluded so far.
Keywords
Banking Sector, Administrations, Hypothesis Proposes, Investigation.
Introduction
The main Purpose of this Study is to explore the dimensions of service quality used by various authors in current scenario. Besides to find out the opportunities and risks associated with it. It also emphasize on analyzing the role of service quality in the banking sector and impact of improving service quality on banking sector Productivity.
Objectives of the Study
1. To explore e-service quality dimensions in current scenario.
2. To analyze the importance of e-service quality management in banking Sector.
3. To investigate role of SERVQUAL model in evaluating service quality.
Research Methodology
This study is based on secondary data derived from various literature sources which includes various research papers, news articles, and websites. The statement and findings of the paper are absolutely conceptual in Nature and highlighted the various reviews of research work done by others.
Concept of Service Quality
Service Quality refers to the gap between expectations and perceptions of a customer. Many studies have established the relationship between service quality and customer satisfaction. Companies and organizations strive hard to achieve high customer satisfaction, especially those companies that consider a long-term relationship with customers as an asset. Importance of quality for business performance in service sector has been also widely recognized in the literature through the great impacts on different. Service quality is an assessment of how well a delivered service conforms to the client's expectations. Service business operators often assess the service quality provided to their customers in order to improve their service, to quickly identify problems, and to better assess client satisfaction.
Dimensions of Service Quality
Importance of determinants of quality for customers would vary across different service types. This could be expected because different services are structured and delivered in different contexts and providers consciously position them at different levels of variables of concern. (Emari et al., 2011). Various dimesions have been propounded with the passage of time but they were originally framed by a well-known team of Parasuraman et al. (1988) proposed 10 dimensions for service quality: tangibles, reliability, responsiveness, competence, courtesy, credibility, security, access, communication and understanding the customer. The model's developers originally identified ten dimensions of service quality, but after testing and retesting, some of the dimensions were found to be auto correlated and the total number of dimensions was reduced to five, namely - reliability, assurance, tangibles, empathy and responsiveness. These five dimensions are thought to represent the dimensions of service quality across a range of industries and settings. To make it more specific for hotel industry, the five dimensions were further divided into 22 components. This includes Figure 1.
Figure 1 Dimensions of Service Quality Across a Range of Industries and Settings
Tangibles (Jeyalakshmi & Meenakumari (2016)
Company has modern equipment;
1. Company possesses visually attractive equipment and facilities.
2. Appearance of staff.
3. Visually appealing materials connected with service.
Reliability
1. Realization of assured service.
2. Reliability in customer problems solving.
3. Delivering the appropriate service from the first visit onwards.
4. Providing the promised service at the promised time.
5. Insisting on zero defect policy.
6. Willingness to help customers.
7. Willingness of personnel to respond to customer request.
Responsiveness
Informing the customers about the time of service delivery;
1. Prompt service delivery to customers.
Assurance
1. Personnel who instill confidence.
2. Customers feeling about dealings with the company.
3. Courtesy of the personnel.
4. Knowledge of personnel to answer the customer questions.
5. Empathy (understanding) Giving individual attention to customers.
6. Offering individual or personal attention to customers.
7. The personnel focus on customers interests.
8. The personnel understand specific needs of their customers.
9. Operating hours are convenient to customers.
SERVQUAL methodology included on two sets of 22 questions, where the respondents are given the first set of 22 questions prior to service delivery to measure their expectations; the second set of 22 questions at the end of service to measure the experience, perception (attitudes) of consumers about the delivered service.
Literature Review
Parasuraman et al. (1988) have introduced five specific dimensions of service quality which apply regardless of the service industry viz. assurance, responsiveness, tangibles, empathy and reliability. They have devised a scale called SERVQUAL since there were several models (scales) for the measurement of service quality and the satisfaction of customers, they are often too generalized or ad hoc, and as such hard to apply in the hospitality industry. On other hand TQM, which began before all in companies that dealt with products, due to the specificities of services due to factors such as impalpability, inseparability from provider and receiver of service, and perish ability, a specific concept called SERVQUAL (Services Quality Model) was created. It has been a point of discussions amongst scholars that service quality has significance in a people-oriented industry such as hospitality. And wide range of research is undertaken all over world. However, management-employee variances in the perception of Service Quality tenets have been studied less.
The study conducted by Ross has examined hospitality industry employee Service Quality tenets, employee perceptions of Management Service Quality principles with major motivational and personality. The study has found that there are numerous differences ideals such as Practical Experience, Being Apologetic, Understanding, genuine, frank and the Formal Qualifications. the analysis involving the divergent ideal of Genuineness revealed significant findings and concluded in two clear sets, a Negative group where perceived management ideals exceeded employees' ideals on hand and a Positive group where employees' ideals exceeded perceived Management Service Quality Ideals on other hand. The discrepancies in the consumer evaluation of service quality are largely defined by Gap. The basic gap is the Consumer gap, which emerges as the discrepancy between customer expectation regarding service and customers perception of the service delivery in the hotel. Customer gap is the outcome of one of 4 gaps of as service quality, which emerge as certain discrepancies within the design and delivery phases of service to the consumers. Following are the five key discrepancies were identified by Parasuraman et al. (1988): The gap between;
1. Customer Expectation and Management Perception.
2. Service Quality Specification.
3. Management Perception.
4. Communication Gap.
5. Service Delivery Gap.
Service Quality and SERVQUAL Method of Measuring Service Quality
The SERVQUAL model is mainly used as a multi-dimensional research instrument for customer satisfaction, and consists of the following dimensions: reliability, empathy, responsiveness, assurance, and tangibility. Three other dimensions were added to this model in our study, which are financial aspect, access and employee competences (Pakurar et al., 2019). It is a method to identify and solve problems related to quality of services. It was presented by A. (Parasuraman et al., 1988). The main idea is based on 5 gaps, which result in lower than expected quality of services. The method was one of the first tools created to evaluate and improve quality of services.
Quality is a Gap between Expectation and Perceptions
The GAP Model of Service quality helps to identify the gaps between the perceived service and the expected service. Five Gaps occur in the Service Delivery Process Like The gap between Customer Expectation and Management Perception, Service Quality Specification and Management Perception and many more. Customer satisfaction is a function of expectations and disconfirmation and one of the key elements of business success and profitability is customer satisfaction, the more satisfied the customer, the more durable the relationship (Prasad, 2015).
Gap Model of Service Quality
The Gaps Model was first of all published in 1985. This model was further developed by Parasuraman et al. (1988). This Model represents a gap between expected Service and Perceived Service. This Model aims to identify the possible gaps between expected Service and Perceived Service. This model highlights the concepts, strategies, and decisions which are essential for quality offer which starts from the consumers, identifies necessary plan for firm to offer a service and go back to consumers in the hub of a model: the comparison between expectations and Perceptions (Mauri et al., 2013).
These Gaps are as under (Jeyalakshmi & Meenakumari (2016))
The model, based on the expectation-confirmation theory, illustrates how consumers assess quality, taking into account the factors that contribute to determine quality in its various connotations: quality expected by customers, quality offered by firms, quality perceived by users after the service consumption. Stemming from the definition of quality as the capability to satisfy consumer expectations, the Gaps Model aims to identify the possible causes for a gap between expected quality and perceived quality (Gap 5). The model conceptualizes key concepts, strategies and decisions which are essential for the quality offer according to a sequence which starts from the consumer, identifies necessary actions for the firm to plan and offer a service, and go back to the consumer in the hub of the model: the comparison between expectations and perceptions. According to the above-mentioned authors, service quality is a multidimensional concept, assessed and perceived by consumers according to a set of essential components, originally grouped in ten categories (1985) and then in five levels (1988):
1. Tangible aspects: Aspects of physical facilities, equipment and personnel.
2. Reliability: Capability of the firm to perform the promised service in a careful and accurate manner.
3. Responsiveness: Willingness of the firm to help customers and perform the service promptly.
4. Assurance: Competence and politeness of the personnel, capability to inspire confidence.
5. Empathy: Personalized assistance that the firm conveys to its customers Quality expected by customers, quality offered by firms, quality perceived by users after the service consumption.
Gap-1
Knowledge Gap: Which occurs when customers assumes wrong quality expectations (Mauri et al., 2013)
Gap-2
Standards Gap: It is the Difference between management’s perceptions of consumer’s expectations and service quality specifications, i.e. improper service-quality standards (Dhanalakshmi et al., 2010).
Gap-3
Service Delivery Gap: Service specifications versus service delivery; as a result of role ambiguity and conflict, poor employee-job fit and poor technology-job fit, inappropriate supervisory control systems, lack of perceived control and lack of teamwork (Shahin, 2004).
Gap-4
Communication Gap: Service delivery versus external communication; as a result of inadequate horizontal.
Gap-5
Interpretation Gap: This gap highlights the gap between what management wants to Provide to customers and what customers interpret after receiving the delivery of Product (Jeyalakshmi & Meenakumari, 2016).
Importance of Service Quality
Service Quality is the most adhesive Component of Business Sector Specially who has direct and day to day dealing with Public as in case of banking. Because customers can frequently observe and interpret the quality outcomes. They can easily make any interpretation so in order to retain customers it is essential that they should be given due attention.
Review of Service Quality of Various Banks
Angur et al. (1999) examines the applicability of alternative measures of service quality in the developing economy of India and assesses related issues in that context. Based on data gathered from customers of two major banks, overall results support a multidimensional construct of service quality and suggest that the SERVQUAL scale provides greater diagnostic information than the SERVPERF scale. However, the five-factor conceptualization of SERVQUAL does not seem to be totally applicable, and no significant difference was found in the predictive ability of the two measures. Further, although SERVQUAL and SERVPERF have identical convergent validity, SERVPERF appears to have higher discriminant validity than SERVQUAL.
Sureshchandar et al. (2003), in their paper, focused on investigating the important factors of customers’ perceived quality in banks of developing economy like India. The authors had taken 15 public sector ban (Prasad, 2015), 14 private banks and 14 foreign banks for the period under study. The researchers found that there seems to be a great variation in respect of services offered by three groups of banks. They used core services such as human element, systemization of services, tangibility of services and social responsibility as critical factors. They analyzed that three groups of banks in India seem to vary significantly in terms of service quality factors but from the customer perception of service quality, it could be acceptable only if customers’ need could be satisfied at the right time in a right manner.
Nippatlapalli (2013) in his research paper “A Study on Customer Satisfaction of Commercial Banks: Case Study on State Bank of India”. This paper present Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "The number of customers or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals”.
Dash & Kumar (1970) in their research paper “Constructing a Measurement in Service Quality for Indian Banks: Structural Equation Modelling Approach”. This paper constructed a measure in service quality for Indian banks and established a causal relationship of service attributes performance with customer satisfaction. The SERVQUAL Model was used. The quantification of service quality led to the attempt to construct an index. The index was constructed using Structural Equation Modeling (SEM) and American Customer Satisfaction Index (ACSI) as the underlying frameworks. The analysis was based on data of 200 bank customers from the Delhi NCR. The results indicated that service quality variables are important antecedents of customer satisfaction and retention. These antecedents of service quality have a positive significantly relationship with customer satisfaction. The study concludes with an analysis of how different dimensions of service quality performance attribute impact on customer satisfaction and retention. Such a framework should provide valuable insights to the bank manager to identify key service performance indicators and to design more effective and efficient marketing and management strategies to satisfy their customer.
Gupta & Agarwal (2013) in their research paper “Comparative Study of Customer Satisfaction in Public Sector and Private Sector Banks in India”. This paper gives with the introduction of liberalization policy and RBI's easy norms several private and foreign banks have entered in Indian banking sector, which has given birth to cut throat competition amongst banks for acquiring large customer base and market share.
Henderson (2013) the purpose of his paper is to provide a review of the SERVQUAL research on service quality in the following areas: (1) definition and measurement of service quality, and (2) reliability and validity of SERVQUAL measures. This study identified a total of nine service quality dimensions. Obviously, in order to maintain a high level of overall service quality, the service providers should pay attention to all these dimensions tested in this study. However, to strengthen competitiveness in the extremely competitive market, given limited organizational resources, it is recommended that the companies should focus on the main six key dimensions, assurance; reliability; responsiveness; tangibles, empathy, and Pricing (as an extra dimension) in order to achieve high level of service quality and customer satisfaction simultaneously.
Alimony the researcher validated his study with the Technology Acceptance Model (TAM). The findings of his study were that customers are enlightened on various Internet Banking Services, Security features adopted by banks and that customers take great precautions for safe banking over the Internet. He also expressed the urgent need for creating awareness on the risk preventive security features adopted by banks. This study is confined to the state of Kerala.
Prasad (2015) asserts that the Service quality has become an important tool in the service industry. The concept of customer satisfaction is widely recognized as a key differentiator which occupies a central position in marketing thought and practice and is the major outcome of any marketing activity She examined quantitatively the importance of service quality on customer retention. This study has adopted non probability sampling method and the customers of the selected banks constitute the sample frame. The data has been analyzed using SPSS version 16. Multiple regression analysis has been used to analyze the data. And concluded that EI (Emotional intelligence) is an important factor influencing service quality. Furthermore, the significant relationships identified between EI, relationship marketing and service performance supports the proposition of incorporating EI in to the bank employee-customer service encounter.
Yarimoglu (2015) traced the requirement of industry-specific national service quality indices for measuring quality in both traditional and electronic services in various industries in a country. In this study, the literature about service and e-service quality measurements was reviewed, and a three-dimensional framework was developed. It was found out that the dimensions of each service quality measurement were all different from each other due to the different characteristics of the industries that each study has been conducted in. The study showed that there is a need for an industry-specific national service quality index and suggested that national customer satisfaction indices which have existed in the literature can be a model for industry-specific national service quality indices.
Khan (2016) the objectives of the researcher are to analyze the trends, growth, and issues emerging with respect to mobile banking as well as to develop strategies to enhance mobile banking. 150 respondents were selected out of which 100 were customers, and 50 were bank employees from various public and private sector banks. The respondents selected were from the Southern Rajasthan from Udaipur with the help of convenience sampling technique. Various statistical tools like standard deviation and z test were used to test various hypotheses framed. Some of the significant findings were that bank employees felt that mobile banking improved service efficiency; it was also found that a significant reason behind deciding to use mobile banking was timesaving. The researcher suggested that banks make a mandatory disclosure of risk and security while using Mobile Banking as well as banks should provide multiple channels for registration wherein a customer does not require visiting the branch for registration.
Purpose of the Study
A review of various research papers has been done in order to find out various results given by them. It is analyzed as Table 1.
| Table 1 Analysis and Interpretation | ||||
| S. No | Name of Author | Title of the Study | Tools Used in the Study | Results |
| 1. | (Angur et al., 1999) | Service quality in the banking industry | SERVQUAL VS SERVPERF | SERVPERF appears to have higher discriminant validity than SERVQUAL |
| 2. | (Sureshchandar et al., 2003) | Customer Perceptions of service quality in the banking sector of a developing economy: A critical Analysis. | SERVQUAL DIMENSIONS | They analysed that three groups of banks in India seem to vary significantly in terms of service quality factors but from the customer perception of service quality, it could be acceptable only if customers’ need could be satisfied at the right time in a right manner |
| 3. | (Nippatlapalli, 2013) | “A Study on Customer Satisfaction of Commercial Banks” | Descriptive Analysis | Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals |
| 4. | (Dash & Kumar, 1970) | “Constructing a Measurement in Service Quality for Indian Banks”. | Structural Equation Modelling | The results indicated that service quality variables are important antecedents of customer satisfaction and retention |
| 5. | (Gupta & Agarwal, 2013) | “Comparative Study of Customer Satisfaction in Public Sector and Private Sector Banks in India”. | Conceptual study | This paper gives with the introduction of liberalization policy and RBI's easy norms several private and foreign banks have entered in Indian banking sector, |
| 6. | (Henderson, 2013) | Service Quality: A Critical Literature Review. | 15 Dimensions of SERVQUAL Method Used | it is recommended that the companies should focus on the main six key dimensions, assurance; reliability; responsiveness; tangibles; empathy, and Pricing( as extra dimension) in order to achieve high level of service quality and customer satisfaction simultaneously |
| 7. | (Prasad, 2015) | A Study on the Role of Service Quality on Customer. MSRUAS. | SERVQUAL | The Customer retention is the necessary step to be taken. |
| 8. | (Yarimoglu, 2015) | A Review of Service and E-Service Quality Measurements: | Conceptual study | The study showed that there is a need for an industry-specific national service quality index and suggested that national customer satisfaction indices which have existed in the literature can be a model for industry-specific national service quality indices. |
| 9. | Khan (2016) | Electronic Commerce: A Study on Benefits and Challenges in an Emerging Economy. | like standard deviation and z test | The researcher suggested that banks make a mandatory disclosure of risk and security while using Mobile Banking as well as banks should provide multiple channels for registration wherein a customer does not require visiting the branch for registration. |
Conclusion
To Sum up the overview of Literature Review of Service quality specially in banking sector that this sector is most quality needed Sector and there are some areas in which more work is still to be done like
1. Network
2. Ease of approaching bank officers via Phone
3. Ease of submitting Complaint regarding any issue
4. Location of ATM etc.
Besides it Provides a deeper knowledge on various dimensions of Service Quality Most of the researchers have Propounded that it is very essential to give due attention towards customers and it can only be done by providing them five dimensions of Service quality. As Service quality is the most needed factor for every business Industry dealing with the customers. In the absence of Service quality no business can grow dynamically.
References
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Received: 02-Jun-2022, Manuscript No. BSJ-22-12117; Editor assigned: 03-Jun-2022, PreQC No. BSJ-22-12117(PQ); Reviewed: 17-Jun-2022, QC No. BSJ-22-12117; Revised: 27-Jun-2022, Manuscript No. BSJ-22-12117(R); Published: 04-Jul-2022