1. Service Quality:
Public, Private, and Foreign Banks
Presenter ： Radium Cheng
Instructor ： Dr. Teresa Hsu
October 7, 2013

2. Citation
Swar, B. N.,& Sahoo, P. K. (2012). Service
Quality: Public, Private, and Foreign Banks.
Journal of Indian management, 9 (3), 43-50.
2

3. Content
IntroductionI
Literature ReviewII
MethodologyIII
ResultsIV
Conclusion &
Suggestions
V
Future StudyVI
3

4. Introduction
• Background
The need for quality is felt everywhere by every organization,
whether it is public, private or foreign sector.
The banking industry in India has been a witness for the last
decade to several regulatory changes that have resulted in a
heightened level of competition among the banks.
4

5. Introduction
• Purpose of the study
• The present study focuses on the relationship
between service quality and service delivery among
public, private, and foreign banks in Odisha.
5

6. Literature Review
• Parasuraman et al (1988) developed a twenty-two item
instrument representing the five dimensions, recognized
as .SERVQUAL
6

7. Literature Review
• Suresh Chandar et al (2001) identified five factors of
service quality as critical from the customers’ point of view.
• 1. Core service or service product
• 2. Human element of service delivery
• 3. Systematization of service delivery: Non-human element
• 4. Tangibles of service - Services capes
• 5. Social responsibilities
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8. Literature Review
• Mohammad Al-hawari (2008), finds that there is a
positive and significant relationship between the
proposed traditional service quality factors and
customer satisfaction.
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9. Literature Review
• Research Hypothesis
• H1: Customers’ perceptions of Service delivery influencing
customers’ perceptions of service quality
• H2: Customers’ expectations of Service delivery influencing
customers’ expectations service quality
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10. Method
• Participant
• 600 customers from 6 banks have been selected.
• 524 usable questionnaires
87.33%
valid
Invalid
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11. Method
• Questionnaire
• Part I – SERVQUAL scale
• Part II – Demographic information
11
31 statements
Perception of
Service Quality
Expectation of
Service Quality

12. Method
• Sample Profile
• These banks are purposely selected.
200
300
100
Private sectorForeign sector
Public sector
179
276
69
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13. Result
Elements of Service
Quality
Service Quality
Perceptions Expectations
Reliability .739 .721
Assurance .961 .826
Tangibility .837 .839
Empathy .923 .912
Responsiveness .830 .815
Service Quality Reliability Test
0.7 13

14. Result
Elements of Service
Delivery
Service Delivery
Perceptions Expectations
Systemization Elements
of Service Delivery
.801 .897
Human Elements of
Service Delivery
.876 .834
Service Delivery Reliability Test
0.7
14
Cronbach’s alpha value fulfills the reliability test requirement.

15. Result
Customers’ Perceptions of Service Delivery
influencing Customers’ Perceptions of
Service Quality
Model it
R .95
R2
.90
Coefficients
B .90
ᵦ .95***
• Hypothesis
1
15
Customers’ perception of service delivery accounts for 90%
of the variation in customers’ perceptions of service quality.

16. Result
Customers’ Expectations of Service Delivery
influencing Customers’
Expectations of Service Quality
Model it
R .97
R2
.93
Coefficients
B .81
ᵦ .97***
• Hypothesis 2
16
The expectations of service delivery significantly influence
the expectation of service quality.

17. Conclusion & Suggestions
• Efforts of the banks have to be made that level of
quality service which exceeds the perceived
expectations of customers and thus creates a
‘wow’ syndrome among all visiting customers.
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18. Conclusion & Suggestions
• Banks should make investment in research so as
to understand customers’ needs and expectations
at all stages in the service delivery process in
order to determine the key components of service
quality.
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19. Future Study
Service Quality
Customer
Loyalty
Customer
Satisfaction
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• Participant
• The 200 employees in the corporation
• Instrument
• Parasuraman et al. (1988)
• 22 statements of the SERVQUAL instrument
• 22 statements of the SERVQUAL instrument

20. Thank You
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