Investigating the quality of service provision in different branches of the New Economy Bank in Bandar Abbas city based on the SERQUAL model

Dissertation for Master's Degree in Business Administration

Abstract:

The main goal of the current research is to investigate the quality of service provision in different branches of New Economy Bank in Bandar Abbas. In the current research, using the SERVQUAL model, the evaluation and assessment of the quality of service delivery as well as the prioritization of factors affecting the quality of service delivery in New Economy Bank, as a bank with 12 years of experience, have been done on a case-by-case basis. Examining the factors affecting customer satisfaction in this bank can play an effective role in providing a suitable solution to attract customers in New Economy Bank, as well as other financial institutions in the region, according to the cultural and social factors in the region. Considering that in the present research we are looking for solutions to provide better service quality and improve customer satisfaction in different branches of New Economy Bank in Bandar Abbas, by collecting relevant data, the statistical population has been described and analyzed. Therefore, the current research is classified as descriptive and survey based on the data collection method. The data collection tool in this research is a questionnaire. The current research was conducted based on the data collected in 2012, from a sample of 270 customers of different branches of the New Economy Bank in Bandar Abbas. In the current research, the Pearson correlation method was used to investigate the extent and intensity of the relationship between the two variables of the quality of banking services and customer satisfaction, as well as the impact of the variables of the SERVQUAL model on the quality of service and customer satisfaction. The findings of the present research show that among the factors affecting the satisfaction of bank customers, the reliability factor has the greatest role and the empathy factor has the least impact on the satisfaction of bank customers. After the reliability factor, which played the most important role, the factors of responsiveness, reliability, tangible factors and empathy are placed in the next categories.                                                                                   

Keywords of the research: quality of service delivery, SERVQUAL model, reliability, concrete factors

Introduction

In today's competitive world, providing high quality services is a necessity for service organizations, especially banks. Providing high quality services is essential for the survival and profitability of the organization. Banking and financial services are an important part of the service industry. The quality of service delivery is closely related to customer satisfaction in the banking industry. Now, banks know that providing quality service to customers is essential for success, and this is the key to today's competitive and global banking environment. (Naibzadeh and Fatahi, 1388: 76) According to most experts, the surest way to achieve success is to remain in the minds of customers, and this is important only in the shadow of products, services and efforts to improve them, leading to the provision of quality services, and by increasing the level of service quality, customer satisfaction can be increased. (Bahmand, 41:1371)

Chapter One:

Generalities of the research

1-1) Statement of the problem

The share of added value of the service sector in most countries of the world is higher than the share of added value of other economic sectors is more Services are now responsible for creating most of the new jobs. The population working in the service sector in most countries is always more than the population working in other sectors. The service sector is made up of a large set of industries and for-profit and non-profit institutions. Service industries have a product called services that have their own characteristics and the process of marketing, production and supply is inevitably different from the marketing, production and supply of physical products. Service is one of the challenges of managers, especially in recent decades. Service delivery quality has become a key tool for achieving competitive differentiation and promoting customer loyalty.               (Naibzadeh and Fatahi, 2018: 52) Banks as economic institutions always seek to fulfill the expectations and needs of customers. It is very important to examine the factors that influence the creation of trust between customers and the banking system.(Halstead, 1999, 98-99)

In the banking system, customers are the main focus, and in fact, all work is to gain their satisfaction, attention, and attraction. Therefore, in the competitive environment between banks, banks that can gain more customer loyalty are more successful. In the wake of globalization, the operational environment for the banking industry has become more dynamic and competitive. Banks, in search of competitive advantage, have focused most on the quality of services, so that among the competition of banks in the market environment with generally identical products, the quality of service has become the first competitive weapon.

Satisfied customers, as much as they spend more time and money for the organization, they will expect high quality in receiving services. (Rust & Zahorik, 1993, 76)

The most key factor in obtaining customer satisfaction and loyalty is providing appropriate services. An organization that has planned one of its goals to provide appropriate services based on customer expectations and needs can be a successful organization by relying on other banking principles. Providing appropriate services is not possible except on the basis of understanding the needs, interests, facilities and expectations of customers. In other words, the first step to providing quality services to the customer and gaining his satisfaction is knowing the dimensions of service quality and the importance of each dimension for the customer, as well as analyzing his expectations and perceptions in relation to each of these dimensions. (Venus, 43:1383) 2-1) The importance and necessity of the problem The gradual changes that have occurred in the banking industry in the last decade have come from the high competition between banks. Banking is a service that has a lot of contact with people. In addition to what is provided, the way it is presented and the physical environment have a strong impact on the customer's awareness of the service. (Sureshchande et al, 2003, 32) Today, as a result of social progress, customers demand more facilities and efficiency from banks. Therefore, providing superior value to customers is inevitable in the success of business units and service providers. (Kumar, 2010:24) Researchers agree that a critical factor is service quality in business performance and long-term profitability of the company. (Brady & et al, 2002) The reason for this is that service quality leads to customer satisfaction, which in turn has a positive effect on word-of-mouth advertising and loyalty. Attitude and purchase intentions of the customer.                                                              (Gerrard&et al, 2001)

Service quality has a close relationship with customer satisfaction in the banking industry. Banks now know that providing quality services to customers is essential for success, and this is the key to survival in today's competitive and global banking environment. So that the probability of customer satisfaction increases with the improvement of service quality. Increasing customer satisfaction leads to behavioral results such as the commitment to stay (customer retention), creating a two-way link between the service provider and the customer, and increasing the customer's tolerance towards the problems in providing bank services. (Gremler & Gwinner, 2000) Paying attention to customer satisfaction in order to measure and evaluate the quality of services, if financial organizations can adapt to it, can be an important factor in providing quality services to customers, and just like the extensive changes that have been made in banking, the analysis of service components in banks in countries with developing economies can result in obtaining valuable information in the banking industry for other countries. It should be considered as a survival and a differentiating competitive factor. For this reason, banks should check the quality of their services and by knowing their strengths and weaknesses, they should be able to respond to the increasing expectations of customers so that they can guarantee their survival.