Investigating the effect of service quality on customer satisfaction in Iran's Qarz Al Hasaneh Mehr Bank (Shiraz and Maroodasht branches)

Dissertation for receiving a Master's degree (M.Sc.)

Strategy: Agricultural Economics

Investigation of the effect of service quality on customer satisfaction in Qarz Al-Hasneh Mehr Bank of Iran

(Shiraz and Maroodasht branches)

Abstract

The goal of all service institutions, including banks, is to provide appropriate and satisfactory services to customers. Since banks operate in an environment with undifferentiated products, service quality is recognized as the first weapon of competition. The present study was conducted with the aim of measuring the quality of services provided by Qarz Al-Hasneh Mehr Bank of Iran (Shiraz and Maroodasht branches) and also investigating the relationship between the quality of banking services and customer satisfaction. In this research, the Seroperf model was used to evaluate the quality of services. The statistical population of this study was the customers of Qarz Al Hasaneh Mehr Iran Bank in Shiraz and Maroodasht and the statistical sample consisted of 150 customers. The required information was collected using a questionnaire in 2013. The results of the inferential data analysis using Pearson's correlation coefficient show that customer satisfaction increases with the increase of each of the examined criteria (trust, assurance, responsiveness, empathy). Also, the lowest to the highest correlation coefficient belongs to the criteria of confidence, responsiveness, empathy and trust, respectively. Therefore, by emphasizing as much as possible on factors with a higher correlation coefficient, it is possible to increase customer satisfaction. In addition, based on the results of Friedman's test in order to rank indicators affecting customer satisfaction, the index "awareness, expertise, knowledge and skill of the branch manager and staff" is the most important factor affecting customer satisfaction with Bank Mehr Iran, and the index "physical facilities and welfare of the bank" is the least important factor from the perspective of customers, and other indicators are placed between these two factors.

Words Key: banking service quality, customer satisfaction, Seroperf model, Pearson correlation test, Friedman test rtl;">1-1-Introduction

The customer is one of the important environmental factors for any organization. From the traditional point of view, a customer is someone who buys the products of a company or organization, or in other words, a customer is someone who receives goods or services. Today, this definition is no longer clear and complete. The customer is actually someone whose behavior the company or organization wants to influence with the values ??it creates. The success of all organizations and institutions, whether manufacturing or service, for-profit or non-profit, governmental or non-governmental, is influenced by several factors, one of the most important of which is customer satisfaction in order to achieve excellence in business. It is believed that customer satisfaction will affect their future reactions towards the organization. including readiness and eagerness to reuse, desire to recommend to others and willingness to pay the price of the product without haggling or trying to find suppliers who offer the same product at a lower price (Kavosi and Saqqaei, 2004). Management experts have considered obtaining customer satisfaction as one of the most important tasks and priorities of corporate management, and the need for top managers' consistent adherence and solidarity to satisfy customers is considered the main prerequisite for their success and the organization. Today, all organizations seek to attract customers and increase their satisfaction, this issue is especially important in banks that are in constant contact with customers (Ali Mohammadi, 2011).

A bank is a customer-oriented institution that must attract and attract customers, as well as increase customer satisfaction and retain customers. Because the customer is the main capital of the bank, without the customer the bank is meaningless and cannot continue its existence. The role of banks in attracting deposits and providing facilities has been so compatible with the economic and social character of societies that now after years of banking system, this system is a very vital and necessary subset of the economic system.The role of banks in attracting deposits and granting facilities has been so compatible with the economic and social nature of societies that now after years of banking system life, this system has become a very vital and necessary subset of the economic system of countries and sustainable development. Today, the role of the banking system in the economic system of countries is undeniable as the main factor of sustainable development, and in a sense, it can be said that the banking system is the heart of economic development. Today, people's need for banking services is increasing more than ever. In this regard, people expect faster and more service from banks (Shariati, 2009).

On the other hand, nowadays competition to improve service quality is known as a key strategic issue for organizations that operate in the service sector. Organizations that achieve a higher level of service quality will have higher levels of customer satisfaction as a precursor to achieving sustainable competitive advantage (Gu et al., 2008). The banking system, which is one of the important components of every country's economy in a market-based economy and has a very heavy responsibility, is not exempt from this. In order to compete in today's turbulent environment, today's banks have to pay special attention to the quality of their services. This will lead to longer customer retention, attracting new customers and improving financial performance and profitability. During recent decades, the intensification of competition among economic enterprises in order to obtain a greater share of the market has led their attention to a more accurate and deeper understanding of the needs and demands of customers. Undoubtedly, creating satisfaction in customers and even making them enthusiastic about the quality of services, in the first place requires understanding their needs and demands and then transferring these demands to a situation where products and services are produced. Due to the increasing complexity of economic, social and cultural systems, this does not happen by itself, but requires systematic methods and procedures that transform these concepts into an organizational process. On the other hand, the change of customers' wishes, needs and expectations is an undeniable fact, so it is necessary to first determine what the customer wants and then search for the means to realize it. Banks are expanding across borders by offering diverse benefits and competitive services and restructuring their services towards the use of fast technology to meet the changing needs of customers. Due to these measures, the nature of banking services and communication with customers has undergone changes. The highly competitive and rapidly changing environment in which banks are forced to operate leads them to reconsider their attitude towards customer satisfaction and service quality optimization (Hosseini and Qaderi, 2010). In the banking system where customers are the main focus, in fact, all work is to seek their satisfaction, attention and attraction. Therefore, in today's inter-bank competitive environment, banks are more successful that are aware of their customers' needs, in addition to meeting their current needs, and are able to predict their future needs, so that they can get more satisfaction and, as a result, customer loyalty. Customer satisfaction is achieved when the performance of the organization can meet the customer's expectations. Since banks are operating with similar products, quality service is so important. This study aimed to assess the quality of service provided by Mehre Iran Bank (Shiraz and Marvdasht Branches) and the relationship between quality of banking service and customer satisfaction. In this study, SERVPERF model was used to evaluate the quality of service. The statistical population was customers of Mehre Iran Bank (Shiraz and Marvdasht Branches) and the sample size was 150 customers.  Data were collected from questionnaires in 2013. Results of statistical analysis of data were performed using Pearson's correlation coefficient. Results indicated that by increasing each of the criteria examined (trust, reliability, responsiveness, empathy) customer satisfaction will increase. Lowest to highest correlation coefficients were measured for reliability, responsiveness, empathy and trust. Therefore, with more emphasis on the higher correlation coefficient, the customer satisfaction can be further increased