Review of literature on customer satisfaction in banking sector

Review of literature on customer satisfaction in banking sector

The objective of this paper is to review the literature regarding the relationship between service quality and customer satisfaction and their effect in the retail banking industry. This will lead to an understanding of the aspects of service quality and customer satisfaction and seeks to close the gap in this field of blogger.comted Reading Time: 11 mins There are Literature Review Customer Satisfaction Banking Sector so many students who are in a turbulent kind of problem because they are not able to complete their term paper, thesis, and assignments by themselves. I have seen a lot of students of graduation, and post-graduation suffering miserably because of these issues/10() The literature pertaining to relationships among customer satisfaction, customer loyalty, and profitability has two dimenstions: The first, service management literature, proposes that customer satisfaction influences customer loyalty, which in turn affects profitability. Supporter of this theory include researchers such as

Customer Satisfaction In Banking Sector Essay | blogger.com

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Sandhir Sharma. Munish Kumar. Download PDF Download Full PDF Package This paper. A short summary of this paper. kumar chitkara. in 2 Dean, Chitkara Business School, Chitkara University, Punjab Campus, Rajpura, Punjab, India, Email: sandhir chitkara.

in Abstract: Now a days banking haschanged because banking services are no more based on Brick and mortar structure.

Due to Continues growth of technology, increasing customer base, evolution of alternate banking channels, has changed the way of banking services, so hence the customer satisfaction. Banking is a customer oriented service industry and customer satisfaction has become the most important aspect of any banking business due to immense competition. Banks are more determined to retain their existing customers by providing quality services leading to Customer satisfaction.

The concepts and determinants of customer satisfaction has changed significantly as transition has taken place from traditional to modern banking. This could be witnessed by exploring the literature regarding customer satisfaction in banking industry. This paper is based on extensive literature review and attempts to investigate how the concepts and determinants of customer satisfaction has changed significantly during the transition from traditional to modern banking.

The findings of the study will provide an important insight into the past trends of customer satisfaction and will provide a base review of literature on customer satisfaction in banking sector the bank managers to devise customer satisfaction strategies in near future. Keywords: Customer satisfaction; Traditional and Modern banking 1. Now in a competitive world customer satisfaction is the area where all organizations are focusing on.

The literature of satisfaction advocates satisfaction as an result as well as a process Yi, ; and Parker and Mathews, Howard and Shethp. Because of the immense competition, entry of foreign and private banks in India, the Indian Banking industry has been changing in terms of services, customer satisfaction, review of literature on customer satisfaction in banking sector, product offering etc.

No doubt increasing competition sometimes confuses the customer for making the right decision. On the other hand we are entering into modern banking from traditional review of literature on customer satisfaction in banking sector where customers are more aware and knowledgeable then the past. In the competitive and dynamic environment it becomes mandatory to find out the customer satisfaction factors. NEED AND RELEVANCE OF THE STUDY Banking industry has changed drastically, review of literature on customer satisfaction in banking sector.

From traditional banking where customers use to walk to bank, take and fill the form and after that standing in the line for depositing and withdrawing the money.

Like other service industries, review of literature on customer satisfaction in banking sector, banking is also a customer focused service industry, where the attention or we can say that focused attention is on differentiate customer services as compare to the competitors.

The main challenges for the banking industry is increasing satisfaction of customer through advance quality services, lesser cost review of literature on customer satisfaction in banking sector documentation. Now the attention has shifted to look up the service quality, when customer come in to the bank and having personal contact with the bank employee. Chakravarty, But today banking has a new face. Customers prefer to do the online transactions then branch banking.

For this banks need to know whether their customers are satisfied with the services they are providing or not. The main review of literature on customer satisfaction in banking sector of this literature review based study is to find out the factors which really contribute to customer satisfaction which will further help to the bank management to assess the strategies in order to satisfy the customers.

OBJECTIVE OF THE STUDY From last two decade Banking has taken shape into modern banking form traditional banking. Customers have more options in choosing the banks than the past. Every bank is trying to retain and maintain their valuable customers at any cost. Banks are adopting different softwares and technological aspects to make their customers satisfied. Our objective is to find the customer satisfaction trends in banking industry with extensive literature review.

They also stated that satisfaction of customers is not merely introducing innovative products and services rather it is much more than that. They also found that if the bank wants to become the market leader in the competitive environment it must use the innovation approach in all the aspects review of literature on customer satisfaction in banking sector products and services. Also there is a significant relationship between technological innovation and cost.

As the innovation increase the cost is also increase. Machogu, A. Results shows that there are factors which leads to customer satisfaction particularly in e-banking, which is one of the very important and fast growing way of doing banking. Factors are accessibility, convenience, security, privacy, content, design, speed, fees and charges have influence on customer satisfaction where the other factors notified have no significant influence.

Loyal customers are more interested in the services of their own banks when considering investments in all the aspects such as in the financial market, deposit their own savings to their own bank, take out a mortgage from their own bank and use other banking products and services from their current bank. According to the results of our research, loyalty of customers with different intensities transforms into a potential purchase of additional banking products. The biggest potential interest of the bank customers was in depositing savings in the bank and in mortgage loans.

The intensity of interest in the purchase of investments and other products was relatively low. Kundu, S. Internet banking service quality has huge impact on trust, review of literature on customer satisfaction in banking sector. They also researched that in case ofinternet banking privacy and fulfillment are the main factors of service quality which have influence on trust.

Also banks should be more concerned about the privacy of individual transaction of the customers. According to Ernest and young survey showed that price factor was the main concern for 50 percent customers. Zeinalizadeh, N. Rahi, S. Also good brand image build relationship between banks and customer and enhance the customer loyalty toward bank. He also concluded that those banks that are giving the internet banking services to their customers, loyalty of those customers are more towards the banks.

He also suggested that if the brand image also plays a significant role between loyalty of the customers and internet banking. The role of brand image is positive in making a positive relationship between customers and internet banking.

Pareek, V. Interestingly convenience one of the 4 P. marketing mix was found to be an unimportant in deciding customer satisfaction in Indian banks studied banks. Vyas, V. Particularly they found nine critical factors which contribute in switching the banks, review of literature on customer satisfaction in banking sector. One very interesting driver is customer satisfaction in all the drivers which contribute in the switching behavior of customers.

Banks should come out with the strategies that increase the customers satisfaction. Suriyamurthi, S. They also found that banking sector is one of the major service sector and the business of banks is more or less dependent on the customer services and satisfaction.

Banks should increase their services and make good relationship with the customer. opinedsatisfaction of customer is dependent on variable then independent variable. These dependent variables largely depend on service quality, ambience, involvement, accessibility and financial factors of the bank.

According to the findings of the research. The impact of nearness of bank and financial factors on customer satisfaction is not up to the mark. Sharma, N. Study on rural customers satisfaction from e-banking was found to be significant. Research suggests that satisfactions in rural customers are quite satisfied in e-banking services. So, in order to improve the tendency to use e-banking channels in rural areas the use of local languages during dealings should be promoted as well as publicized.

Her research also suggest that ATM is one of the important channel out of all alternate banking channels for securing patronage of rural customers. Ganguli, S. Keeping this inmind they researched on four dimensions like customer service, technology security and information quality, technology convenience, and technology usage easiness and reliability.

Results states that there is significant relation between customer service, technology usage easiness and reliability and customer satisfaction. On the other hand they found the positive relation between technology convenience and customer satisfaction.

So it was found that technology play an important role in satisfying the customer specifically in the case of banking. Singh, J. services innovation,positive word-of-mouth. According to their study customer satisfaction if influenced by social responsibility, positive word-of-mouth, and reliability. they also founded that relationship marketing is the important tool which can significantly increase the customer satisfaction. Other factors like employee behavior, their friendliness, politeness, cooperation,promptness, efficiency, knowledge level, trustworthiness, and appearance also play an important role in satisfying the customer.

Munusamy, J.

My Customer's Satisfaction

, time: 11:50

Apr 10,  · He found that customer satisfaction is significantly and positively related with customer loyalty and customer satisfaction is an important mediator between service quality and customer loyalty. In the last of the study he have discussed that banking service providers should follow right course of action to win customer satisfaction by providing better service quality in order to create loyal customer Estimated Reading Time: 10 mins The objective of this paper is to review the literature regarding the relationship between service quality and customer satisfaction and their effect in the retail banking industry. This will lead to an understanding of the aspects of service quality and customer satisfaction and seeks to close the gap in this field of blogger.comted Reading Time: 11 mins Literature Review. Customer satisfaction at banking industry. The second chapter discusses the literal review. Related work and theories of different authors is discussed to explain the purpose and to answer the research problems of the study case. The review focuses on the overview of the concept of quality, concept of service, service quality, service quality measurements and models, customer satisfaction,