Customer Perception on Bank Service Quality: A Comparative Study between Conventional Commercial Banks and Islamic Commercial Banks in Bangladesh

Authors

  • Sonia Rezina Uttara University
  • Nur Ahmad IBAIS University
  • Farhana Mitu Uttara University
  • Mohitul Ameen Ahmed Mustafi Uttara University

DOI:

https://doi.org/10.18034/gdeb.v5i2.135

Keywords:

Conventional Commercial Banks, Islamic Commercial Banks, Customer Perception, Service Quality

Abstract

Customer perception refers to the process by which a customer selects, organizes, and interprets information inputs to create a meaningful picture of the service quality within an organization. In the fast growing banking industry like Bangladesh, every bank is looking forward towards faster growth through providing better service quality than others. However, there are certain challenges started rising in front of the booming banking sector which are needed to be addressed immediately; such as, managing compliance, mitigating fraud/ cyber security, managing hiring decisions etc. It is obvious that, those who will efficiently handle these challenges will certainly lead the market and gain higher customer contentment. The main purpose of this study is to compare the customer perception towards the service Quality offered by Conventional Commercial Banks and Islamic Shariah-based Commercial Banks in Bangladesh through using SERVQUAL instrument. 204 respondents have been randomly selected for the study among them 162 is from Conventional banks and 42 are from Islamic banks. The findings of the research should help the policy makers and regulators in banking industry to have a deep insight towards the different perception of customers and assist in taking effective measures to achieve organizational goal through improving their service Quality.

Downloads

Download data is not yet available.

Author Biographies

  • Sonia Rezina, Uttara University

    Assistant Professor, School of Business (SoB), Uttara University, Dhaka, BANGLADESH

  • Nur Ahmad, IBAIS University

    Senior Lecturer, Department of Business Administration, IBAIS University, Dhaka, BANGLADESH

  • Farhana Mitu, Uttara University

    Senior Lecturer, School of Business (SoB), Uttara University, Dhaka, BANGLADESH

  • Mohitul Ameen Ahmed Mustafi, Uttara University

    Assistant Professor, School of Business (SoB), Uttara University, Dhaka, BANGLADESH

References

Afrin, T., 2012. Quality os Customer Service in the Banking Sector of Bangladesh: an explorative study.

Ahmad, A. and Safwan, N., 2011. Comparative study of Islamic and Conventional banking in Pakistan based on customer satisfaction. African Journal of Business Management, 5(5), p.1768.

Akter, K., Lanza, E. A., Martin, S. A., Myronyuk, N., Rua, M., & Raffa, R. B. (2011). Diabetes mellitus and Alzheimer's disease: shared pathology and treatment?. British journal of clinical pharmacology, 71(3), 365-376. DOI: https://doi.org/10.1111/j.1365-2125.2010.03830.x

Aldlaigan, A.H. and Buttle, F.A., 2002. SYSTRA-SQ: a new measure of bank service quality. International Journal of Service Industry Management, 13(4), pp.362-381. DOI: https://doi.org/10.1108/09564230210445041

Anis, A., Nasir, A., & Safwan, N. (2011). Employee retention relationship to training and development: A compensation perspective. African journal of business management, 5(7), 2679.

Ashaduzzaman, M., Khan, M.M. and Farhana, S., 2012. User satisfaction review of Conventional commercial banks in Bangladesh.

Asubonteng, P., McCleary, K.J. and Swan, J.E. (1996).SERVQUAL revisited: A critical review of service quality, Journal of Services Marketing, Vol. 10 No. 6, pp. 62-81

Bahia, K. and Nantel, J., 2000. A reliable and valid measurement scale for the perceived service quality of banks. International journal of bank marketing, 18(2), pp.84-91. DOI: https://doi.org/10.1108/02652320010322994

Bangladesh Bank, 2016. Financial System. [Online] Available at: https://www.bb.org.bd/fnansys/bankfi.php

Barclay, D., Higgins, C. and Thompson, R., 1995. The partial least squares (PLS) approach to causal modeling: Personal computer adoption and use as an illustration. Technology studies, 2(2), pp.285-309.

Chin, W. W. (2010). How to write up and report PLS analyses. In Handbook of partial least squares (pp. 655-690). Springer Berlin Heidelberg. DOI: https://doi.org/10.1007/978-3-540-32827-8_29

Chin, W.W., 1998. The partial least squares approach to structural equation modeling. Modern methods for business research, 295(2), pp.295-336.

Eidleman, Gregory J. (1995-02-01). "Z-Scores – A Guide to Failure Prediction". The CPA Journal Online.

Fornell, C. and Larcker, D.F., 1981. Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, pp.39-50. DOI: https://doi.org/10.1177/002224378101800104

Gefen, D. and Straub, D., 2005. A practical guide to factorial validity using PLS-Graph: Tutorial and annotated example. Communications of the Association for Information systems, 16(1), p.5. DOI: https://doi.org/10.17705/1CAIS.01605

Gerbing, D.W. and Anderson, J.C., 1988. An updated paradigm for scale development incorporating unidimensionality and its assessment. Journal of marketing research, pp.186-192. DOI: https://doi.org/10.1177/002224378802500207

Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998).Multivariate Data Analysis with Readings, 5th Edition. Macmillan, New York.

Henseler, J., Ringle, C.M. and Sinkovics, R.R., 2009. The use of partial least squares path modeling in international marketing. Advances in international marketing, 20(1), pp.277-319. DOI: https://doi.org/10.1108/S1474-7979(2009)0000020014

Karatepe, O.M., Yavas, U. and Babakus, E., 2005. Measuring service quality of banks: Scale development and validation. Journal of Retailing and Consumer Services, 12(5), pp.373-383. DOI: https://doi.org/10.1016/j.jretconser.2005.01.001

Kemal Avkiran, N., 1994. Developing an instrument to measure customer service quality in branch banking. International journal of bank marketing, 12 (6), pp.10-18. DOI: https://doi.org/10.1108/02652329410063223

Lewis, R.C. and Booms, B.H., 1983. The marketing aspects of service quality. Emerging perspectives on services marketing, 65(4), pp.99-107.

Nguyen, M.T., 2012. Effects of service quality and price fairness on student satisfaction. International Journal of Business and Social Science, 3(19), pp. 132-150

Nunnally, J.C. and Bernstein, I.H., 1994. The assessment of reliability.Psychometric theory, 3(1), pp.248-292.

Parasuraman, A., Zeithaml, V.A. and Berry, L.L., 1988. SERVQUAL: a multiple-item scale for measuring consumer perceptions of service quality. Journal of retailing, 64(1), pp.12-40.

Rahaman, M.M., Abdullah, M. and Rahman, A., 2011. Measuring service quality using SERVQUAL model: A study on PCBs (Conventional Commercial Banks) in Bangladesh. Business Management Dynamics, 1(1), pp.1-11.

Raza, Shaukat Ali, et al. "Investigating service quality initiatives of Pakistani commercial banks." International business research 5.3 (2012): 107. DOI: https://doi.org/10.5539/ibr.v5n3p107

Rehman, H.U. and Ahmed, S., 2008. An empirical analysis of the determinants of bank selection in Pakistan: A customer view. Pakistan Economic and Social Review, pp.147-160.

Sekaran, U. and Bougie, R., 2010. Research Method for Business, A Skill Building Approach. John Wiley & Sons Inc.

Siddiqi, K.O., 2011. Interrelations between service quality attributes, customer satisfaction and customer loyalty in the retail banking sector in Bangladesh. International Journal of Business and Management, 6(3), p.12. DOI: https://doi.org/10.5539/ijbm.v6n3p12

Wakefield, K.L. and Blodgett, J.G., 1999. Customer response to intangible and tangible service factors. Psychology & Marketing, 16(1), pp.51-68. DOI: https://doi.org/10.1002/(SICI)1520-6793(199901)16:1<51::AID-MAR4>3.0.CO;2-0

--0--

Downloads

Published

2016-12-31

How to Cite

Rezina, S. ., Ahmad, N. ., Mitu, F. ., & Mustafi, M. A. A. . (2016). Customer Perception on Bank Service Quality: A Comparative Study between Conventional Commercial Banks and Islamic Commercial Banks in Bangladesh. Global Disclosure of Economics and Business, 5(2), 109-124. https://doi.org/10.18034/gdeb.v5i2.135

Similar Articles

31-40 of 63

You may also start an advanced similarity search for this article.

Most read articles by the same author(s)