Impact of service quality on customer satisfaction: special reference to Amana bank PLC in Eastern province in Sri Lanka

Abstract

The banking industry like many other financial service industries is facing a rapidly changing market, new technologies, economic uncertainties, fierce competition, and especially more demanding customers; and the changing climate has presented an unprecedented set of challenges. Amid intense competition and the dynamic business environment, surviving in the market has become a key challenge for many service organizations. Service quality has become one of the key tools for surviving and gaining competitive advantage in the banking industry, since its offering comprised mainly with intangible elements. The objective study is to examine service quality of Amana bank and its impact on customer satisfaction in Sri Lanka through the SERVQUAL model this was established by Zeithaml, Parasuramn and Berry. Service quality dimensions such as Tangibility, Reliability, Assurance, Responsiveness, Empathy and Shariah Compliance were considered as independent variables and customer satisfaction is considered as dependent variable. Customer satisfaction is appraised by Service facilities and Accessories, Convenience and Supporting service, Total customer value, and Total customer cost. This study is initiated the impact of the service quality on customer satisfaction with the convenience Sampling procedure was used to obtain 200 respondents from Amana bank customers in Eastern province. The primary data was collected through structured questionnaire. SPSS 20.0 and MS Excel was used to analyze the data. And also descriptive statistic, correlation, and regression analysis were used to analyze the data methodology. The results indicate that the higher the service quality, the more the costumer‟s satisfaction. The Dimensions of service quality plays an important role in this study. To conclude, the findings indicate that these six factors have positively association between the customer satisfactions. This study also identifies that the service quality is an appropriate tool to measure the quality of service in the banking sector in the Amana bank. Therefore, the banking sector practitioners regard this instrument a very important tool to evaluate, support, and improve the quality of their services.