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International Journal of Multidisciplinary Research Vol.1 Issue 6, October 2011, ISSN 2231 5780

IMPACT OF SERVICE QUALITY IN COMMERCIAL BANKS ON THE CUSTOMERS SATISFACTION: AN EMPIRICAL STUDY
DR. S. FATIMA HOLY GHOST*; DR. M. EDWIN GNANADHAS**
*Assistant Professor in Commerce, Holy Cross College, Kanyakumari District, Tamil Nadu. **Associate Professor in Commerce, Scott Christian College, Kanyakumari District, Tamil Nadu.

ABSTRACT Quality in service is very important especially for the growth and development of service sector business enterprise. It works as an antecedent of customer's satisfaction .In the past, quality was measured only for the tangible products because of less dominance of service sector in the economy. Due to the increasing importance of service sector in the economy, the measurement of service quality became important. Undoubtedly owing to the belief that delivery of high service quality is a must for attaining customers satisfaction and a number of other desirable behavioural outcomes, recent years have incensed a flurry of research exploring interrelationship between service quality, satisfaction and behavioural outcomes. The objective of the present study are to identify the customer's perception on service quality factors in commercial banks and the customers satisfaction towards the banks ;to analyse the impact of perception on service quality factors in commercial banks among the different group of customers based on their demographics. The applied sampling technique is purposive sampling. The present study concludes that there is a close link between the customer's perception on the service quality factors and the customer satisfaction. But the impacts of service quality factor on customer satisfaction among the customer are not unique. It depends upon the demographic profile of the customers. KEYWORDS: Assurance, Empathy , Reliability , Responsiveness and Tangibles.

INTRODUCTION During the past two decades or so, regulatory, structural and technological factors have significantly changed the banking environment throughout the world (Angur et al., 1999). In a milieu which becomes increasingly competitive, service quality as a critical measure of organizational performance continues to compel the attention of banking institutions and remains at the forefront of services marketing literature and practice (Lasser et al., 2000; Yavas and Yasin, 2001). The interest is largely driven by the realization that higher service quality results in customers satisfaction and loyalty, greater willingness to recommend to someone else, reduction in complaints and improved customer retention rates (Danaher, 1997; Magi and Julander, 1996; Levesque and Me Dougall, 1996). Undoubtedly owing to the belief that delivery of high service quality is a must for attaining customers satisfaction and a number of other desirable behavioural outcomes, recent years have incensed a flurry of research exploring interrelationship between service

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International Journal of Multidisciplinary Research Vol.1 Issue 6, October 2011, ISSN 2231 5780

quality , satisfaction and behavioural outcomes (Festus and Hsu, 2006; Hsu, et al., 2006; Thamarai selvan and Raja, 2007). QUALITY IN SERVICE INDUSTRY Quality in service is very important especially for the growth and development of service sector business enterprise (Powell, 1995). It works as an antecedent of customer's satisfaction (Ruyter and Bloemer, 1995). In the past, quality was measured only for the tangible products because of less dominance of service sector in the economy. Due to the increasing importance of service sector in the economy, the measurement of service quality became important. Crosby (1979) defined quality as the 'Conformance to requirements'. The guru of quality movement Juran (1988, 1992) defined quality as 'fitness for use while servicing (1986) viewed quality as a process promising to result in products and services. In late 1980s, Parasuraman et al., (1985) explained quality as a gap between what customers feel to be offered and what is provided. Even though there is no single definition on quality they all have a single focus on how users look at it (Piji, 1994; Zeithaml, 1988; Khader, 1997). Ramaswamy (1996) identified three different sets of measures for service quality such as service performance, customer measure and financial measure. The other researchers such as Lilijander, (1995). Prakash and Lounsbury (1984) and Swan (1988) suggested many possible comparison standards including predicted service, comparative expectations and fairness. However, SERVQUAL only incorporates a rough aggregated mixture of a selection of these. ESTABLISHING CURRENT UNDERSTANDING OF SERVICE QUALITY Parasuraman et al., (1985) developed the Gap analysis model. In his model, he measured the gap between expected service and perception of service among the customers. Later it was refined to SERVQUAL scale (Parasuraman et al., 1988). It is designed to measure consumers perceptions of the identified dimensions of tangibles, empathy, assurance, responsiveness and reliability relative to consumers expectations SERVQUAL critics, have voiced their concerns for many years with respect to contextual, dimensional and empirical correctness considerations (Asubonteng et al., 1996; Finn and Lamb, 1991). Boulding et al., (1993) are among those who consider service quality to be performance-based and hence take perceptions, rather than expectations, as they are of departure in developing their dynamic process model. They see perception of functions of what the consumer's expectations will occur and what should occur during the service encounter. But Boulding et al., (1993) also assume service quality as perceived with respect to Parasuraman's et al., (1988) five dimensions. IMPORTANCE OF SERVICE QUALITY IN COMMERCIAL BANKS Increased competition, highly educated consumers, and increase in standard of living are forcing many businesses to review their customer service strategy. Many business firms are channeling more efforts to retain existing customers rather than to acquire new ones since the cost of acquiring one new.customer is greater than cost of retaining existing customers. There is enough evidence that demonstrates the strategic benefits of quality in contributing to market share and return on investment (Adiran, 1995; Bakesm, 1995;

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ZENITH
International Journal of Multidisciplinary Research Vol.1 Issue 6, October 2011, ISSN 2231 5780

Reichhel and Sasser 1990). Maximizing customer satisfaction through quality customer service has been described as 'the ultimate weapon' by Davidow and Vital (1989). According to them in all industries, when competitors are roughly matched, those with stress on customer's service will win. In view of the abovementioned facts, an analysis of service quality perceptions from customer's point of view may be sound and interesting at this juncture. Such an analysis will provide banks, a quantitative estimate of their services being perceived with intricate details such as whether banks are meeting or not meeting the customer's expectations. The present paper, therefore attempts to achieve the following objectives. CONCEPTUAL FRAMEWORK Actually, the conceptualization and measurement of service quality began in the marketing literature in 1985. Service Quality is a vital antecedent of customer's satisfaction (Cronin and Taylor, 1992). In turn customer satisfaction is believed to affect post-purchase and perception and future decisions. Subsequent works on service quality. (Parasuraman et al., 1993; Cronin and Taylor, 1994; Avkiran, 1994; Teas, 1994; Newman and cowling, 1996) not withstanding, the debate has not yet reached a point of solution. In its wake, however, it has raised many issues for both academicians and parishioners by providing important but some-what conflicting in rights into the conceptual, the methodological, analytical and practical issues related to the service quality concept. For instance, Cronin and Taylor (1992, 1994) argue the measuring of service quality using a performance -minus - expectation (SERVQUAL) basis inappropriate and suggest the performance - only (SERVPERF) measurement is a better method. However, Parasuraman, Zeithaml and Berry (1994) contend that the SERVQUAL scale using the expectations / performance gaps method is a much richer approach to measuring service quality and augment that earlier assertion (e.g. Parasuraman et al., 1988, 1993) that service quality is a multi dimensional rather than a one- dimensional construct. SERVQUAL has been widely used (Dabholhar et al., 1996; Hurswey, 1999; Getz et al., 2001). There have been a few empirical studies that dealt with the application of SERVQUAL instrument in the banking industry such as Natarajan et al., (1999) and Lassar et al., (2000). At the same time, the empirical evidence of using SERVPERF scale in banking industry are the studies by Howcaft (1991) and Newman and Cowling (1996). In the present study, the performance only measurement (SERVPERF) has been used to analyse the customer's perceptions in banking. RELATED REVIEWS The literature pertaining to relationship among service quality, customer's satisfaction and their behavioural intention can be divided into two groups. The first, service management literature, proposes that the service quality influences the customer satisfaction (Cronin et al., 2000; Dabholkar et al., 2000 and Schemenner 2004). The service quality is identified as the determinants of customer satisfaction in banking (Naceur et al., 2002). The relative importance of service quality attached with customer satisfaction and their behavioural intention is highlighted by Niki et al., (2006). The direct and indirect links between service quality and the customers satisfaction and their
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International Journal of Multidisciplinary Research Vol.1 Issue 6, October 2011, ISSN 2231 5780

behavioural intention are analysed with the help of structural equation modeling (Festus and Maxwell, 2006). RESEARCH GAP The above said previous studies are analyzing the perception on service quality in commercial banks by performance only on the SERVQUAL scale measure. There is no exclusive study on the impact of perception on SQFs on customer's satisfaction under different demographic profile. Hence, a research models have been generated to fill up the research gap. PROPOSED RESEARCH MODEL

Demographics

Customers in different group of banks

Age of the customers

Education of the customers

Service Quality Factors in Banks

Nativity of customers

Gender of customer

Income of customers

Occupation of customers

Customer Satisfaction

Denographics

OBJECTIVES OF THE STUDY The objective of the present study is summarized below: 1) To identify the customer's perception on service quality commercial banks and the customers satisfaction towards the banks; factors in

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International Journal of Multidisciplinary Research Vol.1 Issue 6, October 2011, ISSN 2231 5780

2) To analyse the impact of perception on service quality factors in commercial banks among the different group of customers based on their demographics. METHODOLOGY The descriptive research designs have been followed to fulfill the objectives of the research. SAMPLING PROCEDURE The total number of commercial banks in Kanyakumari district is 143 branches. Out of the 143 branches, 112 branches are Public Sector Banks (PSBs), 25 branches are Private Sector Banks (PrSBs) and only 6 banks are New Private Sector Banks NPrBs. In total, a maximum of 79 branches are seen in semi urban area whereas 44 branches are at urban area. The remaining 20 branches are at rural area. In all the three areas, the numbers of PSBs are identified as higher as compared to other two groups of banks. 5 customers from each bank were selected as the sample respondents. Hence the sample size came to 715. Here the applied sampling technique is purposive sampling. The required data have been collected through the structured questionnaire which consists of, profile of the customer and perception on service quality of banks and their overall attitude towards the banks. Out of 715 customers only 43.64 per cent of the customers responded the questionnaire. The number of responded customers in PSBs, PrSBs and NPrSBs are 194, 89 and 29 respectively. At the same time, in urban, semi urban and rural areas, these are 104, 159 and 49 customers respectively. RESULTS AND DISCUSSION CUSTOMER SATISFACTION The customer satisfaction is the collective opinion on various aspects in commercial banks. The primary motto of any commercial banks in the globalized era is customer satisfaction. Even though the customers satisfaction is derived from the customer's attitude towards various variables related to banks, the present study confines these variables to only 12 variables. These variables are given in Table 1.1 TABLE 1.1
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VARIABLES IN CUSTOMERS SATISFACTION Sl.No 1. 2. 3. 4. Variables Decision to use this bank Experience with this bank My choice towards this bank Employed behavior Sl.No 7. 8. Customers orientation of the bank 9. Handling of complains 10. Variables Relationship marketing adopted by the bank.

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International Journal of Multidisciplinary Research Vol.1 Issue 6, October 2011, ISSN 2231 5780

5. 6.

Accessibility of the bank Trust worthiness towards the bank

11. 12.

Reporting system of the bank Quality of the service Cost of the services offered

The identified variables are related to the service offered by the banks, service provider (employees) and service cost. The customers are asked to rate the twelve variables at five point scale. The assigned scores on these scales are from 5 to 1 respectively. The score have been included for reliability test with the cronbach alpha. Since the cronbach alpha is 0.8119, the included 12 variables explain the customer satisfaction to the extent of 81.19 per cent. CUSTOMERS SATISFACTION INDEX (CSI) AMONG THE CUSTOMERS The customer satisfaction is derived from the score of all 12 variables included it. The score of customer satisfaction is summated with the help of an index called as 'Customer Satisfaction Index' (CSI). It is computed by
n

SVCSi CSI
i l n

100

MSVCSi
i l

Whereas SVCS MSVCS i = 1... .n Score of variables in customers satisfaction

- Maximum score of the variables in customers satisfaction Variables in customers satisfaction

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The customer satisfaction among the customers has been measured with the help of an index called as Customers Satisfaction Index (CSI). It reveals the summative view on the customers' satisfaction towards the various aspects related to the banking. The CSI in the present study is confined to less than 21 per cent, 21 to 40, 41 to 60, 61 to 80 and above 80 per cent. The customers with CSI of less than 21 per cent constitutes only 21 .08 per cent to the total whereas the customers with the CSI of 21 to 40 per cent constitutes 28.49 per cent to the total. The total 39.17 per cent of the customers are with the CSI of 41 to 60 per cent whereas 7.31 per cent of the customers are with CSI of 61 to 80 per cent. The customers with the CSI of above 80 per cent constitutes 3.95 per cent to the total.

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International Journal of Multidisciplinary Research Vol.1 Issue 6, October 2011, ISSN 2231 5780

CUSTOMER PERCEPTION ON SQFs The Service Quality Factors (SQF) in commercial banks identified by Avkiran, (1994); Howcraft (1991); Laural and Nasser, 2002; and Leversque and Gordon, (1996) are five factors. These are Reliability, Responsiveness, Assurance, Tangibles and Empathy. The same five factors have been included in the present study. Since the reliability of the variables in each SQF have been already tested by Vanniarajan and Gurunathan, (2007) and Jabnour and Hussein (2002), the present study is not conducting any reliability test. The customers are asked to rate each SQFs five point scale according to their order of satisfaction. The mean score of each SQFs, its standard deviation and co-efficient of variation is given in Table 1.2. TABLE 1.2 CUSTOMERS PERCEPTION ON SQFs Sl.No. 1. 2. 3. 4. 5. SQFs Reliability Responsiveness Assurance Tangibles Empathy Mean score 2.9978 2.6085 2.7179 3.0544 2.5085 Standard deviation 0.6876 0.9943 1.0365 0.8544 0.9902 Co-efficient of variation 22.94 38.12 38.14 27.97 39.47

The highly perceived SQFs among the customers is 'Tangibles' since its mean score is 3.0544 which has a co-efficient of variation of 21.91 per cent. The second SQFs perceived by the customer's is 'Reliability' since their mean score is 2.9978 with the co-efficient of variation of 22.94 per cent. The next two SQFs perceived by the customers is assurance and responsiveness since their mean scores are 2.7179 and 2.6085 respectively. IMPACT OF SERVPERF SCALE ON SQFs ON CSI IN DIFFERENT BANKS The perception on SQFs may have its own influence on the cust omer satisfaction. In order to analyse the impact of SQFs on customer satisfaction among the customers, the multiple regression analysis have been administered. The fitted regression model is Y= a+b 1 x 1 +b2 x 2 +b 3 x 3 +b4 x 4 +b5 x 5 +e Y=customer satisfaction Index any the customers Whereas X1 X2
-

Score on Reliability among the customers Score on Responsiveness among the customers

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ZENITH
International Journal of Multidisciplinary Research Vol.1 Issue 6, October 2011, ISSN 2231 5780

X3 X4 X5

Score on Assurance among the customers Score on Tangibles among the customers Score on Empathy among the customers

b1,b2.bn a e

Regression co-efficient of independent variables Intercept and Error term

Initially, the impact of SQFs on the customer satisfaction among the business in Public Sector Banks (PSBs) Private Sector Banks (PrSBs) and New Sector Banks (NPrSBs) have been examined separately. The result of regression analysis is given in Table 1.3 TABLE 1.3 IMPACT OF SERVPERF SCALE ON SQFs ON CSI Regression Co-efficient among customer in Sl.No. SQFs 1. 2. 3. 4. 5. Reliability Responsiveness Assurance Tangibles Empathy Constant R2 F-Statistics * Significant at five per cent level. The significantly influencing SQFs on the CSI among the customers in PSBs is reliability and empathy. A unit increase in the perception on reliability and empathy result in an increase in CSI among the customers in PSBs by 0.1814 and 0.1681 units respectively. Among the customer in PrSBs, the significantly influencing SQFs are the perception on reliability, responsiveness, tangibles and empathy since their respective regression co-efficients are significant at five percent level. A unit increase in the perception on the above said SQFs results in a increase in CSI by PSBs 0.1814* 0.0933 0.1044 0.1133 0.1681* 0.9194 0.6345 8.0828* PrSBs 0.2492* 0.1891* 0.1044* 0.1338* 0.2096* 1.3039 0.7569 11.1083* NPrSBs 0.2096* 0.1443* 0.1862* 0.2101* 0.2633* 1.5238 0.7161
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9.8689*

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International Journal of Multidisciplinary Research Vol.1 Issue 6, October 2011, ISSN 2231 5780

0.2492, 0.1891, 0.1338 and 0.2096 units respectively. Among the customers in NPrSBs, a unit increase in the perception on reliability, responsiveness, assurance, tangibles and empathy result in an increase in customer satisfaction index by 0.2096, 0.1443, 0.1862, 0.2101 and 0.2633 units respectively. The changes in the perception on SQFs explain the changes in CSI among the customers in PSBs and PrSBs is to the extent of 63.45 and 75.69 per cent respectively. Whereas among the customers in NPrSBs, it is to the extent of 71.61 per cent. The analysis reveals the importance of SQFs is customer satisfaction. The satisfaction 'F' statistics reveal the validity of fitted regression models. In total, the degree of impact of SQFs on customers satisfaction in PrSBs is greater than in NPrSBs and PSBs. IMPACT OF SERVPERF SCALE OF SQF ON CSI AMONG THE URBAN AND RURAL CUSTOMERS On the basis of nativity, the customers are classified into urban and rural customers. Since the perception on SQFs among the group of customers may have different customer satisfaction, the present study has made an attempt to analyse the degree of influence of SQFs on customer satisfaction among the urban and rural customers separately. It is highly imperative to identify the impact of each SQFs on the CSI for some policy implications. The multiple regression analysis have been executed to find out such impact. The ordinary least square method is followed to fit the multiple regression models. The resulted regression coefficient of the SQFs are given in Table 1.4. TABLE 1.4 IMPACT OF SERVPERF SCALE ON CSI AMONG THE URBAN AND RURAL CUSTOMERS Regression co-efficient among customers in Sl.No 1. 2. 3. 4. 5 Reliability Responsiveness Assurance Tangibles Empathy Constant R2 F-Statistics * Significant at five per cent level.. SQFs Urban 0.3109* 0.2411* 0.1002 0.0917 0.1861* 1.2146 0.7339 11.2308* 0.6861 9.3091* 0.1461 0.2201 0.0968 0.1947 0.2868
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Rural

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International Journal of Multidisciplinary Research Vol.1 Issue 6, October 2011, ISSN 2231 5780

The significantly influencing SQFs on customers satisfaction among the urban customer are reliability, responsiveness and empathy since their respective regression coefficients are significant at five per cent level. A unit increase in the perception on above said SQFs result in an increase in customer satisfaction by 0.3019, 0.2411 and 0.1861 units respectively. The changes in the perception on SQFs explain the changes in customer satisfaction index to the extent of 73.39 per cent since their respective R2 is 0.7339. Among the rural customers, the significantly influencing perceptions on SQFs are reliability, responsiveness, tangibles and empathy. A unit increase in the perception on above said SQFs result in an increase in CSI by 0.1461, 0.2201, 0.1947 and 0.2868 units respectively. The changes in the perception on SQFs explain the changes in customer satisfaction index to the extent of 68.61 per cent only. The analysis reveals that the most significantly influencing SQFs on the customer satisfaction among the urban and rural customers are reliability and empathy respectively. IMPACT OF SERVPERF SCALE OF SQFs ON THE CSI AMONG DIFFERENT AGED CUSTOMERS The degree of influence of the SERVPERF scale of SQFs on the level of satisfaction (CSI) is examined to identify the importance of SQFs in the customer satisfaction among the different age group of customers. The perception score on five SQFs is treated as the score of independent variables whereas the CSI is considered as the score of dependent variables. The impact of independent variables on the dependent variable is examined with the help of multiple regression analysis. The results are given in Table 1.5. TABLE 1.5 IMPACT OF SERVPERF SCALE OF SQFs ON CSI AMONG DIFFERENT AGED GROUPS Sl.No SQFs Regression co-efficient among customers in Youngsters 1. 2. 3. 4. 5. Reliability Responsiveness Assurance Tangibles Empathy Constant R2 0.1408* 0.0924 0.1661* 0.1024 0.0439 0.8565 0.6962 Middle aged 0.0818 0.1816* 0.2145* 0.0776 0.1337* 1.3817 0.7412 Aged 0.2417* 0.2133* 0.0948 0.1471* 0.2803* 1.8916 0.7966
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International Journal of Multidisciplinary Research Vol.1 Issue 6, October 2011, ISSN 2231 5780

F-Statistics

8.4336*

10.2449*

12.3908*

Among the youngsters, the significantly influencing SQFs on their CSI are reliability and assurance. A unit increase in the perception on above said two SQFs result in an increase in CSI by 0.1408 and 0.1661 units respectively. Among the middle aged customers, these independent variables are responsiveness, assurance and empathy since their respective regression co-efficient are significant at five per cent level. A unit increase in the perception on above said three SQFs result in an increase in CSI by 0.1816, 0.2145 and 0.1337 units respectively. Among the aged customers, the significantly influencing SQFs are reliability responsiveness, tangibles and empathy. A unit increase in the above said SQFs result in an increase in CSI by 0.2417, 0.2133, 0.1471 and 0.2803 units respectively. IMPACT OF SERVPERF SCALE OF SQFs ON CUSTOMERS SATISFACTION AMONG MALE AND FEMALE CUSTOMER The gender may play an important role in the degree of influence of SQFs on the customer satisfaction towards their banks. The present analysis has made an attempt to analyse the impact with the help of multiple regression analysis. The included independent variables are the perception on SQFs whereas the dependent variable is their CSI. The impact of perception on SQFs on the CSI among the male and female customers has been examined separately. The resulting regression co-efficients of SQFs is summarized in Table 1.6. TABLE 1.6 IMPACT OF SERVPERF SCALE OF SQFs ON CSI AMONG THE MALE AND FEMALE CUSTOMERS Regression co-efficients among Sl.No 1. 2. 3. 4. 5 Reliability Responsiveness Assurance Tangibles Empathy Constant R2 F-Statistics * Significant at five per cent level.
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SQFs 0.2217* 0.1414* 0.0962 0.1084 0.0869 09946 0.8241

Male 0.1044

Female

0.2104* 0.1616* 0.2069* 0.3144* 1.2142 0.7433 10.3914*


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14.9817*

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International Journal of Multidisciplinary Research Vol.1 Issue 6, October 2011, ISSN 2231 5780

The significantly influencing SQFs on CSI among the male customers is reliability and responsiveness since their regression.co-efficients are significant at five per cent level. A unit increase in the perception on reliability and responsiveness result in an increase in CSI by 0.2217 and 0.1414 units respectively. Among the female customers, the significantly influencing SQFs on the CSI are responsiveness, assurance, tangibles and empathy. A unit increase in the perception on above said SQFs result in an increase in their CSI by 0.2104, 0.1616, 0.2069 and 0.3144 units respectively. The changes in the perception on SQFs explain the changes in their CSI among the female customers to the extent of 74.33 per cent. The analysis reveals that the perceptions on SQFs have a higher influence on CSI among the female customers than the male customers. The important SQFs among the female customers are empathy and responsiveness whereas among the male customers, it is reliability. IMPACT OF SQFS ON CSI AMONG DIFFERENT EDUCATED GROUPS The level of eduation among the customers may influence their perception on SQFs since their level of awareness and banking knowledge are different. By the level of education, the customers are grouped into lesser educated ,educated and highly educated groups. The perception on SQFs among the three groups of customers based on education may have its own impact on the CSI. It is imperative to identify the significantly influencing SQFs on CSI and also compare the degree of influence by each SQFs on CSI among each group of customers separately for some policy implications. The multiple regression analysis has been executed to analyse such impact. The resulted regression coefficients are given in table 1.7 TABLE 1.7 IMPACT OF SERVPERF SCALE OF SQFS ON CSI AMONG DIFFERENT EDUCATED CUSTOMERS Regression co-efficient among customers in Sl.No 1. 2. 3. 4. 5. Reliability Responsiveness Assurance Tangibles Empathy Constant R2 F-Statistics * Significant at five per cent level.
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SQFs

Lesser Educated 0.1013 0.2817* .0.1868* 0.0866 0.1217 0.8587 0.6247 7.5868*

Educated 0.2117* 0.1338* 0.1142 0.0911 0.1904* 1.2348 0.7667 10.3441*

Highly Educated 0.2021* 0.1917* 0.1436*


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0.1011 0.1803* 1.4508 0.8134 12.4561*

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International Journal of Multidisciplinary Research Vol.1 Issue 6, October 2011, ISSN 2231 5780

The significantly influencing SQFs on CSI among the lesser educated customers are responsiveness and assurance since their respective regression co-efficient are significant at five per cent level. A unit increase in the perception on responsiveness and assurance result in an increase in CSI by 0.2817 and 0.1868 units respectively. Among the educated customers, these significant SQFs are reliability, responsiveness and empathy. A unit increase in the perception on the above said three SQFs result in an increase in CSI by 0.2117, 0.1338 and 0.1904 units respectively. Among the highly educated customers, the significantly influencing SQFs are reliability, responsiveness, assurance and empathy. A unit increase in the perception on the above said SQFs result in an increase in CSI by 0.2021, 0.1917, 0.1436 and 0.1803 units respectively. The changes in the perception on SQFs explain the changes in the CSI among the higher educated customers are identified as higher as to the extent of 81.34 per cent. The analysis reveals that the perceptions on SQFs have higher impact on CSI among the highly educated customers than the other two groups of customers. IMPACT OF SERVPERF SCALE ON SQFs ON CSI AMONG DIFFERENT INCOME GROUPS One of the important demographics of customers is their income. Since the income may influence the level of awareness and knowledge on banking, it is included one of the profile variables. By the level of income, they are classified into Lower Income Groups (LIG), Middle Income Groups (MIG) and Higher Income Groups (HIGs). The impact of SERVPERF scale of SQFs on CSI among the customer has been examined with the help of multiple regression analysis. The impact has been examined among LIG, MIG and HIG separately. The results are given in Table 1.8 TABLE 1.8
IMPACT OF SERVPERF SCALE OF SQFs ON CSI AMONG DIFFERENT INCOME GROUPS

Regression co-efficient among customers in Sl.No 1. 2. 3. 4. 5. Reliability Responsiveness Assurance Tangibles Empathy Constant R2 F-Statistics SQFs LIG 0.1817* 0.1202 0.1144 0.0981 0.2114* 0.9411 0.7028 8.1443* MIG 0.2144* 0.2639* 0.664 0.0917 0.1438* 1.2433 0./7949 10.3842* HIG 0.3142* 0.2108* 0.1440*
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0.1664* 0.1649* 1.8246 0.8144 14.2841*

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International Journal of Multidisciplinary Research Vol.1 Issue 6, October 2011, ISSN 2231 5780

Among the LIG, the significantly influencing SQFs on CSI are reliability and empathy. A unit increase in the perception on above said SQFs result is an increase in CSI among the LIG by 0.1817 and 0.2114 units respectively. The significantly influencing SERVQUAL scale on SQFs among the middle income are reliability, responsiveness and empathy. A unit increase in the perception on above said three SQFs result in an increase in CSI by 0.2144, 0.2639 and 0.1438 units respectively. Among the HIG, the significantly influencing SQFs on the CSI are reliability, responsiveness, assurance, tangibles and empathy. A unit increase in the perception on above said SQFs result in an increase in CSI by 0.3142, 0.2108, 0.1440, 0.1664 and 0.1649 respectively. The changes in the perception on SQFs explain the changes in CSI among the HIG to the extent of 81.44 per cent. The analysis reveals that the perceptions on SQFs are relatively influencing on the CSI at higher rate among the HIG than the MIG and LIGs. IMPACT OF SERVPERF SCALE ON SQFs ON CSI AMONG DIFFERENT OCCUPIED CUSTOMERS The occupation of the customers determines their level of requirements, expectation and perception on banking services. Hence, it is included as one of the demographic profile of the customers. By the occupation, the customers are classified into agriculturalists, employees and businessmen. The impact of SERVPERF scales on SQFs on the CSI among the agriculturalists employees and businessmen have been analysed with the help of multiple regression analysis. The CSI among the customers is treated as the score of the dependent variables whereas the SERVPERF scale on SQFs is treated as the score of independent variables. The Ordinary Least Square (OLS) method has been followed to identify the degree of influence of SQFs on CSI among three group of customers separately. The results are shown in Table 1.9. TABLE 1.9
IMPACT OF SERVPERF SCALE OF SQFs ON CSI AMONG DIFFERENT OCCUPIED CUSTOMERS

Regression co-efficient among customers in Sl.No 1. 2. 3. 4. 5. Reliability Responsiveness Assurance Tangibles Empathy Constant R2 F-Statistics * Significant at five per cent level.
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SQFs

Agriculturalists 0.1427* 0.0933 -0.0438 0.1081 0.1884* 0.9134 0.7872 8.1816*

Employees 0.1819* 0.1502* 0.1617* 0.0961 -0.0539 1.2441 0.8194 10.3326*

Businessmen 0.2424* 0.1761* 0.0669 0.1104 0.2478* 1.8569 0.8646 12.8603*


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International Journal of Multidisciplinary Research Vol.1 Issue 6, October 2011, ISSN 2231 5780

Among the agriculturalists, the significantly influencing SERVPERF scales of SQFs on the CSI are reliability and empathy since their respective regression co-efficient are significant at five per cent level. A unit increase in CSI by 0.1427 and 0.1884 units respectively. The changes in the SERVPERF scale on SQFs explain the changes in CSI to the extent of 78.72 per cent. The significantly influencing SERVPERF scale of SQFs on CSI among the employees are reliability, responsiveness and assurance. A unit increase in the SERVPERF scale on the above said SQFs result in an increase in CSI by 0.1819,0.1502 and 0.1617 units respectively. The changes in SERVPERF scale on SQFs explain the changes in CSI among the employees to the extent of 81.94 per cent. Among the businessmen, a unit increase in the SERVPERF scale on reliability, responsiveness and empathy result in an increase in CSI by 0.2424, 0.1761 and 0.2478 units respectively. The changes in the SERVPERF scale on SQFs among the businessmen explain the changes in CSI to the extent of 86.46 per cent. The analysis reveals that the businessmen are highly influenced by the SERVPERF scale on SQFs compared to other two groups of customers. CONCLUDING REMARKS The present study concludes that there is a close link between the customer's perception on the service quality factors and the customer satisfaction. But the impacts of service quality factor on customer satisfaction among the customer are not unique. It depends upon the demographic profile of the customers. For example, the degree of influence of the service quality factors on customer's satisfaction is higher among the male, higher income group and highly educated customers. It may be because of their level of knowledge and awareness on the banking services offered at the industry. Hence, the bank managers are advised to formulate appropriate marketing strategy to satisfy their customers. Even though the scope of the study is limited to Kanyakumari district, it may be extended to the customers at the state level in near future. The customers at various districts may be analysed and also the important discriminant service quality factors among them.

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