Young clients’ attitudes to service quality at retail banks in a developing country


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The aim of this paper is to investigate service quality as perceived by younger customers of retail banks in a developing country. The objectives include identifying customers’ levels of satisfaction and loyalty to their banks and to identify the levels of service quality associated with such satisfaction and loyalty.
The instrument used to collect data via a survey of retail bank customers was an adaptation of the SERVQUAL questionnaire. A total of 448 students were surveyed, using a mix of systematic and quota sampling, with data being collected on university campuses. Data were analyzed using descriptive statistical techniques.
The main conclusions were that most young customers are reasonably satisfied with, and loyal to, their banks. There was little difference, on all the service quality constructs, between the different banks, and between expectations and perceptions of service quality. However, there was no evidence of any bank providing a service that delighted their customers or exceeded their expectations and so all banks are at risk from a competitor who adopts strategies to meet these goals.
The study has contributed to knowledge by focusing on attitudes to service quality of young bank customers in a developing country, an aspect that has been under-researched.

Keywords: service quality, retail banking, expectations, perceptions, customer satisfaction, loyalty, SERVQUAL, South Africa.
JEL Classification: G21, L84, M31

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  • JEL Classification (Paper profile tab)
    G21, L84, M31
  • References
  • Tables
  • Figures
    • Fig. 1. Factors leading to satisfaction
    • Fig. 2. Customer perceptions of superiority and customer contentment
    • Fig. 3. Respondent determinant factors of selecting the bank
    • Fig. 4. Customer loyalty measures
    • Table 1. Quota sample for study
    • Table 2. Profile of sample
    • Table 3. Overall reliability
    • Table 4. Customer satisfaction measures
    • Table 5. Expected and perceived scores per question