A Measurement of Customer Service Quality of Banks in Dhaka City of Bangladesh

Abstract

This study attempts to identify the factors related to service quality of the banks in Dhaka City of Bangladesh. It identifies the relationship between age, educational background, profession, and length of involvement, types of services obtained by the clients and the service quality factors. An extensive survey of bank clients has been performed with a structured questionnaire to identify the factors. A segmentation of the respondents was made based on the nature of services provided by the banks such as, deposit, lending and other financial services. The sample clients were selected from the branches located in 4 clusters of banks including Motijheel, Gulshan, Dhanmondi, and Uttara of Dhaka City. 404 bank clients were interviewed from Nationalized, Private and Foreign commercial banks. Among the banks, 4 are government, 6 are private and 1 is in foreign sector. In selecting sample, it was assumed that the bank clients of Dhaka City are more sensitive compared to other cities of Bangladesh, as their education level is higher. The sample clients were selected randomly at the banks while interviewing. Both descriptive and inferential statistics were used in the analysis. Factor analysis was done to identify the service quality factors of the banks. Correlations between the factors and age, educational background, profession, length of involvement, and types of service obtained were identified to know the relationships. In order to explore the relationship with the overall service quality, multiple regression analysis was performed. Results show that the most important service quality factor of Banks is personal attention to the clients followed by error-free records, safety in transaction, and tangible physical facilities of the bank. It is also found that there is a significant difference between the expected and perceived service quality of public and private banks. A significant correlation between the performance of promises in time and professions of the clients are observed. Perceived service quality factors have significant relationship with the overall service quality of the banks located in Dhaka City which indicates that the factors identified have strong influence on the overall service quality.