Customer Service Quality: A Study on Foreign Banks Operating in Bangladesh

Abstract

The study examines perception on service quality of different foreign
banks operating in Bangladesh among a sample of customers. This study was
conducted based on a sample of 200 customers from all the foreign banks
conducting business in Bangladesh. Especially our study area is the entire foreign
bank located and conducting their operation in Dhaka city. The results indicate that
the customers of foreign banks are satisfied though they are not highly satisfied.
Satisfaction of customers is found in reliability, responsiveness, assurance, empathy,
courteousness, and tangibles dimensions of SERVQUAL model whereas
dissatisfaction is found in accessibility dimension. Moreover, the result also
indicates that from the seven variables of SERVQUAL model, four of them are
positively related with the dependent variable customer satisfaction implying that if
reliability goes up by 1%, then customer satisfaction will go up by 1.3%; if
assurance goes up by 1%, then customer satisfaction will go up by .53%; if empathy
goes up by 1%, then customer satisfaction will go up by .00048%; and if
accessibility goes up by 1%, then customer satisfaction will go up by .12%. Indeed,
negative relationship is found with responsiveness, courteousness & tangibility
dimensions. We have got these results through regression analysis. However, with
the increasing competition amongst banks, the findings can act as a strategic tool to
achieve competitive advantage and customer satisfaction. It is also an eye-opener
for the foreign banks to see the gap between customer expectation and perception
regarding the quality of services rendered.