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Chapter III
RESEARCH DESIGN AND METHODOLOGY
This chapter confers the research methods, techniques and procedures
utilized to empirically examine the customer perception and satisfaction on
banking services. Using a bunch of nationalised commercial banks and a
sample of their customer base, this study examines service quality gaps in a
unique and original manner utilizing SERVQUAL instrument.
Descriptions of how each construct of the empirical model was
established are set out in this chapter. The objective of this chapter is to
determine the objectives of the study based on the statement of the problem
given in the Chapter I. Formulated hypothesis sampling design and description
of the procedures used to measure the constructs and collect data.
3.1 Objectives of the Study
The main objective of the study is to evaluate association among
expectation, perception, perceived service quality and satisfaction
of the select nationalised commercial banks. However the specific objectives
are:
i. To determine the level of expectation, perception, service quality and
satisfaction of the customers on the services offered by the sample banks
confined to this study.
106
ii. To establish the degree of association between perceived service quality
and satisfaction of the customers.
iii. To assess the predominant service quality constructs in determining
perceived service quality and customer satisfaction.
iv. To examine the level of expectation and perception on banking services
for dissatisfied and satisfied customers.
v. To expose the predominant service quality constructs perceived that
contributes to the classification of bank customers as dissatisfied and
satisfied.
vi. To assess the importance of service quality as compared to location,
advertising, recommendation of others, and service charges in the
selection of a bank by a customer
vii. To establish the degree of association between frequency in use of bank
and satisfaction of the customers.
viii. To assess the impact of demographic variables on the perceived service
quality and customer satisfaction.
ix. To quantify the degree of association of service quality dimensions,
average weighted perceived service quality and satisfaction with
behavioural intentions.
x. To examine the variation in behavioural intentions among dissatisfied
and satisfied customers.
107
3.2 Hypotheses
On the basis of the objectives of the study, the following hypotheses are
framed and tested in the present study.
3.2.1 Difference among Bankers of the Respondents
Every bank is capable of providing an individual with retailing services,
but not every bank manages to treat customers in a way that they are pleased.
Though, customers rely on the services delivered to them by the bank,
customers expect banks to provide the basic banking services, and also expect
different levels of services to maximize the value they can obtain from banks.
From these statements, it is clear that banks can offer similar retailing services,
indeed all the sample banks restrained to this study do as they all are
nationalised banks regulated by RBI. But, not in the way services are delivered,
which is in the hands of the employees responsible for handling issues relating
to them. It means every employee may not be same in personality
characteristics and pleasing enough. Thereby, every bank differentiates
themselves from others the way services are delivered. However, the ever
raising expectations of the customers makes the bankers kindle to strive hard
for its existence. It is obvious that there is a considerable difference between
banks on its services perceived by the customers, but there is a scarcity for
literature with regard to sample banks in view of Indian perspective. As a result
of conceptual and empirical research, an alternative hypothesis is proposed.
This hypothesis states that:
108
H1 There will be a difference in expectation and perception on
banking services by the customers, and eventually on perceived
service quality and customer satisfaction among sample banks.
The null hypothesis is, therefore:
H01 There will not be a difference in expectation and perception
on banking services by the customers, and eventually on
perceived service quality and customer satisfaction among
sample banks.
3.2.2 Association between Service Quality and Customer Satisfaction
A focal point of discussion is the casual ordering between service
quality and customer satisfaction. Though, there is considerable debate about
the conceptual distinctness of these two concepts, from empirical studies it is
evident that there is a strong positive association between service quality,
customer satisfaction and loyalty.1,2
However, it was observed that the
literature does not specifically address the unique relationship among service
quality, customer satisfaction and loyalty in view point of banking service.
Hence, the investigator seeks to explore it, and posit that:
H2 There will be a significantly positive relationship between
perceived service quality and satisfaction of the customers.
1 K.A. Venetis, Service Quality and Customer Loyalty in Professional Business Services Relationships:
An empirical investigation into the customer-based service quality concept in the Dutch advertising
industry, Thesis, Maastricht University, Maastricht (1997).
2 The Behavioural Consequences of
Journal of Marketing, 60, (1996), 31-46.
109
The null hypothesis is, therefore:
H02 There will not be a significantly positive relationship
between perceived service quality and satisfaction of the
customers.
3.2.3 Factors determining Service Quality and Satisfaction
The predominant view is that quality influences customer satisfaction.1
It was noted from the review of literature that there is a lack of evidence in
confirming the predominance of service quality dimensions apparently focuses
on the banking services. Therefore, in the present study the investigator
postulated to detect the predominant perception constructs in determining the
perceived service quality and satisfaction of the customers, and posit that:
H3 Predominance of service quality dimensions and its constructs
perceived service quality and
satisfaction.
The null hypothesis is, therefore:
H03 Predominance of service quality dimensions and its
constructs perceived
service quality and satisfaction.
1 D. Iacobucci, A.L. Ostrom, B. Baig, and A. Beezjian-Avery, (1996). A canonical model of consumer
evaluations and theoretical bases of expectations. In: Swartz A.T., Bowen D.E., Brown S.W. (Eds.),
Advances in Services Marketing and Management, vol. 5. JAI Press, Greenwich, CT, pp. 1-44.
110
3.2.4 Perception and Expectation of Dissatisfied and Satisfied Customers
expectation is a constituent of perceived
service quality and indeed customer satisfaction too. The theory on the
disconfirmation of expectation exploited both perception and expectation that
categorized customers as dissatisfied and satisfied on the services offered by
their bankers. As the perception and expectation are the basis for classifying
, the investigator felt the need to explore
it, and posit that:
H4 There will be difference in the level of expectation and
perception on banking services between dissatisfied and satisfied
customers.
The null hypothesis is, therefore:
H04 There will not be difference in the level of expectation and
perception on banking services between dissatisfied and satisfied
customers.
3.2.5 Discriminating the Customers as Dissatisfied and Satisfied
The literature pertaining to the determinants of customer satisfaction
was entrusted upon the service quality dimensions and constructs perceived by
the customer, and ultimately the dissatisfied and satisfied customers would
perceive service quality as low or high. Correspondingly, the customers can be
classified as dissatisfied and satisfied on the basis of their perception of service
quality. In order to examine this assumption, the investigator posits that:
111
H5 The perception of selected service quality constructs may
contribute to the classification of bank customers as dissatisfied
and satisfied.
The null hypothesis is, therefore:
H05 The perception of selected service quality constructs may not
contribute to the classification of bank customers as dissatisfied
and satisfied.
3.2.6 Factor of utmost importance in the bank selection process
Though the literature reports numerous studies relating to service
quality, location, and other selection options, the literature review did not
uncover service quality or location as the most important an element in
influencing selection. To provide respondents with an unbiased choice, five
factors including service quality and location were listed alphabetically for
their choosing. Respondents were asked to rank each of the five elements.
Hence, the sixth hypothesis to be examined by the study is addressed as
follows:
H6 Service quality is more important in the selection of a bank by
a customer than other factors, such as location, advertising,
recommendation of others, and service charges.
The corresponding null hypothesis takes the following format:
H06 There is no evidence to indicate that service quality is more
important in the selection of a bank by a customer than other
112
factors, such as location, advertising, recommendation of others,
and service charges.
3.2.7 Influences of Service Encounters on Customer Satisfaction
In service organizations, customer satisfaction is often determined by
the quality of individual encounters the service encounter.1 The service
encounter encompasses all elements of the interaction between consumer and
service organization: the intangible as well as the tangible elements. The
customer is mainly interested in the service quality and customer satisfaction
derived from the service encounter. However, it was observed that the literature
does not distinctively deal with the issue related to the influences of service
encounters on customer satisfaction, which this study concentrates on.
H7 There will be a significantly positive relationship between the
number of
The null hypothesis is, therefore:
H07 There will not be a significantly positive relationship
between the number of
satisfaction.
3.2.8 Influence of Demographic Characteristics
The literature has no definitive conclusions concerning the impact of
whether demographic data such as age, gender, income, and education will
1 valuating Service Encounters: The Effects of Physical Surroundings and Employee
Journal of Marketing, 54 (April 1990), pp. 69-82.
113
have on service quality perceptions and expectations in general applications
even though Howcroft1, et al (2002) found variables such as age and other
demographics impact customer selection and satisfaction in specific situations.
This study has included specific questions relating to age, gender, income, and
education in hopes of establishing either a positive or negative impact on
overall service quality outcomes. Therefore, the eighth hypothesis will examine
the likelihood of the following:
H8 Differences on perceived service quality and customer
satisfaction among sample bankers are influenced by the
variation in age, gender, income, and education of the
respondents.
A null hypothesis would be the following:
H08 Differences on perceived service quality and customer
satisfaction among sample bankers are not influenced by the
variation in age, gender, income, and education of the
respondents.
3.2.9 Service Quality and Behavioural Intentions
Although an investigation of overall satisfaction with services provides
relevant insight regarding loyalty, even greater knowledge can be obtained by
distilling satisfaction into its various dimensions, especially in an industry
1
Adoption of Home-Based Ba International Journal of Bank Marketing,
20/3, (2002), 111-121.
114
where switching behavior and customer loyalty are paramount.1 Theory
i.e., service quality), in terms of
tangibility,reliability, responsiveness, assurance, and empathy2,3
may be the
most salient in determining overall satisfaction and repeated purchasing in
service industries.4
If the evaluation of service quality and customer satisfaction is positive,
the customer may decide to remain loyal to the service organization.5,
6 Indeed,
be more important antecedents of repeat-purchase behavior and loyalty than
others are. It posits that:
H9 The dimensions of service quality, average weighted
perceived service quality and satisfaction levels may have
significantly positive relationship with the behavioural intentions
of the customers. 1 Roland T. Rust, and A.J. Zahorik, Customer Satisfaction, Customer Retention, and Market Share
Journal of Retailing, vol. 69, (1993), pp. 193 215.
2 A. Parasuraman, Valerie A. Zeithaml, and Leonard L. Berry, A Conceptual Model of Service
Quality and its Implications for Future Research, Journal of Marketing, vol.49 (1985), pp.41-50.
3 . Parasuraman, Valerie A. Zeithaml, and Leonard L. Berry, Reassessment of Expectations as a
Comparison Standard in Measuring Service Quality: Implications for Further Research Journal of
Marketing, vol.58 (1994), pp.111-124.
4 Jaishankar Ganesh, Mark J. Arnold, and Kristy E. Reynolds, Understanding the Customer Base; in
Atila Yüksel and Fisun Yüksel, Measurement of Tourist Satisfaction with Restaurant Services: A
Segment-Based Approach Journal of Vacation Marketing, vol. 9, no. 1, (2002): pp. 52-68
5 n Czepiel, John A.;
Solomon, Michael R. and Suprenant, Carol F. (Eds.). The Service Encounter: Managing
Employee/Customer Interaction in Service Businesses. Massachusetts: Lexington Books, pp.67-82. 6 John A. Czepiel, Michael R. Solomon, Carol F. Suprenant
The Service Encounter: Managing Employee/Customer Interaction in Service Businesses.
Massachusetts: Lexington Books, pp.3-15.
115
The null hypothesis is, therefore:
H09 The dimensions of service quality, average weighted
perceived service quality and satisfaction levels may not have
significantly positive relationship with the behavioural intentions
of the customers.
3.2.10 Behavioural Intentions among Customers with Different Levels of
Satisfaction
Moreover, the literatures uphold the necessity to investigate and provide
a better understanding of the drivers of customer satisfaction that persuades
behavioural intentions of customers. Therefore, there is a niche to evaluate the
role of satisfaction levels on the behaviour and intention of customers. Hence,
the tenth hypothesis purports to establish the significant difference on
n
on the services of bankers based upon the following:
H10 There will be a statistically significant distinction among
customers with different levels of satisfaction on the elements of
behavioural intentions.
A null hypothesis would be the following:
H010 There will not be a statistically significant distinction
among customers with different levels of satisfaction on the
elements of behavioural intentions.
116
3.3 Study Design and Sampling Method
In this study, the study design adopted for quantitative data collection
using field based questionnaires is the cross-sectional survey design. The
systematic random sampling technique is considered to select customers from
the branches of sample banks in the geographical location confined to this
study.
The calculation of sample size depends on the sampling design and the
indicator. Thereby, to calculate sample size for systematic random sampling
there is a need to come up with the following two points:
1. Expected prevalence of the indicator that is to be measured.
2. The width of the confidence that have to be achieved to meaningfully
interpret the estimate.
The sample size formula for systematic random sampling is as follows:
n = [Z2 x (p x q) / d
2]
Where: n = sample size
z = linked to 95% confidence interval (use 1.96)
p = expected prevalence (as fraction of 1)
q = 1- p (expected non-prevalence)
d = relative desired precision
117
3.4 Research Sample
The research sample was restrained to three banks and its branches
totaling 87 (Canara bank-36, Indian overseas bank-28, and Indian bank-23)
spread across seven different taluks and Madurai city in Madurai district,
Tamilnadu state, India. These details were collected from the secondary source
namely: Annual Credit Plan published by the district lead bank Canara bank.
These sample banks were chosen on the basis of their status as nationalised
commercial banks with more number of branches and their geographical
location. The total number of branches of sample banks existing during the
period (2009-2010) of data collection was as shown in Table 3.1.
118
Table 3.1: Number of Existing Branches of Sample Banks
Canara
Bank
Indian
Overseas
Bank
Indian
Bank Total
Madurai City 19 17 14 50
Madurai
District
Taluks
Madurai North 4 5 3 12
37
Madurai South 1 2 2 5
Melur 1 2 1 4
Vadipatti 2 2
Usilampatti 3 2 5
Peraiyur 3 1 1 5
Thirumangalam 3 1 4
Total 36 28 23 87
Twenty percent of the sample bank branches (with regard to city and
taluk areas in Madurai district) were systematically selected and taken into
consideration for the purpose of achieving research objectives, which
accounted for a total of 18 sample bank branches in the district of Madurai.
Thereby, the selection of bank branches was randomized. The number of
branches of sample banks chosen from Madurai district was as shown
in table 3.2.
119
Table 3.2: Number of Branches Selected from Sample Banks
Canara
Bank
Indian
Overseas
Bank
Indian
Bank Total
Madurai City 4 3 3 10
Madurai
District
Taluks
Madurai North 1 1 2
08
Madurai South
Melur 1 1
Vadipatti
Usilampatti 1 1 2
Peraiyur 1 1 1 3
Thirumangalam
Total 7 6 5 18
In each of these selected bank branches, certain numbers of
questionnaires were distributed to one in every five customer in the lobby of
the bank, on a given day. Providing the sample questionnaire to every fifth
customer at bank premises will provide a randomly selected sample for the
customer portion of the study.
The number of questionnaires circulated to bank customers in the bank
lobby was 1870, however the number of customers responded in answering
questionnaires in all respect were 1428 with the percentage of respondent was
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76. The number and percentage of respondents corresponding to sample
bankers was given in Table 3.3.
Table 3.3: Bankers of Respondents
Canara Bank Indian Overseas
Bank Indian Bank Total
Number of
Respondents 580 470 378 1428
Percentage of
Respondents 40.6 32.9 26.5 100
Source: Primary Data
3.5 SERVQUAL
The revised SERVQUAL instrument by Parasuraman, et al. (1991)
offers the most reliable device to measure the difference-score
conceptualization and evaluate expectations and perceptions of service quality.
As pointed out in the second chapter of this study, SERVQUAL examines five
dimensions examining the reliability coefficients for the perception-minus-
expectation scoring of gaps. The five factors are tangibles, reliability,
responsiveness, assurance, and empathy.
These five dimensions/factors are addressed across 22 questions that
relate to the various five
best suited for use as a diagnostic methodology utilized for determining large
areas of service quality strengths and weaknesses.
However, this study will attempt to further evaluate and refine the
customer study by including such elements as gender, age, education, income,
121
frequency of bank use, and items influencing the selection of the bank.
Parasuraman et al. (1991) suggested that items not fitting in the five
dimensions might be useful as long as they are treated separately in analyzing
the survey data since they do not fall under the conceptual domain of service
quality.
3.6 Design and Development of the Customer Questionnaire
The SERVQUAL scale was selected for the customer survey instrument.
To evaluate the five dimensions, the twenty-two statements were modified to
apply to banking. Bank customers were asked to indicate their level of
agreement for two sets of identical twenty-two statements. One set of questions
asked the customer to state thei
Another set of questions asked the customer to state their perceptions about
-point Likert scale was used to evaluate the
constructs. The third section of the survey instrument asked the customer to
allocate 100 points among five categories, based upon the importance of each
perform th
willingness to help customers and provide prompt service; the knowledge and
confidence; and the caring, individualized attention the bank provides its
customers.
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In this study, the behavioural intention too of the customers was studied,
for which a comprehensive, multi-dimensional framework of customer
behavioural and attitudinal intentions for use within a service industry
developed by Zeithaml, Berry and Parasuraman (1996) was utilized. The
framework incorporates 13-items across five-dimensions: loyalty to company
(loyalty) propensity to switch (switch), willingness to pay more (pay more),
external responses to a problem (external responses), and internal responses to
a problem (internal responses). A 7-point likert scale (1 indicating strongly
disagree and 7 indicating strongly agree) was utilised across the 13
behavioural intentions battery items.
The demographic variables considered in the present study were: age,
gender, household monthly income and educational qualification. The study
was also confined to measuring the bank visit frequency and reasons for
selecting the bank.
3.7 Reliability and Validity
Because of the extensive use and testing of SERVQUAL and
behavioural intentions instruments, the researcher is confident that these
instrument
industry.
123
3.7.1 Reliability
The degree to which measurements may be repeated makes up reliability
(Nunnally, 1978). To accomplish reliability, the two sets of twenty-two
questions concerning perceptions and expectations reduced to five constructs
were tested and retested for the same set of customers. The degree to which
test-retest is associated establishes a reasonable level of reliability.
3.7.2 Validity
Validity is more a matter of judgment than a fixed mathematical formula
of unerring proportions (Nunnally, 1978). Therefore, the utilization of these
instruments, although they are not without their detractors, tends to reduce
some of the issues raised concerning validity. With a thorough review of the
literature, incorporation of data from the appropriate literature, and careful
wording of the questionnaire documents, this researcher felt that there was a
high degree of certainty of validity.
3.8 Translating the Instrument to Tamil Language
It is important to conduct research surveys with native languages apart
from English as the population is more diverse. Thus, nowadays in research,
the translation of questionnaires plays an important role. Then, the
harmonisation of demographic and socio-economic variables is a further
prerequisite to comparability. Functionally equivalent translations require quite
sophisticated techniques for translation, taking into account the semantic,
conceptual and normative levels of the source language questionnaire.
124
The expertise of a bilingual and a reviewer is involved in translation of
the questionnaires. The bilingual is a qualified and skilled practitioner who has
received training on translating questionnaires. And, the reviewer is an expert
in questionnaire design principles, the study design and topic, and also familiar
with translation skills. During the actual translation process a bilingual
translated the questionnaire. Besides appropriate translation techniques, the
harmonised demographic variables were used. Context variables that contain
information necessary to define homogeneous subgroups, to establish causal
relations between attitudes and societal facts, and to define differences between
scores on scales were incorporated.
The customer survey instrument SERVQUAL and behavioural intention
battery is thus translated to the native language Tamil with the assistance of
linguis
constructs in the survey instrument. The survey instrument in both the English
and Tamil versions were tested for its convergent validation and internal
consistency of the survey instrument, by circulating both the language versions
one after other interspersed with a week long, and the data thus obtained were
subjected to Pearson product moment correlation for testing the convergent
validation, and intraclass correlation for testing the internal consistency of the
questionnaires in both the source and native languages. The correlation
coefficient thus established for the SERVQUAL expectation and perception
statements is given in Table 3.4 and for the behavioural intentions is given in
125
Table 3.5.
items were modified and items were added to the survey. A copy of the survey
instrument thus prepared in both English and Tamil was attached
as Appendix I.
Table 3.4: Correlation Coefficient for Convergent Validation and Internal
Consistency on Service Quality Expectation and Perception Statements
Service Quality
Dimensions
Expectation Constructs Perception Constructs
Pearson
Correlation Sig.
Intraclass
correlation
Pearson
Correlation Sig.
Intraclass
correlation
Tangibility CE 1 .958 .001 .9644 CP 1 .900 .000 .9362
CE2 .871 .001 .9302 CP2 .711 .021 .7273
CE3 .867 .001 .9256 CP3 .753 .012 .8670
CE4 .820 .004 .9011 CP4 .905 .000 .9316
Reliability CE5 .943 .000 .9573 CP5 .945 .000 .9569
CE6 .918 .000 .9467 CP6 .861 .001 .8889
CE7 .907 .000 .9174 CP7 .913 .000 .9121
CE8 .917 .000 .9497 CP8 .821 .004 .8989
CE9 .904 .000 .9323 CP9 .880 .001 .9368
Responsiveness CE10 .846 .002 .9032 CP10 .737 .015 .8221
CE11 .922 .000 .9448 CP11 .869 .001 .9204
CE12 .816 .004 .8989 CP12 .667 .035 .7805
CE13 .812 .004 .8989 CP13 .812 .004 .8601
Assurance CE14 .769 .009 .8657 CP14 .701 .024 .7652
CE15 .738 .015 .8556 CP15 .870 .001 .9121
CE16 .775 .008 .8421 CP16 .741 .014 .8163
CE17 .746 .013 .7429 CP17 .826 .003 .8811
Empathy CE18 .659 .038 .8058 CP18 .935 .000 .9557
CE19 .689 .028 .7907 CP19 .736 .015 .7857
CE20 .773 .009 .8831 CP20 .905 .000 .8696
CE21 .845 .002 .8989 CP21 .852 .002 .8846
CE22 .783 .007 .8571 CP22 .896 .000 .9121
Table 3.4 displays that the obtained product moment correlation
coefficient on each of the expectation and perception constructs were
126
statistically significant at P < .05, and correspondingly the intraclass correlation
exhibits a high coefficiency for each of the expectation and perception
constructs. These findings imply that the SERVQUAL customer expectation
and perception statements in English version are significantly correlated with
that of the translated Tamil version of the SERVQUAL customer expectation
and perception statements with high internal consistency.
Table 3.5: Correlation Coefficient for Convergent Validation and Internal
Consistency on Behavioural Intention Statements
Behavioural Intention
Statements
Pearson
Correlation Sig.
Intraclass
correlation
Loyalty BI 1 .859 .001 .9091
BI 2 .825 .003 .8916
BI 3 .859 .001 .9091
BI 4 .899 .000 .9204
BI 5 .745 .013 .8163
Switch BI 6 .879 .001 .9184
BI 7 .655 .040 .7692
Pay more BI 8 .930 .000 .9368
BI 9 .896 .000 .9121
External response BI 10 .741 .014 .8163
BI 11 .689 .028 .7907
BI 12 .802 .005 .8889
Internal response BI 13 .655 .040 .7692
Table 3.5 shows that the obtained product moment correlation
coefficients on each of the behavioural intention facets were statistically
significant at P < .05, and evenly the intraclass correlation exhibits a high
coefficiency for each of the behavioural intention facets. These findings imply
127
that the behavioural intention facets in the translated Tamil version assumed no
substantial change in the construct being measured with that of the English
version of the SERVQUAL customer expectation and perception statements
with high internal consistency.
3.9 Data Collection
To obtain data from that of bank customers, the customer survey
instrument along with a postage-paid self-addressed envelope for return
directly to this researcher for tabulation and analysis, were distributed on a
systematic random basis to the bank customer with the assistance of friends and
bankers.
3.10 Data Analysis
The choice of the statistical techniques to use in analyzing the data was a
function of the objective of the research. In this study, the main objectives were
to assess relationships among certain variables and test specific hypotheses
regarding the nature of the relationships. An aspect unique to this study is
discriminating the bank customers as dissatisfied and satisfied. In addition, the
study will attempt to reinforce the concept that elements such as age, gender,
income, education, where they obtain their services, and frequency of use could
have a serious impact on service quality.
The statistical techniques considered for this study are Pearson
correlation for estimating the relationship among variables, multiple regression
analysis to test the statistical significance of the individual parameters and the
128
overall model, univariate and multivariate analysis of variance for the purpose
of evaluating delineation of variables, and discriminant analysis for
determining the proportion and classification of customers with different levels
of satisfaction on the basis of perception. Whenever, the obtained F tests were
found to be statistically significant, the Scheffé S post hoc tests were applied to
find the paired mean differences. Furthermore, percentage analysis was carried
out to facilitate the identification and ranking of factors that influence the bank
selection process, and the frequency of transaction on customer satisfaction.
The SERVQUAL questions one through four will produce a composite
score to represent the tangible factor of the perceptions responses and measured
against the tangible factor of the expectation responses for questions one
through four. Likewise, a composite score will be produced to represent
perceptions responses to questions five through nine and will be measured
against the expectation responses for questions five through nine to determine
the difference gaps in the reliability factor. Questions ten through thirteen will
produce a composite score to represent the responsiveness factor and measured
against that same factor in responses to expectations questions ten through
thirteen. Once again, the resultant differences in the gap will result in the
responsiveness factor. Responses to questions fourteen through seventeen will
produce a composite score to represent the assurance factor of the perceptions
responses and measured against the assurance factor of the expectation
responses for questions fourteen through seventeen. Subsequently, the
129
difference gaps will result in the assurance factor. A composite score
representing the perceptions responses to questions eighteen through twenty-
two will be measured against the expectation responses for questions eighteen
through twenty-two to determine the difference gaps in the empathy factor. In
the development of satisfaction, confirmation/disconfirmation model is a
technique allows a weighting of the constructs.
The data collected on expectation, perception and behavioural intention
was subjected to reliability analysis, and the results thus obtained are shown in
Table 3.6.
130
Table 3.6: Reliability Coefficient for the Instruments SERVQUAL
and Behavioural Intentions
N of
Cases
N of
Items Alpha SQ Dimensions
N of
Items Alpha
Customer
Expectation
1428 22 .9506 Tangible 4 .7914
Reliability 5 .8584
Responsiveness 4 .8335
Assurance 4 .8475
Empathy 5 .8652
Customer
Perception
1428 22 .9663 Tangible 4 .8477
Reliability 5 .8958
Responsiveness 4 .8579
Assurance 4 .8625
Empathy 5 .9054
Behavioural
Intention
1428 13 .8798 Loyalty 5 .8783
Switching 2 .6409
Pay more 2 .6999
External
response 3 .7850
Internal
response 1
From Table 3.6, it is understood that the reliability checks when applied
to all 22-items of expectation and perception provide an excellent overall
, which indicates the very
131
good scaling of the instrument. Alpha coefficients were calculated for every
one of the original five quality dimensions and the results support that all 22
items present a robust structure with no evident need for deletions or
modifications. Similarly, the reliability checks on all 13-items of behavioural
a coefficient
of 0.8798 indicating the good scaling of the instrument. Alpha coefficients
were calculated for every one of the original five behavioural and intention
facets and the results support that all 13 items present a strong composition
with no apparent need for removal or revision.
3.11 Limitations of the Study
Regardless of a comprehensive investigation that seeks to establish a
method to predict service quality and to discriminate customers as dissatisfied
perceptions of nationalised commercial
banks in Madurai district, yet, this study has its limitations. There are several
limitations associated with this study.
In spite of the intensive effort, the variables confined to this study may
have been influenced by the interests and the knowledge limitations of the
customers, and it may be considered as the first limitation.
The next limitation is the cost and time constraints that did not allow for
a more extensive data collection. A larger and more representative sample may
give broader representation to the measurement of perceptions versus
expectations gaps. Finally, the study assumed that the respondents were all
132
individual bank customer, and the results obtained thereto cannot be
generalized for joint satisfaction or lack thereof of the joint account holders,
corporate sectors, and so forth.
This chapter outlined the structure of the study, the materials and
methods used. In the next chapter, it confers about the development of banking
in India, and the profiles of the banks selected for this study.