Determinants of Service Quality and Their Relationship with Behavioural Outcomes: Empirical Study of the Private Commercial Banks in Bangladesh

Abstract

Service quality is one of the critical success factors that influence the competitiveness of an organization. The relationship between service quality and behavioural outcomes in the retail banking environment has been the focus of a number of studies. This study examines the relationship between service quality, satisfaction, and loyalty in the private commercial banks in Bangladesh. The Nordic perspective model developed by Gronroos (1984) is used. The sample size was 335 customers of bank located in Dhaka city. The determinants of service quality were categorized into product features, physical aspects, customer services, and technology and security aspects. The factor analysis with SPSS and the structural equation models with AMOS program were used to test the hypotheses of the research which is followed by Davila et al (2010). It has been proved service quality, satisfaction, and loyalty is strongly and positively related to each other.