Modified SERVQUAL model and effects of customer attitude and technology on customer satisfaction in banking industry: mediation, moderation and conditional process analysis

Abstract

Banks are very important financial services sector, and in banking sector there is an intense competition amongst the local and foreign banks throughout the world. The objective of this research is to analyse the effects of perceived value and customer trust, and role of technology in banking service qualities and customers’ satisfaction in Pakistani context. For this purpose we employed modified SERVQUAL model with four dimensions such as empathy, competence, reliability, and online service. An adapted questionnaire was used to carry out this survey research, and collected 830 responses from the customers of Pakistani banking industry. We used factor analysis, confirmatory factor analysis, and bootstrapping methods to carry out this research. The results of the study demonstrated that our four-dimensional model of modified SERVQUAL has a significant impact on overall customer satisfaction. It is further concluded from the bootstrapping method that modified SERVQUAL dimensions and customer satisfaction are positively mediated by the perceived value and trust. Finally, it is also concluded that the implementation of technology serves as moderating variable in the banking sector. The outcomes of this research are beneficial to the senior management of banking sector in order to implement the effective and customised online banking structure to gain competitive advantages, and provide vibrant online banking services that enhance the standard and ease of services to the customers and earn their confidence. The originality and novelty of this research provide a significant contribution in the application of SERVQUAL model specifically for the banking service quality dimensions and customer satisfaction in marketing research.

Keywords:

• service quality dimensions
• customer satisfaction
• perceived value
• trust
• technology
• modified SERVQUAL model
• structural equation modelling
• bootstrapping method

JEL Classification:

• C12
• G21
• L80
• M30

Additional information

Notes on contributors

Rizwan Raheem Ahmed

Rizwan Raheem AHMED is a Professor at the Faculty of Management Sciences, Indus University, Pakistan, and obtained PhD from Hamdard University. During his research career of more than 12 years, he mainly focused on marketing strategy, digital marketing, organizational performance, behaviour of stocks, money market portfolios and Liquidity market problems by using Time Series analysis models, Multivariate Regression, CFA and EFA models. Besides, he also made a significant research in current issues related to Sales & Marketing of local and global Pharmaceutical Industry; he used quantitative & qualitative models for this purpose. His research papers have already published in Technological and Economic Development of Economy, Economic Research-Ekonomska Istraživanja, Amfiteatru Economic, and Transformations in Business & Economics.

Jolita Vveinhardt

Jolita VVEINHARDT is a Chief Researcher and Professor at the Faculty of Economics and Management, Vytautas Magnus University, and holds PhD from Vytautas Magnus University in Lithuania. Dr Jolita Vveinhardt has published over 100 peer-reviewed papers focused on mobbing in employee relations, organizational climate, and nepotism as a management anomaly, values congruence, human resource management, corporate social responsibility, and the knowledge-based economy. Her publications have appeared in the Journal of Business Economics and Management, Transformations in Business and Economics, Engineering economics and Problems and Perspectives in Management among others.

Dalia Štreimikienė

Dalia ŠTREIMIKIENĖ is a Principal Research Fellow at Vilnius University, Kaunas Faculty, Lithuania, and holds PhD from Vilnius Gediminas Technical University, Lithuania. Prof. Dr Dalia Štreimikienė has published over 200 peer-reviewed papers on multi-criteria decision-making, efficiency analysis, and energy and agricultural economics in such outlets as Applied Energy, Energy Policy, Renewable and Sustainable Energy Reviews.

Muhammad Ashraf

Muhammad ASHRAF is a visiting Lecturer and Research Scholar at Faculty of Management Sciences, Indus University, Pakistan. He obtained his MS (Management) degree from Indus University; he is also research associate and coordinator for Indus Journal of Management Sciences (IJMS). His research area is human resource management, and special emphasis on training & development, compensation, performance appraisal, and succession planning. He has presented number of research papers in national and international conferences, and also appeared more than 20 research papers on the topic of HRM & general management have been published in national and international reputed journals.

Zahid Ali Channar

Zahid Ali CHANNAR is an Associate Professor, at Department of Business Administration, Sindh Madressatul Islam University, Pakistan. He obtained PhD from ISRA University, Hyderabad. During his broad research career of more than 20 years, he mainly focused on human research management, organizational development, training and development, marketing and general management. Besides, he also made a significant contribution of research for private sector employees’ and Organizational related issues; he used quantitative models for these studies. He has more than 25 research papers in national and international reputed journals. He has also presented several research papers in national and international conferences.