A comparative analysis of customer expectations and service quality of retail banking in Namibia: A case study of commercial banks in Windhoek
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Date
2020
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Publisher
University of Namibia
Abstract
The SERVQUAL instrument was developed in 1988 by Zeithaml, Parasuraman and
Berry as a multi-item scale to assess customer perceptions of service quality in the
service industry. Customers judge service quality as low or high depending on whether
· the service performance meets their expectations or not. The main objectives of study
are to evaluate the service quality dimensions with respect to perception and expectation
of customers in retail banking sector at the Windhoek CBD , to ascertain the gap
between perception and expectation and to Identify the impact of customer
perception/expectation on Perceived service quality.
A Purposive and convenience sampling methods were adopted by the researcher to
select 200 bank customers for the study. The researcher applied Gap analysis to
determine if there was significant difference between customers perception/expectation
on perceived service quality. The results indicate the significant difference between all
the dimensions in customer perceptions and expectations. Responsiveness, assurance
and empathy showed an average negative difference of -0.3,-0.02 and -0.12 for the four
banks which means customer expectations are higher than' perception in every
dimension. Also, the Tangibility and Reliability showed a positive difference of 0.12 and
0.03. The fmdings seem to suggest that retail banks put attention to improve these
dimension's performance and to achieve their _goals in these ,competitive business
environment.
The study was limited to customers from the four commercial banks in the Windhoek
CBD, where the greater part of the research ·was undertaken. Other limitations are that
the sample size of the current study. is 200. Out of ~56 targeted. sample size from
qomputed statistical formula. Although this sample · size meets the minimum
requirement, a bigger sample size should have given more accurate results that could be
generalized to environments beyond the Windhoek CBD. Namibia. Again, the study
covers only customers from Windhoek Namibia, yet the four banks operate in the retail
banking industry country-wide. Hence, other customers of the four banks were excluded
from this study
Description
A thesis submitted in partial fulfilment of the requirements for the Degree of Master of Business Administration (Management Strategy)
Keywords
Commercial banks, Customer expectations, Service quality, Retail banking, Namibia, University of Namibia