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EFFECT OF SERVICE QUALITY AND PERCEIVED ORGANIZATIONAL RESPONSIBILITY ON CUSTOMER SATISFACTION IN RETAIL BANKING IN BANGLADESH: AN EXPLORATORY STUDY
Syed Saad Andaleeb, Sharif Dilnewaz Hossain
DOI: https://doi.org/10.58964/JBA46N101
Abstract
This study assesses the effects of service quality and the additional effects of perceived organizational responsibility (POR) on customer satisfaction in Bangladesh’s retail banking sector using three theoretical premises: Expectation Confirmation Theory (ECT), Stakeholder Theory (ST), and Corporate Social Responsibility Theory (CSR). We followed systematic intercept sampling technique and selected a sample of 147 retail clients (67.3% male & 32.7% female) from 28 private and state-owned banks in Dhaka, Bangladesh. The main constructs of the model were ascertained using factor analysis. Cronbach’s alpha was used to assess construct reliability. Finally, hierarchical regression analysis was conducted to determine the change in R2 after adding POR to the model while controlling for the effects of the other predictor variables. Not all service quality predictors were significant. The two key contributions of the study are: (1) POR has a slim but significant effect (R2 change 3.2%) on customer satisfaction; and (2) the scales for measuring service quality resulted in modifying the dimension of service quality and included assurance, competence, tangibles, responsiveness, and a reformulated dimension, customer care, attributable to the cultural context and critical to retail banking customers. The conceptual and practical implications of the findings are unique and useful for retail banking in Bangladesh.
Keywords: Perceived Organizational Responsibility, Service Quality, Customer Satisfaction, Customer Care, Retail Banking
