Service quality: an empirical study of expectations versus perceptions in the delivery of financial services.

Bexley, James B. ; Hewer, Paul ; Sparks, Leigh 等

ABSTRACT

This paper seeks to relate service quality to the expectations of consumers and bankers versus the perceptions of consumers in the delivery of banking services in community banks within the United States of America. A questionnaire based upon a 22-question modified version of SERVQUAL was designed to obtain information about expected versus perceived levels of service quality from consumers. A second 22-question instrument seeking bankers' perceptions of expectations was also devised. The data collected were then contrasted. The paper concludes by discussing the implications of the study's findings for community banks and in particular for corporate strategy and performance.

INTRODUCTION

This paper examines service quality from the perspective of consumers' expectations of the quality of service delivery contrasted with perceptions of the actual service delivery in community banks within the United States of America. Additionally, it evaluates the similarities or dissimilarities of the bankers' perceptions of the consumers' expectations of the levels of service delivered and the implications this has for corporate performance.

An attempt to interrelate customer satisfaction and service quality as one entity or process was determined to be problematic by Taylor and Baker (1994) who strongly advocated the position that customer satisfaction and service quality were separate and distinct. At the other extreme strong arguments were made to consider customer satisfaction judgments to be at the very least antecedents of service quality (Bitner, 1990; Parasuraman, et al, 1988); although the reverse position, holding that service quality judgments were antecedents of customer satisfaction (Anderson and Sullivan, 1993; Cronin and Taylor, 1992; Oliver, 1993; Taylor and Baker, 1994; Woodside et al, 1989) has also been proposed. Based upon the existing literature, there has been very little empirical research that would link the dimensions of customer satisfaction in terms of perceived versus actual service delivery from consumer and banker perspectives. Such a study would appear to offer significant insights in terms of strategy and corporate performance.

Our focus on expected levels of service delivery versus actual service delivery in community banks emanates from the fact that service quality is one of the most important aspects of selection in seeking a banking relationship (Anderson, et al, 1976; Bexley, 1999). Brady (2000) reported an 8.1% decline in the quality of service delivered by U. S. banks since 1994, causing a concern among bankers about possible loss of customers due to a lack of quality service delivery. Corporate performance is inherently bound up in customer relationships.

In order to understand the factors affecting consumer behavior concerning their expectations of the quality of service delivery contrasted with their perceptions of the actual service delivery in community banks, this paper reviews the limited academic literature on consumer behavior and attitudes and presents empirical data obtained from customer and banker questionnaires. The overall objective of the questionnaires was to obtain a more complete understanding of consumer attitudes toward service quality delivery and banker perceptions of customer expectations.

The paper is divided into four sections. The first section is a literature review and evaluation of the previous research in this area. The second presents the research methodology. The third section presents the research results. The final section presents the implications of the study in terms of service quality issues and corporate performance.

COMMUNITY BANKS AND SERVICE QUALITY

Commercial banking in the USA has evolved into community banks and large banks, sometimes referred to as multi-regional or multi-national banks. Originally, small, locally owned and operated banks sprang up in rural America. Large banks tended to be located in the larger regional money center communities with the largest of these being headquartered in New York. In the early history of banking in the United States banks were not categorized or defined, but as the nation grew and more banks were chartered there was a need to find some means for classifying banks.

Sinkey (1998) noted that within the banking industry community banks make up 90 percent of the banks but control only 23 percent of the assets, while large banks make up only 10 percent of the total number of banks but control 77 percent of the assets. Sinkey (1998) defines community banks as "those with assets of less than $1 billion. They are locally owned banks that serve consumers and small and medium-sized businesses in local markets." (Sinkey, 1998; p. 822).

There is no one definition of service quality. However, there is one, which perhaps presents the least amount of controversy: "Service quality as perceived by the customer is the degree and direction of discrepancy between customer service perceptions and expectations." (Parasuraman, et al., 1985: p. 41.)

This definition provided for the first time recognition that perception by the customer was as much a factor in service quality as the actual service delivered. For example, the service delivered could be the best that could be offered, but the perception by the customer might still be a lack of satisfaction and hence, the service quality did not meet expectations. From this definition, it becomes quite clear that there is a distinct relationship between services actually delivered on behalf of the consumer and that consumer's perception of the level of service quality delivered. This would imply that a community bank might believe that it is delivering a level of service that "should" satisfy its customers. However, if the customer is not satisfied, the level of service is unsatisfactory. This raises several strategic issues. How do you determine customer satisfaction? How do the expectations compare with the actual service delivered and is the difference significant enough to have consequences for the banking system? Finally, if service quality differences are identified, what are the implications of these for ongoing corporate performance?

A beginning point in seeking solutions to the strategic issues raised would be to examine the issue of customer satisfaction. Crosby (1979) suggested to American businesses that quality was free and costs result only when expectations are unmet. Westbrook (1981) noted that overall satisfaction with a particular service provider resulted from the customer's evaluation of a total set of experiences. Peters and Waterman (1982) gave credibility to the value of focusing the company on customer wants and needs. Churchhill and Suprenant (1982) held to the concept that consumer satisfaction is a direct outcome of purchase and use as a result of a buyer comparing rewards and costs of purchase to anticipated outcomes or consequences.

Churchill and Suprenant (1982) noted that early researchers did not measure customer satisfaction, rather the focus was on the linkage between expectations and perceived product performance. They conceptionalized that customer satisfaction was an outcome of purchase and use that resulted from a buyer's comparison of rewards and costs of that purchase in relation to anticipated consequences.

Cronin, et al (2000) noted that there was an on-going preoccupation by service researchers to understand all of the conceptual relationships involving service encounter constructs. The interrelation of how the relationships work, especially between satisfaction and service quality.

Athanassopoulos (2000) in a study of Greek banks noted that customer satisfaction is closely associated with value and price, but service quality was not dependent on price, if the customer was generally satisfied. He concluded that: "The correlation of the antecedents of customer satisfaction is a well-established phenomenon in both theoretical and empirical terms by Parasuraman, Zeithaml, and Berry (1988) and Cronin and Taylor (1992). The finding of this research is also in line with the recent work by Taylor (1997) concerning the second order and interactive effects between customer satisfaction and service quality as predictive indicators of customer loyalty. " (Athanassopoulos, 2000: pp.195-196).

In a case study of SERVQUAL within a major United Kingdom bank conducted over a four-year period beginning in 1993, Newman (2001) found that the separation of service quality management and marketing management caused major problems in adequately satisfying the banking customers. In the evaluation process it was noted that: "Customer satisfaction is the result of the buyers' perception of service quality and satisfaction leads to retention, which leads to repeat purchase and increased scope for relationship building and word-of-mouth recommendation." (Newman, 2001: p.127).

Comparing expectations with the actual service delivered and determining if the difference is significant enough to have consequences for the banking system can best be viewed by examining the early research by Olson and Dover (1979) in the areas of what effect performance, expectations, and disconfirmation had on an individual's views which proved to be generally unsuccessful because they could not measure satisfaction. It was Churchill and Suprenant (1982) who noted that early researchers examined the connection between expectations and perceived product performance, which did not measure satisfaction. Further, they concluded that as research moved forward in this area, there was a shift to examination of perceived expectations, disconfirmation, and satisfaction.

In banking, speed of service delivery, convenient location of banking facilities, competent staff, and general friendliness were considered to be important determinants of customer satisfaction (Laroshe, et al, 1986). Buzzell and Gale (1987) noted in their findings that there was a significant relationship between service quality and performance. Carman (1990) found that there were sufficient empirical findings to support SERVQUAL dimensions in customer satisfaction, subject to small variations for different industries. Fornell (1991) concluded that customer satisfaction is based upon a group of service quality attributes.

Howcroft (1992) in his research relating to customer service in selected branches of a UK clearing bank found that he agreed with Le Blanc and Nguyen (1988) that customer satisfaction is the most important determinant of service quality. He noted that the divergent thoughts seemed to agree with the concept that customer perceptions of the level of service quality are determined by comparing expectations with actual performance.

Spreng, et al (1996) noted that most of the research in the area of customer satisfaction gave rise to the disconfirmation of expectations paradigm as the principal method of measuring customer satisfaction. How service will be measured is certainly changing as the services provided become more complex and the nature of the delivery of the financial product change. However, one element appears unlikely to change and that is the feeling of satisfaction that is brought about as customers measure their expectations against their perceptions of actual performance.

RESEARCH METHODOLOGY

A consumer questionnaire and a banker questionnaire were developed to incorporate factors such as customer satisfaction and service quality, alongside insights from a focus group composed of community banks' chief executive officers. This focus group confirmed that for the CEO's quality service delivery was the most important factor for producing improved bank profitability. The questionnaires were piloted on a small consumer sample, a small banker sample, and several revisions were made. The consumer questionnaire was comprehensive in nature, consisting of two identical sets of 22 modified SERVQUAL questions--one set for perceptions and the other set for expectations. Additionally a banker questionnaire included one set of 22 modified SERVQUAL questions, which related to the banker's perceptions of their consumers' expectations. Demographic information was sought in both questionnaires. One last question asked the consumer respondent to rank from 1 to 5 the most important items in selecting a bank. It should be noted that only a portion of the questionnaire is utilized in this paper. The paper has two primary objectives. First, determine consumers' expectations of the quality of service delivery contrasted to their perceptions of the actual service delivery in community banks within the United States of America. This was accomplished by utilizing a seven point Likert scale varying from Strongly Disagree (1) to Strongly Agree (7), and comparing the two sets of 22 questions against each other. Secondly, evaluating the bankers' perceptions of the consumers' expectations service delivery that was accomplished utilizing the data on the banker questionnaire evaluated against each of the two sets of 22 questions.

The consumer questionnaire was sent to a cross-section of 2,000 consumers of 15 community banks in the United States of America. This resulted in 632 responses of which 554 were usable, which translates to a usable response rate of 28 percent. The banker questionnaire was sent to the chief executive officers of the 15 banks represented by the 2,000 consumers. The result was all 15 responses were usable which represents a response rate of 100 percent. While only 15 bankers were questioned, it was determined that responses from bankers whose consumers were questioned were more valid than having a large number of bankers respond who did not have their customers respond. Analysis was achieved utilizing frequencies, cross-tabulations, and tests of statistical significance.

ANALYSIS OF RESEARCH FINDINGS

Consumer Expectations Versus Perceptions Of Actual Service Delivery

Consumer expectations versus perceptions of actual service delivery were examined by analyzing how the answers to the 22 questions requesting expectations of service delivery compared to the 22 questions on perceptions of service delivery. The arithmetic mean number was established for the difference between perceptions and expectations (see Table 1). Perception was greater than expectation in only seven of the 22 questions with the bank's employees exceeding the expectations of the consumer. For example, the consumer was more than satisfied in the areas of the physical facilities of the bank should be visually appealing, materials in a bank should be visually appealing, employees in a bank should never be too busy to respond to customers' requests, a bank should give customers individual attention, the operating hours of a bank should be convenient to all of their customers, employees of a bank should give their customers personal attention, and finally, bank employees should understand the specific needs of their customers.

In the remaining 15 of the 22 questions, the bank's employees and the bank itself disappointed the consumer. For example, the consumer felt that the bank did not always have state-of-the-art technology; did not deliver on promises in a timely manner, did not insist on error-free records; but also that services were not performed right the first time and the bank did not tell the customer exactly when services would be provided. In addition, the consumer felt that employees were not always professional, were not sympathetic to solving their problems, did not always give prompt service, and were not always perceived as willing to help customers. In this way, they suggested that the behavior of the bank's employees did not instill confidence, were not consistently courteous, did not always have the appropriate knowledge to answer their questions. So that overall, consumers did not always feel safe in all of their transactions with the banks leading to a general impression that the bank did not always have the customer's best interests at heart.

By examining the average total percentages of the 22 questions relating to service delivery expectations to the average total percentages of the 22 questions relating to the perceptions of actual service delivery a pattern is shown. At the strongly agree end of the Likert scale, 68.9 percent of the consumers expect the highest level of service delivery (see Table 2), while the strongly agree of the Likert scale for perceptions of actual service delivery reveals a 63.4 percent (see Table 3). These numbers give rise to a reasonably normal pattern of expectations exceeding perceptions. However, at the middle of the scale, number 3 to number 6 on the Likert scale, expectations are less than perceptions of service delivery with number 3 indicating .06 percent in expectations and 1.01 percent in perceptions. Likewise, number 6 indicates 20.13 percent for expectations and 22.30 percent for perceptions of service delivery.

The most significant finding in relation to expectations to perceptions of service quality was that only 31.8 percent of the responses to the questions indicated that expectations exceeded perception, leaving 68.2 percent of the responses indicating a degree of disappointment in the expectations not exceeding perceptions.

Bankers' Perceptions Of Consumers' Expectations Of Service Delivery

With a gap in the literature of bankers' perceptions of consumers' expectations of service delivery it was interesting to note that in only four out of the twenty-two questions (18.1 percent) did the mean deviations of the bankers' perceptions differ materially from the consumers expectations. Those four questions were a bank should have state-of-the-art technology, customers should be told by the bank exactly when services will be provided, the operating hours of a bank should be convenient to all of their customers, and a bank should have a customer's best interests at heart (see Table 4).

The most significant finding in relation to bankers' perceptions of service delivery expectations of consumers was the fact 81.9 percent of the responses to the questions indicated a match of bankers' perceptions with consumers' expectations. Since much of the early literature indicated much consumer displeasure with service quality delivery, it bore significant value to the recent emphasis by community banks in America to deliver quality service. Moreover on the basis of our results we can suggest that bankers appear to know what customers want from their banking relationships, and their ability to deliver on these dimensions should results in enhanced performance.

CONCLUSIONS

As noted in the research findings, the importance of quality service delivery does appear important to the bank consuming public, and as such cannot be minimized. Since most of the responses to the questionnaires noted a very high agreement (90 percent) in the top two scales, this should get community banks' attention when seeking to satisfy their consumer base. There is nothing to suggest that if the community banks met all of the consumers' expectations that the consumers would not change their banking relationship to another financial institution. While satisfaction with service quality delivery might be an important factor, the study cannot predict its importance in retaining consumers. Other issues that could impact how the consumers' choose their bank revolve around the findings that indicated expectations did not meet the consumers' perceptions in a majority of the issues raised in the questionnaire. Failing to meet the consumers' expectations would appear to be a factor in selecting a new community bank or deselecting their existing bank and this would appear to have significant consequences for subsequent corporate performance.

In terms of service quality strategy, positive expectations versus perceptions were indicated in such areas as a physically appealing facility, marketing materials appeal, the bank not being to busy to respond to the consumer's needs, individualized attention for the consumer, convenient operating hours, and understanding the specific needs of the customers. Some of these issues with positive expectations are important areas for the community banks to focus upon, building from a position of existing strength.

However the negative areas which service quality strategy needs to address are where expectations are not adequately met. We might suggest that these can result in substantial problems for community banks seeking to retain their existing consumers and to obtain new ones. Negative issues such as the lack of state-of-the-art technology, unprofessional employees, failing to deliver on promises, unsympathetic to solving consumer problems, services not performed correctly the first time, lack of insistence on error-free records, service timing not explained to the consumer, lack of prompt service, employee behavior did not instill confidence, consumer did not feel safe in all transactions, lack of consistent courtesy, employees did not answer consumer's questions, and bank did not have consumer's best interests at heart. It is obvious from the 15 negative expectations that some, if not all, could be very important to the consumers, so much so that they could influence them to seek another financial institution.

Since there is very little in the way of empirical studies of the bankers' perceptions concerning the consumers' expectations, some of the data proved to be interesting from the community banks' standpoint. The most significant finding in relation to bankers' perceptions of service delivery expectations of consumers was the fact 81.9 percent of the responses to the questions indicated a match of bankers' perceptions with consumers' expectations. Since much of the early literature indicated much consumer displeasure with service quality delivery, it bore significant value to the recent emphasis by community banks in America to deliver quality service. From this study, there is no firm evidence that the bankers' ability to predict the consumers' attitudes toward remaining with the bank or moving to another financial institution. It would appear beneficial to the bankers' to understand what the consumers are looking for when they seek to provide service to meet those expectations if sustainable competitive advantage and enhanced corporate performance is to be achieved.

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Bitner, M.J. (1990), Evaluating service encounters: the effects of physical surroundings and employee response, Journal of Marketing, 54 April, 69-82.

Brady, D. (2000), Why Service Stinks, Business Week, Issue 3704 (10/23/00), 118-126.

Buzzell, R.D. & Gale, B.T. (1987), The PIMS Principles: Linking Strategy to Performance, New York: The Free Press.

Carman, J.M. (1990), Consumer perceptions of service quality: an assessment of the SERVQUAL dimensions, Journal of Retailing, 66, Spring, 33-55.

Churchill, G.A. & Suprenant, C. (1982), An investigation into the determinants of customer satisfaction, Journal of Marketing Research, 14 November, 491-504.

Cronin, Jr., J.J., Brady, M.K. & Hult, G.T.M. (2000), Assessing the effects of quality, value, and customer satisfaction on consumer behavioral intentions in service environments, Journal of Retailing, . 76(2), 193-218.

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Crosby, P.B. (1979), Quality Is Free, New York: New American Library.

Fornell, C. (1991), A national customer satisfaction barometer: the Swedish experience, Journal of Marketing, 56, 6-21.

Howcroft, B. (1992), Customer service in selected branches of a UK clearing bank, Service Industries Journal, 12( 1), January, 125-142.

Laroshe, M, Rosenblatt, J. & Manning, T. (1986), Services used and factors considered important in selecting a bank: an investigation across diverse demographic segments, International Journal of Bank Marketing, 4(1), 35-55.

Le Blanc, G. & Nguyen, N. (1988), Customers' perceptions of service quality in financial institutions, International Journal of Bank Marketing, 6(4), 7-18.

Newman, K. (2001), Interrogating SERVQUAL: a critical assessment of service quality measurement in a high street retail bank, International Journal of Bank Marketing, 19(3), 126-139.

Oliver, R.L. (1993), Cognitive, affective, and attribute base of the satisfaction response, Journal of Consumer Research, 20 December, 418-430.

Olson, J.C. & Dover, P. (1979), Disconfirmation of consumer expectations through product trial, Journal of Applied Psychology, 64 April, 179-189.

Parasuraman, A., Zeithaml, V.A. & Berry, L.L. (1985), A conceptual model of service quality in its implications for future research, Journal of Marketing, 49 Fall, 41-50.

Parasuraman, A., Zeithaml, V.A. & Berry, L.L. (1988), SERVQUAL: a multiple-item scale for measuring consumer perceptions of service quality, Journal of Retailing, 64 (1), Spring, 12-40.

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Sinkey, J.F. (1998), Commercial Bank Financial Management in the Financial Services Industry, Upper Saddle River, NJ: Prentice-Hall Inc.

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James B. Bexley, Sam Houston State University

Paul Hewer, University of Stirling, Stirling, UK

Leigh Sparks, University of Stirling, Stirling, UK

Table 1 Customer Expectations Versus Actual Service Delivery
(Mean Values)

Questions Mean DF

1. A bank should have state-of-the-art 0.360 543
 technology.

2. The physical facilities of a bank -0.254 546
 should be visually appealing.

3. Employees of a bank should be 0.263 547
 professional.

4. The materials in a bank should be -0.212 545
 visually appealing.

5. A bank should deliver on promises in 0.294 546
 a timely manner.

6. The employees of a bank should be 0.224 547
 sympathetic to solving customer
 problems.

7. The services of a bank should be 0.288 544
 performed right the first time.

8. A bank should deliver their services 0.296 546
 on time.

9. The bank should insist on error-free 0.228 542
 records.

10. Customers should be told by the bank 0.271 545
 exactly when services will be provided.

11. Employees in a bank should give prompt 0.179 546
 service.

12. A bank's employees should always be 0.156 544
 willing to help customers.

13. Employees in a bank should never be -0.013 545
 too busy to respond to customers'
 requests.

14. The behavior of employees in banks 0.273 545
 should instill confidence in
 customers.

15. Customers of a bank should feel safe 0.328 545
 in all their transactions.

16. The bank's employees should consistently 0.157 546
 be courteous with customers.

17. Employees in a bank should have the 0.148 547
 knowledge to answer customers'
 questions.

18. A bank should give customers individual -0.002 546
 attention.

19. The operating hours of a bank should -0.159 547
 be convenient to all of their
 customers.

20. Employees of a bank should give their -0.140 543
 customers personal attention.

21. A bank should have a customer's best 0.300 545
 interests at heart.

22. Bank employees should understand the -0.146 546
 specific needs of their customers.

Questions t-Value P-Value

1. A bank should have state-of-the-art 6.382 <0.0001
 technology.

2. The physical facilities of a bank -4.511 <0.0001
 should be visually appealing.

3. Employees of a bank should be 6.272 <0.0001
 professional.

4. The materials in a bank should be -4.251 <0.0001
 visually appealing.

5. A bank should deliver on promises in 7.815 <0.0001
 a timely manner.

6. The employees of a bank should be 4.830 <0.0001
 sympathetic to solving customer
 problems.

7. The services of a bank should be 6.034 <0.0001
 performed right the first time.

8. A bank should deliver their services 7.209 <0.0001
 on time.

9. The bank should insist on error-free 4.937 <0.0001
 records.

10. Customers should be told by the bank 5.827 <0.0001
 exactly when services will be provided.

11. Employees in a bank should give prompt 4.114 <0.0001
 service.

12. A bank's employees should always be 4.358 <0.0001
 willing to help customers.

13. Employees in a bank should never be -0.257 <0.7971
 too busy to respond to customers'
 requests.

14. The behavior of employees in banks 5.987 <0.0001
 should instill confidence in
 customers.

15. Customers of a bank should feel safe 8.765 <0.0001
 in all their transactions.

16. The bank's employees should consistently 4.039 <0.0001
 be courteous with customers.

17. Employees in a bank should have the 3.222 <0.0014
 knowledge to answer customers'
 questions.

18. A bank should give customers individual -0.046 <0.9635
 attention.

19. The operating hours of a bank should -2.744 <0.0063
 be convenient to all of their
 customers.

20. Employees of a bank should give their -3.199 <0.0015
 customers personal attention.

21. A bank should have a customer's best 5.733 <0.0001
 interests at heart.

22. Bank employees should understand the -3.092 <0.0021
 specific needs of their customers.

Table 2 Consumer Expectations Frequencies

 Strongly Disagree

 1 2
Questions # % # %

1. A bank should have state-of-the-art 0 0
technology

2. Physical facilities of bank should 0 2 0.4
be appealing

3. Employees of a bank should be 0 1 0.2
professional.

4. The materials in a bank should be 0 0
visually appealing.

5. A bank should deliver on promises 0 0
in a timely manner.

6. The employees of a bank should be 0 0
sympathetic to solving customer problems.

7. Bank services should be performed 1 0.2 0
right the first time.

8. A bank should deliver their services 1 0.2 0
on time.

9. The bank should insist on error-free 0 0.2 0
records.

10. Customers should be told by the bank 0 0
exactly when services will be provided.

11. Employees in a bank should give 0 0
prompt service.

12. Employees should always be willing 0 0
to help customers.

13. Employees in a bank should never 1 0.2 0
be too busy to respond to customers'
requests.

14. Behavior of employees in banks 0 0
should instill customers' confidence.

15. Customers should feel safe in all 0 0
their transactions.

16. Employees should consistently be 0 0
courteous with customers.

17. Employees in a bank should have the 0 0
knowledge to answer customers' questions.

18. A bank should give customers 2 0.4 0
individual attention.

19. Operating hours of a bank should 1 0.2 3 0.5
be convenient to all customers.

20. Employees of a bank should give 1 0.2 1 0.2
their customers personal attention.

21. Bank should have a customer's best 0 0
interests at heart.

22. Employees should understand specific 0 0
customer needs.

Averages 1 0.1 1 0.1

 Strongly Disagree

 3 4
Questions # % # %

1. A bank should have state-of-the-art 2 0.4 39 7.0
technology

2. Physical facilities of bank should 6 10.3 57 10.3
be appealing

3. Employees of a bank should be 0 8 1.4
professional.

4. The materials in a bank should be 8 1.4 53 9.6
visually appealing.

5. A bank should deliver on promises 0 1 0.2
in a timely manner.

6. The employees of a bank should be 1 0.2 6 1.1
sympathetic to solving customer problems.

7. Bank services should be performed 0 6 1.1
right the first time.

8. A bank should deliver their services 0 1 0.2
on time.

9. The bank should insist on error-free 0 9 1.6
records.

10. Customers should be told by the bank 0 4 0.7
exactly when services will be provided.

11. Employees in a bank should give 1 0.2 3 0.5
prompt service.

12. Employees should always be willing 0 1 0.2
to help customers.

13. Employees in a bank should never 2 0.4 13 2.4
be too busy to respond to customers'
requests.

14. Behavior of employees in banks 0 6 1.1
should instill customers' confidence.

15. Customers should feel safe in all 0 0
their transactions.

16. Employees should consistently be 0 4 0.7
courteous with customers.

17. Employees in a bank should have the 1 0.2 9 1.6
knowledge to answer customers' questions.

18. A bank should give customers 0 12 2.2
individual attention.

19. Operating hours of a bank should 1 0.2 32 5.8
be convenient to all customers.

20. Employees of a bank should give 0 15 2.7
their customers personal attention.

21. Bank should have a customer's best 1 0.2 11 2.0
interests at heart.

22. Employees should understand specific 2 0.4 17 3.1
customer needs.

Averages 1 0.6 14 2.5

 Strongly Disagree

Questions 5 6
 % % # %

1. A bank should have state-of-the-art 74 13.4 93 16.8
technology

2. Physical facilities of bank should 110 19.9 125 22.6
be appealing

3. Employees of a bank should be 24 4.3 88 15.9
professional.

4. The materials in a bank should be 118 21.3 128 23.1
visually appealing.

5. A bank should deliver on promises 20 3.6 89 16.1
in a timely manner.

6. The employees of a bank should be 38 6.9 107 19.3
sympathetic to solving customer
problems.

7. Bank services should be performed 30 5.4 114 20.6
right the first time.

8. A bank should deliver their 13 2.3 111 20.0
services on time.

9. The bank should insist on error-free 34 6.1 93 16.8
records.

10. Customers should be told by the bank 49 8.8 123 22.2
exactly when services will be provided.

11. Employees in a bank should give 26 4.7 121 21.9
prompt service.

12. Employees should always be willing 13 2.4 81 14.7
to help customers.

13. Employees in a bank should never 61 11.0 130 23.5
be too busy to respond to customers'
requests.

14. Behavior of employees in banks 22 4.0 101 18.3
should instill customers' confidence.

15. Customers should feel safe in 8 1.4 56 10.1
all their transactions.

16. Employees should consistently 12 2.2 84 15.2
be courteous with customers.

17. Employees in a bank should have the 47 8.5 133 24.0
knowledge to answer customers' questions.

18. A bank should give customers 36 6.5 138 24.9
individual attention.

19. Operating hours of a bank should 78 14.1 143 25.8
be convenient to all customers.

20. Employees of a bank should give 58 10.5 148 26.9
their customers personal attention.

21. Bank should have a customer's 39 7.1 99 17.9
best interests at heart.

22. Employees should understand 79 14.3 146 26.4
specific customer needs.

Averages 45 8.1 111 20.1

 Strongly Agree

Questions

 7
 # %

1. A bank should have state-of-the-art 346 62.5
technology

2. Physical facilities of bank should 254 45.8
be appealing

3. Employees of a bank should be 433 78.2
professional.

4. The materials in a bank should be 246 44.5
visually appealing.

5. A bank should deliver on promises 444 80.1
in a timely manner.

6. The employees of a bank should be 402 72.6
sympathetic to solving customer
problems.

7. Bank services should be performed 403 72.7
right the first time.

8. A bank should deliver their 428 77.3
services on time.

9. The bank should insist on error-free 416 75.2
records.

10. Customers should be told by the 378 68.2
bank exactly when services will be
provided.

11. Employees in a bank should give 402 72.7
prompt service.

12. Employees should always be willing 456 82.8
to help customers.

13. Employees in a bank should never 346 62.6
be too busy to respond to customers'
requests.

14. Behavior of employees in banks 424 76.7
should instill customers' confidence.

15. Customers should feel safe in all 489 88.4
their transactions.

16. Employees should consistently 453 81.9
be courteous with customers.

17. Employees in a bank should have the 364 65.7
knowledge to answer customers' questions.

18. A bank should give customers 366 66.1
individual attention.

19. Operating hours of a bank should 296 53.4
be convenient to all customers.

20. Employees of a bank should give 328 59.5
their customers personal attention.

21. Bank should have a customer's 403 72.9
best interests at heart.

22. Employees should understand 310 56.0
specific customer needs.

Averages 381 68.9

Table 3 Consumer Perceptions Frequencies

 Strongly Disagree

 1 2
Questions # % # %

1. A bank should have state-of-the-art 4 0.6 2 0.4
technology.

2. Physical facilities of bank should 2 0.4 1 0.2
be appealing.

3. Employees of a bank should be 1 0.2 0
professional.

4. The materials in a bank should 1 0.2
be visually appealing.

5. A bank should deliver on promises 1 0.2 1 0.2
in a timely manner.

6. Bank employees should be 1 0.2 6 1.1
sympathetic to solving customer
problems.

7. Bank services should be performed 2 0.4 1 0.2
right the first time.

8. A bank should deliver their 3 0.5 1 0.2
services on time.

9. The bank should insist on 5 0.9 1 0.2
error-free records.

10. Customers should be told 1 0.2 2 0.4
by the bank exactly when
services will be provided.

11. Employees in a bank should 2 0.4 2 0.4
give prompt service.

12. Employees should always be 1 0.2 0
willing to help customers.

13. Employees in a bank should 1 0.2 1 0.2
never be too busy to respond to
customers' requests.

14. Behavior of employees should 3 0.5 3 0.5
instill customer confidence.

15. Customers should feel safe 1 0.2 2 0.4
in all their transactions.

16. Employees should consistently 3 0.5 2 0.4
be courteous with customers.

17. Employees in a bank should 2 0.4 1 0.2
have the knowledge to answer
customers' questions.

18. A bank should give customers 2 0.4 0
individual attention.

19. Operating hours should be 2 0.4 4 0.7
convenient to all their customers.

20. Employees of a bank should give 2 0.4 0
customers personal attention.

21. Bank should have a customer's 9 1.6 1 0.2
best interests at heart.

22. Employees should understand 3 0.5 1 0.2
specific customer needs.

Averages 2 0.4 2 0.3

 Strongly Disagree

 3 4
Questions # % # %

1. A bank should have state-of-the-art 22 4.0 27 5.0
technology.

2. Physical facilities of bank should 6 1.1 19 3.5
be appealing.

3. Employees of a bank should be 5 0.9 14 2.6
professional.

4. The materials in a bank should 6 1.1 23 4.2
be visually appealing.

5. A bank should deliver on promises 4 0.7 8 1.5
in a timely manner.

6. Bank employees should be 9 1.6 11 2.0
sympathetic to solving customer
problems.

7. Bank services should be performed 4 0.7 23 4.2
right the first time.

8. A bank should deliver their 2 0.4 15 2.7
services on time.

9. The bank should insist on 2 0.4 21 3.9
error-free records.

10. Customers should be told 7 1.3 30 5.5
by the bank exactly when
services will be provided.

11. Employees in a bank should 5 0.9 10 1.8
give prompt service.

12. Employees should always be 4 0.7 9 1.6
willing to help customers.

13. Employees in a bank should 6 1.1 16 2.9
never be too busy to respond to
customers' requests.

14. Behavior of employees should 6 1.1 16 2.9
instill customer confidence.

15. Customers should feel safe 3 0.5 11 2.0
in all their transactions.

16. Employees should consistently 2 0.4 4 0.7
be courteous with customers.

17. Employees in a bank should 5 0.9 18 3.3
have the knowledge to answer
customers' questions.

18. A bank should give customers 3 0.5 9 1.6
individual attention.

19. Operating hours should be 7 1.3 18 3.3
convenient to all their customers.

20. Employees of a bank should give 4 0.7 13 2.4
customers personal attention.

21. Bank should have a customer's 7 1.3 16 2.9
best interests at heart.

22. Employees should understand 3 0.5 10 1.8
specific customer needs.

Averages 6 1.0 16 2.8

 Strongly Disagree

 5 6
Questions # % # %

1. A bank should have state-of-the-art 98 18.0 161 29.5
technology.

2. Physical facilities of bank should 77 14.1 151 27.6
be appealing.

3. Employees of a bank should be 54 9.8 131 23.9
professional.

4. The materials in a bank should 88 16.1 155 28.3
be visually appealing.

5. A bank should deliver on promises 46 8.4 148 27.0
in a timely manner.

6. Bank employees should be 47 8.6 128 23.3
sympathetic to solving customer
problems.

7. Bank services should be performed 59 10.8 130 23.8
right the first time.

8. A bank should deliver their 48 8.8 133 24.3
services on time.

9. The bank should insist on 43 7.9 117 21.5
error-free records.

10. Customers should be told 57 10.4 130 23.8
by the bank exactly when
services will be provided.

11. Employees in a bank should 46 8.4 118 21.5
give prompt service.

12. Employees should always be 33 6.0 79 14.4
willing to help customers.

13. Employees in a bank should 49 8.9 112 20.4
never be too busy to respond to
customers' requests.

14. Behavior of employees should 50 9.1 107 19.5
instill customer confidence.


15. Customers should feel safe 48 8.8 93 17.0
in all their transactions.

16. Employees should consistently 37 6.7 83 15.1
be courteous with customers.

17. Employees in a bank should 56 10.2 133 24.2
have the knowledge to answer
customers' questions.

18. A bank should give customers 42 7.7 119 21.7
individual attention.

19. Operating hours should be 58 10.6 103 18.8
convenient to all their customers.

20. Employees of a bank should give 36 6.6 101 18.4
customers personal attention.

21. Bank should have a customer's 58 10.6 131 23.9
best interests at heart.

22. Employees should understand 45 8.2 124 22.6
specific customer needs.

Averages 53 9.8 122 22.3

 Strongly Agree

 7
Questions # %

1. A bank should have state-of-the-art 232
technology.

2. Physical facilities of bank should 292
be appealing.

3. Employees of a bank should be 344
professional.

4. The materials in a bank should 275
be visually appealing.

5. A bank should deliver on promises 340
in a timely manner.

6. Bank employees should be 347
sympathetic to solving customer
problems.

7. Bank services should be performed 327 59.9
right the first time.

8. A bank should deliver their 346 63.1
services on time.

9. The bank should insist on 355 65.3
error-free records.

10. Customers should be told 320 58.5
by the bank exactly when
services will be provided.

11. Employees in a bank should 366 66.7
give prompt service.

12. Employees should always be 423 77.0
willing to help customers.

13. Employees in a bank should 363 66.2
never be too busy to respond to
customers' requests.

14. Behavior of employees should 363 66.2
instill customer confidence.

15. Customers should feel safe 390 71.2
in all their transactions.

16. Employees should consistently 418 76.1
be courteous with customers.

17. Employees in a bank should 334 60.8
have the knowledge to answer
customers' questions.

18. A bank should give customers 373 68.1
individual attention.

19. Operating hours should be 357 65.0
convenient to all their customers.

20. Employees of a bank should give 392 71.5
customers personal attention.

21. Bank should have a customer's 326 59.5
best interests at heart.

22. Employees should understand 362 66.1
specific customer needs.

Averages 348 63.4

Table 4 Consumer vs. Banker Expectations of Service Delivery

 Consumer Banker
Questions Mean Mean

 1. A bank should have state-of-the-art 6.339 5.556
 technology.

 2. The physical facilities of a bank 6.007 5.667
 should be visually appealing.

 3. Employees of a bank should be 6.702 6.556
 professional.

 4. The materials in a bank should be 5.996 5.833
 visually appealing.

 5. A bank should deliver on promises in a 6.762 6.944
 timely manner.

 6. The employees of a bank should be 6.630 6.722
 sympathetic to solving customer
 problems.

 7. The services of a bank should be 6.643 6.667
 performed right the first time.

 8. A bank should deliver their services 6.736 6.778
 on time.

 9. The bank should insist on error-free 6.649 6.444
 records.

10. Customers should be told by the bank 6.579 6.278
 exactly when services will be
 provided.

11. Employees in a bank should give 6.664 6.611
 prompt service.

12. A bank's employees should always be 6.800 6.722
 willing to help customers.

13. Employees in a bank should never be too 6.448 6.500
 busy to respond to customers' requests.

14. The behavior of employees in banks should 6.705 6.667
 instill confidence in customers.

15. Customers of a bank should feel safe 6.870 6.722
 in all their transactions.

16. The bank's employees should consistently 6.783 6.722
 be courteous with customers.

17. Employees in a bank should have the 6.534 6.278
 knowledge to answer customers'
 questions.

18. A bank should give customers individual 6.534 6.529
 attention.

19. The operating hours of a bank should be 6.242 5.622
 convenient to all of their customers.

20. Employees of a bank should give their 6.419 6.389
 customers personal attention.

21. A bank should have a customer's best 6.613 6.278
 interests at heart.

22. Bank employees should understand the 6.345 6.556
 specific needs of their customers.