Customer Expectations And Perceptions Across The Indian Banking Industry And The Resultant Financial Implications | Kirti Dutta & Anil Dutta

The purpose of this paper is to study the expectations and perceptions of the consumers across the three banking sectors in India. It further delineates the factors affecting the quality perception of the customers in the banking sector and tries to corroborate this perception with the financial performance of the Banks. The paper presents the primary data of 263 respondents across the three banking sectors. To explore the customers? perception of service quality factor analysis is done and factors affecting the Indian customers are highlighted. A study of the financial performance of the banks is also done to see if the perception of service quality has a consequence on the banks bottom line. It was found that in the banking sector it is the foreign banks which are perceived to be offering better quality of services followed by the private and then public banks. It was also found that these perceptions are reflected in the financial performance of the banks also. With the increasing competition amongst banks, the findings can act as a strategic tool to achieve competitive advantage and customer satisfaction. It is also an eyeopener for the banks to see the gap between customer expectation and perception regarding the quality of services rendered which should further act as a motivator to enhance reputation and gain customer loyalty. This will in turn give them the elusive competitive edge they are looking for.