Relationship Between Service Quality Dimensions And Behavioural Intentions: An Sem Study Of Public Sector Retail Banking Customers In India | Sanjiv Mittal & Rajat Gera

The purpose of the paper was to empirically study the causal relationship of the service encounter constructs of perceived service quality dimensions, customer satisfaction, and perceived value with behavioural intentions in public sector banks in India. The study was conducted with customers of second largest public sector bank in India. A two-dimensional structure of bank service quality was developed through exploratory and confirmatory factor analysis. The relationships between the constructs were tested through a comprehensive multivariate model using structural equation modelling with software AMOS ver 4.0. Service quality was found to be a two dimensional construct consisting of service system (human and technology) and core service or service product. Service quality has significant direct effect on customer value perceptions, satisfaction judgements, and behavioural intentions. Service quality dimensions also affect behavioural intentions indirectly. Banks need to manage and measure both the dimensions since system quality is a direct antecedent of customer satisfaction, while core service is a direct antecedent of perceived value. The results demonstrate the need for banks to improve their service quality perceptions on relevant dimensions of system quality and core service for better customer retention and positive word-of-mouth. Banks need to manage both the direct and indirect effects of service quality for enhanced customer loyalty.