The High Quality Relationship With Customers

So as to keep customer satisfied every banker tries to provide superior services. Competition among Islamic bank rises due to the development and growing popularity of Islamic banking product in Pakistan. In the recent age Islamic banks had to face numerous challenges. First of all they have to compete with the peers and secondly they have to cope with conventional banking. Yi (1990) stated that when customers utilize any service their satisfaction is the outcome of a cumulative of perception, evaluation and psychological thinking. In the banking sector there is numerous research that evaluate customer satisfaction. towards services (Anderson and Sullivan., 1993; Brenhardt, Donthu, and Kennett, 1994; Bedal and Power, 1995; Holliday 1996; Despensa,

Brandy and Cronin (2001) introduced their own dimensions of service quality which are 1.) service environment, 2.) customer-employee interaction, and 3.) service outcome. These dimensions are considered the sources of quality of a service. Different dimensions of service quality have been introduced and accepted in past researches and studies but the 5 dimensions of Zeithaml et al., (1988) were proved to be the most reliable and credible. One of the most important strategies service providers can use to position themselves effectively in a competitive environment, and to distinguish themselves from competitors, is to provide and improve service quality to ensure the customer satisfaction (Cronin & Taylor,

The financial crisis in 2008 brought about drastic changes in customer behavior all over the world and encouraged customers to take a shifted action towards their needs and wants (Mansoor and Jalal 2011). In the age of globalisation, as no nation can keep itself aloof from the world economic volatility, India too, was affected significantly in economical as well as social dimensions. The economic turmoil had a profound impact on consumers (Flatters and Willmott 2009) and most of the firms including ones in financial sector faced serious challenges in satisfying the customers as they have became more skeptic and cautious. Even though, the Indian banking sector has performed extremely well over the last few years and has shown substantial resilience during the global financial crisis (Das et al 2011), new challenges are seen emerging from customers. The challenges posed are mainly due to changes in customer demands and diffusion in loyalty intentions due to low switching costs. The parameters critical in the imparting customer satisfaction in the banking context, thus demands re-definition and analysis for formulating strategies aimed at competitive advantage. Empirical evidences from studies conducted in various contexts underlines the causal linkage among variables such as perceived service quality and customer satisfaction on loyalty intentions of the customer. However, consumer behavior being complex in nature influenced by environmental changes,

Customer loyalty is much harder to obtain that customer service satisfaction. The most important first step is to satisfy the customer by meeting their expectations. Customers only give a company one chance and if they aren’t satisfied they will not do business with that company again, as well as tell others of their experience. The next step would be to exceed the customer’s expectations. If a business goes above and beyond to assist the customer they begin to build loyalty. The next step is to truly surprise the customer. In order to dominate the marketplace the company must find a way to make them selves stand out with their product or service, accompanied with phenomenal customer service. Once this has been done customer satisfaction and loyalty will be gained. “Acquiring a new customer can cost four or five times more than keeping a current customer” (Bestmark, 2013). So it’s essential to keep the current customer’s happy and coming back for more.

Customer satisfaction and service quality are the two important components that direct anyone’s attention in every concept related to marketing, services, etc. (Spreng and Mackoy, 2006). In today’s competitive era, the success lies in

The banking sector is facing a dynamic change in the market. In addition to that, there is an economic and financial crisis in the banking industry, hence aiming customer satisfaction is very crucial for the banking sector. It's well understood that customers are the backbone of any company. Customer satisfaction is an essential part of all the industry, not sparing the banking sector. If the customers get pleased with the services or products of a company, they become loyal to the company and market it hence contributing to the growth of the company. This increases the profits of the company (Hill, 2003).

The customer satisfaction is not only influenced by service quality perceptions but also by personal preferences, situational factors and price (Aldridg & Rowley, 1998; Patterson &

Service quality has a significant effect on repurchase intention, through a direct link between service quality, Customer Satisfaction, and behavioral intentions Among the various behavioral intentions, considerable emphasis has been placed on the impact of service quality in determining repeat purchase, which the more satisfied the customers are the greater is their retention and customer loyalty, while service quality influences a customer’s subsequent behaviour, intentions and preferences. When a customer chooses a provider that provides service quality that meets or exceeds his or her expectations, he or she is more likely to choose the same provider again. In addition, the hospitality’s reputation plays an important role in determination of purchase, repeated purchase, and customer loyalty (Choi et al., 2004, Yongyui, Cronin, Jones and Farquhar, 2003, Brady and Hult, 2000).

Banking being the one of the largest and most predominant financial service industry of the world depends on their service supply chain to acquire their equity. In one sense, the whole banking industry is a financial service industry. In order to effectively retain the valuable consumers the financial service industry should look inside their operation to find out the obstacles to their services and to resolve them in a timely and systematic manner.

This research explores the relationships between service quality, customer involvement and customer satisfaction in the highly competitive banking sector. The study sought to identify the most important attributes in bank settings, which may be used to review characteristics of the banks as experienced by customers. The main aim is to find out customer service quality performed by banks at present and expectations of customers from the banking service. From past studies on this subject it is clear that there is some service quality gap that should be minimized. Banking organizations as well as other authorities interested about the subject can use

It is possible to attaining long-term success in the banking sector by providing excellent customer service. It is an effective strategy for taking full advantage from the engagement between customers with organizations and also offering a competitive edge to survive in this

In the current competitive environment, satisfying customers has emerged as the primary challenge for many service companies. Emerging technologies, rising and ever changing customer expectations has significantly narrowed the quality gaps, thus thrusting customer satisfaction into a preeminent role in achieving a sustainable competitive advantage. Service quality is clearly essential for organizational success and is typically defined in relation to exceeding customer expectations (Humprey, 2004). Customer perceives services

Service quality, in terms of customers’ perception, arises from a comparison of what customers expect that companies should offer with the companies’ service performance they perceive (Parasuraman et al, 1988). In order to maximise customer satisfaction, companies need to know what service components are important in customers’ perception and try to deliver good service quality with suitable proportions of those components.

Othman and Owen (2001) conducted a study about customer satisfaction in Islamic Banks by using the service quality model. Their study used a survey of 360 customers selected by the Systematic Random Sampling. Using CARTER model scale, their results suggested that customer satisfaction in Islamic Banks should be measured through the proposed thirty-four (34) items instead of reducing it into the original number of SERQUAL’s five dimensions and their

In the research what we have found out is that customers value service more than product quality (Interest Rates, FD, Features). So if the customers are provided better service they can be loyal customers of the bank and thus increase banks profitability and growth.