The Impact of Service Quality on Customer Loyalty in the Banking Industry: A Study of Customer Satisfaction

Dr. Abhay Khamborkar

Abstract: Banking is a crucial component of a country?s economic development and has become an integral part of our daily lives. The impact of technology on banking services and practices is very significant. The frequency and speed of transactions and applications of banking in different spheres of activities have increased enormously. In this study, an attempt has been made to examine the effect of customer satisfaction on service quality and customer loyalty at the Bank of India in Nagpur. Therefore customers using the various services of banks from Bank of India in Nagpur are the universe of the study. Out of these, a sample of size 500 respondents from the Bank of India in Nagpur would be selected due to cost and time constraints. In selecting the 500 respondents, a Stratified random sampling technique was used to select the respondents from the Bank of India in Nagpur. The data collected were analyzed using Statistical Packages SPSS, version 20, and Microsoft Excel. The various data analysis techniques used in this research are reliability tests, factor analysis, Pearson correlation, multiple regression, and one-way ANOVA.

Keywords: Bank Satisfaction, Factor Analysis, Reliability