Abstract

In this competitive post-consumption business era, the primary tactic for the success and survival of any business is the service quality that being delivered to customers because service quality has positive impact on the bottom-line performance of an organization. As a financial organization, banks are continuously introducing their new products and services in order to satisfy and hold their customers.

Hence, achieving high levels of customer satisfaction by provide higher service quality is one of techniques to keep customers loyal. Thus, this study aims to study the impact of Service Quality on Customer Satisfaction in retail banks of Malaysia. Five dimensions of SERVQUAL Model such as Tangibility, Reliability, Responsiveness, Empathy, and Assurance are used as base in this study.

A structured questionnaire with 5-point Likert scale has been used to gather the data for this study by conducting a web-based self-administered survey. The sample size is 200 and chosen on a convenience sampling basis. Data has been analysed by using Statistical Package for Social Science (SPSS) AMOS version 25 software.

Result shows that assurance and empathy have significant effect on customer satisfaction, on the other hand, reliability, responsiveness and assurance have mild significant effect on customer satisfaction. Finally, this study proposed few recommendations for the managerial implication.

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