Levesque, T and McDougall, G.H.G.

(1996), the study investigated the major determinant of customer

satisfaction and future behavioral intensions in the retail banking sector. The study identifies the
determinants that include service quality dimensions (e.g. getting it right the first time), service features
(e.g. competitive interest rates), service problems, service recovery and products used. The study finds,
in particular, that service problems and the bank’s service recovery ability have a major impact on
customer satisfaction and intention to switch banks. However, the results do not support the view that
satisfactory problem recovery leads to greater customer satisfaction or closer ‘bonding’ of the customer
with the provider. At best a satisfaction problem recovery leads to the same level of customer
satisfaction as when a problem had not occurred.

Levesque, T and McDougall, G.H.G. (1996),, Determinants of Customer Satifaction in retail Banking,
Internations Journal of Bank Marketing, Vol.14, No.3, pp. 12-20.

Malhotra, M., and Arora, S. (1999). The study investigates that level of customer satisfaction in the
public sector banks and th3e private, with the purpose of helping bank managements to formulate
marketing strategies to attract customers towards them. The exploratory study was done by collecting
dataa from the cities of amritsir, Ludhiana and Chandigarh. Twenty attributes were taken into
consideration for measuring the level of satisfaction/disatiasfaction. The study found that there are six
factiors, in order of their improtance are routine operation factor, price factor, situation factor,
environmental facotrs, technology factor and interactive facror. Similarly, for customers of private sector
banks, the foactors found to be important are staff factor, routine operation factor, service factor,
environmental facotrs, technology factor, interactive facror and promotional facotr. Moreover, factor wise
average scores of these factors reveal that there is significant difference between the satisfaction lvele of
the customres of public and the private sector banks. The latter are found to be more satisfied. A few
strategies suggested by the authors to improve service quality are proper training of the staff, conducting
market surveys periodically, personaliziang the service, avoiding long queues,having well lit, ventilated
and clean surroundings.

Malhotra, M., and Arora, S. (1999), Customer Satisfaction – A Comapritive Analysis of Public and Private
Sector banks, Abhigyan, Vol.17, No.3, pp. 19-30.

Armstrong Robert W., and Seng T.B. (2000), The study extends the current undrstanding of cuctomer
satisfaction at the business –to – business level in the Asian banking industry. It incorporates guanxi
(Cuhinese business relationship), relationship marketing and the disconfirmation paradigm. The research
highlights the importance of relational constructs and disconfirmation paradigm in the influencing
customer satisfction at the business – to – business level in the Singapore banking industry. At the
business – to – business level in the Asian context, the disconfirmation papdigm is still the predominant
paradigm influencing the customer satisfaction process. Relationship marketing and guanxi are
significant in the comprehesive model of corporate customer satisfaction. Relationship marketing is
found to have both a direct and an indirect impact through disconfirmation) on corporate customer
satisfaction. Guanxi is found to exert an idirect impact on satisfaction as opposed to the intial
hypothesized direct impact on satisfactionon.

Armstrong Robert W., and Seng T.B. (2000), “Corporate – Customer Satisfaction in the marketing in the
Banking Industry”.
Athanassopoulous, A., Gounraris, S. and Stathakopuoulos V. (2001), The paper investigates the
behavioural consequences of customer satisfaction in the banking industry. The authors examine
theimpact of customer satisfaction on customers behavioural responses. The findings indicate that when
customers assessed customer satisfaction to be high, they either decided to stay whith the existing
service provideror subdue their negative behavioural intensitons. Customer satisfaction is also found to
have strong positive association with word-of mouth communication. The research reuslts confirm prior
research and indicate that the customer satisfaction dimensions arenot industry specific, but also country
specific. The authors suggest to develop strategies to enhance behavioral responses to customer
satisfaction and prohibit negative ones. Such strategies can include meeting customers desired service
levels, preventing service problemsfrom occuring, dealing effectively with dissatsfied customers, solving
service problems effectively when they occure and dealing with customer complaints positively.

Athanassopoulous, A., Gounraris, S. and Stathakopuoulos V. (2001), “Behavioral Responses ti Custome

Satisfaction: An Empirical Study”, Eeuropean Journal of Marketing, Vol. 35, No. 5/6, pp. 687 – 707.

Sureshchandar G.S., Rajendran C. and Anantharaman R.N. (2002) adopt a different approach and view
customer satisfaction as a multi dimensional construct just as service quality, but argues that customer
satisfaction should be operationalized along the same factors (and the corresponding items) on which
service quality is operationalized. Based on this approach, the link between service quality and customer
satisfaction has been investigated. The results indicate that the two constructs are indeed independent
but are closely related, implying that an increase in one is likely to lead to an increase in another.

Sureshchandar G.S., Rajendran C. and Anantharaman R.N. (2002) Customer perceptions of service quality
in the banking sector of a developing economy: a critical analysis, International Journal of Bank Marketing,
Vol. 21 Iss: 5, pp.233 - 242

Singh S. (2004) empirically studies the appraisal of customer services of PSBs in terms of level of
customer service and satisfaction determined by brand, location and design, variety of services, rates
and changes, systems and procedures etc. The study concludes that staff behavior is very polite and
services are provided even in the late hours. Study reveals that 62 percent respondents answer that
immediate credit is not given for outstation cheques, 93 percent feel that they do not hold periodical
meetings and services are not provided according to the given schedules. It concludes that services of
private sector banks are better than the services of public sector banks.

Singh S. (2004), “An Appraisal of Customer Services of Public Sector Banks, IBA Bulletin, Vol XXVI, No. 8,
(aug.), pp. 33-38.

Saha P. and Zhao Y. (2005) analyze the relationship between service quality and customer satisfaction in
internet banking and five service quality dimensions are selected. A qualitative research approach is
used to get a better understanding of this issue. A small quantitative survey has been also conducted to
support the results obtained from the qualitative study. Nine service quality dimensions i.e. efficiency,
reliability, responsiveness, fulfillment, privacy, communication, personalization, technology update and
logistic/technical support are identified in this study. The quality performance of all the nine dimensions is
shown to have a strong impact on customer satisfaction.

Saha P. and Zhao Y. (2005), Saha P, Zhao Y (2005). Relationship between online service quality and
customer satisfaction, a study in Internet banking. Retrieved on[April, 2009] from World Wide
Web:http://epubl.ltu.se/1404- 5508/2005/083/LTU-SHU-EX-05083 SE.pdfhttp://epubl.ltu.se/1404-
5508/2005/083/LTU-SHU-EX-05083-SE.pdf.

Consumer Voice (2006) conducted a survey to study the customer satisfaction level of 3100 serving
banks, credit and debit card holders, who are covered during the period September 2005 to November
2005. The survey is conducted in eight cities, where the maximum numbers of respondents come from
SBI (17.10 pc) followed by ICICI Bank (8.80 pc) and the maximum surveyed customers belong to the age
group of 26-34 years. The study reveals that Citibank has the most dissatisfied customers and most of
the customers are shifting from public sector banks to private sector banks, mainly due to convenient
availability and due to restricted functioning hours of public sector banks. Overall, only 6 pc of the
respondents use internet banking and most of them (16.3 pc) are registered with HSBC followed by ICICI
Bank (12.6 pc). Overall, the study concludes that Standard Chartered Bank, Vijaya Bank and Syndicate
Bank steal the march, the little known the United Western Bank performs impressively and Citibank is the
most over-rated bank.

Mishra J.K. and Jain M. (2007) study various dimensions of customer satisfaction in nationalized and
private sector banks. Two-stage factor analysis is computed to arrive at the dimensions of customer
satisfaction. The study analyzes ten factors and five dimensions of customer satisfaction for nationalized
and private sector banks respectively. The study concludes that satisfaction of the customers is an
invaluable asset for the modern organizations, providing unmatched competitive edge, it helps in building
long term relationship as well as brand equity. The best approach to customer retention is to deliver high
level of customer satisfaction that result in, strong customer loyalty.

Mishra J.K. and Jain M. (2006-07). ‘Constituent Dimensions of Customer Satisfaction: A Study of Nationalized
and Private Banks ’. Prajnan. 35(4). 390-398.

Vimi Jham & Kaleem Mohd Khan, (2008), conducted a study on Customer Satisfaction in the Indian
Banking Sector, among five Indian banks, aimed at identifying customer satisfaction variables which lead
to relationship building, and developing a conceptual framework of relationship marketing practices in
Indian banks by capturing the perspectives of customers with respect to their satisfaction with various
services. It also sought to identify whether demographics have a role to play in customer satisfaction.

The three relationship dimensions, namely, traditional services, multi channel banking and internal
marketing, which lead to customer satisfaction, were identified through factor analysis. A repeated
measure of ANOVA was run on the relationship dimensions to assess significant difference in the level of
satisfaction of the customer. A perceptual map was created using the factor scores of each of the five
banks which helped identify how each bank was positioned in the customers’ minds.

Reporting on the different satisfaction levels of the customers, the findings suggest that while private
banks have been able to attract the younger customers with higher educational levels, who are
comfortable with multi channel banking, the customers of the national bank are older and more satisfied
with the traditional facilities. The results from this study could provide managerial lessons on assessment
of strengths and improvement of services and in evolving a research strategy that will benefit the
management of banks.

Vimi Jham & Kaleem Mohd Khan, (2008), Customer Satisfaction in the Indian Banking Sector –A
Study, IIMB Management Review, Volume 20, Number 1.

Puja Khatri & Yukti Ahuja (2008) have analysed customer satisfaction in public and private secotr banks
and revealed that the Indian banking sector has witnessed heightened competition with so many banks
coming up with all their potential and using their global strength to their advantage in order to establish
themselves in the market. Private Banks seem to have satisfied its customers with good services and
they have been successful in retaining its customers by providing better facilities than Public sector
Banks. But, still Private Banks need to go a long way to become customer’s first preference. In an
economy of innovative technologies and changing markets, each and every service quality variable has
become important. New financial products and services have to be continuously introduced in order to
stay competent. Success mantra could be customer centric orientation, where the organization builds
long term strategic relationships with its customers and Private sector Banks have been successful in
achieving such relationship with customers however public sector banks have to improve in this area.
Private Banks need to concentrate more on their credit facilities and insurance services since customers
do not have a very good opinion about these facilities being offered by Private Banks. Public sector
banks enjoy the trust of the customers, which they have been leveraging to stay in the race however they
need to improve their service quality by improving their physical facility, infrastructure and giving proper
soft skill trainings to their employees. The efforts have to be made in the direction of enhancing the retail
banking experience. That is why a wellperformed service encounter may even vercome the negative
impression caused by poor technical quality as well as generate positive word-of-mouth, particularly if
customers witness that employees have given their best in order to satisfy them during a contingency.
Employees are part of the customer service process, which is the key to success for any bank. It is these
encounters with customers during a service that are the most important determinants of overall customer
satisfaction, and a customer’s experience with the service will be defined by the brief experience with the
firm’s personnel and the firm’s systems. Any laxity at the end of the employees can lead to customer
defect.

Puja Khatri & Yukti Ahuja (2008) , Study of customer satisfaction in public sector and private sector banks
of India, Interantional Journal of Engineering and Management Sciences (I.J.E.M.S.), VOL. 1(1):, pp. 42-51.

R.K. Uppal (2009) studied customer service and customer satisfaction in Indian commerical banks and
concluded that in the emerging competitive environment and IT era with little or no distinction in the
product offering, it is speed of rendering service that sets apart one bank from another. Prompt service is
eaquated with quality service. Time is a major factor which affects the quality & reputation of the banks.
E-banks are providing quick service & that is why they are becoming more popular. Hence, it is very
essential that all bank groups should put in place the right kind of systems to further cut down on service
time and render instantaneous service to the customers. Only such banks will satisfy the customers’
expectations and tend to survive in the rat race for market shares in the days to come.
R.K. Uppal (2009, “Customer Service in Indian commercial Banks: An Empirical Study”, Asia Pacific
Journal of Social Sciences, Vol. I, No. 1, Jan-June 2009. Pp. 127-141.

Hazra, Sandip Ghosh,Srivastava, Kailash B L, (2009) studied the Impact of Service Quality on Customer
Loyalty, Commitment and Trust in the Indian Banking Sector. This study examined the strength of the
association between the independent variable service quality perception and the dependent variables,
namely, customer loyalty, commitment and trust. The results showed that customers value five
dimensions of perceived service quality- assurance-empathy, tangibles, security and reliability, with
assurance-empathy being valued the most. Banks should pay attention to these dimensions of service
quality and pay more attention to the dimension of assurance-empathy to increase loyalty to a company,
willingness to pay, customer commitment and customer trust. Customers clearly expect personal
attention and an understanding of their specific needs by the banks. In order to make improvements,
managements must strike off the weaknesses and take care by paying individualized attention. Next, the
results regarding the differences in the loyalty to a company, response to problems, willingness to pay,
customer commitment and customer trust across banks, showed that there were no significant
differences in customer trust and response to problems between the public sector and private sector
banks. A significant difference was observed for loyalty to a company, willingness to pay and customer
commitment.

The private sector banks showed that enhancements in reliability (a dimension of service quality) make
differences in customer commitment and willingness to pay, whereas enhancements in security (a
service quality dimension) make differences in loyalty to a company for the public sector banks.

By Hazra, Sandip Ghosh,Srivastava, Kailash B L, Impact of Service Quality on Customer Loyalty,

Commitment and Trust in the Indian Banking Sector, Published on allbusiness.com

Kumbhar V. M (2011) attempted to examine a contribution of various dimensions of service quality in

customers’ satisfaction. A result of the study indicates that, all 13 variables were found significant and
were good predictors of overall satisfaction in e-banking. However, A result of principle component
analysis indicates that, Perceived Value, Brand Perception, Cost Effectiveness, Easy to Use,
Convenience, Problem Handling, Security/Assurance and Responsiveness are important factors in
customers satisfaction in e-banking it explains 48.30 per cent of variance. Contact Facilities, System
Availability, Fulfillment, Efficiency and Compensation are comparatively less important because these
dimensions explain 21.70 per cent of variance in customers’ satisfaction. Responsiveness, Easy to Use,
Cost Effectiveness and Compensation are predictors of brand perception in e-banking and Fulfillment,
Efficiency, Security/Assurance, Responsiveness, Convenience, Cost Effectiveness, Problem Handling
and Compensation are predictors of perceived value in e-banking. Therefore, banker and e-banking
service designers should think over these dimensions and make possible changes in the e-banking
services according to the customers’ expectations and need of the time. It will be helps to enhance
service quality of e-banking and increase the level of customers’ satisfaction in ebanking.

Kumbhar V. M. FACTORS AFFECTING THE CUSTOMER SATISFACTION IN E-BANKING: SOME EVIDENCES FORM INDIAN BANKS MANAGEMENT
RESEARCH AND PRACTICE VOL. 3 ISSUE 4 (2011) PP: 1-14
Dr. Naveen Kumar & Dr. V.K.Gangal(2011), held a sutudy on CUSTOMER SATISFACTION IN NEW
GENERATION BANKS (A CASE STUDY OF HDFC BANK) and found that the majority of India’s banks
are not very diversified in terms of the products and services they offer. One strategic focus that banks
can implement to remain competitive would be to retain as many customers as possible. And customer
retention is possible through customer satisfaction only. Thus, customers’ satisfaction is the key of
success in todays’ competitive era.

Dr. Naveen Kumar & Dr. V.K.Gangal(2011), held a sutudy on CUSTOMER SATISFACTION IN NEW
GENERATION BANKS (A CASE STUDY OF HDFC BANK), International Refereed Research Journal, Vol.– II,
Issue –4,Oct. 2011, pp. 177 – 186.

M. Mohamed Siddik & Dr. M. Selvachandra (2011), studied customer satisfaction towards E-banking
services of ICICI bank in Chennai city and concluded that the majority of the respondents preferred their
branch because of Quality of service. Convenience and popularity of branch were given subsequent preference.
There has been quite positive opinion registered with regard to the common problem encountered by the customers
in the banks, relating to that there is delay in service in the branches, customers were dissatisfied with the service
rendered by the staffs,and dissatisfied with the delay in loan sanctions, at the outset proportion of the problems are
relatively meager, hence it was illustrated that the there has been very meager problems in the transactions.
Therefore they suggested that banks should provide sufficient training programmes to mitigate the above probles.

M. Mohamed Siddik & Dr. M. Selvachandra (2011), A Study on Customer Satisfaction towards E-banking
services of ICICI bank in Chennai City, IJEMR - September 2011-Vol 1 Issue 4

VIJAY M. KUMBHAR (2011), FACTORS AFFECTING ON CUSTOMERS’ SATISFACTION: AN EMPIRICAL

INVESTIGATION OF ATM SERVICE and examined that the cost effectiveness of ATM service were core
service quality dimension and it was significantly affecting on overall customer satisfaction in ATM
service provided by commercial banks. However, result of factor analysis indicates that cost
effectiveness, easy to use and security & responsiveness were also influence customer satisfaction.
Therefore,banks should concentrate their efforts onthese dimensions for cater better ATM service to
satisfy their customers.

VIJAY M. KUMBHAR (2011), FACTORS AFFECTING ON CUSTOMERS’ SATISFACTION: AN EMPIRICAL INVESTIGATION OF ATM
SERVICE, INTERNATIONAL JOURNAL OF BUS INES S ECONOMICS AND MANAGEMENT RESEARCH,
Volume 2, Issue 3 (March, 2011), pp. 144 – 156.

Ernst and Young survey (2011), more than 20,500 global retail banking customers including 1,000
respondents from India, was surveyed. The survey aimed to identify the driving factor of customer
relationships with their banks. Majority of the retail customers of Indian banking sector are satisfied with
the banking system, according the survey. The positive attitude showed by the banks in handling the
global financial melt-down of 2008, has increased the trust of the people in the banking system of the
country. As per the survey findings, 'A New era of Customer Expectation' that is yet to be released
globally, 75% of the retail banking customers in India said that their trust in the banking industry grew in
2010. “Indians have the highest level of trust and satisfaction in their banking industry. The credit crisis
has had minimal impact on customer confidence in the Indian banking industry,”
Benefited with the conservative banking policies applied by the banking sector regulator Reserve Bank of
India, Indian remained relatively untouched by the global financial crisis. The survey also concluded that
Indian banks have lived up to the expectations of majority of their clients as the global financial crisis of
2008 had a minimal impact on them compared to their global peers.

http://banking.contify.com/story/indian-bank-customers-most-satisfied-with-banking-system-ernst-and-
young-survey-2011-04-11.

Jyoti Agarwal (2012) studies customer satisfaction in banking services in Aligarh district. She examined
that the banking sector in India is undergoing major changes due to competition and the advent of
technology. The customer is looking for better quality services which enhance his/her satisfaction. This
study derives its basis from various research findings and is also in line with empirical findings with
respect to customer satisfaction by other researchers. To sum up, the results of the study lead us to the
following conclusion and policy implication:

• The customer satisfaction in terms of service quality is a relational marketing paradigm. The
relationships are mostly viewed from the perspective of the firm providing services. For service
firm in our case the banks, building strong relationship is important for improving customer
satisfaction through service quality.

• Public sector banks like SBI fall much below the perceptions of their customers on all dimensions
of service quality. Private Banks such as ICICI bank are exceeding the perceptions of their
customers on all dimensions of service quality.

• The above findings suggest the need and relevance of heavy investment on tangibles particularly
computer based banking, internet and intranet services, tele-banking, 'anywhere and anytime
banking', etc., besides physical facilities and communication material. This will help in delivering
quick and accurate services to customers as well as reducing the workload of frontline staff and
thereby providing ways to employees to respond to customer requests. This investment will also
ensure convenient banking hours on which the services of our banks are perceived by the
customers to be very low.

• Customer service must match with marketing efforts, otherwise a customer would remain a
dissatisfied soul and all marketing efforts will go down the drain. The process of fulfilling customer
needs, therefore, requires tailoring bank services to what customers want, rather than making
them accept whatever banks can conveniently provide. Today, customers are exposed to the
standards of international banking and expect the same range of service quality from Indian
banks. If public sector banks fail to regulate the
• quality and efficiency of their financial services to match or surpass those of private banks or
foreign banks, time is not far away when they will lose substantial market share to private and
foreign banks.
 • Banks must pay attention to potential failure points and service recovery procedures, which
become integral to employees' training. In other words, it amounts to empowering employees to
exercise responsibility, judgment and creativity in responding to customers' problems.

• Banks should continually assess and reassess how customers perceive bank services so as to
know whether the bank meets or exceeds or is below the expectations of their customers. Such
an appraisal, however, is a tedious task because customer service is complex in nature and
dynamic in action. Moreover, it can vary greatly from one branch to another. Also, what is 'good
service' today may become 'indifferent service' tomorrow and 'bad service' the next day. Frequent
customer surveys, therefore, throw light on ratification and refinement which will go a long way to
improve the service quality in banks.

Jyoti Agarwal (2012), CUSTOMER SATISFACTION IN INDIAN BANKING SERVICES (A STUDY IN ALIGARH
DISTRICT) International Journal of Computing and Business Research (IJCBR) ISSN (Online) : 2229-6166
Volume 3 Issue 1 January 2012, pp. 1-14.