JOURNAL oF CRITICAL REVIEWS ISSN 29045125 voor. novem amo ASSESSING AND PRIORITISING CUSTOMERS' PERCEIVED SERVICE QUALITY IN COOPERATI SECTOR BANKS IN INDIA: INDIAN CUSTOMER’S PERSPECTIVE ‘Sona Srivastava, *Dr.Amit Kumar Masih, **Dr. Rama KoteswaraRaoKondasani "Doctoral Scholar Department of Agricultural Economice Sam Higginbottom University of Agriculture, Technology and Sciencer, Allshabad, India Email: sonal809 @gmsil com, Gontact No: 7086435143 "Associate Professor Department of Agricultural Eoonomice Sam Higginbottom Univensity of Agriculture, Technology and Sciencer, Allshabad, India Email: amit manih@shiate.eduin Gontact No: 7800888845 "Assistant Professor Department of Management Studies Nationsl Institute of Technology, Silchar. Email: ramkondasani @mba.nite ao in Contact no: +91.9692713338 Abstract: Purpose/Objective: Assessing and Prioritising CPSQ (Customer Perceived Service Quality) in a proportion of service quality for Indian cooperative banking sector. Design/methodology/approach Replica of Customer Perceives Service Quality (CPSQ) was implemented. Altogether 37 factors were ‘considered to understand their relative significance from clients' perspective, Data collection conducted between March, 2019 and May 2019 by means of a review strategy ulilizing survey to document evaluation of respondents as an instrument. The poll estimates the level of suitability on different service quality properties of banks. The method of contacting with the respondents was in person in twelve diverse cooperative banks in ‘Uttar Pradesh along with Assam. Factor analysis was utilized to diminish repetitive factors lastly seven ‘measurements were recognized that are Efficiency, infrastructure, effectiveness availability of timely services, image of the bank safety and security and up to date technology. Finding ‘Then GRA (Grey Relational Analysis) test was done to distinguish the prioritization design that clients allot to various Customer Perceives Service Quality variables Practical implications/Originality: ‘The outcome demonstrates that clients accept that co-operative bank's trust in clients, the bank’s anxiety for clients’ best advantage and well-being benchmarks in exchanges are indispensable elements for improving co- ‘operative banks’ consumer loyalty. Our research findings will help cooperative bank managers to analyse rural customer perceptions and their loyalty towards Indian cooperative banking services. The investigation has distinguished some prime factor of worry for co-operative bank clients and recognized the tertitory of insufficiencies in their service quality that could be the greatest risk to unrivalled consumer loyalty Key Words: Customer Perceived Service Quality (CPSQ), Cooperative Banks, Efficiency, GREY Analysis, Uttar Pradesh, Assam INTRODUCTION For numerous yeats, the connection among clients and banks has been restricted to being value-based, Clients hhave seen their banks as a utility; a service for fundamental monetary exchanges, and have confided in the bank with their cash, Verma and Sachdevexpressed that bank clients today will in general pick among various banks 2700JOURNAL oF CRITICAL REVIEWS ISSN 29045125 voor. novem amo by making an exchange off among associations and economies, trust and items and services and productivity Co-operative banks of Indian banking sector have become essential in the course of the most recent (wo decades, prevalently in rural regions as an option to differentiate between traditional customers and agricultural oriented customers. INDIAN BANKING SECTOR ‘The banking segment has its own priority in the service industry.Prior to monetary progression, government ‘owned banks enjoying the secured marketplace.Post liberalization in 1991 various private owned and overseas banks have started entering into Indian banking industry and prepared this part increasingly focused (Vinita, 2013).Exceptional challenge and ceaselessly developing client requests have driven banking industry in India to recognize importance of consumer loyalty and reliability (Lenka et al. 2009). Reichheld, 1996 mentioned that, banking clients’ fulfilment prompts their client reliability, that aides in acknowledging monitory accomplishment of the firm regarding benefit, market capitalization of the overall industry and Rol (Return on Investment). In the current scenario, Indian banking sector has been changed radically and itis rotating around the client: The way to accomplishment in the changed condition of Indian banking area is a bank's capacity to arrive at the client at his/her door-step and give all services in a personalized way (Bedi, 2010). But other side of the coin is something different like several budding nationsincluding Indiais also facing the issues of fortifying the monetary and money related framework. This is a result of solid money related frameworks fill in as significant ways to accomplish economic development vide the assembly of budgetary funds, placing them to profitable exercise and changing different chances (DemirgligKunt et.al. 1998; Zingales, 1998; Beck et al., 199 ‘Measuring service quality During the course of recent years, investigation on service quality has developed broadly and significantly. The ‘unfair attributes of products and services are clusiveness, indistinguishable, non-uniformity and destructibility Attributes of these kinds formulate benefits harder to assess, which conventionally can be analyzed and ‘evaluated for quality before the buying occurs (Parasuraman etal. 1985). Service excellences have been the largely investigated theme in the services advertising. Existing investigation hhas connected service excellence to consumer loyalty (Cronin & Taylor, 1992; McAlexander, Kaldenberg, & Koenig, 1994), value and satisfaction (Cronin, Brady, &Hult, 2000) and behavioural intention (Headley & Miller, 1993; Zeithaml, Berry, &Parasuraman, 1996). Groonroos (1984), for instance, recommends that service quality contains two particular segments: the technological viewpoint, or WHAT is given, in addition to the practical angle, or HOW the intended service was delivered. Just as giving an establishment to the improvement ‘of quality range, SERVQUAL gives the converging five measurements: assurance, empathy, reliability, tangibility and responsiveness (Parasuraman et al., 1988). Finally, Brady and Cronin (2001) proposees that ‘quality service is made out of the components of social quality, result quality and biological quality. Babakus and Boller (1992) express that the quality of service should be astounding and multidimensional for specific services and one-dimensional for remaining ones. A certain discriminating component of services makes this segment progressively intricate and presents different difficulties for the administrators. Client's discernment about the nature of service is one of the significant factors that need administrator's consideration. PSQ or perceived servicequality (PSQ) as “global judgment, or attitude, relating tothe superiority of the service", stated by Parasuraman et al. 1988, Administrators required ‘concentrating on the parameters those can make positive observation in relation to the nature of services of its association. Additionally, the indistinguishability of specialist organization starting from services improves the individual factor and in this manner prompts the passionate association between supplier and service receiver. Trustworthiness of service will be the significant determination criterion ofthe services company. (lavalgi and Moberg, 1997). Past writings recommended so as to apparent quality of service delivery is a significant predecessor of client dependability (Rai andSrivastava, 2013; Kiranet al., 2011; Auka 2013; Boohene 2011). The excellence of the service is the significant impetuses in enhancing client faithfulness. Organization's product/service incentive relies upon the measure of significant worth purchaser sees from the repetitive ‘customer, Client's discernment about the quality might prompt better estimation of the services rendered by the firm (Cronin et al., 2000) and additionally guide to a better association with the client. Optimistic view of ‘company's service quality advances the encouraging informal exchange or word-of-mouth (MOW) for the firm. Banking service quality measurement Efficiency Productivity in the bank is a significant measurement for banking services assessment and endures the impact of ‘various non-optional factors, not really under the influence of the banker. The term productivity, when utilized in 2701JOURNAL oF CRITICAL REVIEWS ISSN 29045125 voor. novem amo ‘a banking setting, has two implications. Both depend on the connection between asset information sources and care yields. Efficiency defines as "utilisations of proper resource in an effective manner.” An increasingly customary economic definition is expanding potential yields from a lot of asset inputs, These two methodologies seem to be comparable; however there is an inconspicuous distinction between them. Infrastructure Basic infrastructure of the bank includes computers, lockers, customer waiting arrangements and technological Kiosks, ete. It also includes basic workplace design features, such as obstacles, physical layout, and distance from other sections or departments of cooperative banks. The infrastructure facets of service facilityare such as ‘equipment, machinery, signs for other departments ete ‘Timely Services: ‘The banker's ability to deliver the guaranteed services conveniently, constantly, and precisely (e.g., delivering services at the prescribed time, provision of error-free services). Timely services refer to the time-bound nature of fulfilling banking services. The nature of service offers, varies from customer to customer. Sometimes financial services require emergency manner and land with unfulfilled way. So, the banking service providers should be always onthe toes in providing the right services to the right customer at the right time. It basically ‘emphasizes on punctuality and the attitude of maintaining/sticking to a defined work schedule. Each service provider of the bank should understand their duties and responsibilities to offer better services to their customers ‘on time-boundedness at the core, Bank Image Bank Image is a frame of mind that mirrors a blend of item and service qualities. From the view purpose of an association, image is the scope of affiliations that strike a chord when clients take notice of the name of an association (Nguyen et. al 2011, Flavianetet al., 2004), Picture contains two head parts: useful and emotional (Kennedy, 1977). The practical segment is identified with unmistakable measurements that can be effectively recognized and estimated, while the emotional segment is related with the psychological angles that are showed by individual encounters and dispositions toward the organization. Most analysts concur that image is the after- clfect of a process; in this way, bank image is the consequence of a total process by witich clients look into the different characteristics of firms (Bravo et al, 2009; LeBlanc and Nguyen, 1996; Nguyen and LeBlanc, 2001). Safety & Security: Wellbeing and Security alludes to a feeling of assurance against threat or hazard. Hazard and vulnerability are frequently worthy as exchangeable wordings in light of the fact that "dubious outcomes are considered as a segment of hazard” (Litler and Melanthiou, 2006). In this manner, wellbeing and security incorporates physical wellbeing, hazard and vulnerability evasion, money related security and the client's close to home and monetary data staying secret. Research demonstrates that clients incline toward verified and more secure situations (Flavian etal, 2004; Parasuraman et al, 1985) in any service institutions. Security could be a huge factor of bank clients’ satisfaction. Up to date technology In the current scenario up to date technology has become a main part in any financial service, which researchers ‘cannot avoid in the banking sector But the quality produced from the human touch still has the greatest weight in the assessment of the services provided to their customers (Okumus et al., 2018). Specifically, quality also refers to the working environment and the quality of services offered to the end user (Saveli et al., 2017). Up to date technology has a positive relationship with the customer satisfaction of the service receivers as well as with the satisfaction of service providers. Thus, now a days cooperatie banking service providers are interested in clevating the level of their services quality to protect themselves against the severe competition in the context of adoption in latest technology (Lee, et al., 2000; Doeleman et al., 2014). ‘Methodology ‘Subject and data collection Indian cooperative banking industry is the framework for this research, By means of convenience case, information was exclusively gathered from customers of cooperative banks who are received receiving services in thelast twelve months, The studywas conducted in the moderated cooperative banks located in India (Uttar Pradesh and Assam) Covering northern and Eastern India, All of these samples were derived from fourteen ‘cooperative banks and represented the totalnumber of banking customers receiving or received banking services from previous 12 months, To gauge and console the inner uniformity, dependability test was led on the factors 2702posturing a Cronbach's alpha JOURNAL oF CRITICAL REVIEWS Iss 29045125, of thirty three items is cronbach's alphi (0.841. This proposes the survey is estimating service quality in a significant manner. At that point factor analysis was utilized to evacuate the excess (highly correlated) factors from the information and to lessen the quantity of variables into distinct number of measurements, Table-1:_ Demographic characteristics of the respondents (N=528) Demographic i Charactervstics Variable Frequency % Wale 385 729 Gender Female M3 2m TS 10 35 years 129 Mas 36 to 50 years 108 2045 Age 5110 65 years 98 18.56 >65 years 193 3655 Primary level is 28 Secondary level 208 39.39 Customer Education Graduates 101 19.13 Above post-graduation 104 19.70 Unemployediffouse wite 3 6 Government employee 82 15.53 Customer Employment Status | Private employee 185 35.04 Self-employed 88 1667 Retired 80 15.15 Taw (RS. 99,000) 298 3648 Income Range (Per Annum) | Middle (Rs. 1,00,000 to 5,00,000) 168 31.82 High (>Rs. 5,00,000) eo la Assam 195 3693 State wise Distribution Uttar Pradesh 333 63.07 The factor analysis is performed utilizing the principle component extraction technique with varimax rotation, The E difference clatified by the fact iors separated Table-2 KMO and Bartlett's Test gen estimations of chose variables were more noteworthy than I, Table I demonstrates the complete Bartlet's Test of Sphericity Kaiser Meyer-Olkin Measure of Sampling Adequacy. Approx. Chi-S a Sig 368 9460.014 528 0.000 2703Iss 29045125, JOURNAL oF CRITICAL REVIEWS ble-3. Reliability Statistics ‘Cronbach's Alpha Not lems 841 33 With the underlying application, the quantity of variables was reduced from 42 to 33. In the subsequent application, these 33 variables were grouped under seven measurements dependent on their factor-loading score. The arranged tured estimations of the factor loading with a least estimation of 0.5 or more are considered. In the wake of dropping the redundant variables having all the seven components loading under 0.5 a framework (Gn Table IID) was shaped to comprehend the significant components that clarify 67.738% of the difference. 2704JOURNAL oF CRITICAL REVIEWS ISSN 29045125 voor. novem amo 28 256 771 | 96.873 29 248 750 | 97.623 30 229 695 | 98.318 31 207 626 | 98.944 32 192 580 | 99.524 33 187 476 | 100.000 Extraction Method: Principal Component Analysis, Generally, factor loading represents how much a dimension explains a variable. High factor loading ie. more than 0,60 indicates that the factor strongly influences and has high impact on the variables. Here it may be said that some factor items which has considerably less factor loading need high attention for the customer perceived service quality improvement Based on the factor analysis results, the service quality dimensions were classified into seven factors, which ‘were named as efficiency, infrastructure, effectiveness, timely services, bank image, safety & security and up to date technology. The service quality dimensions and the corresponding variables are shown in Table-IV. The research analysis shows that most vital factor stands for the customer perception of the cooperative bank about the efficiency of the bank. This shows that customers of the bank always trying for their services with quick delivery of services and employees should deal customer issues in efficient manner. The other factor also impacting lot on customer satisfaction is infrastructure of the bank, it includes modem equipment in the bank ‘and proper layout of the bank. Efficiency and good infrastructure is playing a major role in customer service {quality in cooperative banks. On the other hand another factor/s like timely services and up to date technology is have the low factor loading in their items, Customers feel that bank is not performing right services at the first time and cooperative banks don't have latest technology of the bank like net banking and other modern technology facilities. In this scenario cooperative bank service providers should provide latest technology services to their customers to full fill priority of service quality. So that customers can’t migrate to other service providers, Table-s Rotated Component Matrix” ‘Component Efcieney | Infastrvctur | Etfestiven | SN | ane | So |e or SAND [essere | amy | ep (SS) wry 822 EFF 802 EES 782 EFF2 737 m2 663 853 831 820 796 769 716 ™ 987 EFCT-S 753 ‘CTL 79 2705JOURNAL oF CRITICAL REVIEWS ISSN 29045125 voor. novem amo 784 752 TML4 745 TML2 744 MLS 28 BI3 874 BI 841 BI2 Sil BLL 785 8-2 880 $8.3 866 8-1 809 S84 672 wr3 m7 upT-1 758 upr2 744 urs 698, Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization, a. Rotation converged in 6 iterations. Subsequent to result the different constructs for service variables, Grey RelationalAnalysis (See Appendix for estimation) was done to discover the general significance of various variable from clients’ perspective GRA is the quantitative analysis toinvestigate the likeness and contrast of advancement patterns between components used to quantify the connection with components, it very well may be utilized to confine the connections between's the reference factors and other compared elements of a framework (Deng, 1989). All the 33 variables ‘were positioned utilizing this test and the accompanying outcomes were found, GREY Analysis Results: After finding out the different constructs for service variables, Grey analysis (See Appendix for calculation) was done (o find out the relative importance of different variables from customers’ point of view.Using the GRA scores and the GRA grades were calculated for each of the scale items is presented in table -V along with 33 perceived service quality variables. According to the opinion of S28 cooperative bank customers who are doing business with cooperative banks from the different places of Uttar Pradesh and Assam, effectiveness is the most important construct as all of its dimensions features in the top five priorities. In the effectiveness dimension item. bank cooperation to effectively and efficiently complete customer tasks is highest priority with the score 0.810605 and subsequently bank employees will make personal sacrifices to serve their customers with second highest score - 0.785283. as per the customers opinion least priority for customer is Latest technology of banking gives customers better overview of finances with the score of 0.615789. It reveals that cooperative bank customers" place high importance to effectiveness of the services in the bank and efficiency of banking services ‘with long term consistency includes timely services from the banking service providers. This analysis also indicates that the service quality items, Latest technology of banking gives customers better overview of finances; Modern equipment are used in this bank doesn't contribute much towards cooperative bank perceived service quality by the customers. Table: 6Grey Analysis for Customer perceived service quality GREY] Priority Moms Values Rank ‘Queuing time atthe bank is minimal 0.738567 15 ‘Cooperative bank employees manage the Speed of services| (0.765127 6 Banks ving sland expereaod wore ad Val idvidals wo bande 0087343 2706JOURNAL oF CRITICAL REVIEWS ISSN 29045125 voor. novem amo CONCLUSION & MANAGERIAL IMPLICATION From the revelations of the investigation study itis clear that,so as to advantage from the service quality, Indian co-operative banks should always has to standard their service levels dependent on their service quality measurements.This research has identified some prime factor like Efficiency, infrastructure, effectiveness availability of timely services, image of the bank safety and security and up to date technology of worry in support of cooperative banking clients and distinguished the zone of insufficiencies in their service quality that ‘could be the greatest threat for unrivalled consumer loyalty ‘Our research shows that customers of Indian banking sector are giving highest preference for effectiveness dimension as whenever required, bank workers will make individual penances to serve their clients’ most important item and giving least importance to up to date technology as variable like Latest technology of banking gives customers hetter overview of finances. The present research was endeavouring to be as precise as 2707JOURNAL oF CRITICAL REVIEWS ISSN 29045125 voor. novem amo could be expected under the circumstances, nevertheless there are numerous restrictions. The measures incorporated into this exploration, study were altogether focused upon the bits of knowledge of the co: ‘operative banks’ customers. The essential information mistakes because of misreading or tendency cannot be discounted. Second, the at hand exploration is completed of India viz. Uttar Pradesh and Assam cooperative banking customers. The view of clients may differ from those of the rest of India. A cautious choice of a superior representative test from the whole way across India would acquire thoroughness of the outcomes, Referene Brady, M. K., & Cronin Jr, J.J. (2001). Some new thoughts on conceptualizing perceived service ‘quality: a hierarchical approach, Journal of marketing, 6513), 34-49. Babakus, E., &Boller, G. W. (1992).An empirical assessment of the SERVQUAL scale. Journal of Business research, 24(3), 253-268. Cronin Jr, J.1., & Taylor, S. A. (1992).Measuring service quality: a re-examination and extension. Journal of ‘marketing, 56(3), 55-68. Cronin Jr, J. 1, Brady, M. K,, &Hult, G. T. M_ (2000).Assessing the effects of quality, value, and customer satisfaction on consumer behavioural intentions in service environments. Journal of retailing, 76(2), 193- 218, Demirgig-Kunt, A., &Maksimovic, V. (1998).Law, finance, and firm growth. The Journal of Finance, $3(6), 2107-2137 Doeleman, H., Have, S., &Ahaus, C-T-B. (2014). Empirical Evidence on Applying the European Foundation for Quality Management Excellence Model, A Literature Review. Total Quality Management & Business Excellence, 2515-6), 439-460. Grénroos, C. (1984). A service quality model and its marketing implications. European Journal of ‘marketing, 18(), 36-44, Julong, D. (1989). Introduction to grey system theory. The Journal of grey system, 1(1), 1-24, Lee, H., Lee, ¥., &Yo0, D. (2000). The Determinants of Perceived Service Quality and its Relationship ‘with Satisfaction, Journal of Services Markering, 143), 217-231. Lenka, U., Suar, D., &Mohapatra, P. K. (2009) Service quality, customer satisfaction, and customer loyalty in Indian commercial banks. The Journal of Entrepreneurship, 18(1), 47-64. ‘McAlexander, J H., Kaldenberg, D. O., & Koenig, H. F. (1994). Service quality measurement, Journal of health care marketing, 14(3), 34-40. Okumus, B., Ali, F. Bilgihan, A., &Ozturk, A.B, (2018). Psychological Factors Influencing Customers? Acceptance of Smartphone Diet Apps when Ordering Food at Restaurants. International Journal of Hospitality Management, 72, 61-11. Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985).A conceptual model of service quality and its implications for future research. Journal of marketing, 49(4), 41-50. Parasuraman, A, Zeithaml, V. A., & Berry, L. L. (1988).Servgual: A multiple-item scale for measuring ‘consumer perc, Journal of retailing, 64(1), 12. Rajan, R. G., &Zingales, L, (1998) Power in a Theory of the Firm. The Quarterly Journal of onomies, 113(2), 387-432. Reichheld, F. F,, & Teal, T. (1996). The loyalty effect: The hidden force behind growth. Profits, and Lasting Value, Harvard Business School Press, Boston, MA Sachdev, S.B., &Verma, H. V. (2004). Relative importance of service quality dimensions: A multisectoral study. Journal of services research, 4() Savelli, E., Murmura, F., Liberatore, L., Casolani, N., &Bravi, L. (2017). Food Habits and Attitudes towards ‘ood Quality among Young Students, International Journal of Quality and Service Sciences, 9(3/4), 456-468. Sureshchandar, G. S., Rajendran, C., &Anantharaman, R..N. (2002). The relationship between service quality and customer satisfaction-a factor specificapproach. Journal of services marketing, 16(4). 363-379, ‘Vinita Kaura (2013) Service Convenience, Customer Satisfaction, and Customer Loyalty Study of Indian Commercial Banks, Journal of Global Marketing, 26:1, 18-27, DOL: 10.1080/08911762.2013.779405 Questionnaire Annexure-I ‘The instrument to analyse and assess customer perceived service quality asked respondents about their agreeableness with respect to perceived service quality, each variable on a five point Likert scale (1= strongly disagree 3= neutral and S=strongly agree). The details of the variables are given below. Factor Trem 3]4]3]2]2 ‘Queuing time atthe bank is minimal 2708JOURNAL oF CRITICAL REVIEWS ISSN 29045125 voor. novem amo ‘Cooperative bank employees manage the Speed of services Banik is having skilful and experienced workers and staff individuals to handle clients easily ‘Bank representatives and stall carry out thelr esponsibility productively till the closing hours ‘The current banking administration system is user friendly to the ‘customers so that employees administer perfectly “Turnaround time for receiving bank services is adequate Infrastructure ‘Modern equipment are used in this bank Bank's Inside envizonment is Visually appealing decoration Tayout of the bank furniture are well planned Bank has adequate parking facilities Bank building is attractive Effectiveness Bank's offer friendly and personalised services to customers ‘Customer retention capability is beter than their competitors Bank's employee ability to acquire new customers and retaining present customers is better than other banks ‘When required, bank employees will make personal sacrilices 10 serve their customers "All depariments in the bank cooperate to elfectively and clficiently complete tasks Timely Services "When it comes to providing services as per promised Ume Bank performing services right at the first ume Banker follows up ina mely manner to customer requests and problems ‘The manner and method of communication between banker and customer are timely and accurate manner Bank send and deposit on time money delivery Bank Image ‘Cooperative bank have competent and efficient salt reputation ‘Cooperative banks offer aliractive products and services ‘Cooperative banks have positive image in the customer mind “Having account in the bank is a status symbol for customers Safety & Security "The bank Tam using is sale Bank is offering salety and security of all financial wansactions Personal and financial data are secured in this bank Bank Employees desk and table are secured for the customers Up to date technology ‘Customers and banking personnel's are Interested to uselprovide new electronic bank services ‘Latest technology of banking gives customers better overview of finances 2709JOURNAL oF CRITICAL REVIEWS ISSN 29045125 voor. novem amo “Trouble-fiee cash dispenser are attached with the bank Bank regularly use customer information to provide customised products to their customers 2710