Study on Perceived Service Quality & Customer Satisfaction in Public Sector and Private Sector Banks in Sri Lanka

Abstract

The banking industry in Sri Lanka is currently facing dynamic challenges with the competition from industry players. The public and private sector players are trying to attract and retain a larger customer base which results in various strategies in service delivery. Service quality is a vital competitive strategy followed by banks to satisfy and retain its customers. This research used Attribute Service Model by Haywood-Farmer (1988) to measure the service quality of public and private sector banks and further it explored the customer satisfaction based on service quality in banks. For the research study, the sample was gathered from the Gampaha District and convenience sampling method was used to select the sample of 100 respondents. Both Pearson’s Correlation and Regression Analysis carried out showed that professional judgmental factors, physical facility judgmental factors and behavioral judgmental factors of service quality are leading to a positive relationship with customer satisfaction on public and private sector banks.