Analyze the influence of quality in retail banking, in particular its emergence as a source of competitive advantage in personal banking

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TABLE OF CONTENTS

Introduction1

Aim and objectives2

Review of the Literature3

Relationship Marketing3

Models in Service Quality5

Methodology7

Data Collection8

Critical reflection8

Dissertation plan9

REFERENCES10

BIBLIOGRAPHY13

ANALYZE THE INFLUENCE OF QUALITY IN RETAIL BANKING, IN PARTICULAR ITS EMERGENCE AS A SOURCE OF COMPETITIVE ADVANTAGE IN PERSONAL BANKING

Introduction

The banking sector has become crucial to the increasing development of the global world. Since the last two decades, the government of the developing economies has been deregulating their respective banking sectors. When an organization fulfil the requirements and the expectations of the customers and quickly respond to the feedback of the customer then they have a competitive advantage over their competitors. The avalible information about the quality of service and the service perceptions of customer's is quite useful for the success of the banks (Durkin 2003 8).

There are number of scholars who make efforts to analyze and understand the requirements of customers and the main factors which influence the service performance as service performance is an predecessor of the quality of service. To have an competitive edge over the competitors the service performance is regarded as an influential factor. The service performance gaps are created when the expectations of customers different from the actual performance of the service which is provided to them. Because of this service performance gap model was founded and proposed by Parasuraman et al. (1990). His proposed performance gap model explains the unequlibrium of the expectations of the customer's expectations and the actual service which is delivered. Including retail banking sector this model has been applied in many industries. This model is quite effective to increase the economic trend for the particular industry where this model is applied (Ennew McKenchnie 1998 207).

The managers in a competitive banking environment are highly concers about the perceptions of the customers about the services which is deliver to them and such sort of performance meets the service specifications or not. The knowledge of the level of service which is deliver to the customers is most important for the managers, whether the servicve performance is according to the expectations of the customers. It is a fact, as per the description American Customer Satisfaction Index (ACSI) that the retail banking industry has a decreasing trend for customer retention and switching behaviour is the main reason behind this. The banks has been facing the customers turnover problem due the poor quality of service.

Aim and objectives

The main theme of this study is to analyze the influence of quality in retail banking, in particular its emergence as a source of competitive advantage in personal banking. Parasuraman et al. (1990) service performance gap model was used to examine the quality of service and service performance in this particular study. In the UK retail banking industry the factors of the gap of service performance and the dimensions of the quality of service can be examine by collecting the perception of both the employees of the bank and the ...