Customer Service Quality: A Study on Foreign Banks Operating in Bangladesh

The study examines perception on service quality of different foreign banks operating in Bangladesh among a sample of customers. This study was conducted based on a sample of 200 customers from all the foreign banks conducting business in Bangladesh. Especially our study area is the entire foreign bank located and conducting their operation in Dhaka city. The results indicate that the customers of foreign banks are satisfied though they are not highly satisfied. Satisfaction of customers is found in reliability, responsiveness, assurance, empathy, courteousness, and tangibles dimensions of SERVQUAL model whereas dissatisfaction is found in accessibility dimension. Moreover, the result also indicates that from the seven variables of SERVQUAL model, four of them are positively related with the dependent variable customer satisfaction implying that if reliability goes up by 1%, then customer satisfaction will go up by 1.3%; if assurance goes up by 1%, then customer satisfaction will go up by .53%; if empathy goes up by 1%, then customer satisfaction will go up by .00048%; and if accessibility goes up by 1%, then customer satisfaction will go up by .12%. Indeed, negative relationship is found with responsiveness, courteousness & tangibility dimensions. We have got these results through regression analysis. However, with the increasing competition amongst banks, the findings can act as a strategic tool to achieve competitive advantage and customer satisfaction. It is also an eye-opener for the foreign banks to see the gap between customer expectation and perception regarding the quality of services rendered.