The Impact of Service Quality Delivery on Customer Satisfaction in the Banking Sector in Riyadh, Saudi Arabia

Abstract

This study aimed to evaluate what impact service quality that underlies the SERVQUAL model has on customer satisfaction in Saudi Arabia’s banking sector. The study was quantitative in nature and involved distributing a structured, pre-tested, self-administered questionnaire that was based on a convenience method to 412 customers of various bank in the Saudi capital city of Riyadh, during the fall of 2014. The response rate was 67 percent and the study data was analyzed using SPSS and a reliability coefficient (alpha) was determined. Regression analysis found a positive relationship among assurance, empathy, and responsiveness, but that this relationship has no significant effect (P≥0.50) on customer satisfaction. Reliability was found to have a negative relationship to customer satisfaction, but no significant effect on the same. Only tangibles were found to have a positive relationship and a significant impact (P˂0.50) on customer satisfaction. The results show that, in the retail banking sector, the servqual model remains an effective way of measuring customer satisfaction. Because customer value is an asset to organizations, organizations must ensure that they provide the right products and services, supported by the right promotion, at the right time for their customers.