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Service quality in banking: developing and testing measurement instrument with Latvian sample data

Author

Listed:
  • Jelena Titko

    (Faculty of Engineering Economics and Management, Riga Technical University, LV-1048 Riga, Latvia)

  • Natalja Lace

    (Faculty of Engineering Economics and Management, Riga Technical University, LV-1048 Riga, Latvia)

  • Konstantis Kozlovskis

    (Faculty of Engineering Economics and Management, Riga Technical University, LV-1048 Riga, Latvia)

Abstract

The paper highlights the importance of managing service quality in banking that can positively affect customer satisfaction. The goal of the given study is to develop an instrument for measuring service quality perceived by Latvian banks' retail customers and to determine the most important contributors to customer satisfaction. To achieve this purpose, randomly selected customers of Latvian banks were surveyed, using the authors' developed questionnaire. The proposed instrument was tested for reliability and validity, using techniques of confirmatory factor analysis. Exploratory factor analysis yielded five service quality dimensions (factors) that allowed constructing customer satisfaction factor model EPICA: E - expenses, P - product, I - image, C - competence and emotional intellect, A - access. The subsequent correlation analysis revealed that the strongest relationship is between customer satisfaction and C factor. The results of the current research are crucially important for Latvian banks' executives because the majority of previous studies in the related field offered measurement scales adequate for measuring service quality in other industries. Besides, the proposed questionnaire is exclusively developed for Latvia and considers Latvian banking sector specifics.

Suggested Citation

  • Jelena Titko & Natalja Lace & Konstantis Kozlovskis, 2013. "Service quality in banking: developing and testing measurement instrument with Latvian sample data," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 61(2), pages 507-515.
    • Handle: RePEc:mup:actaun:actaun_2013061020507
    DOI: 10.11118/actaun201361020507
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    References listed on IDEAS

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    1. Osman M. Karatepe, 2011. "Service Quality, Customer Satisfaction and Loyalty: The Moderating Role of Gender," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 12(2), pages 278-300, January.
    2. Ali Asghar Anvary Rostamy, 2009. "Toward understanding conflicts between customers and employees’ perceptions and expectations: Evidence of Iranian bank," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 10(3), pages 241-254, March.
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    1. Miklós Pakurár & Hossam Haddad & János Nagy & József Popp & Judit Oláh, 2019. "The Service Quality Dimensions that Affect Customer Satisfaction in the Jordanian Banking Sector," Sustainability, MDPI, vol. 11(4), pages 1-24, February.
    2. Annet Murerwa & Thomas K Tarus, 2021. "Effect of Internet Banking on Service Quality among Commercial Bank Customers: Evidence from Rwanda," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(08), pages 606-609, August.

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