Title: Automated banks' service quality in developing economy: empirical evidences from India

Authors: Mohd Sadiq; Mohd Adil; Mohammed Naved Khan

Addresses: Department of Marketing, Indian Institute of Management Kashipur (IIM Kashipur), Kashipur, India ' Department of Management and Humanities, National Institute of Technology Hamirpur, Himachal Pradesh, India ' Department of Business Administration, Faculty of Management Studies and Research, Aligarh Muslim University, Aligarh, India

Abstract: The aim of this study is to examine customers' perceived 'service quality', 'customer satisfaction', 'positive word of mouth' (+WOM) and 'problems encountered' at automated teller machine (ATMs) of Indian retail banks. It also attempts to propose a modified and refined Parasuraman's SERVQUAL scale relevant for the Indian context as also suggests a comprehensive model for measuring automated service quality at bank ATMs. A structured questionnaire, drawn together from literature, was used to collect data from a total of 219 ATM customers. The proposed refined scale has been tested for dimensionality, reliability, and validity and the research model was tested for validation through structural equation model (SEM) using LISREL 8.50. Research results indicate that expectations of ATM patrons in India were not being fully met. The highest gap score was observed for 'convenience' dimension followed by 'tangibles'. Results also show that service quality and customer satisfaction effect WOM positively and significantly while problems encountered had a negative impact on customer expectations.

Keywords: service quality; bank; automated teller machine; ATM; confirmatory factor analysis; CFA; India.

DOI: 10.1504/IJSOM.2019.100971

International Journal of Services and Operations Management, 2019 Vol.33 No.3, pp.331 - 350

Received: 05 Nov 2016
Accepted: 02 Jun 2017

Published online: 22 Jul 2019 *

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