Skip to main content
SpringerLink
Log in

Assessment of the psychometric properties of SERVQUAL in the Canadian banking industry

  • Original Article
  • Published:
Journal of Financial Services Marketing Aims and scope Submit manuscript

Abstract

This study investigates the psychometric properties of the well-known SERVQUAL model in the Canadian banking industry. The study utilises the performance component of SERVQUAL in an empirical survey conducted among 193 Canadian bank customers. The results support the dimensionality, reliability, convergent reliability, discriminant validity and predictive validity of the scale in this service setting. Thus, SERVQUAL is a suitable instrument for assessing bank service in the Canadian context; bank managers can, therefore, confidently use this instrument to undertake continuous evaluation of their service quality. The results also show that responsiveness and empathy are the most important dimensions of overall service quality in the Canadian banking context. Findings show that the service provided by employees makes the largest contribution to bank customer satisfaction. In view of the study's finding, Canadian bank managers must recognise that frontline employees are crucially important in establishing and maintaining a competitive position for their institution.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Bhat, M. A. (2005) Correlates of service quality in banks: An empirical investigation. Journal of Service Research 5 (1): 77–99.

    Google Scholar 

  • Reichheld, F. F. and Sasser, W. E. (1990) Zero defections: Quality comes to service. Harvard Business Review 68: 105–111.

    Google Scholar 

  • Cronin, J. J., Brady, M. K. and Hult, G. T. M. (2000) Assessing the effects of quality, value, and customer satisfaction on consumer behavioral intentions in service environments. Journal of Retailing 76 (2): 193–218.

    Article  Google Scholar 

  • Jun, M. and Cai, S. (2001) The key determinants of Internet banking service quality: A content analysis. International Journal of Bank Marketing 19 (7): 276–291.

    Article  Google Scholar 

  • Ehigie, B. O. (2006) Correlates of customer loyalty to their bank: A case study in Nigeria. International Journal of Bank Marketing 24 (7): 494–508.

    Article  Google Scholar 

  • Baumann, C., Burton, S., Elliott, G. and Kehr, H. M. (2007) Prediction of attitude and behavioural intentions in retail banking. International Journal of Bank Marketing 25 (2): 102–116.

    Article  Google Scholar 

  • Kassim, N. M. and Souiden, N. (2007) Customer retention measurement in the UAE banking sector. Journal of Financial Services Marketing 11 (3): 217–228.

    Article  Google Scholar 

  • Nguyen, N. and Leblanc, G. (1998) The mediating role of corporate image on customers’ retention decisions: An investigation in financial services. International Journal of Bank Marketing 16 (2): 52–65.

    Article  Google Scholar 

  • Grace, D. and O’Cass, A. (2004) Examining service experiences and post-consumption evaluations. Journal of Services Marketing 18 (6/7): 450–461.

    Article  Google Scholar 

  • Arasli, H., Mehtap-Smadi, S. and Katircioglu, S. T. (2005) Customer service quality in the Greek Cypriot banking industry. Managing Service Quality 15 (1): 41–56.

    Article  Google Scholar 

  • Al-Hawari, M. (2006) The effect of automated service quality on bank financial performance and the mediating role of customer satisfaction. Journal of Financial Services Marketing 10 (3): 228–243.

    Article  Google Scholar 

  • Soteriou, A. and Zenios, S. A. (1999) Operations, quality and profitability in the provision of banking services. Management Science 45 (9): 1221–1238.

    Article  Google Scholar 

  • Duncan, E. and Elliott, G. (2002) Customer service quality and financial performance among Australian retail financial institutions. Journal of Financial Services Marketing 7 (1): 25–41.

    Article  Google Scholar 

  • Bates, K., Bates, H. and Johnston, R. (2003) Linking service to profit: The business case for service excellence. International Journal of Service Industry Management 14 (2): 173–183.

    Article  Google Scholar 

  • Mukherjee, A., Nath, P. and Pal, M. (2003) Resource, service quality and performance triad: A framework for measuring efficiency of banking services. Journal of the Operational Research Society 54: 723–735.

    Article  Google Scholar 

  • Lovelock, C. (1981) Why marketing management needs to be different for service. In: J. Donnelly and E. George (eds.) Marketing of Services. Chicago, IL: American Marketing Association, pp. 5–9.

    Google Scholar 

  • Khan, M. (2003) ECOSERV: Ecotourists’ quality expectations. Annals of Tourism Research 30 (1): 109–124.

    Article  Google Scholar 

  • Parasuraman, A., Zeithaml, V. A. and Berry, L. L. (1985) A conceptual model of service quality and its implications for future research. Journal of Marketing 49 (4): 41–50.

    Article  Google Scholar 

  • Markovic, S. (2006) Expected service quality measurement in tourism higher education. Nase Gospodarstvo 52 (1/2): 86–95.

    Google Scholar 

  • Parasuraman, A., Zeithaml, V. A. and Berry, L. L. (1988) SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing 64 (1): 12–40.

    Google Scholar 

  • Leblanc, G. and Nguyen, N. (1988) Customers’ perceptions of service quality in financial institutions. International Journal of Bank Marketing 6 (August): 7–18.

    Article  Google Scholar 

  • Grönroos, C. (1984) A service quality model and its marketing implications. European Journal of Marketing 18 (4): 36–44.

    Article  Google Scholar 

  • Parasuraman, A., Zeithaml, V. A. and Berry, L. L. (1991) Refinement and reassessment of the SERVQUAL scale. Journal of Retailing 67 (4): 420–450.

    Google Scholar 

  • Carman, J. M. (1990) Consumer perceptions of service quality: An assessment of the SERVQUAL dimensions. Journal of Retailing 66 (1): 33–55.

    Google Scholar 

  • Kilbourne, W. E., Duffy, J. A., Duffy, M. and Giarchi, G. (2004) The applicability of SERVQUAL in cross-national measurements of health-care quality. Journal of Services Marketing 18 (6/7): 524–533.

    Article  Google Scholar 

  • Mels, G., Boshoff, C. and Deon, N. (1997) The dimensions of service quality: The original European perspective revisited. The Service Industries Journal 17 (1): 173–189.

    Article  Google Scholar 

  • Lam, T. K. P. (2002) Making sense of SERVQUAL's dimensions to the Chinese customers in Macau. Journal of Market – Focused Management 5 (10): 43–58.

    Article  Google Scholar 

  • Zhou, L., Zhang, Y. and Xu, J. (2002) A critical assessment of SERVQUAL's applicability in the banking context of China. In: Ramizwick and Tu Ping (eds.) Asia Pacific Advances in Consumer Research, Vol. 5. Valdosta, GA: Association for Consumer Research, pp. 14–21.

    Google Scholar 

  • Lee, M. and Ulgado, F. M. (1997) Consumer evaluations of fast-food services: A cross-national comparison. Journal of Services Marketing 11 (1): 39–50.

    Article  Google Scholar 

  • Van der Wal, R. W. E., Pampallis, A. and Bond, C. (2002) Service quality in a cellular telecommunications company: A South African experience. Managing Service Quality 12 (5): 323–335.

    Article  Google Scholar 

  • Parasuraman, A., Zeithaml, V. A. and Berry, L. L. (1994) Alternative scales for measuring service quality: A comparative assessment based on psychometric and diagnostic criteria. Journal of Retailing 70 (3): 201–230.

    Article  Google Scholar 

  • Jiang, J. J., Klein, G. and Crampton, S. M. (2000) A note on SERVQUAL reliability and validity in information system service quality measurement. Decision Sciences 31 (3): 725–744.

    Article  Google Scholar 

  • Cook, C. and Thompson, B. (2000) Higher-order factor analytic perspectives on user's perceptions of library service quality. Library & Information Science Research 22 (4): 393–404.

    Article  Google Scholar 

  • Baldwin, A. and Sohal, A. (2003) Service quality factors and outcomes in dental care. Managing Service Quality 13 (1): 207–216.

    Article  Google Scholar 

  • Kettinger, W. L., Lee, C. C. and Lee, S. (1995) Global measures of information service quality: A cross-national study. Decision Sciences 26 (5): 569–588.

    Article  Google Scholar 

  • Lam, S. S. K. (1997) SERVQUAL: A tool for measuring patients’ opinions of hospital service quality in Hong Kong. Total Quality Management 8 (4): 145–152.

    Article  Google Scholar 

  • Al-Tamimi, H. A. and Al-Amiri, A. (2003) Analyzing service quality in the UAE Islamic banks. Journal of Financial Service Marketing 8 (2): 119–132.

    Article  Google Scholar 

  • Pitt, L. F., Watson, R. T. and Kavan, C. B. (1995) Service quality: A measure of information systems effectiveness. MIS Quarterly 19 (2): 173–187.

    Article  Google Scholar 

  • Asubonteng, P., McCleary, K. J. and Swan, J. E. (1996) SERVQUAL revisited: A critical review of service quality. Journal of Service Marketing 10 (6): 62–81.

    Article  Google Scholar 

  • Buttle, F. (1996) SERVQUAL: Review, critique, research agenda. European Journal of Marketing 30 (1): 8–32.

    Article  Google Scholar 

  • Cronin, J. J. and Taylor, S. A. (1992) Measuring service quality: A reexamination and extension. Journal of Marketing 56 (July): 55–68.

    Article  Google Scholar 

  • Brady, M. K., Cronin, J. J. and Brand, R. R. (2002) Performance-only measurement of service quality: A replication and extension. Journal of Business Research 55 (1): 17–31.

    Article  Google Scholar 

  • Gounaris, S. (2005) Measuring service quality in b2b services: An evaluation of the SEVQUAL scale vis-à-vis the INDSERV scale. The Journal of Services Marketing 19 (6/7): 421–435.

    Article  Google Scholar 

  • Lai, J. -Y. (2006) Assessment of employees’ perceptions of service quality and satisfaction with e-business. International Journal of Human-Computer Studies 64: 926–938.

    Article  Google Scholar 

  • Engelland, B. T., Workman, L. and Singh, M. (2000) Ensuring service quality for campus career services centers: A modified SERVQUAL scale. Journal of Marketing Education 22: 236–245.

    Article  Google Scholar 

  • Badri, M. A., Abdulla, M. and Al-Madani, A. (2005) Information technology center service quality: Assessment and application of SERVQUAL. International Journal of Quality & Reliability Management 22 (8/9): 819–848.

    Article  Google Scholar 

  • Llosa, S., Chandon, J. and Orsingher, C. (1998) An empirical study of SERVQUAL's dimensionality. The Service Industries Journal 18 (1): 16–44.

    Article  Google Scholar 

  • Avkiran, N. K. (1994) Developing an instrument to measure customer service quality in branch banking. International Journal of Bank Marketing 12: 10–18.

    Article  Google Scholar 

  • Johnston, R. (1995) The determinants of service quality: Satisfiers and dissatisfiers. International Journal of Service Industry Management 6 (5): 53–71.

    Article  Google Scholar 

  • Johnston, R. (1997) Identifying the critical determinants of service quality in retail banking: Importance and effect. International Journal of Bank Marketing 15 (4): 111–116.

    Article  Google Scholar 

  • Bahia, K. and Nantel, J. (2000) A reliable and valid measurement scale for the perceived service quality of banks. The International Journal of Bank Marketing 18: 84–91.

    Article  Google Scholar 

  • Aldlaigan, A. H. and Buttle, F. A. (2002) SYSTRA-SQ: A new measure of bank service quality. International Journal of Service Industry Management 13 (4): 362–381.

    Article  Google Scholar 

  • Jabnoun, N. and Al-Tamimi, H. A. H. (2003) Measuring perceived service quality at UAE commercial banks. The International Journal of Quality & Reliability Management 20 (4/5): 458–472.

    Article  Google Scholar 

  • Karatepe, O. M., Yavas, U. and Babakus, E. (2005) Measuring service quality of banks: Scale development and validation. Journal of Retailing and Consumer Services 12: 373–383.

    Article  Google Scholar 

  • Chi Cui, C., Lewis, B. R. and Park, W. (2003) Service quality measurement in the banking sector in South Korea. International Journal of Bank Marketing 21 (4/5): 191–201.

    Article  Google Scholar 

  • Zhou, L. (2004) A dimension-specific analysis of performance-only measurement of service quality and satisfaction in China's retail banking. Journal of Services Marketing 18 (6/7): 534–546.

    Article  Google Scholar 

  • Brown, T. J., Churchill, G. A. and Peter, J. P. (1993) Research note: Improving the measurement of service quality. Journal of Retailing 69 (1): 127–139.

    Article  Google Scholar 

  • Peter, J. P., Churchill Jr., G. A. and Brown, T. J. (1993) Caution in the use of difference scores in consumer research. Journal of Consumer Research 19: 655–662.

    Article  Google Scholar 

  • Babakus, E. and Boller, G. W. (1992) An empirical assessment of the SERVQUAL scale. Journal of Business Research 24: 253–268.

    Article  Google Scholar 

  • Gounaris, S. P., Stathakopoulos, V. and Athanassopoulos, A. D. (2003) Antecedents to perceived service quality: An exploratory study in the banking industry. International Journal of Bank Marketing 21 (4/5): 168–190.

    Article  Google Scholar 

  • Fornell, C. and Larcker, D. (1981) Structural equation models with unobservable variables and measurement error: Algebra and statistics. Journal of Marketing Research 18: 39–50.

    Article  Google Scholar 

  • Lovelock, C. and Wirtz, J. (2004) Services Marketing: People, Technology, Strategy. New Jersey; Upper Saddle River: Pearson; Prentice-Hall.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Faculty of Business Administration, Laval University, Québec, Canada

    Riadh Ladhari

Authors
  1. Riadh Ladhari
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Riadh Ladhari.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Ladhari, R. Assessment of the psychometric properties of SERVQUAL in the Canadian banking industry. J Financ Serv Mark 14, 70–82 (2009). https://doi.org/10.1057/fsm.2009.2

Download citation

  • Received:

  • Revised:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/fsm.2009.2

Keywords

Search

Navigation