Impact of Service Quality on Customer Perception: An Empirical Study in India’s Post Office Savings Banking Sector Using SERVQUAL

The position of financial organization would be increasingly decisive in the next decade in view of the frightening competition. With the increasing number of businesses and growing competitions today, each organization wants to be the customer’s first choice and try to satisfy them for getting loyalty for their future endurance in the market.  However, it is open to ask whether the organizations are satisfying their customers through quality in their service and this is the crucial hitch for every organization in today’s context. In view of this, the author conducted an empirical study to investigate the role of service quality in customer perception. For this purpose, they have considered India’s Post Office Savings banking sector, a primeval fiscal sector and interviewed 106 customers through a self-administered questionnaire by convenience sampling method. Empirical results acquired through application of tools like Factor analysis, Weighing score method, and Chi-Square test and it revealed that all the SERVQUAL factors are resulted with negative value, which indicated that the sector still not meet the expectation of the customers  along with the  minimum gap  in Competence dimension and huge service quality gap in Tangibility factor.  In addition, there is no significant association found between the demographic variables taken up for consideration. Standard deviation scores also showed that there is moderate deviation existing between customer perception and expectation concerning service quality.