The Impact of Customer Service Quality on Customer Satisfaction: A study on Bangladeshi Banks

doi:10.21203/rs.3.rs-3795570/v1

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The Impact of Customer Service Quality on Customer Satisfaction: A study on Bangladeshi Banks

https://doi.org/10.21203/rs.3.rs-3795570/v1

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This research study examines the impact of customer service quality on customer satisfaction at Bangladeshi Banks. The study aimed to fill existing gaps in understanding the correlation between customer service quality and customer satisfaction in the banking sector, specifically within the context of this bank. The research design adopted for this study was qualitative, allowing for an in-depth exploration of participants' perspectives and experiences. Semi-structured interviews were conducted with key bank representatives and customers to gather rich and contextualized data. The findings from the study shed light on the critical factors influencing customer satisfaction. Responsive service, efficiency in service delivery, and personalization emerged as key drivers of customer satisfaction. Customers highly value prompt and effective responses to their inquiries and seek quick and hassle-free transactions. Personalized services that cater to individual needs and preferences were found to enhance customer perceptions and foster stronger relationships. Additionally, the study highlighted the importance of effective complaint resolution in influencing customer satisfaction. Respondents emphasized the significance of handling complaints with empathy and efficiency to turn dissatisfied customers into loyal advocates. Communication also played a vital role in customer interactions. Clear and prompt communication of information regarding banking products, services, and policies positively impacted customer satisfaction. Furthermore, the study identified a strong link between customer service quality and overall customer satisfaction with Bangladeshi Banks. Positive customer service experiences contributed to higher levels of satisfaction, while negative experiences had the potential to lead to dissatisfaction and affect the bank's reputation. Based on the findings, several recommendations were provided to enhance customer service quality and improve overall customer satisfaction. These recommendations included strengthening responsiveness, investing in customer service training, streamlining processes, leveraging technology, offering personalized services, acting on customer feedback, and fostering a customer-centric culture. This study underscores the critical role of customer service quality in shaping customer satisfaction and loyalty in the banking sector. By prioritizing customer service excellence and implementing the provided recommendations, Bangladeshi Banks can enhance customer relationships, drive loyalty, and establish itself as a customer-centric institution in the competitive banking market. The insights from this study have implications for the bank's strategic decision-making processes and long-term success in delivering exceptional customer experiences.

customer service quality

customer satisfaction

Bangladeshi Banks

banking sector

qualitative research

semi-structured interviews

responsive service

efficiency

personalization

complaint resolution

communication

customer loyalty

competitive banking market

strategic decision-making

exceptional customer experiences

The quality of customer service is a crucial aspect of the banking sector, as it significantly influences customers' perceptions and overall experience with a bank (Parasuraman et al., 1988). In the contemporary business landscape, banks acknowledge the significance of delivering exceptional customer service as more than just an additional benefit, but rather as an essential strategic necessity for the purpose of attracting and retaining customers (Kaur & Soch, 2019). The concept of customer service quality encompasses multiple dimensions, such as responsiveness, empathy, reliability, assurance, and tangibles, which collectively impact customer satisfaction and loyalty (Zeithaml et al., 1990). In the particular context of Bangladeshi Banks, the significance of customer service quality cannot be overemphasized. Being a prominent participant in the banking industry of Bangladesh, the bank encounters vigorous competition from both domestic and international financial establishments. In the context of the current business environment, the provision of superior customer service has emerged as a crucial element in attaining a competitive advantage and cultivating enduring customer connections (Ali & Ahmed, 2018). Gaining insight into the interplay between the quality of customer service and the level of customer satisfaction is imperative for the bank to cultivate a favorable and enduring perception among its clientele, ultimately resulting in heightened customer loyalty and advocacy. The scholarly literature has extensively examined the correlation between the quality of customer service and customer satisfaction. Multiple research studies have demonstrated that the provision of exceptional customer service is positively correlated with increased levels of customer satisfaction (Santos & Boote, 2018). Verma et al. (2017) found that customers are more likely to perceive value and satisfaction in their overall service encounter when they encounter prompt query resolution, courteous behavior from bank staff, and personalized assistance. According to Solomon and Rabbanee (2019), customers who are content with their banking experience are not only more inclined to retain their current banking relationships, but also demonstrate a propensity to recommend the bank to others. This positive word-of-mouth marketing can have a significant impact on the bank's reputation and customer acquisition. On the other hand, a deficiency in the quality of customer service has the potential to result in customer dissatisfaction and attrition, as noted by Hussain et al. (2019). The customer experience can be significantly affected by extended waiting periods, lack of responsiveness to customer inquiries, and insufficient problem resolution, leading to unfavorable perceptions and diminished customer loyalty (Yoo & Bai, 2020). In addition, customers who are not satisfied with the bank's services may opt to transition to rival banks that provide superior customer service. This presents a direct challenge to the bank's market share and financial viability (Shaikh & Faiz, 2018). In light of the extensively documented significance of customer service quality, it is evident that every banking institution encounters distinct challenges and prospects in its endeavor to provide exceptional customer service (Khan & Aziz, 2017). The Bangladeshi Banks provides a unique research environment for investigating the specific elements that influence the quality of customer service and their subsequent effects on customer satisfaction. Through a comprehensive analysis of these factors, the bank can discern areas that require improvement and formulate customized strategies to augment the delivery of customer service. Consequently, this will fortify the bank's standing within the fiercely competitive banking sector. This proposed qualitative research aims to explore the viewpoints of customers and bank representatives in order to obtain a comprehensive comprehension of the quality of customer service provided by the bank and its impact on customer satisfaction. The study seeks to comprehensively examine customer experiences and expectations, as well as the bank's endeavors and obstacles in providing exceptional customer service, through the utilization of in-depth interviews and focus group discussions (Creswell, 2013). The utilization of a qualitative methodology facilitates an in-depth examination of the perspectives held by participants, enabling researchers to unveil significant insights and discern patterns that may not be readily apparent through the analysis of quantitative data exclusively (Bryman, 2016).

The establishment of high-quality customer service in the banking industry plays a crucial role in fostering customer satisfaction and loyalty (Karim & Chowdhury, 2019). In light of intensifying competition within the financial sector, banks are acknowledging the importance of delivering exceptional customer experiences as a means of both retaining current customers and attracting new ones (Omar, Rahman, & Zainuddin, 2019). The evaluation of customer service quality involves various elements that collectively impact a customer's perception of the service provided by the bank. The provision of responsive service is a fundamental aspect of ensuring high-quality customer service. According to Saravanakumar and SuganthaLakshmi (2012), it is anticipated by customers that their inquiries and concerns will be addressed promptly and efficiently. The failure to promptly respond to customer inquiries can result in customer dissatisfaction and a perception of the bank's lack of dedication to fulfilling their requirements (Clemes, Gan, & Kao, 2016). In contrast, financial institutions that place a high value on promptly addressing customer needs and offering timely resolutions are able to cultivate trust and nurture favourable customer connections (Ismail, Omar, & Haron, 2017). Efficiency is an essential component of customer service quality within the banking industry. According to Tan, Ramayah, and Abdul-Majid (2017), customers have a preference for expeditious and streamlined transactions. According to Sureshchandar, Rajendran, and Anantharaman (2002), extended waiting periods, intricate procedures, and system failures have the potential to result in customer dissatisfaction and attrition. According to Liao and Wang (2009), the optimization of operational processes and the utilization of technological advancements can significantly improve the efficiency of banks. This, in turn, enables customers to carry out transactions with ease and convenience. The inclusion of personalization is a significant factor in enhancing the quality of customer service. According to Qureshi, Khan, and Hijazi (2019), customers demonstrate a positive reception towards personalized services that are specifically designed to meet their individual preferences and financial requirements. Banks have the ability to provide personalized recommendations and products to customers by comprehending their individual customer profiles and financial objectives. This practice fosters a sense of belonging and loyalty among customers (Prabhakar, 2018). In addition, the successful resolution of complaints plays a crucial role in ensuring the overall quality of customer service. According to Ranaweera and Prabhu (2003), it is anticipated by customers that their complaints will be treated with seriousness and addressed promptly. According to Patterson (2003), financial institutions that demonstrate empathy and efficiency in addressing customer complaints have the potential to transform dissatisfied individuals into devoted advocates. In order to consistently enhance the quality of customer service, banks frequently utilize customer feedback mechanisms, such as surveys and feedback portals (Nguyen & LeBlanc, 2001). According to Manaf, Rosbi, and Bahari (2013), these tools facilitate the acquisition of customer insights and the identification of areas for improvement by banks. Banks exhibit their dedication to improving the customer experience by actively soliciting and implementing customer feedback (Ndubisi, 2007). The correlation between the quality of customer service and customer satisfaction is a primary area of interest within the field of service marketing and management. The intricate relationship between customers' perceptions and expectations has been the subject of study in various theoretical frameworks, including the SERVQUAL model and the Kano model. These frameworks aim to provide insights into understanding this relationship. The SERVQUAL model, which was first proposed by Parasuraman, Zeithaml, and Berry in 1985, is a highly prevalent framework utilized for evaluating the quality of customer service (Parasuraman, Zeithaml, & Berry, 1985). The present model places significant emphasis on five fundamental dimensions of service quality, namely reliability, responsiveness, assurance, empathy, and tangibles. Reliability pertains to the service provider's capacity to consistently and accurately deliver the promised service. Responsiveness refers to the inclination to assist customers in a timely and effective manner. Assurance pertains to the level of knowledge and courtesy exhibited by employees, as well as their capacity to inspire trust and instill confidence in customers (Hasan & Chowdhury, 2023). The concept of empathy pertains to the extent of concern and personalized consideration provided to customers. Tangibles refer to the material elements within the service environment that have an impact on customer perceptions. The SERVQUAL model is utilized to evaluate the disparity between customer expectations and the perceived delivery of services, thereby allowing organizations to pinpoint areas for enhancement in order to augment customer satisfaction. In contrast, the Kano model, formulated by Professor Noriaki Kano, centers its attention on comprehending the manner in which diverse service attributes influence customer satisfaction (Kano, Seraku, Takahashi, & Tsuji, 1984). The Kano model classifies service attributes into five distinct categories, namely basic, performance, excitement, indifferent, and reverse. Fundamental attributes are indispensable components that, when fulfilled, do not inherently guarantee heightened satisfaction but can engender dissatisfaction if left unmet. There exists a direct relationship between performance attributes and customer satisfaction, whereby increased levels of performance result in elevated levels of satisfaction (Hasan, Shafin, et al., 2023). Excitement attributes refer to unanticipated characteristics that, upon being presented, generate favorable surprises and augment customer contentment. The presence or absence of indifferent attributes has minimal influence on customer satisfaction. Reverse attributes refer to specific characteristics or features that, when they exist, result in a negative customer experience or dissatisfaction. Through a comprehensive understanding of various attribute categories, organizations can strategically allocate resources to effectively surpass customer expectations. Both the SERVQUAL and Kano models emphasize the significance of meeting and exceeding customer expectations in order to attain elevated levels of customer satisfaction (Hasan & Karim, 2023). The SERVQUAL model primarily aims to identify discrepancies between customers' expectations and their perceptions of the service they receive. On the other hand, the Kano model places emphasis on the diverse effects that different service attributes have on levels of satisfaction. A multitude of scholarly investigations have examined the correlation between the quality of customer service and customer satisfaction within the banking industry. These studies have provided valuable insights into the pivotal factors that impact customers' perceptions and their subsequent loyalty. These studies have provided significant contributions in assisting banks in developing effective strategies to improve customer experiences and attain higher levels of customer satisfaction. Effective communication plays a pivotal role in determining the quality of customer service within the banking industry. Multiple studies have demonstrated that the level of customer satisfaction is significantly impacted by the quality of communication between bank representatives and customers (Haque, 2019; Lee & Hsieh, 2019). Effective and concise dissemination of information pertaining to banking products, services, and policies has the potential to foster a favorable perception among customers, thereby resulting in heightened levels of satisfaction and loyalty (Rashid, Hassan, & Rahman, 2021). The examination of responsiveness is a crucial element within the realm of customer service quality and satisfaction in the banking industry. Numerous studies have provided evidence indicating that customers place significant importance on prompt and effective responses to their inquiries and grievances (Nasir & Hanudin, 2017; Mohamed & Rashid, 2016). According to Thaichon and Quach (2017), financial institutions that place a high emphasis on being responsive and promptly resolving customer concerns are more inclined to cultivate favourable customer experiences and establish enduring relationships. Trust is an essential element that consistently arises in prior research (Hasan, Siam, et al., 2023). The significance of trustworthiness in the banking sector cannot be overstated, as customers attach great value to their trust in the bank's integrity and dependability (Alalwan et al., 2020). According to Hu, Zhang, Zhao, and Yuan (2019), the establishment of trust between customers and banks plays a crucial role in enhancing customer satisfaction and loyalty. This trust can be cultivated through the provision of consistent service quality and adherence to ethical conduct. Furthermore, scholarly research has examined the effects of service recovery on customer satisfaction in instances of service failures (Liu & Jang, 2009). The efficacy of banks in effectively addressing customer complaints and recuperating from service failures has the potential to augment customer satisfaction, thereby potentially fostering heightened levels of loyalty in comparison to customers who have not experienced any issues (Mittal, Kumar, & Tsiros, 1999). The investigation of the role of technology in service quality and customer satisfaction has also been a topic of scholarly inquiry (Emon, 2023). Numerous scholarly investigations have been conducted to explore the impact of digital banking channels on customer experiences (Narteh, Agbemabiese, & Amponsah, 2021). The adoption of technological advancements, such as mobile banking applications and online platforms, can provide enhanced convenience and accessibility, thereby leading to increased levels of customer satisfaction (Emon et al., 2023).

In conducting this study, a qualitative research design was chosen as it allows for an in-depth exploration of participants' perspectives, experiences, and opinions, facilitating a comprehensive understanding of the impact of customer service quality on customer satisfaction. The primary objective was to gather rich and contextualized data that could aid in identifying the factors contributing to customer satisfaction or dissatisfaction within Bangladeshi Banks. To align with the study's objectives of exploring participants' perspectives, an interpretive approach was adopted. This approach sought to interpret and understand the subjective experiences and perceptions of both customers and bank representatives regarding customer service quality and its influence on customer satisfaction. The sample size for this study consisted of a total of 35 respondents, including both bank representatives and bank customers. Purposive sampling was employed to select individuals with relevant knowledge and experience related to the research topic. Bank representatives, including customer service managers and frontline staff, were chosen for their direct involvement in delivering and managing customer service at Bangladeshi Banks. Bank customers were selected based on their experience as users of the bank's services, ensuring a diverse representation in terms of age, gender, and banking history. Semi-structured interviews were conducted with key bank representatives, focusing on customer service managers and frontline staff. These interviews aimed to gather information about the bank's customer service policies, training initiatives, resource allocation, and challenges faced in maintaining service quality. The face-to-face nature of the interviews ensured that participants had the opportunity to express their views openly and in detail. Thematic analysis was employed as the method for data analysis. This approach allowed for the identification and exploration of recurring themes and patterns related to customer service quality and customer satisfaction. The analysis aimed to extract meaningful insights to address the research questions effectively. In terms of ethical considerations, the research adhered to ethical guidelines to protect the rights and privacy of the participants. Informed consent was obtained from all participants, ensuring their willingness to participate without coercion. Participant identities were kept confidential, and pseudonyms were used in reporting the findings to ensure anonymity. Sensitive information disclosed during the interviews and discussions was handled with utmost discretion and confidentiality. The sample size of 35 respondents was justified based on the principle of saturation in qualitative research. Saturation is reached when no new information or themes emerge from additional interviews, indicating that enough data has been collected to adequately address the research questions. Given the focused nature of this study and the specificity of the research context (Bangladeshi Banks), a sample size of 35 was deemed sufficient to achieve saturation and gather comprehensive insights into the impact of customer service quality on customer satisfaction within this particular setting. However, it is essential to acknowledge the limitations of this research. Firstly, the findings are context-specific to Bangladeshi Banks and may not be directly generalizable to other banks or industries. Secondly, the sample size, while deemed sufficient for saturation, is relatively small, and findings may not represent the entire population of bank representatives and customers. Lastly, as with any qualitative research, there is the potential for researcher bias in data collection and analysis, although efforts were made to minimize this bias through reflexivity and adherence to established research protocols.

4.1 Demographic Information

The demographic profile of the respondents in this study reflects a diverse and varied representation of customers and bank representatives at Bangladeshi Banks. The research aimed to gather insights from a wide range of individuals to obtain a comprehensive understanding of the impact of customer service quality on customer satisfaction. Here, we delve deeper into the demographic characteristics of the participants.

Gender

The sample includes both male and female respondents, ensuring a balanced representation of gender perspectives. This diversity is crucial in capturing the unique experiences and perceptions of both men and women concerning customer service quality and its influence on satisfaction. By including both genders, the study can better explore any potential differences or commonalities in their responses.

Age Group

Participants in the study belong to various age groups, ranging from 18 to above 55 years. The distribution of respondents across different age brackets allows for insights into how customer service quality may impact individuals of varying age demographics. Younger customers may have different expectations and preferences compared to older ones, and understanding these differences can guide the bank in tailoring its services to meet the diverse needs of its customer base.

Educational Background

The respondents represent different educational levels, ranging from Bachelor's degrees to Doctorate or Above. Education can influence individuals' perceptions and decision-making processes, and the study aims to explore how educational backgrounds may shape respondents' views on customer service quality and satisfaction.

Occupation

The sample includes respondents with diverse occupational statuses, such as students, full-time employees, part-time employees, self-employed individuals, retired individuals, and unemployed individuals. The variety of occupations offers valuable insights into how customer service quality impacts individuals with different professional roles and responsibilities. For instance, employees may have higher expectations for service due to their exposure to customer service practices in their workplaces.

Customer Tenure

The respondents' tenure as customers of Bangladeshi Banks varies, with the majority being customers for 1 to 3 years. Having a mix of long-term and relatively new customers enables the study to assess how customer service quality may influence both new and loyal customers. Long-term customers may have formed stronger opinions based on prolonged interactions, while newer customers' perspectives may highlight initial experiences with the bank.

Interaction Frequency

The frequency of interactions with the bank's customer service department ranges from daily to monthly. Some respondents have occasional or rare interactions with customer service. Understanding the frequency of interactions is crucial as it can influence the impact of customer service quality on overall satisfaction. Frequent interactions may have a more significant effect on satisfaction levels, whereas occasional interactions may play a role in forming lasting impressions about the bank.

4.2 Importance of Responsive Service

The importance of responsive service in the banking sector cannot be overstated. Customers expect swift and effective responses to their inquiries, concerns, and issues. In today's fast-paced world, where instant communication has become the norm, delays in addressing customer queries can lead to dissatisfaction and a negative impression of the bank's commitment to meeting their needs. Therefore, responsive customer service is crucial for ensuring a positive customer experience and fostering long-term customer loyalty. One of the primary reasons why responsive service is essential is that it directly impacts the customer's perception of the bank's reliability and attentiveness. When a customer reaches out to the customer service department, they are often seeking assistance or information related to their banking needs. A timely and helpful response demonstrates that the bank values the customer's time and is committed to addressing their concerns promptly. On the other hand, delayed responses can lead to frustration, and the customer may feel undervalued, resulting in a negative impression of the bank. Responsive service is particularly vital in handling urgent matters and resolving problems effectively. For instance, if a customer encounters an issue with their account or faces a financial concern, a prompt response from the customer service representative can provide reassurance and instill confidence in the bank's ability to handle the situation. On the contrary, a delayed or inadequate response can intensify the customer's anxiety and dissatisfaction. Additionally, responsive service plays a significant role in managing customer expectations. When customers receive quick and accurate responses, they are more likely to feel satisfied and confident in the bank's services. On the other hand, delayed responses or a lack of clear communication may lead to misunderstandings and dissatisfaction. Moreover, responsive customer service contributes to the overall reputation of the bank. Satisfied customers are more likely to share positive experiences with others, leading to word-of-mouth referrals and potential new customers. Conversely, negative experiences resulting from unresponsive service can lead to negative word-of-mouth, damaging the bank's image and potentially deterring new customers. To ensure responsive service, banks need to invest in training their customer service representatives and equipping them with the necessary tools and information to handle customer queries efficiently. Implementing effective communication channels and feedback mechanisms can also enhance responsiveness, allowing customers to reach the bank easily and receive timely assistance.

4.3 Role of Efficiency in Customer Satisfaction

The findings from the respondents affirm the crucial role of efficiency in service delivery in influencing customer satisfaction at Bangladeshi Banks. The customers highly value quick and hassle-free transactions, and any delays or complexities in banking processes were consistently highlighted as sources of frustration and dissatisfaction. Several customers expressed the expectation that routine banking tasks, such as fund transfers, bill payments, and account inquiries, should be completed swiftly and without unnecessary complications. They emphasized the importance of an organized and efficient banking system that streamlines these processes to ensure a seamless experience. Customers praised the bank for its efficient handling of routine transactions, which contributed positively to their overall satisfaction. Furthermore, respondents mentioned that efficiency in problem resolution significantly impacted their satisfaction levels. They expected the bank to address their concerns promptly and effectively when they encountered issues with their accounts or faced financial challenges. Instances where the bank's customer service representatives efficiently resolved problems were cited as examples of excellent service, leaving a lasting positive impression on the customers. On the other hand, respondents who had experienced delays or inefficiencies in service delivery expressed their dissatisfaction with the bank. Some shared instances of having to wait for extended periods for responses to their queries, leading to frustration and a perception of the bank as unreliable. The impact of efficiency on the overall customer experience was highlighted in the responses. Customers stated that a smooth and efficient banking experience positively influenced their perceptions of the bank's overall service quality. The convenience and efficiency of the services offered contributed significantly to their overall satisfaction and loyalty to the bank. Moreover, the importance of efficiency in word-of-mouth referrals emerged from the responses. Satisfied customers expressed their willingness to recommend the bank's services to friends and family based on their positive experiences. On the other hand, dissatisfied customers noted that they might share their negative experiences, potentially deterring others from choosing the bank. To enhance efficiency in service delivery, the respondents suggested leveraging technology and process optimization. They welcomed the implementation of advanced digital banking solutions, such as mobile banking apps and online platforms, to streamline transactions and improve overall efficiency. Additionally, some respondents highlighted the importance of ongoing staff training to ensure that employees possess the necessary skills and knowledge to deliver services efficiently.

4.4 Personalization and Customer Satisfaction

Personalization of services has emerged as a key driver of customer satisfaction at Bangladeshi Banks, according to the study findings. Customers highly value tailored services that cater to their individual needs and preferences. Banks that demonstrate a deep understanding of their customers' profiles and financial objectives are more likely to foster positive customer relationships and enhance overall satisfaction. The respondents emphasized the significance of personalized recommendations and offerings from the bank. Customers expressed satisfaction when the bank provided them with personalized financial advice based on their specific goals and circumstances. For instance, some customers mentioned receiving personalized investment recommendations that aligned with their risk tolerance and long-term financial objectives. Such experiences left a positive impression on customers, making them feel valued and understood by the bank. Moreover, respondents cited instances where the bank proactively reached out to offer personalized products or services that catered to their unique needs. For example, some customers appreciated receiving targeted offers for credit cards or loan products that were relevant to their financial situation. These personalized offerings were well-received, as they demonstrated the bank's attentiveness to the customers' preferences and financial requirements. Furthermore, the study found that personalized services contribute to a sense of belonging and loyalty among customers. When the bank goes the extra mile to understand and address their specific needs, customers feel more connected to the institution and are more likely to remain loyal in the long run. Personalization is seen as a reflection of the bank's commitment to building meaningful relationships with its customers. However, some respondents also mentioned instances where personalization fell short of their expectations. Customers expressed dissatisfaction when they received generic or irrelevant marketing communications that did not align with their interests or financial situation. Such experiences led to a perception of the bank's lack of attention to individual preferences and needs. To enhance personalization, respondents suggested that the bank should leverage customer data effectively and invest in advanced customer relationship management systems. By analyzing customer behavior and transaction patterns, the bank can gain deeper insights into individual preferences and deliver more targeted and relevant services. Additionally, respondents recommended that customer service representatives should be well-trained to engage in personalized interactions with customers, actively listening to their needs and preferences.

4.5 Impact of Effective Complaint Resolution

Effective complaint resolution has a significant impact on customer satisfaction, as highlighted by the responses from the study participants. How the bank handles customer complaints can greatly influence customers' perception of the institution's commitment to providing quality service and meeting their needs. Respondents emphasized that when they encounter issues or problems with the bank's services, how these complaints are addressed is critical in shaping their overall satisfaction. Banks that handle complaints with empathy and understanding, showing genuine concern for the customers' issues, are more likely to leave a positive impression. When customers feel heard and valued, they are more likely to have their concerns resolved satisfactorily, leading to a higher level of satisfaction. Efficient complaint resolution was also highlighted as a key factor influencing customer satisfaction. Customers appreciate prompt and timely resolutions to their complaints. Delays in addressing customer issues can lead to frustration and a perception of the bank as unresponsive or indifferent. On the other hand, banks that address complaints efficiently demonstrate their commitment to resolving customer problems promptly, which contributes positively to customer satisfaction. Moreover, the study findings suggest that effective complaint resolution can turn dissatisfied customers into loyal advocates. Respondents shared instances where their initial dissatisfaction with the bank's service was transformed into loyalty and satisfaction after the bank took proactive steps to address their complaints. When banks prioritize complaint resolution and go above and beyond to make things right for the customer, it can significantly impact their perception of the institution and foster long-term loyalty. Conversely, respondents expressed disappointment when their complaints were not handled adequately. Instances of unresponsive or dismissive behavior from customer service representatives were cited as factors contributing to a negative perception of the bank's commitment to customer satisfaction. Such experiences can lead to customer dissatisfaction, and in some cases, may even result in customers considering switching to other banking options. To improve complaint resolution, respondents recommended that the bank invest in customer service training for their representatives. Empathy, active listening, and problem-solving skills were highlighted as crucial attributes for handling complaints effectively. Furthermore, the study emphasized the importance of empowering frontline employees to make decisions and take appropriate actions to resolve customer issues promptly.

4.6 Significance of Communication in Customer Interactions

The study findings highlight the significant role of effective communication in customer interactions with the bank's customer service representatives. Clear and prompt communication of information regarding banking products, services, and policies emerged as a key driver of customer satisfaction. Customers expressed the expectation that customer service representatives should be knowledgeable and well-informed about the bank's offerings. When representatives can provide accurate and comprehensive information, it instills confidence in customers and reassures them that they are dealing with competent professionals. On the other hand, respondents expressed dissatisfaction when they received incomplete or incorrect information, as it led to confusion and a perception of the bank as unreliable. Moreover, the study revealed that timely responses to customer inquiries play a vital role in enhancing satisfaction. Customers value prompt attention to their concerns and appreciate when their questions are answered without unnecessary delays. On the contrary, delayed responses were cited as a source of frustration and dissatisfaction, as customers felt that their needs were not being prioritized. Furthermore, the findings suggest that good communication contributes to overall customer satisfaction by creating a positive customer experience. Polite and courteous communication from customer service representatives was praised by respondents, as it made them feel valued and respected as customers. On the other hand, instances of rude or unprofessional communication left a negative impression and contributed to a decline in customer satisfaction .Additionally, effective communication was found to be essential in resolving customer complaints. Respondents mentioned that a clear and empathetic explanation of the steps taken to address their concerns contributed to their satisfaction with the resolution process. Conversely, poor communication during complaint handling led to dissatisfaction and a perception that the bank was not taking their complaints seriously. To enhance communication in customer interactions, respondents recommended that the bank should invest in training programs for customer service representatives. Soft skills training, including active listening, empathy, and effective communication, was identified as crucial for improving customer interactions. Additionally, the study emphasized the importance of providing representatives with the necessary tools and resources to access accurate and up-to-date information.

4.7 Link Between Customer Service Quality and Overall Satisfaction

The study findings highlight a clear and robust link between customer service quality and overall customer satisfaction with Bangladeshi Banks. The perspectives of the respondents indicate that positive customer service experiences significantly contribute to higher levels of satisfaction, while negative experiences have the potential to lead to dissatisfaction and may even impact the bank's reputation. Respondents shared that when they receive high-quality customer service, it positively influences their perception of the bank as a whole. Banks that prioritize responsive, efficient, and personalized services leave a lasting impression on customers, fostering positive sentiments and a sense of trust towards the institution. Such positive experiences create a strong foundation for building long-term customer relationships and loyalty. Conversely, respondents expressed that negative customer service experiences can have adverse effects on their overall satisfaction with the bank. Instances of unresponsive or unhelpful customer service, delays in resolving complaints, or miscommunication were cited as factors contributing to dissatisfaction. These experiences can lead to frustration and a diminished level of trust in the bank's ability to meet their needs. Moreover, the findings suggest that customer service quality plays a significant role in shaping the bank's reputation in the eyes of its customers. Word-of-mouth referrals and customer reviews heavily depend on the quality of customer service experiences. Satisfied customers are more likely to recommend the bank to friends and family, positively impacting the bank's brand image. On the other hand, dissatisfied customers may share their negative experiences, potentially deterring others from engaging with the bank's services. The study also revealed that customer service quality can influence customers' decisions to continue their relationship with the bank or explore alternative banking options. Customers who consistently experience high-quality service are more likely to remain loyal and continue their association with the bank. Conversely, dissatisfied customers may consider switching to other banks that offer better customer service. To strengthen the link between customer service quality and overall satisfaction, respondents recommended that the bank should focus on continuous improvement in its customer service practices. This includes investing in staff training to enhance communication and problem-solving skills, embracing technology for more efficient service delivery, and actively seeking and acting on customer feedback.

4.8 Suggestions for Improvement

The study gathered valuable insights from respondents regarding suggestions for improving customer service quality and enhancing overall customer satisfaction at Bangladeshi Banks. Several key recommendations were provided, reflecting the areas where the bank can focus its efforts to meet and exceed customer expectations. One of the most prevalent suggestions from respondents was to improve responsiveness. Customers expect prompt and efficient responses to their inquiries and concerns. To achieve this, the bank could implement measures to ensure that customer service representatives are readily available to address customer queries in a timely manner. Additionally, enhancing communication channels, such as live chat support or dedicated helplines, could further improve responsiveness. Several respondents emphasized the importance of training customer service representatives. Soft skills training, such as active listening, empathy, and problem-solving, was suggested to enhance the quality of customer interactions. By providing representatives with the necessary skills and knowledge, the bank can ensure that customers' needs are understood and met effectively. Streamlining processes was also highlighted as an area of improvement. Simplifying and expediting transaction processes can lead to more efficient service delivery and reduced waiting times for customers. This, in turn, can contribute to a higher level of customer satisfaction. Leveraging technology was another recommendation put forward by respondents. Implementing digital banking solutions, such as mobile apps and online banking platforms, can offer customers greater convenience and accessibility to banking services. Embracing technology can enhance the overall customer experience and improve satisfaction levels. Respondents also emphasized the significance of offering more personalized services. By understanding individual customer profiles and financial needs, the bank can tailor its offerings and recommendations to meet each customer's specific requirements. Personalization can create a sense of belonging and build stronger customer relationships. Furthermore, respondents suggested actively seeking and acting on customer feedback to identify areas for improvement. Conducting regular customer satisfaction surveys and feedback sessions can provide valuable insights into customers' experiences and expectations. By utilizing this feedback, the bank can implement targeted improvements to enhance customer service quality.

The insights gleaned from the study offer a nuanced understanding of the dynamics between customer service quality and customer satisfaction within Bangladeshi Banks. These findings underscore several key areas where improvements can be made to enhance the overall customer experience. One prominent area identified for enhancement is responsiveness. Implementing measures to ensure prompt and efficient responses to customer inquiries and concerns is pivotal. Improving communication channels, such as live chat support and dedicated helplines, can significantly contribute to providing timely assistance and positively shaping customer perceptions. Investing in continuous training programs for customer service representatives is highlighted as crucial. Emphasizing soft skills like active listening, empathy, and problem-solving can significantly elevate the quality of customer interactions. Well-trained representatives play a vital role in addressing customer needs effectively and fostering stronger, more enduring customer relationships. Efforts to streamline processes within the banking environment are recommended. Simplifying and expediting transaction processes can lead to more efficient service delivery. By reducing waiting times and minimizing unnecessary steps in transactions, banks can directly contribute to a higher level of customer satisfaction. Embracing technology emerges as an essential strategy to meet evolving customer expectations. Leveraging digital banking solutions, including mobile apps and online platforms, enhances convenience and accessibility. This technological integration not only improves the overall customer experience but also plays a pivotal role in boosting satisfaction levels. The importance of offering personalized services is underscored. Understanding individual customer profiles and financial needs is key to tailoring offerings and recommendations. This personalized approach creates a sense of belonging among customers and fosters stronger, more meaningful relationships. Acting on customer feedback is identified as a continuous improvement strategy. Regularly seeking and acting on customer feedback through surveys and feedback sessions enables banks to identify areas for improvement and implement targeted enhancements to customer service quality. Effective complaint resolution is highlighted as a priority. Handling customer complaints with empathy and efficiency is crucial for turning dissatisfied customers into loyal advocates. This emphasis on resolving issues promptly contributes to a positive perception of the bank's commitment to customer satisfaction. Enhancing communication in customer interactions is imperative. Ensuring that representatives are well-informed about the bank's offerings and providing clear, courteous communication to customers contributes to positive relationships. Continuous monitoring and evaluation of customer service performance are identified as ongoing processes. Regularly assessing customer satisfaction levels and identifying areas for improvement ensures the maintenance of high service quality standards. Cultivating a customer-centric culture within the organization is recommended. Instilling the importance of meeting and exceeding customer expectations among all employees ensures that the entire organization is aligned with the bank's commitment to delivering exceptional customer service. In conclusion, these insights shed light on key areas for improvement, providing a roadmap for Bangladeshi Banks to enhance customer service quality and, in turn, elevate overall customer satisfaction.

The current research aimed to investigate the influence of customer service quality on customer satisfaction within the context of Bangladeshi Banks. The objective of this study was to address the current knowledge gaps pertaining to the relationship between customer service quality and customer satisfaction in the banking industry, with a specific focus on this particular bank. The study's findings provided valuable insights into the importance of customer service quality in influencing customer satisfaction and loyalty. The factors that have been identified as significant determinants of customer satisfaction include responsive service, efficiency in service delivery, and personalization. Customers place a high importance on receiving timely and efficient responses to their inquiries and anticipate swift and seamless transactions. Furthermore, the provision of personalized services tailored to meet the specific needs and preferences of customers plays a significant role in shaping a favorable perception of the bank and cultivating more robust customer relationships. Moreover, the research underscored the significance of proficient resolution of complaints in shaping customer satisfaction. The participants expressed that their perception of the bank's dedication to customer satisfaction is influenced by the manner in which their complaints are addressed. The potential for transforming dissatisfied customers into loyal advocates lies in the effectiveness of complaint resolution. Communication played a pivotal role in facilitating customer interactions. Effective and timely dissemination of information pertaining to banking products, services, and policies has had a positive influence on customer satisfaction. The study conducted established a robust correlation between the quality of customer service and the overall level of satisfaction experienced by customers of Bangladeshi Banks. Positive customer service experiences were found to have a significant impact on overall satisfaction levels, whereas negative experiences had the potential to result in dissatisfaction and adversely affect the reputation of the bank. The study's results yielded a number of suggestions for the bank to enhance the quality of customer service and ultimately improve overall customer satisfaction. The aforementioned recommendations encompass enhancing responsiveness, allocating resources towards customer service training, optimizing operational procedures, harnessing technological advancements, providing tailored services, implementing customer feedback, and cultivating a customer-centric organizational ethos.

We, Afrin Anika, Mahia Islam, Farhad Ahmed, collectively serving as the principal investigators for the study titled 'The Impact of Customer Service Quality on Customer Satisfaction: A study on Bangladeshi Banks' hereby affirm that our research project received ethical approval from AIUB in August 2023.

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The authors declare no competing interests.

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The Impact of Customer Service Quality on Customer Satisfaction: A study on Bangladeshi Banks

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Abstract

1. Introduction

2. Literature Review

3. Methodology of the Study

4. Results and Findings

4.1 Demographic Information

4.2 Importance of Responsive Service

4.3 Role of Efficiency in Customer Satisfaction

4.4 Personalization and Customer Satisfaction

4.5 Impact of Effective Complaint Resolution

4.6 Significance of Communication in Customer Interactions

4.7 Link Between Customer Service Quality and Overall Satisfaction

4.8 Suggestions for Improvement

5. Discussion

6. Conclusion

Declarations

References

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