Arithmetic Mean and Excellent Banks

3. What type of bank risk would worry you the most as an account holder? How should the bank protect itself against that risk? (2-4 sentences. 1.0 points)

Service quality is defined as a comparison of customer expectations with service performance. The organizations with high service quality meet the customer needs and also remain most economical in terms of competition as improved service quality also makes the firm more competitive. High service quality is achieved by knowing operational process through identifying problems in service and defining measures for service performances and outcomes as well as level of customer satisfaction (Suneeta & Koranne, 2014).

3. What type of bank risk would worry you the most as an account holder? How should the bank protect itself against that risk? (2-4 sentences. 1.0 points)

b. List three differences you found between the accounts and features this bank or credit union offers and the bank from

In the world of banking and finance nothing stands still. The biggest change of all is in the, scope of the business of banking. Banking in its traditional from is concerned with the acceptance of deposits from the customers, the lending of surplus of deposited money to suitable customers who wish to borrow and transmission of funds. Apart from traditional business, banks now a days provide a wide range of services to satisfy the financial and non financial needs of all types of customers from the smallest account holder to the largest company and in some cases of non customers. The range of services offered differs from bank to bank depending mainly on the type and size of the bank.

Customer satisfaction and service quality are the two important components that direct anyone’s attention in every concept related to marketing, services, etc. (Spreng and Mackoy, 2006). In today’s competitive era, the success lies in

Customers realize that the current system is not flawless. Companies see that providing better service quality will create and obtain the customers loyalty, continuation of business and enhance the quality of the organization. Service quality is suppose to be consistent, reliable and accountable

Banks are competing intensely in a highly competitive environment to offer quality oriented services according to customers’ expectations. Various important parts of banking sector like operations, service quality, employee satisfaction, customer satisfaction, financing products, efficiency, financial performance are being studied by many researchers to better understand and serve the community at large (Arokiasamy, 2013).

Delivering an excellent customer service that meets the customers need allows the customer to come back and repurchase the products. In determining the customer service quality, Parasuraman, Zeithaml, and Berry (1985) have comes out with ten components to evaluate customer service quality: reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding/knowing the customer and tangibles. Later these ten key categories were summaries to five dimensions of service quality which also known as SERVQUAL: reliability, responsiveness, assurance, empathy and tangibles. According to Kulasin (2005), the definition of each dimensions are as follow:

Some academic researchers have created comprehensive scales to measure e-SQ. Since SERVQUAL is the definitive measurement of service quality (Wilson et al, 2008), it stands to reason that many scales measuring e-SQ would be based

Service quality represents a fundamental aspect of delivery, which strongly influences consumer satisfaction and, as a result, loyalty. In today’s global market a customer’s service expectation has to be met and exceeded eventually in order to retain customers as well as achieve success. Perceived quality of a product or a service is becoming one of the major competitive factors in the business world and has led to the innovation of the ‘Quality Era’ (Peeler, 1996). In simple words, the comparison of customer expectations with service performance is service quality. On the other hand, customer satisfaction is defined as a pleasurable fulfilment response toward a good, service, benefit, or reward (Oliver, 1997). Both of these

Q3 Contemplate your own recent experiences as a service consumer. On which dimensions of service quality have you most often experienced a large gap between your expectations and your perceptions of the service performance? What do you think the underlying causes might be? What steps should management take to improve quality?

Irrespective of the choice made, a bank needs to realise that the right level of

Servqual model is otherwise called as servqual service quality. Its one of the main component of high quality service. There are five main common factors for servqual model they are reliability, assurance, tangibles, empathy and responsiveness. There are seven types of gap in servqual model . Here am pointing out 5 gaps in servqual model, this model is an extension of parasuraman et al.(1985). This model is very useful in finding out the quality of service delivery and gaps in service delivery before and after the service. For example in a hospital setup new Zealand city hospital the service delivery measured using this model. This is the most common method used in measuring service.

The data were collected from retail banking customers in Ghana using a questionnaire. The respondents of the study were selected using the intercept approach (Bush, & Hair 1985). That is the data were collected from some retail banking customers who had visited some bank branches to perform transactions. The respondents were given the questionnaire after they have finished banking. The branches visited were located in Accra, the capital city of Ghana. We selected this city because of its cosmopolitan nature. The banking sector was selected because of its competitive nature. As at 31 December 2015, there were 30 banks operating as universal banks. In addition to this, four financial institutions have obtained a universal banking licence in 2016 to operate (PWC 2016). This has heightened the already intense competition in the banking sector. This situation presents customers with variety of choices and opportunity to switch to other banks easily. As a result, many banks are constantly exploring strategies to attracting new customers whilst retaining the existing customers. There were a total of 468 respondents out of which 53.2% were males. Many (66.2%) of the respondents operate a savings account. Also many (76.1%) of them have completed or were pursuing a University degree. Furthermore, 54.7% of them have being doing business with their respective banks for 1-5 years. Again, 48.7 % have an account balance ranging from GHC 3000- 3999. Table 1 provides details of the