Structure equation modeling (SEM) approach for evaluating and analyzing the effect of IT-based services in banking sector on customer service quality (SEVQUAL)

This study is intended to explore the measures of IT-based service, perceived service quality, and customer satisfaction. The study further delves to analyze the relationship between IT-based services and their influence on service quality and customer satisfaction. The study is one of its kind as it explores SERVQUAL with customer satisfaction in the area of banking services. The sample was drawn from banking customers using digital applications for performing banking transactions. The data was collected from 294 respondents and analyzed through the maximum likelihood method using structural equation modeling (SEM) by using the capabilities of Lisrel 8.80. The measurement model and structural model were assessed, and in the initial analysis unidimensionality, reliability, and validity of a research instrument were ascertained. The structural model advocates the presence of hypothesized relationships and it was concluded that customer experiences regarding IT-based services influence service quality and customer satisfaction. The results are interpreted on the basis of estimates generated by the statistical software. The finding of this research is in line with many other research works listed in the discussion section of this paper.