The Investigation of Service Quality Dimensions, Customer Satisfaction and Corporate Image in Indian Public Sector Banks: An Application of Structural Equation Model(SEM)

The purpose of this article is to identify the dimensions of service quality (SQ) in the banking sector and examine the effect of SQ dimensions on customer satisfaction (CS), and therefore the effect of CS on corporate image (CI) in the selected public sector banks (PSBs) in India. The sample of the study consists of 640 retail customers of PSBs in the National Capital Region (NCR) of India and the data were collected through a structured questionnaire using a 7-point Likert scale based on purposive sampling. Therefore, the authors empirically validate a measurement model using structural equation modelling (SEM) through path analysis. The findings revealed that ‘tangibility’ and ‘assurance’ dimensions were most important predictors of CS among all five dimensions of SQ. In addition, the results also validate that CS is an important antecedent for influencing CI, and therefore CS acts as a linkage between SQ dimensions and CI in the Indian context. Finally, the research article presents the conclusion, implications and limitations and the possible directions for further research.