A customized measure of service quality in the UAE

Purpose The concerns of service quality may differ from one country to another. It is therefore crucial to develop measures of service quality that are pertinent to the country and culture where the service is offered. This paper proposes developing a measure of service quality in the UAE and then testing this measure in UAE conventional and Islamic banks. Design/methodology/approach The components of service quality were developed through a brainstorming and sorting exercise. Based on the results of this exercise, the authors developed a 30‐item questionnaire comprising the five dimensions of SERVQUAL and two other dimensions called values and image. The questionnaire was distributed to customers of UAE conventional and Islamic banks in Dubai and Sharjah. Factor analysis of the responses resulted in four dimensions. The reliability and predictive validity of these dimensions were confirmed. Finally separate regression models were developed for conventional and Islamic banks. These models were analyzed and compared. Findings Factor analysis resulted in four dimensions: personal skills, reliability, values, and image. Results of regression analysis revealed that all four dimensions were significant in determining service quality in conventional banks. Values and image were however the most important of these dimensions. On the other hand, only personal skill and values were significant in determining service quality in Islamic banks. Originality/value This paper emphasizes the need to customize measures of service quality to different countries. This is particularly important for multi‐national corporations. This paper also provides guidelines for bank managers in the UAE on which dimensions of service quality they should emphasize in order to retain their customers and attract new ones. This paper has important research implications on the relationship between national culture and service quality and on the service quality of Islamic banks.