A Study on the Impact of Service Quality on Behavioral Intentions of Banking Customers

Thesis submitted to The Gandhigram Rural Institute Deemed University in partial fulfillment of the requirements for the award of degree of Doctor of Philosophy

By S.Arun Kumar

andhigram !ural Institute " #Deemed $niversity%

(Re- !!redited with by " ## with $ % Grade&

Gandhigram-'() *+(, Dindigul Distri!t Tamilnadu, India

August &'((

Dr.B.)amilmani* +.A. +.B.A. +.Phil. Ph.D. -ead of the Department Department of #ooperation .a!ulty of Rural /o!ial /!ien!es Gandhigram Rural Institute Deemed University Gandhigram '() *+(

C,!)I-ICA),
This is to !ertify that the thesis entitled, 0A Study on the Impact of service .uality on /ehavioral intentions of /anking customers0 is the bonafide re!ord of the original resear!h wor1 !arried out by +r.S.Arun Kumar under my supervision and that it has not formed the basis for the award of any degree, diploma or fellowship2

Gandhigram Date3

(B.)A+I1+A2I&

D,C1A!A)I32
I, /2 run4umar, hereby de!lare that the thesis entitled, 0 Study on the Impact

of service .uality on /ehavioral intentions of /anking customers0 is the bonafide re!ord of the original resear!h wor1 !arried out by me under the supervision and guidan!e of Dr.B.)amilmani* Professor and 4ead* Department of Cooperation* andhigram !ural Institute5Deemed $niversity* Gandhigram and that it has not been submitted earlier elsewhere for the award of any degree, diploma or fellowship2

Gandhigram Date3

(S. A!$2K$+A!&

ACK2361,D ,+,2)S I am greatly indebted to my supervisor, Dr. B. )amilmani, 5rofessor and -ead, Department of #ooperation, Gandhigram Rural Institute (GRI& for his inspiring guidan!e throughout my study2 I am grateful to him for the interest he evin!ed in my resear!h wor1 and for his 1indness in sparing his pre!ious time for my resear!h dis!ussions2 I e6press my gratitude to the -aculties of Department of 7anagement and #ooperations and authorities of the Gandhigram Rural Institute (Deemed University& Gandhigram for having given me an opportunity to pursue the resear!h wor12 I e6tend my profound than1s to Shri S. !avindran /e!retary , Dr 27.8enkataramani , !ademi! Dire!tor, Shri S.8.Devanathan *Dire!tor of 78 wor12 I am highly than1ful to Dr.P.C.Sekar, 5rofessor, Department of 7anagement /tudies, 7242 University, 7adurai for his !ontributions as Do!toral #ommittee member2 I e6tend deep sense of gratitude to Dr.B.Su//ura9, 5rofessor, Department of #ooperation, GRI, for his !ontinuous en!ouragement during the !ourse of my study2 I e6tend my gratitude to Dr.P.Sivaprakasam* 5rofessor and -ead, Department of #ooperation, GRI, for his !onstant advi!e during the !ourse of my study2 I e6tend my profound than1s to Dr. .S.David Sam :eyakumar , ssistant 5rofessor , Department of 7anagement /tudies, 9amal 7ohammed #ollege, Tri!hy for having moulded and en!ouraged through his statisti!al 1nowledge and thoughts at various stages of my resear!h wor12 I am e6tremely than1ful to Dr. urumoorthy * 5rofessor, Department of :nglish, /aranathan !ollege of engineering , for having gone through the thesis and given suitable suggestions on the draft2 I am also than1ful to Dr. K. !avichandran* Dr.S.+anivel and other .a!ulty members of the Department of #ooperation; Dr. S.2ehru* .a!ulty member, Department of :!onomi!s, GRI, for their support in my resear!h wor12 opalakrishnan, 5rin!ipal and Dr

Department of /aranathan !ollege of engineering ,

Tri!hy for their !ontinued en!ouragement and immense support throughout my resear!h

7y sin!ere than1s to Dr S.8elakanni* +r 8.+urugan and +r Arun* resear!h fellow !ollegues of the Department of #ooperation, Gandhigram University, Dindugul, for their immense support and en!ouragement2 I e6tend my sin!ere gratitude to the +anagers and ,mployees of /tate 8an1 of India, I#I#I and -/8# ban1s #hennai for their valuable support to !omplete my resear!h wor12 I sin!erely than1 my beloved students of /aranathan !ollege , Department of 7anagement /tudies*+r Santhosh Kumar* +r +ahalingam* +r Sheik A/dullah* +r 8an9igovan* +r !a9aram* +s4ematharani* +s !enganayagi*+s 8idyavalarmathi*+r 2arenKumar*+s 1akshmipriya*+s Shasirekha* and +s A/iramiBaskar. I also e6tend my sin!ere than1s to the staff mem/ers of the following <ibraries namely Gandhigram Rural Institute, 8harathidasan University, ,/aranathan #ollege of :ngineering, Indian Institute of 7anagement ,8anglore, <u!1now, "oida for granting permission to have a!!ess to =ournals, boo1s and reports and :merald, :bs!o ele!troni! library2 lso I sin!erely than1 my beloved brother Ar. Annamalai, my friends +r Bala9i and +r 8enkatesh of Diar!hy for his !onstant support2 .inally, words are inadequate to re!ord my sin!ere than1s to my Parents* Brother* Sister and my lovable /on A.8edanthSrivatson and my wife A.!.:ayanthi Kumari whose affe!tionate interest in my progress has been a sour!e of inspiration all through my resear!h2

Gandhigram Date3

S.A!$2K$+A!

C32),2)S Acknowledgements List of Tables List of Charts Acronyms and Abbreviations

Chapters

Particulars

Page.2o

Chapter5I Introduction >2>2 8a!1ground of the study >2( Institutional !tors in .inan!ial Institution >2*2 The !hart below depi!ts the 8an1ing system for better understanding >2) Re!ent trends in 8an1ing /e!tor >2? 8an1ing @mbudsman /!heme of #ustomer /ervi!e >2' #ustomer /ervi!e Initiatives by the Reserve 8an1 of India >2A rea 5rofile of #hennai !ity >2B /tatement of 5roblem >2C 9ustifi!ation of the study >2>+ Resear!h @b=e!tives >2>> /!ope of the /tudy >2>( <imitations of the study >2>* #hapterisation >2>) #hapter bstra!t

Chapter5 II 1iterature revie; (2> Introdu!tion (2( <iterature pertaining to /ervi!e 7ar1eting (2* <iterature pertaining to /ervi!e Duality measurement and dimensions (2) <iterature pertaining to behavioral intentions dimensions2 (2? Identifi!ation of resear!h gap and !ontributions of the study (2' @perationalisation of servi!e quality !onstru!t (2A @perationalisation of behavioral intentions !onstru!t (2B .ramewor1 of analysis3 5roposed Resear!h 7odel Chapter5 III !esearch Design and +ethodology *2> Introdu!tion *2( Resear!h Design *2* Target 5opulation *2) /ampling *2? 5ilot study *2' /ele!tion of respondents *2A Resear!h instrument and their reliability and !ontent validity details2 *2B 7ethod of nalysis *2A .ramewor1 of nalysis3 5roposed Resear!h 7odel *2B -ypotheses Developed

Chapter5I8 6orking profile of select /anks )2>2 Introdu!tion )2(2Indian 8an1ing Industry )2*2-istory of ban1ing in India )2)2#ompany 5rofile-/tate 8an1 of India-/8I )2?2#ompany 5rofile-Industrial #redit and Investment #orporation of India-I#I#I )2'2#ompany 5rofile--ong1ong and /hanghai 8an1 #orporation-/8# Chapter5 I8 Analysis and Interpretations ?2> Demographi! and Rational 5rofile of 5ubli!, 5rivate and .oreign 8an1s ?2( nalysis of varian!es ?2* 7ultivariate nalysis of varian!es ?2) 7ultivariate nalysis of #ovariates ?2? 7ultiple Regression nalysis ?2' 8/D-8I /tru!tural :quation 7odel > for 5ubli!, 5rivate and .oreign 8an1s ?2A /tru!tural :quation 7odeling 08/DE8IF 7odel for 5ubli!, 5rivate and .oreign 8an1s ?2B -ypothesis Tested using /:7 in 5ubli!, 5rivate and .oreign 8an1s

Chapter58I -indings* Contri/ution and +anagerial Implications *Conclusion and !ecommendations for future research '2> /ummary of findings '2(2#ontributions and 7anagerial Impli!ations '2*2#on!lusion '2)2 Re!ommendations for future resear!h

Appendices I. Bibliography II. Structured uestionnaire

1IS) 3- -I $!,S

Chart 2o. >2> *2> *2( *2* *2) *2? *2' *2A )2> )2( )2* )2) '2> '2( '2* +ap

Particulars /tru!ture and fun!tions of Dairy #ooperatives /tru!ture of Dairy #ooperatives in Tamil "adu verage wor1ing !apital <oan issued by the Unions verage total pro!urement of mil1 /ale of mil1 produ!t (<iquid& @rganisational #hart 5rofit and loss position /ale of total mil1 produ!ts #hannels wise distribution of mil1 #hannels wise sale of mil1 produ!ts Total sales promotional e6penses 5referen!e of #olour by the respondents Reasons for pur!hase of /1immed 7il1 5owder /our!es of buying of ghee <o!ation of the /ample Unions

Page (> ?C A* AA B' C* CA CC >>' >(A >** >?( >AC >B* >C* )B

AC!327+S A2D ABB!,8IA)I32S 8I G@7 /D /8I I#I#I -/8# //I /7: "@H 7 "@H 7 "#@H /:7 G.I G.I R7/: #.I R.I ".I G@. I.I 5".I 5G.I 8/D 7@/ /DI /5// T7 :8 5@/ vg2 8ehavioral Intentions Gord of 7outh /ervi!e Duality /tate 8an1 of India Industrial #redit Investment #orporation of India -ong 4ong /hangai #orporation /mall /!ale Industries /mall and 7edium :nterprises nalysis of Harian!e 7ultivariate nalysis of Harian!e 7ultivariate nalysis of #ovariates /tru!tural :quation 7odeling d=usted Goodness of .it Inde6 Goodness of .it Inde6 Root 7ean /quare :rror of ppro6imation #omparative .it Inde6 Relative .it Inde6 "ormed .it Indi!es Goodness of .it In!remental .it Inde6 5arsimonious "ormed .it Inde6 5arsimonious Goodness of .it Inde6 8an1ing /ervi!e Duality nalysis of 7ovement of /tru!ture /ervi!e Duality Inde6 /tatisti!al 5a!1age for /o!ial /!ien!es utomati! Teller 7a!hine :le!troni! 8an1ing 5oint of /ale verage

<7R R7 -8 #D #8 /8 4H/ I#D5 - D5 7D 5I T7 -.7 .7 87 /75 I7. 8 # R 5 7: :R5 4#75U

<inear 7ultiple Regression Remote 8an1ing -ome 8an1ing #ash Dispenser #orporate 8an1ing "ilgiris #ooperative 7il1 5rodu!ers Union 4an!hipuram #ooperative 7il1 5rodu!ers Union 4ey Hillage /!heme Integrated #attle Development 5rogramme -ill rea Development 5rogramme 7anaging Dire!tor 5ro!urement and Input Tonned 7il1 -igh .at 7il1 .lavored 7il1 8utter 7il1 /1immed 7il1 5owder Infant 7il1 .ood @wn booth #ommission gent Retailers 5arlours 7ar1eting :ffi!ien!y :nterprise Resour!e 5lanning