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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
Table 1 indicates a weak positive relationship between service quality and bank
performance. The results are in line with the hypothesis as there is a positive relationship
between service quality and performance of conventional banks working in Pakistan.
However, the magnitude of the relationship is assessed by regression model. The results
of regression are presented in table 2.
{Insert Table 2}
Table 2 depicts the output of service quality and bank performance model. The
coefficient of determination is 0.001, p-value (0.776) and F-statistics (0.229). It reflects
variation (influence) of service quality on the performance of conventional banks in
Pakistan. The estimated regression model is Performance of conventional bank = 3.760 +
0.028 service quality. It indicates that although service quality has a positive influence on
performance of conventional band but the magnitude of influence is not strong enough. It
could be reported that service quality has no significant (p=0.776) impact on performance
of conventional banks in Pakistan.
Hoffman & Bateson (2002) reported that perception of service quality is very important
for researchers and managers to compete in the market. Customers‘ Perception of service
quality strongly depends on customer‘s values and beliefs that may vary from one culture
to another (Furer et al., 2002). The study revealed that service quality is positively related
to bank performance. It is found that there is weak positive relationship between service
quality and performance of conventional banks. The results are consistent with the
literature as positive relationship between service quality and organizational performance
parameters is reported (Chapman et al., 1997). However, a direct and positive
relationship is found between service quality and performance (Zahorik & Rust, 1992;
Heskett et al., 1994; Rust et al., 1995). Similarly, it is found that there is a significant
relationship between service quality and financial performance of banks (Duncan &
Elliot, 2002). In another study, findings showed that service quality has a positive impact
on the bank performance (Akroush, 2008).
5. Conclusion
This study examines the relationship between service quality and performance of
conventional banks operating in Pakistan. The researcher collected data from 864
respondents of 72 branches of selected banks. The data were collected by a structured
questionnaire developed in the light of existing literature. The responses were analyzed
through SPSS 15.0 Version. The relationship between service quality and performance of
conventional banks was assessed by Pearson‘s correlation and regression analysis. The
results indicate that there is a weak positive relationship between service quality and
performance of conventional banks. Bankers should improve their services by blending
of traditional facilities and modern technology to meet customers‘ expectation for better
performance in future. Similarly, bank managers should take quality initiatives to
improve their products by considering demographic characteristics of the customers to
retain them as satisfied customers for better performance. It is also suggested that bankers
should introduce new, diversified and marketable products to meet requirements of
different segments.
COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 153
JANUARY 2011
VOL 2, NO 9