SERVICE QUALITY AND CUSTOMER SATISFACTION OF PRIVATE BANKING INDUSTRY IN HUNAN PROVINCE, CHINA

Abstract

In the past few years, financial institutions have faced intense competition and increasing customer expectations in China. Customer satisfaction plays a decisive role in organization and banking. Customer satisfaction have a strong relationship with to the service quality of the bank. Therefore, when the bank improves the service quality, the probability of customer satisfaction will
increase. However, this area still very limited in Hunan bank industry. Therefore, this study aims to close the gap between the various determinates of service quality, and its influences on customer satisfaction by providing a holistic look at the subject. Based on Hunan private banking industry, SERVQUAL model is used to evaluate service quality and establish the correlation between service quality and customer satisfaction. Besides, quantitative base descriptive correlation design was applied as the research method and questionnaires were distributed among bank customers under the instruction of science research requirements. A serial of statistical tests were performed to ensure reliability, validity and accuracy of this research. The result shows that five dimensionsIof service quality (tangibility, reliability, responsiveness, assurance and empathy) have significant influence on customer satisfaction of private banking industry in Hunan, China. In addition, assurance has the mostIsignificant influence on customer satisfaction.