Customer service quality in the retail banking: the case of Bosnia and Herzegovina

The present study aims to assess the dimensionality of SERVQUAL scale in retail banking in Bosnia and Herzegovina, to investigate relationship between identified service quality dimensions and customer satisfaction, and to estimate the perceived service quality and customer satisfaction in this setting. Data were collected from customers of three leading retail banks in Bosnia and Herzegovina. The study was conducted in city of Sarajevo, during the period of three weeks, and the sampling method was the non-probability convenience sampling. The questionnaire used in this study is comprised of three parts: general demographics questions, perceived bank service quality and customer satisfaction. Perceived bank service quality was measured using 22 perception-only items to measure five dimensions of service quality based on the SERVQUAL instrument. Overall customer satisfaction was measured using a three items that identified how satisfied a customer felt with regard to the participating banking service provider. A total of 500 respondents were attracted. The data was analyzed with the help of factor analysis, regression analysis, and descriptive analysis. Factor analysis was applied to assess dimensionality of SERVQUAL's dimensions; regression analysis was used to estimate the impact of identified service quality dimensions on overall customer satisfaction; and descriptive analysis was employed to estimate perceived service quality and customer satisfaction. The results of factor analysis revealed a four-dimensional structure of SERVQUAL scale: responsiveness/assurance, empathy, reliability, and tangibles. The strongest predictor for customer satisfaction is responsiveness/assurance, followed by empathy, and reliability. Nevertheless, tangibles was found not significant related with customer satisfaction.