Advances in Consumer Research
Issue 11 : 37-47
Original Article
Banking Service Experience and Customer Satisfaction: An Empirical Study of Rural Customers in Rajasthan
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1
Research Scholar Poornima University, Jaipur
2
Professor Poornima University, Jaipur
Abstract

This paper investigates the effect of banking services experience (on the five SERVQUAL dimensions of reliability, responsiveness, assurance, empathy and tangibles) on customer satisfaction of the rural banking scenario in Rajasthan, India. While institutions in rural India are gradually growing as part of the country's financial inclusion initiatives, there has been relatively less research on the quality of service experiences provided to rural customers by formal banking institutions compared to those in urban and digital banking. A structured questionnaire was developed using established questionnaires, SERVQUAL and customer satisfaction, and data was collected from 384 rural banking customers in Rajasthan. The internal consistency of scales was verified for all the constructs using Cronbach's alpha (all above 0.85), and the five hypothesised relationships were tested using Pearson's correlation. As regards customer satisfaction, all five service-experience dimensions were highly significantly and positively related, with reliability (r = .515) and responsiveness (r = .503) being the strongest correlates of customer satisfaction, followed by assurance (r = .432), tangibles (r = .409) and empathy (r = .353). The findings contribute a new extension of the SERVQUAL–satisfaction relationship in an under-studied rural and agrarian banking context and provide further dimension-specific suggestions for banks and financial-inclusion planners to consider when aiming to increase customer satisfaction in rural banking

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