Customer satisfaction has become very important for all the banks in this competitive world. Banks nowadays attach the important of customer satisfaction because customer satisfaction has become the competitive power and the survival of the bank. Customers will satisfy with the products or services if the performance perceptions of the products and services had exceed the expectation of the customers before purchasing. Besides, if the services provided by the bank can reach the customer satisfaction that will result good experience for all the customers. All the banks are provided the same products, so the quality of service has become the only tactic for every bank to differentiate themselves in this competitive market. The higher the service quality provided by the bank, the higher the satisfaction of the customers is. Therefore, the bank which provided high service quality to the customers will have the competitive advantage in this market. (Lone, Aldawood, & Bhat, 2017)
In several studies, researcher has performs and determines the factors of service quality. Studies had found that customer satisfaction is cause by the service quality. Customers will repurchase from the services provider if they can fulfill the customer satisfaction. Changes of the service performance will generate result in the satisfaction of the customers. Service quality and the customer satisfaction can help the bankers to look into the service development. Also, it can develop competitive advantage in the banking industry. Several studies defined that a business’s success or failure in meeting expectations are based on the customer satisfaction. SERVQUAL model will be used in this study in order to measure the customer satisfaction in the banking industry. There are five dimensions of SERVQUAL develop for the service sector are tangibility, reliability, responsiveness, empathy and security (Al-Azzam, 2015)
In this competitive environment in banking industry, more researchers are concern toward the service quality. Kant and Jaiswal (2017) study the attribute of perceived service quality and inquire their impact on customer satisfaction in the Indian banking. Structural equation modeling (SEM) is used to measure the impact of perceived service quality on customer satisfaction. Tangibility, reliability, assurance, responsiveness, empathy, and image are used to determine the perceived service quality. The present study shows that’Responsiveness’ is the most important predictor to measure customer satisfaction. Beside, ‘Image’ has positive relationship with customer satisfaction but it is the least impact in predict the customer satisfaction. Furthermore, the ‘Reliability’ is insignificantly relationship to the customer satisfaction.