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Cited by 81Customer Service Quality and LoyaltyBanking Sector Performance and ManagementConsumer Behavior and Marketing Influence

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Perceived overall service quality and customer satisfaction: A comparative analysis between local and foreign banks in Malaysia

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Moghavvemi, Sedigheh, Lee, Su Teng, Lee, Siew Peng·2018·International Journal of Bank Marketing
DOI 10.1108/ijbm-06-2017-0114
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Abstract

Purpose: Foreign and local banks in Malaysia are competing in terms of skilled staff, innovative products and services, rendering quality services and customer satisfaction. The purpose of this paper is to examine the overall service quality and customer satisfaction of both foreign and local banks. Design/methodology/approach: The data used to test the hypothesis were collected from 748 foreign and local bank customers in Malaysia. The research model was analysed using a structural equation modelling technique. Findings: Results show that knowledge and staff competencies, as well as convenience of the bank is more significant for local bank customers while bank image and internet banking are important components for foreign bank customers. The results also reveal that foreign bank customers have higher satisfaction as compared to local bank customers. Research limitations/implications: No analysis is undertaken of any difference in the service quality dimensions between banks of different size. Further research on banking services could usefully test services quality dimensions across banks of different sizes. Practical implications: The findings serve as a valuable reference for local banks understand service quality challenges they may face from foreign banks in this competitive industry. Findings suggest that, to provide high-quality services, financial institutions need to heighten customer satisfaction differentiation strategies. Originality/value: The outcomes of this study enhance the knowledge on the performance of both local and foreign banks in Malaysia as well as customer satisfaction, which are invaluable to all bank managers and industry players in improving their services.

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Metadata

Authors
Moghavvemi, S., Lee, S. T., & Lee, S. P.
Affiliations
University of Malaya (MY)
ORCID
Venue
International Journal of Bank Marketing
Publisher
Emerald
Published
2018-06-18
Volume
36
Issue
5
Pages
908-930
ISSN
0265-2323 (ISSN-L)
DOI
10.1108/ijbm-06-2017-0114
OpenAlex
W2936227826
Cited by
81
References
2
Citations by year
2026: 2 · 2025: 5 · 2024: 15 · 2023: 17 · 2022: 7 · 2021: 18 · 2020: 11 · 2019: 4 · 2018: 2
FWCI
13.38
Type
journal article
Language
en
Open access
Licence
www.emerald.com/insight/site-policies (tdm)
Locations
  • International Journal of Bank Marketing (publishedVersion)
  • The University of Malaya Research Repository (University of Malaya) (submittedVersion)
  • SSRN Electronic Journal (submittedVersion)
Topics
  • Social Sciences › Business, Management and Accounting › Marketing › Customer Service Quality and Loyalty
  • Social Sciences › Business, Management and Accounting › Accounting › Banking Sector Performance and Management
  • Social Sciences › Business, Management and Accounting › Marketing › Consumer Behavior and Marketing Influence
Keywords
perceived service quality, customer satisfaction, banking services, foreign banks, local banks, bank customers, bank image, internet banking, employee competence, convenience, bank competition, Malaysia

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