Global Journal of Management and Business Research, E: Marketing, Volume 23 Issue 2

able to build and maintain long lasting relationships with customers through satisfying various customers needs and demands. Kumar et al (2009) stated that high quality of service will result in high customer satisfaction and increases customer loyalty. Ndubisi & Pfeifer (2005) pointed out that the cost of serving a loyal customer is five or six times less than a new customer. Loyal customers are more likely to give information to the service provider (because they trust the service provider and expect from the service provider to use the information with discretion and to their benefits). a) Objectives of the Study The objectives of the study are: • To measure the influence of service quality dimensions in commercial banks of Bangladesh. • To identify the interrelationships between existing and expected service quality of commercial banks in Bangladesh. • To provide suitable policy recommendations to close the gaps between existing and expected service quality of commercial banks in Bangladesh. II. R eview of L iterature and H ypotheses D evelopment In Bangladesh, customers in the banking sector are in a strong bargaining position due to the significant growth of banks. Therefore, banks have to provide service carefully because of the availability of banks. Service quality has been a vital issue of discussion and research over the past three decades. Research on service quality has well established that the customer perception of the quality of a service depends on customer’s pre-service expectations. a) Services of Commercial Banks-basic and Advanced The service sector is expanding at an increasing rate and is becoming intensely competitive. Service can be defined as any activity or benefit that one party offers to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product (Akhter, 2012). In the changing banking scenario of 21st century, banks had to have a vital identity to provide excellent services. Islam & Niaz (2014) opined that banks nowadays have to be of world-class standard, committed to excellence in customer’s satisfaction and to play a major role in the growing and diversifying financial sector. There has been a remarkable change in the way of banking in the last few years. In Bangladesh, commercial banks also provide global quality services to their clients. According to Uddin & Akhter (2012) bank provide services into two categories as basic and advanced services. Basic services include opening bank account, safety and security of deposits, locker service and loans and advances. They also offer corporate banking, loan syndication, real-time online banking for corporate clients as basic service for the commercial banks of Bangladesh. Whereas, the commercial banks of Bangladesh provide mobile banking, SME banking, internet banking, SMS banking, credit card, ATM services, foreign currency account, overtime banking facility, specialized help desk, customer complain box and professionalism falls under advanced services. In Bangladesh, customers in the banking sector are in a strong bargaining position due to the significant growth of banks. Therefore, banks have to design and provide service carefully because of the availability of banks. Zeithmal (2000) noted that the key strategy for the success and survival of any business institution is the deliverance of quality services to customers. Accordingly, Karim & Chowdhury (2014) deemed that excellent service quality is vital to business success and survival. Hence, delivering quality service to clients is a necessity for success and survival in today’s competitive world (Kheng et al. , 2010). b) Service Quality Service quality has received a great deal of attention from both academicians and practitioners (Negi, 2009) and service marketing literature defined service quality as the overall assessment of a service by the customer (Eshghi et al ., 2007). Akroush (2008) pointed out that service quality is the result of the comparison made by customers about what they feel service firms should offer, and perceptions of the performance of firms providing the services. Service quality has a strong correlation with customer satis- faction, financial performance, manufacturing costs, customer retention, customer loyalty, and the success of marketing strategy (Wong et al., 2008). Parasuraman et al (1985) undertook a qualitative research to investigate the concept of service quality. They arranged an in- depth interview with the executives and focus group interviews with customers to develop a model of service quality as SERVQUAL which can help the service and retailing organizations in assessing the expectations of customers and service quality perceptions. Parasura- man identified ten key determinants of service quality. They are: reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding, tangibles. Though there was complaint through another analysts to help SERVQUAL model (Johnston, 1997), but SERVQUAL is the tool most used to its confirmatory issue examines in most cases. So, up to date, SERVQUAL model shown to be any parsimonious style which has been employed in numerous service organizations and also industries to help calculate service quality as well as banking institutions (Islam, 2015). c) Service Quality in Banking Sector Service quality is a focused evaluation that reflects the customer’s perception of reliability, assurance, responsiveness, empathy and tangibility, Influence of Service Quality Dimensions in Commercial Banks of Bangladesh: Existing vs Expected 22 Global Journal of Management and Business Research Volume XXIII Issue II Version I Year 2023 ( )E © 2023 Global Journals