Impact of Service Quality on Customer Loyalty, Commitment and Trust in the Indian Banking Sector

In the present Indian banking scenario, service quality is an indispensable competitive strategy to retain customer base. Banks are trying to win customer satisfaction and loyalty by providing better quality services. This study examines the relationship of service quality with customer loyalty, commitment and trust from the customer's perspective in the Indian banking sector. Data was collected from 300 customers of public and private sector banks using structured interview schedules. The results show that dimensions of service quality such as assurance-empathy, reliability and tangibles significantly predict customer trust and commitment. The results also indicate that service quality is positively associated with customer loyalty. Private bank customers are more committed and loyal as they receive better quality of service. The study implies that public sector banks should also come forward and try their best to provide better quality service to win back their customers' loyalty and commitment