Measuring Service Quality Using Servqual

Measuring Service Quality Using Servqual

Executive Summary

Service quality is a good measure for knowing about the performance of a bank.. Nowadays Banking companies are in a competitive market. They are choosing the differentiation strategy to be a market leader because cost leadership is not a good tool for competition due to oligopolistic market. By analyzing bank information system, this paper investigates the service quality perceptions of bank account holders. This paper also examine the relationship between relative importance allocated by respondents to each of the five SERVQUAL dimensions as measured by the points allocated to that dimensions the ratings provided for the individual items of the dimension.  In the SERVQUAL questionnaire there are 22 questions from five different dimensions. These are Tangibles, Reliability, Responsiveness, Assurance and Empathy. These questions measure the gap between employees’ expectations and perceptions .After conducting the survey I have found some values. I have made an analysis with these values. I have calculated the weighted average scores of these values from the perspective of these branches. Then it has been seen that the gap between the employees’ expectations and perceptions about the services is lower for the customers. In my report I got reliability, responsibility and assurance is very much valuable to customers compare to others.

Company Profile


  Dutch-Bangla Bank Limited (the Bank) is a scheduled commercial bank. The Bank was established under the Bank Companies Act 1991 and incorporated as a public limited company under the Companies Act 1994 in Bangladesh with the primary objective to carry on all kinds of banking business in Bangladesh. The Bank is listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited.

 DBBL- a Bangladesh European private joint venture scheduled commercial bank commenced formal operation from June 3, 1996. The head office of the Bank is located at Senakalyan Bhaban (4th floor), 195, Motijheel C/A, Dhaka, Bangladesh. The Bank commenced its banking business with one branch on 4 July 1996.

Profile of the bank

Dutch-Bangla Bank limited is the first Bangladesh-European joint venture commercial bank incorporated in 1995. With the permission of Bangladesh bank limited, commenced formal commercial banking operation from the 3rd June 1996.

 The Netherlands Development Finance Company (FMO) of the Netherlands is the international sponsor of the bank. The FMO is the Dutch development bank of the Netherlands specialized in the financing of private enterprises in Asia, Africa, Latin America and Eastern Europe.

 Under a technical assistance grant from the FMO, ABN-AMRO bank of the Netherlands provided technical assistance to Dutch-Bangla Bank Limited during the first year of operation of the bank (1996-97)

 Dutch-Bangla Bank Limited (DBBL) primarily is a public company limited by shares, incorporated in Bangladesh under company act 1994. It is also guided by the bank company act 1991 (and its subsequent amendment) and Bangladesh Bank ordinance 1972, so as to enable the company for doing banking business.

 History of DBBL

Dutch-Bangla Bank Limited is a brainchild of its chairman Mr. Mohammad Shabuddin Ahmed. He dreamed it long back, when he, had been trying to arrange fund for Tammijuddin Textile Mills Ltd. (TTM) and Kader Synthetic Fibers Limited (KSFL) through the traditional banking system. TTML is a public ltd. company. Its main business is yarn manufacturing with conventional spinning mills of 44000-spindles capacities. KSFL is also a public company limited by shares with an investment of about Tk. 2.0 billion and, now engaged in manufacturing polyester draw texturized and twisted yam. Three international financing agencies like ADB. FMO, AFIC AND two local development-Financing institutions, BSB & SABIONCO have their investment in KSFL, both in terms of loan and equity. The projects were implemented, but had to face time and cost over run due mainly to the procedural delay in getting access to credit. Among others this might be a good reason for thinking about a bank where in the entrepreneurs will have easy access to modem banking services.

 Mr. Ahmed has close relationship with FMO, the Netherlands development finance co. limited since 1983. Netherlands Financiering-Maatschappij voor Ontwikkelingslanden n.v. (FMO), a well reputed Holland based international financing institution has been extending their services, especially in development of SSE, SME and many other socio-economic activities mainly in the developing countries. Mr. Ahrried however: opened dialogue with FMO regarding the banking project some times in “1989:1 So-fat my knowledge goes, the first evidence in black and white was the letter dated January 07,1990 written to one Mr. D.C. VenderBiji, the then manager south west-Asia department, of FMO. In a letter dated March 22, 1990 Mr. Groosman, another brilliant offer of FMO visited Bangladesh and wrote to Mr. F.J. Smit, the then Deputy Managing Director, FMO advocating Mr. Ahmed’s proposal. In this way, correspondence in writing, discussion over telephone had been going on. Mission came to study the market, to prep are feasibility report and memorandum of understanding. The proposed name of the bank at first was ‘Development Finance and Commerce Bank Limited (DFCBL). At one stage opinion passed by the FMO mission that Bangladesh is not yet ready for such investment’. But Mr. Ahmed did not leave the idea; rather he started exploring the possibility more vigorously.

 At last Mr. M.E.H.J Groot of small-scale department of FMO in his letter, dated December 07, 1992 responded positively indicating that ‘small enterprise department of FMO is in a position of finance intermediary Bank’ and accordingly asked for a ‘Business plan’. The interim reply we are working on it and the document is coming in due course, we sent of FMO on 22-12-92.

 The vigorous exercise of market and collection of primary data in crude from through ‘questionnaires’ started. The proposed name at that stage changed to ‘long term credit’ and commerce Bank lid. Thereafter lots of reports were prepared, tons of papers were utilized and not only man-days but also hundred of man-nights were spent before materializing the dream through convincing FMO, taking approval of GOB, Bangladesh Bank, MOF, RJC, SEC, BOT etc. The result is today’s DBBL, the First European joint venture Bank in Bangladesh.

 Any way, let us now come to the theoretical aspects of the topic that usually requires following for formation for a company, in general and banking company, in particular.

 Banking company is also a company like others and required to be formed by way of incorporating it with the register of joint companies and firms (RJSC &F) as per companies act. 1994. But unlike others, it is also guided by the Bank company act 1991 and Bangladesh Bank ordinances.

 The major steps to follow may been seen on the screen, During the formation stage several including preparation of per-investment feasibility study, strategic plan, business plan, which inter-alias covers setting goals and objectives, formulating strategic plan, forecasting financial profitability, analyzing SWOT etc. The investors required to be convinced and satisfied with the goals, objectives, profitability and risk involvement before making investment.


 Dutch-Bangla Bank engineers enterprise and creativity in business and industry with a commitment to social responsibility. “Profits alone” do not hold a central focus in the Bank’s operation; because “man does not live by bread and butter alone”.


Dutch-Bangla Bank dreams of better Bangladesh, where arts and letters, sports and athletics, music and entertainment, science and education, health and hygiene, clean and pollution free environment and above all a society based on morality and ethics make all our lives worth living. DBBL’s essence and ethos rest on a cosmos of creativity and the marvel-magic of a charmed life that abounds with spirit of life and adventures that contributes towards human development.

 Core Objectives    

Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer needs and satisfaction and to become their first choice in banking. Taking cue from its pool esteemed clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that upholds and epitomizes its vaunted marques “Your Trusted Partner”.

 Board of Directors

1. Mr. Abul Hasnat Md. Rashidul Islam, Chairman

  Mr. Islam is the Chairman of the Bank. He is an M.Com and has wide experiences in International Business (Import & Export) of various commodities since 1973.

2. Mr. Zaheed Hossain Khan, Director

  Mr. Khan did B.Sc Engineering (Chemical) from Bangladesh University of Engineering and Technology (BUET). He is an Ex-Banker and also held a higher management position for more than 10 years in a joint venture Cotton Spinning & Synthetic filament yarn manufacturing Industry.

 3. Mr. Bernhard Frey, Director

  Mr. Frey, who is a Swiss national, is the Managing Director of Etacol Hong Kong Limited, a reputed business and trading firm of Hong Kong. He has been nominated as a Director of DBBL by Etacol Hong Kong Limited, one of the foreign Shareholders of the Company. Mr. Frey is a Chartered Accountant and well experienced in trading, manufacturing and banking administration.

4. Mr. Shahabuddin Ahmed, Director

 Mr. Ahmed has been elected as Director from the General Public Shareholders. He is a renowned and well-experienced yarn merchant. He is the proprietor of M/S. Haji Ramijuddin Traders, Madhabdi, and Narsingdi.

5. Mr. Md. Shahidur Rahman, Director

 Mr. Rahman is an M.S.S in Public Administration. He is a renowned garments industrialist and has wide ranging experiences in this line. He is the Managing Director of Alike Design Ltd. and Aright (BD) Limited; both are export oriented garments manufacturing industries.

 6. Mr. Md. Yeasin Ali, Managing Director

  Mr. Ali is the Managing Director and Ex-Officio Director of DBBL. During his long banking career, he held the position of Managing Director of Rajshahi Krishi Unnayan Bank, Rupali Bank Ltd., Bangladesh Shilpa Bank and important position in Bangladesh Krishi Bank and Agrani Bank.

Organizational Structure of Dutch Bangla Bank Limited

Trainee Officer (TO)

Senior Executive Vice President (SEVP)

Executive Vice President (EVP)

Senior Vice President (SVP)

Vice President (VP)

Senior Assistant Vice President (SAVP)

Assistant Vice President (AVP)

Senior Principal Officer (SPO)

Principal Officer (PO)

Senior Officer (SO)


Assistant Officer (AO)

Managing Director (MD)

Deputy Managing Director (DMD)

Chart 1: Organizational Structure

Products and Services

         Services and Products:

          Products and Services offered by DBBL:


  • Retail Banking
  • Remittanceand collection
  • Importandexport handlingand financing
  • Corporate Banking
  • Project Finance
  • Investment Banking
  • Consumer credit
  • Agriculture Loan
  • Real time any branch banking
  • 24 Hours Banking through ATM
    • DBBL-NEXUS Debit card
    • DBBL-Maestro/Cirrus Debit card
    • DBBL Credit card
  • Internet Banking
  • SMS Banking
  • On line Banking through all Branches


Banking Products

      Various Deposits:

  • Savings Deposit Account
  • Current Deposit Account
  • Short Term Deposit Account
  • Resident Foreign Currency Deposit
  • Foreign Currency Deposit
  • Convertible Taka Account
  • Non-Convertible Taka Account
  • Exporter’s FC Deposit(FBPAR)
  • Current Deposit Account-Bank
  • Short Term Deposit Account-Bank

Loan & Advances:

  • Lease Finance
  • Other Term Loan
  • FMO Local currency Loan for SME
  • FMO Foreign currency Loan
  • Cash Credit (Hypothecation)
  • Small Shop Financing Scheme


ATM Services

We can find DBBL ATMs beside our home, in our office premise, nearby market, university, college & school premises, Airport, Railway stations etc., throughout the country.

Using any of the DBBL ATM pools any where in the country, you can perform the following:

  • Account balance enquiry
  • Cash withdrawal – 24 hours a day, 7 days a week, 365 days a year
  • Cash deposit to a certain number of ATMs any time
  • Mini statement printing
  • PIN (Personal Identification Number) change

All the ATMs can accept DBBL-NEXUS ATM / POS card, DBBL-

Maestro/Cirrus Debit card and DBBL Credit card.





ATMNEXUS  Debit cardAll a/c Holders


ATMMaestro  Debit cardAll a/c Holders


ATMMaestro  Debit cardAll a/c Holders


ATMDBBL Credit (OD) cardLimited


Internet Banking All a/c Holders


SMS Banking All a/c Holders






 Table3.1.3: ATMs of DBBL

Account Service

DBBL provides all the accounts services as prescribed by the guidelines of Central Bank (Bangladesh Bank). We offer competitive interest rate and provide premium quality services for the accounts. Account services are:

  1. Foreign Currency Account
  2. Non-Resident Foreign Currency Deposit Account (NFCD)
  3. Resident Foreign Currency Deposit Account (RFCD)
  4. Convertible and Non-Convertible Taka Account

DBBL Internet Banking

DBBL Internet banking enables customer to access his/her personal or business accounts anytime anywhere from home, office or when traveling. Internet Banking gives customer the freedom to choose his/her own banking hours. It can save time, money and effort. It’s fast, easy, secure and best of all.

Using any of the DBBL ATM booths any where in the country, its customers can perform the following:

  • Securities with DBBL Internet Banking
  • A/C Opening & Accessing Internet Banking
  • Internet Banking Features
  • Terms & Conditions of Internet Banking



Ank is a hypercompetitive market in this era of business due to its characteristics. Service is an intangible, heterogeneous in nature. Measuring service is very much difficult for anybody because it’s totally the state of mind of an individual about a topic resulting different outcome among individual. For this reason, we have seen something is very much worthier to a man is not likely important to others. This random perspective of anyone to his expectation creates a gap indicating the quality of service performed by an institution. By measuring SERVQUAL  taking five dimensions into account, I have calculated the service quality of Dutch Bangla Bank Ltd. By analyzing this method we can understand whether a customer is satisfied, delighted or dissatisfied. A bank can change its service by measuring the SERVQUAL which is the response of customers and employees if it needs to be changed or improved quality of performing service. To be a market leader all service institutions should pay a cautious heed to its customer and employees response as early as possible before its competitors do. While there have been efforts to study service quality, there is no general measurement on the measurement of the concept. The majority of the work that has been done has attempted to use the SERVQUAL methodology in an effort to measure the service quality of the banks.


The objectives of the report is-

      To measure the service quality provided by several branches.

      To understand the discrepancy between the employee’s expectations and perceptions about the services provided by their banks.

      Searching the causes why the gap is created and

      Analysis of those findings.


The SERVQUAL questionnaire is the blueprint for the collection, measurement and analysis of data. My report is descriptive in nature as it involves studying the perceptions and expectations of customers in order to measure the service quality provided by the service provider. The study thus finds out the major areas of improvement so that company services to the customers can be improved.

Method of Data Collection

The primary data was collected with the help of a structured, non disguised questionnaire.

Secondary data was collected from journals, newspapers, books & internet with a view to supplement the primary data. The study of secondary sources made the structuring of questionnaire easy. The collected data was analyzed by using SERVQUAL scale.

To measure the service quality I have used here SERVQUAL model. The measurement of quality service using this SERVQUAL method contains questions about some bank’s service policies from five specific aspects. For each of the aspects I have graded twice: first on the basis of employee’s expectations from an excellent bank and then from his/her perception of his/her bank.

Target population

 The target population is the collection of elements or objects that possess the information sought by the researcher and about which inferences are be made. The target population must be defined precisely. Imprecise definition of the target population will result in research that is ineffective at best and misleading at worst. So in this research it is necessary that the target population should be defined clearly so that the required information can be get from it.

Defining the target population involves translating the problem definition in to a precise statement of who should and who should not be defined in terms of elements, sampling unit, extent, and time. An element is the object about which or from which the information is needed. A sampling unit is an element, or a unit containing the element, that is available for selection at some stage of the sampling process. Extent refers to the geographical boundaries, and the time factor is the time period under consideration.

The target population in this following research is defined as follows:

Elements – male or female respondent client or customer of the bank

Sampling units– client of bank

Extent– Dhanmondi,  Board Bazar, Shantinagar ,Motijeel,Dhaka

Time -2011


Size:  Sample size refers to the number of elements to be included in the study. Determining the sample size is complex and involves several qualitative and quantitative considerations.

Considering factor analysis application the sample size should be at least four or five times as many as there are variables. In this research the variables are 22 and therefore the sample size is 110. It means 110 respondents were interviewed in the survey.

Rationale of the Study

The rationale of this study is that, we don’t know the expectations and perceptions of an employee about the services provided by his or her bank. As a result we can not assess the actual performance of a bank. So that I have measured the quality of services by using SERVQUAL model to assess the actual performance of the bank in the same vein to reach a recommendation for ensuring the quality service by service providers.


In the time of questions get answered I have face a lot of limitations from the respondents due to not having the knowledge about the uses of data. Moreover, some are truly illiterate about the questionnaire. Accordingly, the respondents are partially biased to give the exact answer whether having more than his or her expectations. Moreover the respondents are unlikely to give their full attention in filling up the questionnaire.


Literature Review

Service marketing was the precursor leading to the study of service quality. Pioneer research in this area (George and Barksdale, 1974) identified several distinct differences between the marketing of “service” firms and “manufacturing” firms. It was Shostack’s (1977) research that brought to the fore the distinct nature of services marketing. She noted that services were intangible, rendered, experienced, and unable to be stored. Consequently, her conclusion was that services should be marketed differently from tangible products. It was her early work that gave equal weight to the components of “service” as it did to “product.” Her research concluded that service marketing strategies should deal with specific issues related to distinct elements within each product. She also concluded that changes in any single element could impact other elements within the function, and as such, services marketing should consider products more holistically, meaning to look at each item on its merits alone.

 Enis and Roering (1984) were unconvinced that there is a distinction between service marketing and manufacturing marketing. It was their conclusion that the strategies used for all product is strictly a “bundle of benefits” regardless of whether they are tangible or intangible.

Relationship between Customer Satisfactions and Service Quality in Service Product.

 The principal study by Zenithal, et al (1985) fostered a direct relationship between customer satisfaction and service quality and broadened the unique characteristics of service products. They explained that service in its production sense and consumption occurs simultaneously. Production and consumption of service products cannot exist in isolation, requiring them to be simultaneously produced and consumed. Additionally, they suggest that service production and consumption is by its own nature heterogeneous. Their research was significant in that it highlighted the differences between manufactured products and service products, and it introduced the interrelationships between customer service and customer satisfaction through the measurement of gaps.

 Customer satisfaction

A key aspect in customer satisfaction is the way a customer can attain satisfaction or dissatisfaction with a company’s service. If a company wants to satisfy its customers the first question it needs to answer is what it that satisfies customers is and, equally important, what it is that makes customers dissatisfied with the company and its products and services. Satisfying customers depends on the balance between customers’ expectations and customers’ experiences with the products and services (Zeithaml et al., 1990). When a company is able to lift a customer’s experience to a level that exceeds that customer’s expectations, then that customer will be satisfied. Because customers have ever increasing expectations it is necessary for companies continuously to improve their quality and hence customers’ experiences with the company. The issue is what should be improved to keep the customers satisfied. What customers experience is not just one simple aspect of a company, but a whole range of aspects. Some of these aspects are concerned with the way customers experience the company itself, some are concerned with the way customers experience the physical product and, finally, some are concerned with the way customers experience the service the company offers.

Comparing customers’ expectations and their perceptions of actual performance can be done by making use of the SERVQUAL scale of Berry, Parasuraman and Zeithaml (Zeithaml et al., 1990).

Chronological History of SERVQUAL

1976Anderson, et al Recognized importance of selection as priority for obtaining and retaining customers.
1982Churchill and Suprenant Service satisfaction is similar to attitude.

Gronroos Significance of processes and outcomes in defining service quality. Alluded to satisfaction as being similar to attitude.

1983Lewis and Booms Also noted significance of processes and

Outcomes in defining service quality. Difference in service quality and attitude is seen as general, comprehensive appraisal of some specific product or service.

1985Holbrook and Coftan Defined perceived quality as a global value judgment.

Maynes viewed service quality as the extent to which a product offers the characteristics that individual desires.

Parasuraman, et al Established ten service quality determinates known as SERVQUAL (tangibles, reliability, responsiveness, communication, credibility, security, competence, courtesy, understanding\ knowing the customer, and access.)


1988 Parasuraman, et al After substantial factor analysis and testing, reduced the 10 service quality determinates in SERVQUAL to 5 (tangibles, responsiveness, reliability, assurance, and empathy.

Zeithaml, et al Noted that firms not only have a difficult time delivering a consistent level of quality service, but had difficulty understanding what service quality really entails. Perceived service quality as an attitude. Found through focus groups that good service quality as meeting customer expectations.

1989Babakus and Mangold Developed serious reservations about SERVQUAL’s scales: reliability and discriminant validity.
1990Bitner Noted research yielded service quality as being similar to attitude.
1992Cronin and Taylor Found that perceptions of service quality more closely approach customer evaluations of services provided.

Howcroft Noted customer preferences of service quality based upon comparison between expectations and actual service


1993Teas Found interpretation of SERVQUAL expectations was flawed.

Brown, et al Questioned whether five key dimensions capture all possible determinants of service quality.

1994Parasuraman, et al Disagreed with Brown, et al. Research supports disconfirmation as valid since it allows service providers to establish gaps in provided service.

Cronin, Jr. and Taylor Found fault with SERVQUAL and developed SERVPERF based upon consumer satisfaction exerts stronger influence on purchase intentions that does service quality.

1996Taylor and Baker Dabholkar, et al

Spreng and Mackoy All used multi-item measures to ascertain overall service quality with factors as antecedents.

Buttle Questioned face validity and construct validity of SERVQUAL.

2000Dabholkar, et al Found perceptions and measured disconfirmation are more advantageous than computed disconfirmation.

SERVQUAL to examine specific service context on a 6-dimension scale called BSQ. Researchers admitted BSQ had limitations.

Beckett, et al Developed consumer behavior matrix to determine impact of electronic-based delivery systems on service/service quality.

Oppewal and Vriens Used integrated conjoint experiments to measure perceived level of service quality to avoid measurement pitfalls of SERVQUAL.


2001Newman Acknowledged acceptance of SERVQUAL, but questioned composition of sample and insensitivity to customer.

Service Quality, SERVQUAL Model & Its Implication


Services as commodities that cannot be stored or disappear in use, or as activities that require personal contact. The distinct characteristics of services are intangibility, perishability, heterogeneity of the product, and simultaneity of production and consumption.

Two economic units are required for a service to be produced – the consumer and the producer.

While the consumer cannot retain the actual service after it is produced, the effect of the service

can be retained. Managing a service operation requires the manager to understand the service concept, service delivery system, and service levels. As the consumer has a key role in the definition and evaluation of all three elements, it is imperative that service managers have a clear understanding of consumer expectations and perceptions. Services may be provided by private or public agencies. These characteristics enhance the importance of certain marketing strategies that are unique to services marketing, such as service customization, managing evidence, making the service tangible, and synchronizing supply and demand patterns.


Quality is a strategic tool for attaining operational efficiency and improved business performance. Importance of quality to service firms and have demonstrated its positive relationship with profits, increased market share, returns on investment, customer satisfaction, and future purchase intentions. Service quality has been described as a form of attitude, related but not equivalent to satisfaction, which results from the comparison of expectations with performance . Service quality involves a comparison of expectations with performance: it is a measure of how well the service level delivered matches customer expectations on a consistent basis. Service quality has been conceptualized as a function of consumer expectations towards the service situation and process, and of the output quality they perceived themselves to have received. The ultimate goal of service quality measurement is to assist managers in ensuring service quality and customer satisfaction. Measurement is a necessary step towards devising any action plan

 SURVQUAL Model and Its Implication:

Parasuraman et al. (1988) developed a 22-item measurement instrument called SERVQUAL for assessing customers’ perceptions of service quality in service and retailing organizations. Respondents are first asked to provide the level of service expected from a service firm on the 22-item expectations scale. Perceived service quality is obtained by subtracting the expectation rating from the perception rating for each of the items. The perceived quality is assessed based on service quality dimensions that correspond to the criteria used by consumers when assessing service quality. There are 10 potentially overlapping dimensions: tangibles, reliability, responsiveness, communication, credibility, assurance, competence, courtesy, understanding/knowing the customer, and access. Afterwards, these dimensions were reduced to five, namely: tangibles, reliability, responsiveness, assurance, empathy. The SERVQUAL instrument may be used individually or may be averaged across the 22 pairs of items to obtain an overall service quality score.

Using these 5 dimensions as the evaluation criteria the specification of service quality becomes the gap between customers’ expectations and their perceptions. The five key gaps or discrepancies on the service provider’s side that are likely to affect consumers’ perceptions of service quality are:-

Gap 1: Consumer expectation-management perception gap, which is the gap between consumer expectations of service quality and management perceptions of these expectations

 Gap 2: Management perception-service quality perception gap, that is, the gap between management perceptions of consumer expectations and the firm’s service quality specifications

Gap 3: Service quality specifications-service delivery gap, the gap between service quality  specifications and actual service quality.

Gap 4: Service delivery-external communications gap, or the gap between actual service  delivery and external communications about the service

Gap 5: Expected service-perceived service gap, which is the gap between expected service and  perceived service.

Applications of the SERVQUAL scale have been made to measure service quality in hospitals, hotels, travel and tourism, telecom companies, insurance companies and banks, business school placement centre, retail stores and acute care hospital physicians, dentists, attorney, financial and banking institutions, laundry/dry cleaning and automobile companies.

 Definition of Original Ten SERVQUAL Dimensions

Tangibles: Appearance of physical facilities, equipment, personnel, and communication materials.

• Are the bank’s facilities attractive?

• Is my stockbroker dressed appropriately?

• Is my credit card statement easy to understand?

Reliability: Ability to perform the promised service dependably and accurately.

• When a loan officer says she will call me back in 15 minutes, does she do so?

• Does the stockbroker follow my exact instructions to buy or sell?

• Is my credit card statement free of errors?

Responsiveness: Willingness to help customers and provide prompt service.

• When there is a problem with my bank statement, does the bank resolve the problem quickly?

• Is my stockbroker willing to answer my questions?

• Are charges for returned merchandise credited to my account promptly?

Competence: Possession of the required skills and knowledge to perform the service.

• Is the bank teller able to process my transactions without fumbling around?

• Does my brokerage firm have the research capabilities to accurately track market developments?

• When I call my credit card company, is the person at the other end able to answer my questions?

Courtesy: Politeness, respect, consideration, and friendliness of contact personnel

• Does the bank teller have a pleasant demeanor?

• Does my broker refrain from acting busy or being rude when I ask questions?

• Are the telephone operators in the credit card company consistently polite when answering my calls?

Credibility: Trustworthiness, believability, honesty of service provider.

• Does the bank have a good reputation?

• Does my broker refrain from pressuring me to buy?

• Are the interest rates/fees charged by my credit card company consistent with the services provided?

Security: Freedom from danger, risk, or doubt.

• Is it safe for me to use the bank’s automated teller machine?

• Does my brokerage firm know where my stock certificate is?

• Is my credit card safe from unauthorized use?

Access: Approachability and ease of contact.

• How easy is it for me to talk to senior bank officials when I have a problem?

• Is it easy to get through to my broker over the phone?

• Does the credit card company have a 24-hour, toll-free telephone number?

 Communication: Keeping customers informed in language they can understand and listening to them.

• Can the loan officer explain clearly the various charges related to the mortgage loan?

• Does my broker avoid using technical jargon?

• When I call my credit card company, are they willing to listen to me?

Understanding the Customer: Making the effort to know customers and their needs.

• Does someone in my bank recognize me as a regular customer?

• Does my broker try to determine what my specific financial objectives are?

• Is the credit limit set by my credit card company consistent with what I can afford? (Not too high or low)

Five Service Quality Determinates in SERVQUAL (After Modifying)


Tangibles would include those attributes pertaining to physical items such as equipment, buildings, and the appearance of both personnel and the devices utilized to communicate to the consumer. Bitner (1992) presented her conceptual framework for examining the impact of physical surroundings as it related to both customers and employees. Berry and Clark (1991) provided validation of the physical appearance on the consumer’s assessment of quality. With the research by Bitner (1990), it was noted that physical appearance might influence the consumer’s level of satisfaction. Tangibles were one of the original dimensions that were not modified by Zeithaml, et al (1988).


Reliability relates to the personnel’s ability to deliver the service in a dependable and accurate manner. Numerous researchers, including Garvin (1987) found that reliability tends to always show up in the evaluation of service. Parasuraman, et al (1988) indicated that reliability normally is the most important attribute consumers seek in the area of quality service. It was also determined by Parasuraman, et al (1991) that the conversion of negative wording to positive wording as suggested by Babakus and Boller (1991) and Carman (1990) increased the accuracy of this dimension. Negative wording in the request for a customer response caused the customer to misinterpret this particular determinant. Walker (1995) found that if there is an adequate delivery of the basic level of service, then peripheral performance leads consumers to evaluate the service encounter as satisfactory. Reliability was one of the original dimensions not modified by Zeithaml, et al (1988).


The desire and willingness to assist customers and deliver prompt service makes up the dimension of responsiveness. Parasuraman, et al (1991) include such elements in responsiveness as telling the customer the exact time frame within which services will be performed, promptness of service, willingness to be of assistance, and never too busy to respond to customer requests. Bahia and Nantel (2000) disregarded responsiveness in their research, claiming a lack of reliability even though they recognized SERVQUAL and all of its dimensions as the best known, most universally accepted scale to measure perceived service quality. Responsiveness was also one of the original dimensions not modified by Zeithaml, et al (1988).


Knowledgeable and courteous employees who inspire confidence and trust from their customers establish assurance. In banking studies by Anderson, et al (1976), it was determined that a substantial level of trust in the bank and its abilities was necessary to make the consumer comfortable enough to establish a banking relationship. Parasuraman, et al (1991) included actions by employees such as always courteous behavior instills confidence, and knowledge as prime elements of assurance. Assurance replaces competence, courtesy, credibility, and security in the original ten dimensions for evaluating service quality (Zeithaml, et al, 1988).


Empathy is the caring and personalized attention the organization provides its customers. Individual attention and convenient operating hours were the two primary elements included by Parasuraman, et al (1991) in their evaluation of empathy. The degree to which the customer feels the empathy will cause the customer to either accept or reject the service encounter. Empathy replaces access, communication, and understanding the customer in the original ten dimensions for evaluating service quality (Zenithal, et al, 1988).


Data Analysis:

In this report I have evaluated the customers expectation and perception of services to measure service quality in service sector. One service quality measurement model that has been extensively applied is SERVQUAL model developed by Parasuraman. SERVQUAL as most used approach for measuring service quality has been to compare customers expectation before a service encounter and their perception of the actual services delivered. It has five generic dimensions or factors. These are stated below-


It is the personnel and information material, the appearance of physical facilities, equipment etc. I have made survey on three banks. Based on the tangibility dimension the findings of these banks are:

Branch nameUnweighted AverageWeighted Average
Board Bazar0.201.25
Kawran Bazar0.161.00


In case of unweighted average Motijeel branch has very much good looking environment and well  equipped according to customers view because it holds -0.50 tangible average.

Whereas, Board bazar.Shantinagar, Nobabpur, Kawran bazaar hold -1.25, -0.75, -1.25, -1.00 as tangible average accordingly.

In case of weighted average customer view the most valued score according to tangible holds Motijeel branch -0.08.

Whereas, Board bazar.Shantinagar, Nobabpur, Kawran bazaar hold -0.2, -0.12, -0.20, -0.16, -0.08 accordingly.


It is the ability to perform a promised service to the customer accurately and dependably. Based on the reliability dimension the findings of the SERVQUAL model are-

Branch nameUnweighted AverageWeighted Average
Board Bazar1.600.368
Kawran Bazar1.600.368


In case of unweighted average Motijeel branch provides a very reliable service to its customers have good faith on it.that is why it holds -0.80 reliability average.

Whereas, Board bazar.Shantinagar, Nobabpur, Kawran bazaar hold -1.60, -1.40, -1.40, -1.60 as reliability average accordingly.

In case of weighted average customer view the most valued score according to reliability holds Motijeel branch -0.184.

Whereas, Board bazar.Shantinagar, Nobabpur, Kawran bazaar hold -0.368, -0.322, -0.322, -0.368 accordingly.


Branch nameUnweighted AverageWeighted Average
Board Bazar1.750.4375
Kawran Bazar1.750.4375


In case of unweighted average Motijeel branch takes responsibility and think cuctomers as itself part because it holds -0.75 resposibility average.

Whereas, Board bazar.Shantinagar, Nobabpur, Kawran bazaar hold -1.75, -1.75-1.75-1.75 as responsibility average accordingly.

In case of weighted average customer view the most valued score according to responsibility holds Motijeel branch -0.1875.

Whereas, Board bazar.Shantinagar, Nobabpur, Kawran bazaar hold -0.4375, -0.4375-0.4375-0.4375 accordingly.


Branch nameUnweighted AverageWeighted Average
Board Bazar1.250.275
Kawran Bazar1.000.22


In case of unweighted average Motijeel branch Nobabpur, Kawran bazaar assure their customers of providing service during their expected span because all three hold -0.22 assurance average.

Whereas, Board bazar.Shantinagar, hold -0.275, -0.33 as assurance average accordingly.

In case of weighted average customer view the most valued score according to assurance hold Motijeel branch -1. Nobabpur-1,  Kawran bazaar -1 likely.

Whereas, Board bazar.Shantinagar, hold -1.25,and  -1.5. accordingly.


Branch nameUnweighted AverageWeighted Average
Board Bazar1.600.224
Kawran Bazar1.200.017


In case of unweighted average Shantinagar branch shows a hospitable environment to its customers because it needs to achieve more customer loyalty so it holds -0.20 tangible average.

Whereas, Board bazar, Nobabpur, Kawran bazaar, Motijeel hold -1.60, -1, -1.4, -1.20 as empathy average accordingly. In case of weighted average customer view the most valued score according to  holds Shantinagar, -0.14.

 Measuring Standard deviation

Branch nameStandard Deviation
Board Bazar0.20
Kawran Bazar0.31


In the above analysis, we tried to evaluate the variations of providing service quality perceived by the customers though having the same quality equipment. We have seen the variations of providing service in Shantinagar branch is high enough compareison to others branches. Because the service providers are not at all caring for its customers. It needs to be improved service. Whereas, the Board bazar having at least variation in case of providing service to its customers. The reason is that in here most of the customers are considered as prime customers because they involved with business.

 Comparison (Based on Unweighted Average SERVQUAL Scores):

Branch nameUnweighted Average
Board Bazar1.49
Kawran Bazar1.31


In case of measuring overall performance Motijeel branch is providing best customer desired service and achieve customer delightness as it secure -0.65 SERVQUAL average score.

Whereas, the other four branches don’t have that much score.they all are needed to improve service quality due to having the same level in terms of performace. Their sevce providers don’t pay heed to their customer interest.In the samr vein, Board bazar branch should consider the customers as a part of its for enabling good service quality.

Comparison (Based on weighted Average SERVQUAL Scores):

Branch nameWeighted Average
Board Bazar0.31
Kawran Bazar0.25


Here, weight is given evaluating Tangibles and Empathy less important to customers. Whereas Reliability, Responsiveness, Assurance considered as very much concerned matter for customers. In this measures again Motijeel branch secured -0.14. So other branches need to be improved their quality of services in order to providing same quality service ti their customer. By this way customer loyalty can not be achieved.

Conclusion and Recommendation:


SERVQUAL the instrument of measuring service quality is not homogeneous, and some dimensions potentially matter more to users than others. It is possible that such differences are a function of the user’s state of mind. The results suggest that the performance dimension of reliability, which refers to the ability of a firm to perform promised service dependably and accurately, and the dimension of responsiveness,

which is the ability to provide prompt service, consistently rank highly in both respondent groups, while the more emotive dimensions of tangibility, assurance, and empathy vary in importance depending on the user’s state of mind and the circumstances. When experiencing job related pressure, users may well demand speed and reliability because this is what their deadline requires.

I am ranking the branches in terms of quality of providing service in the below:

This research has raised some important new questions not addressed by earlier studies on service

quality. Namely, is there a missing moderating variable or variables (e.g., user mental state, stress level, or perceived service security), and how do they interact with gender and / or occupation in the dimensions of service quality?

If our findings are correct, individuals who research service levels with SERVQUAL  have new limitations to consider. 1) If they accept our findings and also accept that SERVQUAL accurately measures service quality, the findings suggest that companies should focus relatively more of their service quality efforts on the reliability and responsiveness and assurance dimensions.

Given limited resources and economic pressures, a company that recognizes the relative importance of each dimension can more efficiently allocate resources and focus service priorities. 2) If they accept our findings, but adjust their data analysis of SERVQUAL results to account for ranked dimensions whose outcomes are affected by the user’s state of mind, then their choices are not as clear. They are faced with calibrating SERVQUAL to account for the moderating effect of user mental state or they can choose another service quality instrument. 3) Finally, they can simply ignore these findings and proceed as before. As service industries and service jobs continue to expand in importance throughout the global

economy, measuring service quality quickly, reliably, and accurately will mature as an increasingly

important task for service providers. If SERVQUAL and its performance are to be relied upon by services companies for their survival, then understanding the nuances of what these instruments are measuring has significant financial implications.


The findings of this study have important practical implications to management of quality of the Dutch Bangla Bank quality services. This study demonstrates the usefulness of the SERVQUAL approach as a measure of service quality. The results of the study indicate that the SERVQUAL scale could make a valuable contribution by enhancing the understanding of the perceived service quality of bank services. The measurement scale also serves to identify symptoms and the underlying problems that inhibit the effective provision of quality services in banking sector.

Once the attributes of bank services from the customers’ perspective are more clearly known and understood, its service providers will be in a better position to anticipate consumer requirements rather than to react to consumer dissatisfaction. The attributes of reliability, responsiveness and assurance have been identified by respondents to be the most important dimensions of service quality. These dimensions have been assigned the highest weights by the respondents thus bringing out the fact that Dutch Bangla Bank should focus more on these aspects. Empathy and tangibility are found to have the lowest weighted SERVQUAL scores. This brings out that Dutch Bangla Bank management should improve upon the tangibility aspects like improving physical facilities. It should provide individual customer attention and understand the specific needs of the individuals.

. As the consumer plays a key role in the definition and evaluation of the quality of bank services offered, managers of Dutch Bangla Bank should incorporate consumer expectations and perceptions in the formulation of effective long-term marketing strategies.



  1. Annual Reports of DBBL (Last four Years).
  2. 2.      Banglapedia Mailing List

Parasuraman, A. and Rohit Deshpande (1984), “The Cultural Context of Marketing Management,” in American Marketing Association Educators’ Proceedings, Series 50, Russel W. Belk, et al, eds., Chicago: American Marketing Association, 176-179.

Parasuraman, A., Valarie A. Zeithaml , and Leonard L. Berry (1985), “A Conceptual Model of Service Quality in its Implications for Future Research,” Journal of Marketing, 49 (Fall), 41-50.

Parasuraman, A., Valarie A. Zeithaml , and Leonard L. Berry (1986), “SERVQUAL: A Multiple-item Scale for Measuring Customer Perceptions of Service Quality,” Report No. 86-108, Marketing Science Institute, Cambridge, MA.

3. Dutch Bangla Bank Bangladesh Limited Web site.

4. Primary data from survey to clients & employees

5. Several Booklets from Dutch Bangla Bank Limited.

6. Several Newsletters from Dutch Bangla Bank Limited

Measuring Service Quality