The Examination of Customer Evaluation on Service Quality of Selected Private and Government Banks in Metro Manila

Abstract

The primary motivation behind the study was to evaluate the client assessment on service quality of chosen private and government banks in Metro Manila based on modified service quality questionnaire by Kumar and Manshor (2009). The study examined service quality factors, such as tangibles, reliability, competence, and convenience. The researcher used the descriptive method in this study and the weighted mean to obtain the average of the responses on the survey. Perception score minus Expectation score was used to get the Gap scores. The expectation in terms of the four (4) service quality factors were all “Strongly Agree” for both type of banks; however, there were higher weighted means in selected government banks. The respondents’ perceptions of selected private and government banks were “Strongly Agree” and “Moderately Agree” for tangibles and convenience factors, respectively. While the assessment was “Moderately Agree” for reliability and competence factors for both type of banks. Overall, there was a higher weighted mean in selected private banks in terms of the four factors. Using Gap Score, both type of banks service quality performance had all negative result in terms of the four factors. However, there was a higher negative result in selected government banks. According to respondents’ perception, selected private banks to have better performance in terms of tangibles and convenience service quality factors. In terms of reliability and competence, both types of banks have the same performance. The respondents’ perception was higher in private banks in terms of the four factors. Both types of banks performance fall below the expectation. However, the service quality given by the selected private banks in terms of four (4) factors was much better than the selected government banks. In the convenience factor, the researcher recommends increasing the number of ATMs and CAM/CDMs in convenient locations for the clients, specifically for the selected government banks. In terms of tangibles and convenience service quality factor, in addition to above, open new branches and increase the number of local and international tie-up agents/correspondent banks. In terms of reliability and competence, maintain a well-monitored banking system, and train new employees. Both types of banks must perform better to meet the perception of its customers in terms of four factors. However, selected government banks must provide more effort. Both types of banks must improve continuously.