APPLICATION OF GAP MODEL IN FINDING SERVICE QUALITY GAPS: COMPARATIVE STUDY ON DOMESTIC AND FOREIGN BANKS OPERATING IN PAKISTAN

Abstract

The banking sector of Pakistan is growing with every passing year and the quality play major role in the developed of banking sector. To retain the loyal customers quality service is vital. Though, quality and customer service are major driving forces in business community. Moreover, product's quality is its capability which satisfy customers expectations and needs. SERVQUAL scale questionnaire is used as research instrument which was developed by Parasuraman et al. (1988) which quantify the expected quality of banking services of selected samples of banks including domestic and foreign banks in Pakistan. A total of 300 respondents (account holders) were surveyed out of which, 50 account holders for each of the 6 banks including domestic and foreign Banks were surveyed. Sample selected is nonrandom convenient sampling method. This study is descriptive as well as comparative. The results therefore suggest that Bank Al-Falah has favorable gap scores in terms of Tangibility, Reliability and Responsibility. Whereas Soneri Bank earned average Gap Scores in Assurance and Empathy. Also, national bank performed as less service quality measure and holding gap scores greater than all the other banks.