Customer Satisfaction via Service Quality Dimensions: An Empirical Research on Stock Broking Services: CS VIA SQD

Customer Satisfaction via Service Quality Dimensions: An Empirical Research on Stock Broking Services: CS VIA SQD

Gyaneshwar Singh Kushwaha (Maulana Azad National Institute Of Technology (MANIT), Bhopal, India) and Shiv Ratan Agrawal (Maulana Azad National Institute Of Technology (MANIT), Bhopal, India)
DOI: 10.4018/ijcrmm.2014070103
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The purpose of the study is to measure the customer satisfaction via service quality dimensions as a whole and individually in the context of stock broking services. A non probability convenient sampling approach has been used in the study. Respondents have been restricted to those who have the experience of trading in stock market through stock brokers. The sample consisted of 229 valid individual customers from Bhopal (MP), India through structured self-administrated questionnaire. Convergent validity, discriminant validity and reliability of the collected data were measured before testing of the research model. An exploratory factor analysis has been conducted using principal components analysis to determine the dimensions of financial service quality. A linear regression was performed to test the relationship between the service quality dimensions and customer satisfaction. The findings suggest that service quality as a whole and individually have a significant impact on customer satisfaction. The results of the study provide useful information for managers to improve service quality which leads to customer satisfaction. The findings were solely on stock broking services from Bhopal (MP) in India which impacts its generalisability. Replication of the present study might be required in other stock broking markets, to improve generalisability using larger samples. Another potential area for future research could be the link between service quality dimensions, customer satisfaction and customer loyalty and customer retention at stock broking services. The study is important considering the economic advantages of satisfying and retaining current customers as opposed to seeking for new customers which is essential in stock broking services. The paper contributes to the literature on stock broking services in India.
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1. Introduction

Service quality and customer satisfaction are the most important factors of market competition for service providers (Zeithaml et al., 1996; Parasuraman et al., 1988; McDougall & Levesque, 2000). In the current market scenario, delivering high quality and keeping customers satisfied is viewed as critical for survival. That is why these factors are on high management priorities (Parasuraman, 1997; Wang et al., 2004; Olorunniwo & Hsu, 2006). This is the most acceptable statement that service quality leads to higher levels of customer satisfaction. Financial institutions and their strategies are becoming more focussed on service quality to increase customer satisfaction and run the business successfully (Arasli et al., 2005; Al-Hawari et al., 2009). Increasing expectations of customers from stock broking services have led firms and their managers to become customer focused, which has resulted in the introduction of customer care initiatives with value added services in order to improve the quality of services. Until recently, no study has found that could challenge the assumption that service quality dominates the determination of customer satisfaction in the provision of services. The essential presence of service quality in financial services is well known (Levesque & McDougall, 1996; Jamal & Naser, 2002; Al-Hawari & Ward, 2006; Pass, 2005).

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