The Causal Relationship between Service Quality , Customer Satisfaction and Profitability in Taiwan Banking Industry

Content Provider	Semantic Scholar
Author	Lee, Ming Chang
Copyright Year	2000
Abstract	“Are there economic benefits to improving Service Quality in Taiwan banking industry” is the research problem of this study. Service Quality is perceived quality; it is different from objective or actual quality; it is a judgement usually made within a customer’s evoked set. In literature review, the author finds that: (1) The issue of Service Quality has received considerable argument in the Marketing literatures. (2) In many ways, service quality is similar to an attitude. (3) Customer satisfaction is distinct from service quality. (4) Customers’ expectations of firm’s quality are adaptive. (5) It is difficult for traditional financial ratio to measure the economic benefits of service quality improvement. (6) The effects of service change become noticeable only in the long run. (7) The most important single factor affecting a business unit performance is the quality of its goods and service. According to service quality and profitability theoretical background, this study developed the theoretical framework of this paper. This study also designed structural and measurement models to investigate the causal relationships between service quality, customer satisfaction and profitability in Taiwan banking industry. And then, tested relationship by examining the significance of the LISREL estimated path coefficient that links the variables noted. The major conclusion from this study is that the performance base scale developed SERVPERF model and the customer satisfaction on profitability model are confirmed in Taiwan banking industry. The remaining questions addressed in this study are essential managerial issues. The results suggest that perceptive quality is an antecedent of attitude; Service quality is an antecedent of customer satisfaction; Customer satisfaction has a direct effect on purchase intention; Customer satisfaction is an antecedent of profitability. Finally, the author pinpoints gap between customer and service provider to interpret “Profitability is positively affected by service quality improvement.”
File Format	PDF HTM / HTML
Alternate Webpage(s)	http://gebrc.nccu.edu.tw/proceedings/APDSI/2000/list/pdf/P-079.pdf
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article