An Evaluation of Customer Perception towards Commercial Banks Service Quality in Uganda

Abstract

This paper endeavors to analyze customer perceptions about service quality in the selected commercial banks and rank the perceptions. The SERVPERF scale established by Cronin and Taylor (1992, 1994) is adapted to evaluate the service quality. Factor analysis is used to obtain service quality dimensions. Service quality dimensions are ranked and compared by calculating the mean scores of each service quality variable. One sample t-test is performed to find the significance of each item. It is concluded that respondents have high rating scores on tangibles and responsiveness. Tangibles have been proved to be of less importance with many researchers. Reliability which is proved to be the most important dimension by many researchers is perceived negatively by the customers as it has very low means in all its items and charges. Ugandan banks should try their best to improve on reliability especially to shorten the long queues by increasing the number of branches and the number of employees in the tellers. The study is limited to Kampala the capital city of Uganda. Future research can be done in the rural areas and other districts and also can include important aspects like customer satisfaction and loyalty and their impact on service quality dimensions.

Keywords: Service Quality, Service Quality Dimensions, Banking in Uganda, Servperf and Servqual

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