Impact of Service Quality on Customer Satisfaction: An Empirical Study of the Indian Banking Sector

Service quality has emerged as a critical determinant of customer satisfaction and competitive advantage in the Indian banking sector, where increasing customer expectations, technological advancements, and intense market competition have compelled banks to continuously improve their service delivery. Providing high-quality banking services not only enhances customers' overall experience but also strengthens trust, loyalty, and long-term relationships. The present study aims to examine the impact of service quality on customer satisfaction by analysing the influence of key service quality dimensions on customers' perceptions of banking services. The study adopts a quantitative research approach based on primary data collected from customers of selected public and private sector banks in India during 2023–2024 using a structured questionnaire developed on the SERVQUAL model, encompassing the dimensions of tangibility, reliability, responsiveness, assurance, and empathy. A purposive sampling technique was employed to obtain responses from banking customers, and the collected data were analysed using descriptive statistics, correlation analysis, and multiple regression analysis to assess the relationship between service quality and customer satisfaction. The findings are expected to provide valuable insights for banking professionals and policymakers by identifying the most influential service quality dimensions, thereby enabling banks to formulate effective customer-centric strategies that enhance satisfaction, strengthen customer retention, and achieve sustainable competitive performance in the evolving banking environment.