An Evaluation of the Service Quality of Islamic Banks in Bahrain: An Empirical Study Abstract - Dissertation Example

Apart from this, employees should also be involved in planning and organizing sessions, due to their own satisfaction having a spillover effect on the customers they deal with directly. Table of Contents Chapter 1 Introduction 7 1.1     Background 7 1.2 Research Aim 8 1.3 Research Objectives 8 1.4 Rationale and Significance of the Research 9 1.5 Scope and Limitations of the Study 10 1.6 Organization of the Study 10 Chapter 2 Literature Review 11 2.1. Introduction 11 2.2. Islamic Banking 11 2.2.1.

Characteristics of Islamic Banking 12 2.2.2. Differences between Islamic Banks and Conventional Banks 13 2.3. Definition of Service 13 2.4. The Concept of Service Quality 14 2.3.1 Dimensions of Service Quality 15 2.3.2 Perceptions of Service Quality 16 2.4 Relationship Marketing, Customer Loyalty and Satisfaction 17 2.4.1 Satisfaction, Trust, and Commitment 18 2.4.2 Role of Employees 19 2.4.3 Customer Participation 19 2.5 SERVQUAL 20 2.6 Service Quality and Banks 21 2.7 Service Quality and Islamic Banks 22 2.

8 Conclusion 23 Chapter 3 Methodology 24 3.1. Introduction 24 3.2    Research Philosophy and Approach 25 3.3 Research Design 25 3.4 Research Methodology 25 3.5 Hypotheses 28 3.6 Sampling 30 3.7 Instrument 32 3.8 Reliability and Validity 33 3.9 Procedure for Data Collection 34 3.10. Data Analysis 35 3.11    Summary 36 Chapter 4 Findings 37 4.1 Introduction 37 4.2    Results of Demographic Profile 37 4.3 Mean Ratings on Expectations Across Dimensions 42 4.4 Mean Ratings on Perceptions Across Dimensions 46 4.

5 Mean Gap Scores Across Dimensions 51 4.6 Analysis of Expectations by Demographic Categories 52 4.7 Analysis of Perceptions by Demographic Categories 54 4.8 Analysis of Gaps 58. Services have been the fastest growing segment of the world economy (Bick, Abratt & Möller, 2010). The biggest challenge in services is customer satisfaction as this depends upon the quality of service delivery. Service quality is a critical issue in the service industry and particularly in the financial services sector such as banks as the products are difficult for consumers to differentiate.

Quality of service depends on how the service is delivered during the process and how the service is perceived during and after it is delivered. The American Customer Satisfaction Index (ACSI), which conducted interviews with over 50,000 consumers about satisfaction with some 200 companies in 35 industries in its report finds that the consumer satisfaction index has been consistently declining since its inception in 1994 (Allred & Addams, 2000). The banking industry in particular, has posed a cause for concern because customers perceive that service had not improved over the past five years.

Some even expressed that it had declined. Errors such as mistakes in their current account can impact customer satisfaction and the overall experience with the bank. High overall service quality leads to enhanced customer satisfaction, improved customer retention, and a favorable image for the financial institution (Ladhari, 2009).