All banks in India offer similar services but are different in terms of service quality. This paper analyzes the literature regarding service quality and customer satisfaction in the retail banking industry, and explains the relationship between service quality and customer satisfaction and their effect. The findings suggest that improved service quality should be adopted to give maximum satisfaction to the customer. The paper also contributes knowledge and background for banks to apply these findings to better shape and focus their position in the market and also to provide maximum satisfaction to the customer.

Managing the quality of services is difficult as compared to the quality of goods due to heterogeneity, perishability, intangibility and dimensions of services. All the players of banking industry are providing more or less same services to customers. Banking practitioners have to pay close attention to superior service provision because service quality does not only impact the customer decision-making process, but also influences customer satisfaction, purchase retention, loyalty and business survival as shown in many studies.

The objective of this paper is to review the literature regarding the relationship between service quality and customer satisfaction and their effect in the retail banking industry. This will lead to an understanding of the aspects of service quality and customer satisfaction and seeks to close the gap in this field of study.

Marketing Management Journal, Service Quality, Customer Satisfaction, Banking Sector, Service Sector in India, Information Technology Enabled Services (ITES), Business Process Outsourcing (BPO), Non Performing Assets (NPAs).