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Professional Banker Magazine:
Technology-enhanced Servicescape of Commercial Banks in India
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The banking sector in India has gathered momentum with the economic liberalization after 1991. Banking has now become more competitive in terms of service delivery and spectrum of products. Servicescape is an emerging area where Indian banks are trying to equate themselves with their western counterparts. This article examines the various dimensions of technology-enabled servicescape of commercial banks in India.

 

 

Service scape is the total appeal an organization can make to its customers by offering them better services. Technology has enabled banks to enhance their servicescape to a great extent.

Berry and Clarks (1986) identified documentation, physical representation, visualization and association as the four strategies of tangibilizing services provided. According to Masood and Shalini (2008), servicescape can be an enhancer of a firm's productivity and revenue or it can detract the revenues of a firm. The enhancement of revenues is attributed to servicescape as it prompts customers to increase their business dealings with the firm. There are two soft system methodologies for enhancing servicescape. The soft system cannot guarantee success in service offering but the energy and commitment generated for delivering the agreements would. Bitner (1992) equated servicescape of an organization to the physical facilities of a service company.

In service organizations, the same physical environment that communicates with and influences customers, may affect employees' satisfaction, performance, productivity, and motivation (Baker, Berry and Parasuraman 1988). Reimer Anja and Kuehn Richard (1995) concluded that servicescape played a greater role than was supposed to as mentioned in the previous studies. Servicescape is not only a cue for the expected service quality, but also is found to influence customers' evaluations of other factors determining perceived service quality. Thus, it has both direct and indirect effect on perceived service quality. A study by Koushki (1995) revealed that customers distinguish four dimensions of service quality in the case of retail banking industry in India. They are: customer-orientation, competence, tangibles and convenience.

 
 
 

Professional Banker Magazine, Commercial Banks In India, Banking Sector, Economic Liberalization, Retail Banking Industry, Environmental Psychology, National Electronic Fund Transfer, NEFT, Indian Banks, Post-Liberalization, Magnetic Ink Character Recognition, MICR, Indian Banking Sectors.