A Comparative Study of Customer Satisfaction between Public and Private Banks in Lahore, Pakistan

Abstract

This study compares customer satisfaction levels between public and private banks in Pakistan, focusing on Lahore city. It adopts an empirical approach, utilizing primary data collected through a structured questionnaire. The survey targeted 500 respondents selected from various convenient locations across Lahore to gather direct insights into customer satisfaction with banking services. By examining factors influencing satisfaction, the study enables a comparative analysis between public and private banks. Lahore was chosen as the focal point due to its significance as a major economic hub, offering a localized perspective on banking experiences. The study addresses the limited research on key variables such as technology, reliability, bank reputation, and service environment in Pakistan’s banking sector. Findings reveal diverse customer opinions, emphasizing the nuanced factors shaping satisfaction. Given the crucial role of customer satisfaction in banking, managers must conduct extensive research to accurately assess preferences and concerns. Understanding these factors allows banks to tailor strategies, improve service quality, and enhance customer experience. The empirical analysis indicates that private bank customers in Lahore exhibit higher satisfaction levels than those of public banks. This trend is attributed to factors such as widespread branch networks, enhanced service accessibility, and superior technological integration by private banks. Additionally, private banks offer high-quality services and leverage advanced technology, contributing to an improved customer experience. These findings highlight the importance of service accessibility, quality, and innovation in shaping customer satisfaction, underscoring the need for continued advancements in Pakistan’s banking sector.