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

Abstract

This study aims to compare customer satisfaction levels between public and private banks in Pakistan, with a specific focus on Lahore city. It adopts an empirical approach, utilizing primary data collected through a meticulously designed questionnaire. The questionnaire was distributed to 500 respondents selected from various convenient locations across Lahore. By employing a well-structured questionnaire, the study seeks to gather insights directly from bank customers regarding their satisfaction levels with the services provided by both public and private banks. This approach allows for a comprehensive analysis of the factors influencing customer satisfaction and enables a comparison between the two types of banking institutions. The choice of Lahore city as the focal point of the study offers a localized perspective on customer satisfaction within the banking sector, considering the city's significance as a major economic hub in Pakistan. By focusing on Lahore, the study aims to capture the nuances and specificities of customer experiences within the banking landscape of this urban center. The limited number of studies conducted in Pakistan on the variables of technology, reliability, bank reputation, and service environment underscores the need for further research in this area. This research reveals the diversity of customer opinions regarding satisfaction, highlighting the nuanced factors that influence their perceptions of banking services. Given the importance of customer satisfaction in the banking sector, it is imperative for bank managers to undertake more extensive research to accurately assess and address customer preferences and concerns. By conducting additional studies, bank managers can gain deeper insights into the specific drivers of customer satisfaction and tailor their strategies accordingly to enhance overall service quality and customer experience. The empirical analysis indicates that customers of private banks in Lahore exhibit higher levels of satisfaction compared to those of public banks. This trend can be attributed to several factors, including the widespread presence of multiple branches in convenient locations offered by private banks. Additionally, private banks are known to provide exceptional services and leverage the latest technology systems, which contribute to an enhanced customer experience. These findings underscore the importance of service accessibility, quality, and technological innovation in shaping customer satisfaction levels within the banking sector.