Determinants of Expected Service Quality: A Comparative Study in Pakistani Banking Sector

Abstract

The study sets out to investigate the factors influencing expected service quality in both conventional and Islamic banking sectors within Pakistan. The findings of the study reveal noteworthy insights into the determinants of expected service quality in both conventional and Islamic banking contexts. Specifically, the analysis identifies a significant relationship between expected service quality and three key determinants—bank tangibles, responsiveness, and assurance—in conventional banks. However, the relationship with reliability and empathy emerges as comparatively weaker within the commercial banking segment. In contrast, Islamic banks exhibit a more robust relationship between expected service quality and its determinants, encompassing tangibles, reliability, responsiveness, assurance, and empathy. This suggests a nuanced interplay of factors shaping service quality perceptions within the Islamic banking domain, emphasizing the multifaceted nature of customer expectations in this sector. These findings hold significant implications for academia and policy formulation alike. By illuminating the determinants of expected service quality across conventional and Islamic banking sectors, the study provides valuable insights for researchers seeking to deepen their understanding of customer satisfaction dynamics within the financial services industry. Furthermore, policymakers stand to benefit from these insights by crafting targeted interventions aimed at enhancing service quality standards and fostering customer-centric practices within both banking segments. This study contributes to the ongoing discourse surrounding service quality in the banking sector, shedding light on the distinctive dynamics at play in conventional and Islamic banking contexts. By leveraging these insights, stakeholders can work towards enhancing customer experiences, driving competitiveness, and ultimately fostering sustainable growth within Pakistan's banking industry.