Service Quality and Attribute-Based Performance of Chinese Retail Banks

Chinese retail banks are facing great challenges after China enters WTO and need to improve financial products and service quality in order to compete with foreign banks in China. This paper provides a statistical analysis of service quality and its attributes for major Chinese retail banks based on a recent national survey. We further identify current problems and propose the directions of improvement on service quality and customer satisfaction for six major local banks in China. In addition, we also study the relationship between service quality, customer satisfaction, and customer loyalty, considering the impacts of difference between expectation and perceived service quality, customer´s ideal bank and competitors. Our results show that meeting customers´ expectation is the most important way to increase customer satisfaction, and providing better service quality over competitors and exceeding the service standard of customers´ ideal bank are the major ways to increase customer loyalty for Chinese retail banks