The influence of customer-perceived service quality on customers' behavioural intentions: A study of public and private sector banks, class and mass banking and consumer policy implications

The financial sector reforms in India advocated globalization, deregulation and the liberalisation of entry norms to permit new banks in the private sector. This has increased competitive pressures on the state-owned public sector banks which concurrently have to fulfill their social obligations towards the financial development of the economy and citizens. This study explores how different dimensions of service quality influence customers' behavioural intentions in class and mass banking and the implications for public and consumer policy. A contextually modified SERVQUAL instrument along with multiple regression and in-depth interviews were used. The study reveals that financial consumer policy must build security and trust in public administration and that the concept of quality must visualize public agencies as catalysts of a responsible and active civic society. © 2013 Springer-Verlag Berlin Heidelberg.