Measuring Perceived Service Quality and Customer Satisfaction for Service Managers: The case of the Lebanese Retail Banking Industry

Abstract:As an economic pillar, the high quality banking service in Lebanon is the highest single contributor to the GDP. This Lebanese service-based sector was neither investigated for the quality of banking services from the customers' perspective, nor for analyzing the key strategic advantage of customer satisfaction in this highly competitive sector. Based on Cronin & Taylor's (1992) SERVPERF, this study analyses the customer perceived service quality's effect on the bank customers' satisfaction, and suggests a novel model to measure perceived service quality that is culture and industry-specific, and includes online banking. The tool is tested with 1049 respondents providing thorough statistical evidence that culminate into putting forth a developed model of the original SERVPERF labelled the Lebanese Bank Quality Tool (LEBANKQUAL).