Customers' Perception about the Determinants of Service Quality of Foreign and Domestic Banks: An Empirical Study on Bangladesh

Abstract

This paper investigates the determinants of perceived service quality among the customers of domestic and foreign banks in Dhaka, Bangladesh, using a modified version of the SERVQUAL model. It finds that, in general, the foreign banks provided marginally better measures in most dimensions than domestic banks. For domestic private banks, reliability, communication, credibility, security, and tangibility are found to affect service quality significantly. On the other hand, for foreign banks, reliability, credibility, and tangibility are the only significant factors affecting their service quality.