Customers’ Perception towards the Relationship of Service Quality on Customer Satisfaction: Oman Banking Industry


  • Revenio Jalagat, Jr. Al-Zahra College for Women
  • Perfecto Aquino, Jr. Duy Tan University


Customers’ Perception, Service Quality, Customer Satisfaction, Oman


This study investigates the impact of customers’ perception of service quality and customer satisfaction in the Oman banking industry. It also assesses the perceptions of the respondents on service quality and customer satisfaction in relation to their demographic profile. The quantitative research design was endeavored using inferential statistics and 130 samples were obtained. Key findings depict that, service quality positively influenced customer satisfaction and wherein empathy has the highest relationship and followed by reliability, tangibles, and assurance. However; when the assessment was undertaken between service quality, customer satisfaction, and demographic profile, a significant difference in perceptions on service quality and customer satisfaction was obtained according to age while only difference in perceptions on service quality based on educational level. Based on these findings, preference should be put on the four dimensions on service quality based on the order of priority to achieve sustainable customer satisfaction and consider the age and educational level as important factors on continuous quest to improve service quality in all aspects of bank operations.



Al Ghassani, A., Al Lawati, A. & Ananda, S. (2017). Banking Sector in Oman Strategic Issues, Challenges and Future Scenarios. Retrieved on March 15, 2021, from:

Arasli, H., Smadi, S., & Katircioglu, S. T. (2005). Customer service quality in the Greek Cypriot banking industry. Managing Service Quality: An International Journal, 15(1), 41-56.

Caruana, A. (2002). Service loyalty: the effects of service quality and the mediating role of customer satisfaction. European Journal of Marketing, 36(7), 811–830.

Cheng, T., Lai, L., & Yeung, A. (2008). The driving forces of customer loyalty: a study of internet service providers in Hong Kong. International Journal of E-business Research, 4(1), 26-42.

Chidambaram, V., & Ramachandran, A. (2012), A review of customer satisfaction towards service quality of banking sector. Social and Management Sciences, 7(2), 71-79.

Chowdhary, N., & Prakash, M. (2007). Prioritizing service quality dimensions. Managing Service Quality, 17(5), 493-509.

Churchill, G.A., & Surprenant, C. (1982). An Investigation into the Determinants of Customer Satisfaction. Journal of Marketing Research, 19(1), 491-504.

Corneliu, B. (2012). Applying The Servqual Method in Banks. Annals of Faculty of Economics, 1(2), 895-900.

Creswell, J. W. and Plano, C. (2011). Designing and conducting mixed methods research. (2nd ed.). Thousand Oaks, CA: Sage.

Cronin, J.J., & Taylor, S.A. (1994). SERVPERF versus SERVQUAL: Reconciling Performance-Based and Perceptions-Minus-Expectations Measurement of Service Quality. Journal of Marketing, 58(1), 125–31.

Donabedian, A. (1980). The Definition of Quality and Approaches to its Assessment. Ann Arbor MI: Health Administration Press

Field, A. (2009). Discovering Statistics Using SPSS. (3rd ed.). London: Sage Publications Ltd.

Gronroos, C. (1984). An applied service marketing theory. European Journal of Marketing, 16 (17), 30–41.

Gulc, A. (2017). Models and Methods of Measuring the Quality of Logistic Service. Procedia Engineering, 182(2017), 255-264.

Hussain, R., Al Nasser, A., & Hussain, Y.K. (2015). Service quality and customer satisfaction of a UAE-based airline: An empirical investigation. Journal of Air Transport Management, 42(1), 167-175.

Johnsson, K., & Klefsjö, B. (2006). Which service quality dimensions are important in inbound tourism? Managing Service Quality, 16(5), 520-537.

Kaiser, H.F. (1974). An index of factorial simplicity. Psychometrika, 39, 31-36.

Khan, M.M., & Fasih, M. (2014). Impact of service quality on customer satisfaction and customer loyalty: Evidence from banking sector. Pakistan Journal of Commerce and Social Sciences, 8(2), 331-354.

Kheng, L., Mahamad, O., Ramayan, T., & Mosahab, R. (2010). The impact of service quality on customer satisfaction. A study of banks in Penang, Malaysia. International journal of marketing studies, 2(2), 200-209.

Lau, M.M., Cheung, R., Lam, A.Y., & Chu, Y.T. (2013). Measuring service quality in the banking industry: A Hong Kong based study. Contemporary Management Research, 9(3), 264-282.

Lehtinen, U., & Lehtinen, J. (1982). Service Quality – A Study of Quality Dimensions. Helsingfors: Service Management Institute.

Liniere, M. (2013). Factors that Contribute to the Decline of Customer Satisfaction in Banking. (Published PhD Thesis, Walden University, Minnesota, USA).

Lo, L. K., Osman, M., Ramayah, T., & Rahim, M. (2010). The impact of service quality on customer loyalty: A study of banks in Penang, Malaysia. International Journal of Marketing Studies, 2(2), 57-66.

Marković, S., Jelena, D., & Katušić, G. (2015). Service quality measurement in Croatian banking sector: Application of SERVQUAL Model. Management International Conference 2015; Managing Sustainable Growth. Slovenia.

Munusamy, J., & Chelliah, S. (2011). An investigation of impact of service strategy on customers' satisfaction in the budget airline industry in Malaysia: a case study of air Asia. Contemporary Marketing Review, 1(1), 1-13.

Nathan, D., & Elsaghier, N. (2012). Service Quality Dimensions and Customers’ Satisfactions of Banks in Egypt. Proceedings of 20th International Business Research Conference 4 - 5 April 2013, Dubai, UAE. ISBN: 978-1-922069-22-1.

Nunnally, J.C. (1978). Psychometric Theory. New York: McGraw-Hill.

Oliver, R. (1980). A cognitive model of the antecedents and consequences of satisfaction decisions. Journal of marketing research, 17(4), 460-469.

Parasuraman, A., Zeithaml, V., & Berry, L.L. (1982). A conceptual model of service quality and its implications for future research. Journal of Marketing, 49(4), 41–51.

Parasuraman A., Zeithaml, V.A., & Berry, L.L. (1985). A conceptual model of service quality and its implications for future research. Journal of Marketing, 49(1), 41–50.

Parasuraman, A., Zeithaml, V., & Berry, L.L. (1988). SERVQUAL: a multiple item scale for measuring consumer perceptions of service quality. Journal of Retailing, 6(1), 12–40.

Ryu, K., Lee, H. R., & Kim, W. G. (2008). The influence of the quality of the physical environment, food, and service on restaurant image, customer perceived value, customer satisfaction, and behavioral intentions. International Journal of Contemporary Hospitality Management, 24(2), 200-223.

Shah, F.T., Khan, K., Imam, A., & Sadiqa, M. (2015). Impact of services quality on customer satisfaction of banking sector employees; A study of Lahore, Punjab. Vidyabharati International Interdisciplinary Research Journal, 4(1), 54-60.

Siddiqi, K.O. (2010). Interrelations between service quality attributes, customer satisfaction and customer loyalty in the retail banking sector in Bangladesh. International Trade & Academic Research Conference (ITARC), (pp. 1-26). London.

Taylor, S.A., & Baker, T.L. (1994). An assessment of the relationship between service quality and customer satisfaction. Journal of Retailing, 70(2), 163-178.

Tsoukatos, E, & Rand, G. (2006). Path analysis of perceived service quality, satisfaction and loyalty in Greek insurance. Managing Service Quality, 16(5), 501-519.

Vershinina, O. (2017). Customer Satisfaction in The Banking Sector: A Study of Russian Bank PAO" Sberbank". (Unpublished Thesis, Oulu University of Applied Sciences, Russia).

Zeithaml, V.A., Berry, L.L., & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, 60(2), 31–47.