Service Quality in the Eritrean Banking Sector


Empirical Service Quality in the Eritrean Banking Sector


Fitsum Ghebregiorgis1 and Asmerom Atewebrhan2
1 Department of Business Management and Marketing, College of Business and Economics, P.O. Box 3963 Asmara, Eritrea;
2 Department of Accounting, College of Business and Economics, P.O. Box 3963 Asmara, Eritrea


International Journal of Industrial and Business ManagementThis paper aims at measuring the quality standing of the banking sector in Eritrea. It focuses on the study of the Eritrean Commercial Banks in order to examine their performance towards quality service and behavioural intentions. The findings from the study reveal mixed evidence in that, although customers’ base their banks’ overall quality assessment on the service quality dimensions identified in this study, they do not consider the service quality dimensions identified to be important in their intention to spread positive word-of-mouth about their bank’s services and they seem to be willing to switch to another bank even with a positive perception of service quality. Thus, there may be considerations other than the quality dimensions identified in this study on which customers base their future purchase which seeks further study. In comparison with similar service quality studies made in other countries, this study has come-up with new dimensions. Hence, the outcome may enrich our understanding of services marketing and the determinant variables in what customer perceive regarding quality service in a developing country setting. Future research would benefit from additional research in this area in other geographical settings to better understand the generalisability of the findings reported.


Keywords: Service quality, banking sector, customers, behavioural intentions, Trade, Eritrea.

Free Full-text PDF


How to cite this article:
Fitsum Ghebregiorgis and Asmerom Atewebrhan. SERVICE QUALITY IN THE ERITREAN BANKING SECTOR. International Journal of Industrial and Business Management, 2017; 1:5. DOI:10.28933/ijibm-2017-04-1301


References:

1. Aldlaigan, A.H. and F.A. Buttle (2002), SYSTRA-SQ: a new measure of bank service quality, International Journal of Service Industry Management, Vol. 13, No. 4, 362-381.
2. Babakus, E. and G. W. Boller (1992), An Empirical Assessment of the SERVQUAL Scale, Journal of Business Research, Vol. 24, 253-268.
3. Bahia, K. and J. Nantel (2000), A reliable and valid measurement for the perceived service quality of banks, International Journal of Bank Marketing, 18/2, 84-91.
4. Bolton, R. N. and Drew, J.H. (1991), A Multistage Model of Customers’ Assessment of Service Quality and Value, Journal of Consumer Research, 17, 375-384.
5. Boshoff, C., et al. (1994), The Relative Influence of Service Quality in the Banking Industry, South African Journal of Business Management, (March), Vol. 25, No 1.
6. Buttle, F. (1996), SERVQUAL: review, critique, research agenda, European Journal of Marketing, Vol. 30, No. 1, 14.
7. Caruna, A., et al. (1998), Expectations about Management Consultancy Services: Testing the Assumptions of Equivalence Across, Australian and Singaporean Firms, Journal of Professional Services Marketing, Vol. 18 (1), 1-10.
8. Churchill, JR. G. A. (1979), A Paradigm for Developing Better Measures of Marketing Constructs, Journal of Marketing Research, Vol. XVI, 64-73.
9. Cronin, J. J. and S. A. Taylor (1992), Measuring Service Quality: A Re-examination and Extension, Journal of Marketing, Vol. 56, 55-68.
10. Cronin, J. J., et al. (2000), Assessing the Effects of Quality, Value, and Satisfaction on Consumer Behavioural Intentions in Service Environments, Journal of Retailing, Vol. 76 (2), 193-218.
11. Dassen, R. J. M., (1995), Audit Quality: An Empirical Study of the Attributes and Determinants of Audit Quality Perceptions, Ph.D. dissertation, University of Limburg.
12. de Vaus, D. A. (1996), Surveys in Social Research, Fourth Edition, UCL Press, London.
13. Grónroos, C. (1984), A Service Quality Model and its Marketing Implications, European Journal of Marketing, No. 4, 36-44.
14. Grónroos, C. (1990), Service Marketing and Management: Moments of Truth in Service Competition, D. C. Heath-Lexington Books, Lexington, MS.
15. Karatepe, O.M., et al. (2005), Measuring service quality of banks: Scale development and validation, Journal of Retailing and Consumer Services, 12, 373–383
16. Keillor, B. D., et al. (2004), A Study of the Service Encounter in Eight Countries, Journal of International Marketing, Vol. 12, No. 1, 9-35.
17. Lehtinen, U. and J. R. Lehtinen (1991), Two Approaches to Service Quality Dimensions, The Service Industries Journal, Vol. 11, No. 3, (July), 287-303.
18. Mongos, N. C., et al. (1995), Research Note: Marketing Accounting Services, A Cross-Cultural Comparison, International Marketing Review, Vol. 12, No. 6, 68-81.
19. Nagata, H., et al. (2004), The dimensions that construct the evaluation of service quality in academic libraries, Performance Measurement & Metrics, Vol. 5, No. 2, 53-65.
20. Nel, D., et al. (1997), The SERVQUAL Instrument: Reliability and Validity in South Africa, South African Journal of Business Management, Vol. 28, Issue 3, 113.
21. Parasuraman, A., et al. (1991a), Perceived Service Quality as a customer-based Performance Measure; An Empirical Examination of Organisational Barriers Using an Extended Service Quality Model, Human Resource Management, Vol. 30, No. 3, (Autumn), 335-64.
22. Parasuraman, A. et al. (1985), A Conceptual Model of Service Quality: Implications for Future Study, Journal of Marketing, 49 (Fall), 41-50.
23. Parasuraman, A. et al. (1988), SERVQUAL: A Multiple-Item Scale for Measuring Consumer Perceptions of Service Quality, Journal of Retailing, Vol. 64, No1, (Spring), 12-40.
24. Parasuraman, A. et al. (1994a), Reassessment of Expectations as a comparison Standard in Measuring Service Quality: Implications for Further Research, Journal of Marketing, Vol. 58, (January), 111-124.
25. Reeves, C. A. and D. A. Bednar (1994), Defining Quality: Alternatives and Implications, Academy of Management Review, Vol. 19, No. 3, 419-445.
26. Richard, M. D. and A. W. Allaway (1993), Service Quality Attributes and Choice Behaviour, Journal of Service Marketing, Vol. 7, No. 1, 59-68.
27. Sadchev, S. B. and H. V. Verma (2002), Customers Expectations and Service Quality Dimensions Consistency, Journal of Management Research, Vol. 2, No. 1, (April), 43-52.
28. Sweeney, J. C. et al. (1997), Retail Service Quality and Perceived Value, Journal of retailing and Consumer Services, Vol. 4, No. 1, 39-48.
29. Teas, R. K. (1993), Expectations, Performance Evaluation, and Consumers Perceptions of Quality, Journal of Marketing, Vol. 57, (October), 18-34.
30. Tsegai, A. (1999), Challenges and tasks of financial intermediaries in Eritrea, paper presented at a National workshop on Development of Finance, Banking and Insurance, Teraemni, Eritrea.
31. Urdang, B. S. and R. M. Howey (2001), Assessing Damages for Non-performance of a travel Professional—a Suggested Use of “SERVQUAL”, Tourism Management, 22, 533-538.
32. Woo, K. and C. T. Ennew (2005), Measuring Business-to-Business Professional Service Quality and its Consequences, Journal of Business Research, 58, 1178-1185.
33. Zeithaml, V. A. et al. (1988), A Communication and Control Processes in the Delivery of Service Quality, Journal of Marketing, 52, 35-48.
34. Zeithaml, V. A. et al. (1996), The behavioural Consequences of Service Quality, Journal of Marketing, Vol. 60 (April), 31-46.
35. Zeithaml, V. A. et al. (1990), Delivering Quality Service, New York Free Press.
36. Zhou, L. (2004), A dimension specific analysis of performance only measurement of service quality and satisfaction in China’s retail banking, Journal of Services Marketing, Vol. 18, No. 7, 534-546.