Service Quality Index: A Study on Malaysian Banks

Abstract

ABSTRACT The paper aimed to construct a measure in service quality for Malaysian banks. It focuses on the technique used in creating an index for service quality. The SERVQUAL model was used as the underlying theoretical framework. The quantification of service quality led to the attempt to construct an index. The index was constructed using Structural Equation Modeling (SEM) and American Customer Satisfaction Index (ACSI) as the underlying frameworks. An adapted ACSI was enhanced and improved to accommodate 2 exogenous constructs. The attempt was successful. A survey was conducted on 350 respondents where 200 were completed. Results provided evidence relevant to the literature where service attributes in service quality could improve customer satisfaction. Keywords: SERVQUAL, ACSI, Service Quality, Service Attributes, Structural Equation Modeling (SEM), Customer Satisfaction and Malaysian Banks