Governance of Customer Satisfaction: Evidence from Indian Banking & Financial Services Sector

The purpose of this paper is to examine the factors that govern the customer satisfaction in the financial services sector in India. Banking and Financial Services are the backbone of every economy in the globe. India has a diversified financial sector experiencing quick growth of 8.5% per year, both in terms of the strong development of existing financial services firms and new units entering the marketplace. A Confirmatory Factor Analysis (CFA) and Structural Equation Modeling have been applied. A structured questionnaire was developed for this purpose. Results show that perceived value has a substantial impact on customer satisfaction in the financial services sector. Moreover, there is a robust positive association between perceived quality and perceived value. The findings provide more proofs of the important factors and results of customer satisfaction. This study does not measure the mediating role of customer satisfaction in business competency. Future studies could be directed to evaluate the relationship.