DEVELOPMENT OF BANKING CUSTOMER SATISFACTION INDEX: WITH REFERENCE TO CHENNAI CITY, INDIA

The quantitative evaluation of customer satisfaction has become imperative given the rising competition and customer-centricity in the Indian services sector. However, there is no standard Customer Satisfaction Index (CSI) in India which served as a motivation behind this study which aims to develop and validate an indigenous CSI model in the context of Indian banking services. Both qualitative and quantitative analyses were used to develop the Banking CSI model which consisted of five constructs i.e. perceived quality, perceived monetary value, perceived non-monetary value, brand image, and customer satisfaction. The hypothesized model was validated using Structural equation modelling (SEM) based on 492 responses collected from bank customers in Chennai city, the banking capital of India. The SEM estimation process validated all interrelationships between the constructs except perceived monetary value customer satisfaction. The Banking CSI score was computed as 69.5 on a scale of 1- 100, which implied that the customers were fairly satisfied with the services provided by the banks. The potential applications of the Banking CSI along with research implications and future research directions are discussed.