CUSTOMER PERCEPTION ON SERVICE QUALITY OF COMMERCIAL BANKS: A CASE STUDY IN PENANG, MALAYSIA

The main objective of this study is to identify customer’s perception on the service quality dimensions in commercial banks in Butterworth, Penang. In this study three commercial banks are chosen to be analyzed. These banks are Public Bank, CIMB Bank and Maybank that is located only in Butterworth. The results show that the most important service quality practice on customer’s overall satisfaction is responsiveness as it is perceived as a dominant service quality. The results also reveal that the service quality dimension (independent variables) of attentive, flexibility, communication, friendliness and responsiveness are positively and significantly influencing the dependent variables (customer’s perception). Thus, this present research concluded that service quality is the basic and also most important factor that influences the overall customer perception in preferring the services of Banks. This finding reinforces the need for banks managers to place an emphasis on the underlying dimensions of service quality especially on responsiveness and should start with improving service quality in order to attract more customers in future.