Customer Satisfaction and Banking Service Quality: A Comparative Study of Public and Private Banks in Ajmer District.

Abstract

The banking sector plays a crucial role in economic development, and customer satisfaction has emerged as a key indicator of service performance and competitive advantage. This study examines the relationship between banking service quality and customer satisfaction and compares satisfaction levels between public and private bank customers in Ajmer District, Rajasthan. The study adopted a descriptive and comparative research design and utilized a structured questionnaire based on the SERVQUAL (RATER) model comprising Tangibility, Reliability, Responsiveness, Assurance, and Empathy dimensions. Primary data were collected from 200 respondents, including 100 customers each from public and private sector banks. The collected data were analyzed using SPSS through descriptive statistics, Cronbach’s Alpha, Pearson’s correlation, and independent samples t test. The reliability analysis revealed excellent internal consistency of the instrument (Cronbach’s Alpha = 0.959). The findings indicated moderate to high levels of satisfaction with banking services. Pearson’s correlation analysis showed a very strong positive relationship between banking service quality and customer satisfaction (r = 0.909, p < 0.001). Furthermore, a significant difference was observed between public and private bank customers, with private bank customers reporting substantially higher satisfaction levels (M = 4.400) than public bank customers (M = 2.575). The independent samples t-test confirmed that the difference was statistically significant (t = -36.092, p < 0.001). The study concludes that banking service quality is a significant determinant of customer satisfaction and that private banks outperform public banks in delivering customer-oriented services in Ajmer District.