Customer satisfaction in Indian commercial banks through total quality management approach

Abstract

This study examines whether soft and hard aspects of quality management practices determine service quality and customer satisfaction. Data were collected from a branch manager and a valued customer from each of the 315 scheduled commercial bank branches in Orissa (India). A conceptual model depicting the relationship was tested applying structural equation modelling. Results reveal that transformational leadership, workplace spirituality and service climate, depicting the soft aspects of quality management practices, do increase employees' job satisfaction and affective commitment. Employees' job satisfaction and affective commitment have a positive influence on human aspects of service quality, which in turn increases customer satisfaction. Management information system and physical evidence depicting hard aspects of quality management practices enhance service quality and the latter furthers customer satisfaction. Applying the hard and soft aspects of quality management practices in a synergistic manner, organisations can deliver high service quality and achieve customer satisfaction.