Service sector is highly impacted with the fourth industrial revolution. Technology is back bone of most services today. Technology is blurring the characteristics of services like inseparability, perishability and for sure variability. Banking a most transacted service is no different. The relationship of service quality expectations with choice of brand is well established, but in highly competitive environment where general service quality attributes are almost non- variable, it becomes important to understand what other constructs influence the service brand choices. We in this paper attempted to explore how reference groups or country of origin influences the choice of service brands. The service quality expectations are derived from the service perceptions of existing customers and word of mouth. Word of mouth is more impactful when it comes from friends and family or people with likeliness in needs of consumption. This paper attempts to establish the possible relationship of reference groups influence on service expectations and choice particularly focusing on the normative and comparative influence. It also attempts to check if country of origin which is so predominant in goods, influences the brand choice for services.
The empirical study was initiated with a survey conducted on convenient sample across India on questions developed from marketing scales relating to the construct of service expectations, reference group influence, country of origin of two pre- tested banks having most mind share, one a private player another a foreign bank operating in India and lastly the choice of brands amongst the two. The respondents had to rate both the banks, private and foreign, so that the perceptions can be dissected. To analyze SPSS was used to supplement the descriptive statistics with the theory of moderation and mediation to gauge the kind of influence several reference group factors on country of origin have on the established relationship of service expectations and choice of brands.
We noticed through the descriptive study that while assurance and trust continue to weigh high as quality dimensions for most respondents. It is also observed that people make a choice primarily because of “Empathy” dimension of SERVQUAL. Study also revealed that there is a significant relationship between SQE and RGI and which is well moderated by age.
Table of Contents
1 INTRODUCTION
1.1 MOTIVATION FOR THE RESEARCH
1.2 THE CONTEXT OF BANKING IN INDIA
1.3 A PERSPECTIVE ON THE RESEARCH PROBLEM
1.4 SUMMARY OF THE RESEARCH OPPORTUNITY
2 LITERATURE REVIEW
2.1 ‘SERVICE QUALITY EXPECTATIONS’ AND BRAND PREFERENCES
2.2 EXPECTED SERVICE QUALITY AND GROUP INFLUENCE
2.3 REFERENCE GROUP AND BRAND PREFERENCE
2.4 ‘COUNTRY OF ORIGIN’ AND SERVICE EXPECTATIONS LEADING TO BRAND PREFERENCE
2.5 CHOICE OF BRAND IN CONTEXT OF BANK
2.6 CONCEPTUAL FRAMEWORK
3 METHODOLOGY
3.1 RESEARCH DESIGN
3.2 DATA COLLECTION
3.3 TARGET POPULATION
3.4 SAMPLING METHOD
3.5 SAMPLE SIZE
3.6 RESPONSE SCALE
3.7 KEY VARIABLES
3.8 DATA ANALYSIS PLAN
3.9 MEASUREMENT OF THE VARIABLES TO SELECT THE CORRECT DATA ANALYSIS
4 ANALYSIS OF THE DATA, RESULTS AND DISCUSSION
4.1 INTRODUCTION
4.2 ANALYSIS OF DATA AND RESULTS
4.1 LIMITATIONS
Communication Constraints
Scoping Constraints
Questionnaire Constraints
5 CONCLUSSIONS AND RECOMENDATIONS
5.1 CONCLUSION
5.2 SERVICE EXPECTATIONS AND GROUP INFLUENCE
5.5 FUTURE RESEARCH
6 REFERENCES
SECTION I: PRE-TEST QUESTIONAIRE
SECTION II: FULL QUESTIONAIRE
Research Objectives and Themes
This thesis investigates the complex relationship between service quality expectations and the selection of banking brands in India. It aims to determine how social reference groups and the country of origin of a banking brand influence consumer decision-making processes, specifically moving beyond traditional service quality models to incorporate psychological and behavioral factors.
- The role of "Service Quality Expectations" (SQE) in driving brand preference.
- The impact of normative and comparative reference group influence (RGI) on service expectations.
- The moderating effect of "Country of Origin" (COO) on the relationship between service quality and brand choice.
- The influence of demographic factors, particularly age, on the susceptibility to group influence and service expectations.
Excerpt from the Book
1.1 MOTIVATION FOR THE RESEARCH
In service marketing, the service quality is the most explored topic as service quality is one of the most important factors of service as offering. Previous empirical studies have connected service quality to firm’s performance (Zeithaml et al. 1996; Boulding et al. 1993), customer satisfaction is an outcome of the Gap model, it depends on the expectation and perceptions of service quality (Cronin and Taylor, 1992; Oliver, 1993; Taylor and Baker, 1994) and purchase intention (Zeithaml et al., 1996; Boulding et al., 1993). The Gap model in service quality measured using the ServQual model, is derived from the comparison that between ‘service quality expectations’ and service quality perception of the customers, perception is a derivation of the way the service has been delivered to existing customers (Parasuraman, Berry and Zeithaml, 1985; 1988). While expectation is a pre-consumption mental state.
While satisfaction is a post purchase phenomenon, the pre-consumption anticipation or expectations of quality for services can be evolved and crafted in individuals over time. For a fixed level of perceived quality, the overall service quality may vary due to the varying service expectations of customer. Zeithaml, Barry and Parasuraman (1993) suggested that the service expectations are influenced by several controllable (explicit or Implicit service promises) and uncontrollable factors. One or few of these uncontrollable and variable factors may have a significant relationship to social group influences, like WOM, personal needs and perception of services quality alternatives and predicted services. Meuter et al. (2000) discovered that customers more often engage in positive word-of-mouth and if satisfied will repurchase and share their positive experiences. Further studies in the consumer behavior have revealed that for a consumer, pleasure, unhappiness and other elements of satisfactions will lead and motivate consumers to share their respective experiences with others (Dichter 1966; Neelamegham and Jain 1999; Nyer 1997) and most effectively with the relevant others.
Summary of Chapters
1 INTRODUCTION: This chapter outlines the research motivation, the context of the Indian banking sector, the research problem, and defines the overall research opportunity.
2 LITERATURE REVIEW: This chapter covers relevant literature on service quality expectations, reference groups, country of origin effects, and defines the conceptual framework for the study.
3 METHODOLOGY: This chapter details the research design, data collection methods (including pre-test and main survey), target population, sampling method, and statistical analysis plan.
4 ANALYSIS OF THE DATA, RESULTS AND DISCUSSION: This chapter presents the empirical findings, statistical results of hypotheses testing, and discusses limitations encountered during the research.
5 CONCLUSSIONS AND RECOMENDATIONS: This chapter provides conclusions based on the research findings, managerial implications for banks, and suggestions for future research.
Keywords
Service Quality, Banking, Reference Group Influence, Country of Origin, Brand Preference, Customer Satisfaction, SERVQUAL, Consumer Behavior, Normative Influence, Comparative Influence, India, Financial Services, Marketing, Purchase Intention, Moderation Analysis
Frequently Asked Questions
What is the core focus of this research study?
The study examines the relationship between service quality expectations and the preference for specific banking brands in India, specifically looking at how external factors like reference groups and country of origin moderate this relationship.
What are the primary thematic areas covered?
The work focuses on service quality dimensions, social influence via reference groups (normative and comparative), the country of origin (COO) effect on service branding, and consumer choice behavior in the Indian banking industry.
What is the primary objective or research question?
The primary objective is to investigate how reference group influence and the country of origin of a bank moderate the established relationship between service quality expectations and actual brand preference in the Indian banking context.
Which scientific methodology is utilized?
The researcher uses a deductive, quantitative research approach, employing an administered survey with marketing scales (based on SERVQUAL) and statistical testing through linear regression, mediation, and moderation analysis using SPSS.
What topics are discussed in the main body?
The main body covers the theoretical framework of service expectations, the role of word-of-mouth and social pressure in banking choices, and empirical data analysis verifying several hypotheses related to age, social influence, and brand perception.
Which keywords characterize this work?
Key terms include Service Quality, Banking, Reference Group Influence, Country of Origin, Brand Preference, Customer Satisfaction, and Consumer Behavior.
How does age affect the relationship between service expectations and reference groups?
The study finds that age moderates this relationship, with younger age groups showing higher susceptibility to reference group influence compared to older consumers.
Does the "Country of Origin" of a bank impact brand preference in India?
Yes, the study finds that the country of origin acts as a moderator in the relationship between service quality expectations and brand preference, particularly for foreign banks like Citibank in the Indian market.
- Arbeit zitieren
- Sankalpa Sen (Autor:in), 2017, Effects of Reference Groups and Country of Origin on the Relationship of Service Quality Expectations and Choice of Brands, München, GRIN Verlag, https://www.grin.com/document/434334
