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the competitive environment, service quality is the most essential tool that required
critical attention for any organization to win the competition. This is
especially true in the case of service industry where there is frequent
interaction with the customers (Melaku, 2015).
Customer strive for quality services for their satisfaction. So, it is obvious
that customer satisfaction is most crucial thing in service industry in order
to remain in the competition. This is constantly seen in the banking industry.

do business with customer’s money. So, the more satisfied the customers are
while involving with the bank, the more secure is the bank’s business and
profitability. If a bank cannot provide proper customer service, then the bank
would be losing its customers. The profitability would also be decreasing
because of the poor customer service (Karim & Chowdhury, 2014). So, the
customers in the banking sector have strong bargaining power in order to beat
the competition.

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in the banking industry has increased and banks are competing based on their
perceived service quality. Service quality has various dimensions and each
customer place different level of importance on each dimensions of service
quality. Each bank has identified themselves with at least one of the
dimensions of service quality that they think it will drive customers’
perceived service quality satisfaction (Bonsu
& Mensah, 2013).

quality has various dimensions. The dimensions of service quality include
tangibility, reliability, responsiveness, assurance and empathy.  The service providers’ perception of service
quality may be quite different from what customers perceive as service quality (Melaku, 2015). Therefore, if banks are to
compute in providing quality service to customers, it is important to
understand the customer perception and expectation of quality service. So, the
banks need to identify what dimensions of service quality has significant
impact on the satisfaction of the customers in order to beat the competition.


Previous researches that have also
identified that customer expectations are higher and customer perceived service
quality is low. This research is carried out in the context of Nepalese banking
sector in order to identify the factors that affect the customer satisfaction
because the factors leading to satisfied customers differ from one geographical
region to another. In some places, customers are satisfied with the service
provided by government banks and in some places customer are satisfied towards
private banks (Devkota & Dahal ,2016).

So, the Nepalese banks are facing the challenges
of providing good quality services and satisfying their customers. By
considering it, this study is trying to find out the relationship between
service quality dimension and customer satisfaction in Nepalese banking

more specifically tangibility, reliability, responsiveness, assurance and
empathy are considered as the independent variables which are expected to have
huge impact in the customer satisfaction of Nepalese banks which is the
dependent variable.

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