Managing Service Quality with BSQ Index

This study aims to design and validate a new measuring instrument of service quality, and to establish a national service quality index for the banking sector. The new Bank Service Quality (BSQ) Index is expected to be an important complement to traditional measures of economic performance. The proposed 29-item instrument has been empirically tested for unidimensionality, reliability and validity using both exploratory and confirmatory factor analysis. A factorial analysis suggests that service quality has three dimensions namely 'Systemization', 'Reliable Communication' and 'Responsiveness'. Specific strategies are recommended for the design of an efficient service delivery process for the banking institutions.