The Effect Of Demographics Factors On Customer Service Quality Expectations In Indonesian Retail Banking Industry

Abstract

This paper presents results of a study that conducted in attempt to examine the effect of demographics factors on service quality quality expectation in Indonesian retail banking industry. This research is conducted utilizing a field-based cross-sectional design, based on data collected from 1201 retail bank customers who do their banking activities in Jakarta by visiting branches, or utilizing ATM in the last one months. Service quality expectations are measured based on the consumer’s perceived importance of the 5 dimensions of SERVQUAL from Parasuraman et al. (1988).  Due to the widespread utilization of electronic banking particularly ATM, one additional service quality factors related to it was assessed. Analysis of variance was used to determine the effect of various consumers’ demographic characteristics (gender, age marital status, education, income, and occupation) on service quality expectations. The results indicate that there are significant effects of customer’s demographic characteristics on service quality expectations. Many of the research findings from this study contradict previous researches conducted in Western countries, indicating that culture has significant effect on the customer’s expectation.