Does Digital Customer Service Drive Satisfaction? Unpacking the SERVQUAL Model in Delhi NCR's Banking Sector

Abstract

This research aims to examine the impact of digital customer service on customer satisfaction in the banking sector of Delhi NCR, specifically by validating the SERVQUAL model's applicability in a digital banking context. The study collected data from customers actively using digital banking services across six banks (three public and three private sector banks) operating in six locations within Delhi NCR. A structured questionnaire based on the SERVQUAL scale was administered to the sample. The research employed Confirmatory Factor Analysis to assess how the five service quality dimensions—tangibles, reliability, responsiveness, assurance, and empathy—influence customer satisfaction in the digital banking environment. The results confirm that the SERVQUAL model is statistically robust and suitable for structural equation modeling in digital banking settings. All five service quality dimensions demonstrated significant relationships with customer satisfaction. The measurement model proved highly reliable and valid, with no multi-collinearity issues detected. The model fit indices indicated a good fit, supporting the applicability of the SERVQUAL framework to digital banking services. The findings provide practical insights for bank managers seeking to enhance customer satisfaction. By focusing on improving tangibles (digital interface design), reliability (consistent service delivery), responsiveness (efficient issue resolution), assurance (security and trust), and empathy (personalized digital interactions), banks can strengthen customer satisfaction in the increasingly digitalized banking landscape of Delhi NCR.