The Impact of Service Quality on Customer Satisfaction in Banking Sector of Karachi

In Pakistan, the banking sector after privatization and liberalization of the economy has become highly competitive. It has become dijjicult for banks to retain existing customers and attract new ones. By providing a quality service, banks can have a satisfied consumer base. Thus, this study aims to measure the effect of tangibility, reliability, responsiveness, empathy and assurance on customer satisfaction in the extended the SERVQUAL model for meeting th banking sector of Karachi. This research has e research objectives. The population for this study are the customers in the banking sector and the sample size consists of 403 respondents. After pilot testing, questionnaires were administered to the respondents through the mall intercept method. The model explained the efiect of service parameters on customer satisfaction. The study finds that the strongest predictor of customer satisfaction was responsiveness ( R2 =.53) followed by reliability (R2 =.5l), tangibility (R2 =.48), assurance (R2 =.44) and empathy (R2 =39). Keywords: Service Quality, Customer Satisfaction, Tangibility, Reliability, Responsiveness Empathy, Assurance.