Service Quality Traditionally, service quality has been conceptualized as the difference between customer expectations regarding a service

to be received and perceptions of the service being received (Grnroos, 2001; Parasuraman, Zeithaml, & Berry, 1988). In some earlier studies, service quality has been referred as the extent to which a service meets customers needs or expectations (Lewis & Mitchell, 1990; Dotchin & Oakland, 1994). It is also conceptualized as the consumers overall impression of the relative inferiority or superiority of the services (Zeithaml, Berry, & Parasuraman, 1990). Measure of Service Quality Drucker (1991) defines service quality as what the customer gets out and is willing to pay for rather than what the supplier(of the service) puts in. Hence, service quality is often conceptualized as the comparison of service expectations with actual performance perceptions (Bloemer, Ruyter et al. 1999; Kara, Lonial e t al. 2005). Service scienc e literature often relies on SERVQUAL as an instrument to measure qua lity of service provided. SERVQUAL scale was developed based on a marketing perspective with the support of the Marketing Science Institute (Parasuraman, Zeithaml et al. 1986). SERVQUAL principle primarily relies on a gap model (Parasuraman, Zeithaml et al. 1985) (Figure 1).

Every gap in SERVQUAL has a unique role as follows: Gap 1: difference between consumer expectations and management perceptions of consumer expectations. Gap 2: difference between management perceptions of consumer expectations and service quality specifications. Gap 3: difference between service quality specifications and the service actually delivered. Gap 4: difference between service delivery and what is communicated about the service to the consumer.

 Gap 5: difference between consumer expectations and perceptions.

Refined SERVQUAL defines five dimensions of service quality (Parasuraman, Zeithaml et al.1988). These are: (1) Tangible physic al facilities, equipment, and appeara nce of personnel; (2) Reliability ability to perform the promised service depe ndably and accurately; (3) Responsiveness willingness to help customers and provide prompt service; (4) Assurance knowledge and courtesy of employe es and their ability to inspire trust and confidence; (5) Empathy caring, the individualized attention the firm provides its customers.

Customer Loyalty As identified by the researchers that customer loyalty as a construct is comprised of both customers attitudes and behaviors. Customers attitudinal component represents notions like: repurchase intention or purchasing additional products or services from the same company, willingness of recommending the company to others, demonstration of such commitment to the company by exhibiting a resistance to switching to another competitor (Cronin & Taylor, 1992; Narayandas, 1996; Prus & Brandt, 1995), and willingness to pay a price premium (Zeithaml, Berry, & Parasuraman, 1996). On the other hand, the behavioural aspect of customer loyalty representsactual repeat purchase of products or services that includes purchasing more and different products or services from the same company, recommending the company to others, and reflecting a longterm choice probability for the brand (Feick, Lee, &

Lee, 2001). It can be concluded that customer loyalty expresses an intended behavior related to the product or service or to the company. Pearson (1996) has defined customer loyalty as the mind set of the customers who hold favorable attitudes toward a company, commit to repurchase the companys product/service, and recommend the product/service to others. The researchers have used the definition of Pearson (1996) for this study. Relationship between Service quality and Customer Loyalty In various studies the relationship between service quality and customer preference loyalty had been examined (Boulding, Kalra, Staelin, & Zeithaml, 1993; Cronin & Taylor, 1992). In their study Cronin and Taylor (1992) focused solely on repurchase intentions, whereas Boulding et al. (1993) focused on the elements of repurchasing as well as the willingness to recommend. In the study by Cronin and Taylor service quality did not appear to have a significant (positive) effect on repurchase intentions (in contrast to the significant positive impact of satisfaction on repurchase intention), whereas Boulding et al. (1993) found positive relationships between service quality and repurchase intentions and willingness to recommend.

Service quality in banking sector Koushiki Choudhury (2007) in his study suggests that customers distinguish four dimensions of service quality in the case of the retail banking industry in India, namely, attitude, competence, tangibles and convenience. Identifying the underlying dimensions of the service quality construct in the Indian retail banking industry is the first step in the definition and hence provision of quality service. The paper has drawn upon the findings of the service quality dimensions to contend the initiatives that bank managers can take to enhance their employees' skills and attitudes and instill a customer-service culture. Sandip Gosh Hasra and BL Srivastava (2009) in their study indicated that the bank should pay attention to these dimension of service quality and pay more attention to dimension of assurance-empathy to increase loyalty to a company, willingness to pay, customer commitment and customer trust. Sudesh (2007) revealed that poor service quality in public sector banks is mainly because of deficiency in tangibility, lack of responsiveness and empathy. Private sector banks, on the other hand, were found to be more reformed in this regards. Above all, the foreign banks were relatively close to the expectations of their customers with regard to various dimensions of service quality. Further, the study revealed that there existed service quality variation across demographic variables and suggested that management of banks should pay attention to potential failure points and should be responsive to customer problems. Joshua A J and Moli.P.Koshi(2005) in their study on Expectation and perception of service quality in old and new generation banks, observed that the performance of the new generation banks across all the service quality dimensions are better than those of old generation banks.

Al-Fazwan (2005) in his study found that the bank should concentrate on accessibility dimension. He stated that the particular bank should take maximum efforts to raise the level of services to meet out the customer expectations. CONCLUSION Banks have to understand the changing needs of customers, their aspirations and expectations to create value. Banks should also have a strong customer relationship management system that would indicate the worth of the customer and be able to understand his needs while interacting with him, so as to cross sell their products. To manage growth and continuity in business, human resources play an important role. The new generation private sector banks and foreign banks enjoy a lead in this regard when compared to PSBs and old generation private sector banks. Skill sets of employees need up gradation so as to make them more comfortable with the latest technology that will increase their comfort level while educating customers to use the same in their day to day dealings. [M.V.Nair, The Hindu-Survey of Indian Industry 2010, pp.60-61].Banks may follow a feedback system to know the customer expectations for improving the level of customer satisfaction to maximum level. Remarks on service reliability should be continuously obtained from customers. This will enhance their service quality to a large extent.