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Service Quality and the Banking System

 

Companies and especially service companies should further develop and improve their service quality in order to satisfy their clients. The ancient Japanese phrase "Customers are kings", is now truer than ever; customers are determinant for the development and direction of a business. .
             To determine the meaning of service quality we should focus on the customer and its perception of such quality. Is believed that customers are fully satisfied if service quality is accomplished and it directly affects the demand for a certain service product. As we can see, quality is a very important tool of service providers and their offer on this market. By establishing the demand and offer for a product, quality directly affects profits and other financial variables of business performance. High quality leads to profit growth, as it satisfies the customers need and fulfill their expectations. Following this logic, service quality should be seen as a strategic force and a significant source of advantage in the competitive market in which the company operates. .
             Basing the service in quality, help the firm to develop a competitive advantage and recognizable image on the market; this makes it harder for potential competitors to enter the market or compete with a similar service. This strategy leads to a bigger market share and higher profits but has one disadvantage; the company cannot develop a copycat strategy in some point of its activity from its competitors and has higher costs. While defining product quality is quite easy, as it is something that we can see and touch, the problem gets bigger while we have to define service quality. Some authors claim that the problem in defining this term stands in its nature. According to this theory, customer's perception of quality depends on same benchmarks, if a certain service can be standardized. They emphasize the relationship between service quality and satisfaction, whereas some other claims that satisfaction depends on a larger number of variables or factors.


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