Testing the Fit of the BANKSERV model to BANKPERF data

To date, financial institutions have no recognised publicly available and standard scale to measure the quality of their services (Bahia and Nantel, 2000). Much of the service quality literature has focused on two measures, SERVQUAL and SERVPERF. Although debate continues about the pros and cons of these individual measures, the reality is that neither is industry specific. The BANKSERV instrument was developed to measure service quality in retail banking as perceived by customers. It was designed to allow customers to reflect on their expectations and perceptions in single statements. This paper reports the results of a confirmatory factor analysis conducted to test the fit of the BANKSERV model to data collected using a perceptions-only measure (BANKPERF). Data were collected via questionnaire, with a sample of 348 banking customers being obtained. Findings suggest that the ‘goodness of fit’ of the BANKSERV model to the observed data was ‘marginal’.