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Asian Business Research Journal 
Vol. 3, 33-40, 2018 
ISSN(E) : 2576-6759 
DOI: 10.20448/journal.518.2018.31.33.40 
© 2018 by the authors; licensee Eastern Centre of Science and Education, USA 

 
 

 
 
Service Quality Delivery of Rural Banks:  Perception of Customers in Emerging 
Economies 
 
Michael Ayikwei Quarshie1    

Reginald Djimatey2    

Ama Abakah-Anaman3    

 

 
( Corresponding Author) 

 

 

1,2Department of Entrepreneurship and Business Sciences, University of Energy and Natural Resources, Sunyani, 
Brong Ahafo Region, Ghana 

 
3Takoradi Technical Institute, Takoradi, Western Region, Ghana 

 

 
Abstract 

The aim of this study was to investigate service quality delivery of rural banks in emerging 
economies from the customers’ perspective. This study employed descriptive design. A 
questionnaire designed by the researchers was used to obtain data from 382 customers, using 
convenience sampling technique. Data were presented and analyzed using descriptive statistics 
which included frequencies, percentages, means and standard deviation. The study found that 
customers want rural banks in Takoradi to establish more convenient branches i.e. sub branches, 
outlets and further extend banking hours to resolve overcrowding at the banking halls. It was 
therefore recommended that management of these rural banks in Takoradi, Ghana should liaise 
with stakeholders to establish more branches in its catchment areas to ease the frequent 
congestion in the banking halls. 

 
Keywords: Service quality delivery, Rural bank, SERVQUAL, Customer satisfaction, Responsiveness, Empathy, Assurance, Reliability, 
Tangibility, Perception 

JEL Classification: M30 
 
1. Introduction 

In the rural banking sector, service quality remains a very essential part of customers’ experience. As a result, 
most rural banks consistently appraise their services to promote customer satisfaction, keeping in mind the end 
goal to improve consumer loyalty.  

As demonstrated by Swar and Sahoo (2012), clients are satisfied when rural banks offer quality service that 
meets customer aspirations. Quality service rendered by banks along these lines creates a more fulfilled client. 
Some studies (Chandon et al., 1997; Jallat and Wood, 2005; Farayibi, 2016) have pointed out that the satisfaction of 
customers is highly dependent on the quality of service offered by an organization. The quality of service delivery 
is noted as a very influential variable in maintaining the satisfaction of customers which leads to the promotion of 
customer loyalty in the long run. 

The banking sector has seen some various degrees of innovations in recent times. These have been as a result 
of new advances in technology and marketing, stiff competition, advertisement, unfavorable economic conditions, 
unpredictable customers and rapid changing business climate. Notably, the foregoing factors pose some challenges 
to these rural banks. Increased product varieties, diffusion and competition as well as highly enlightened consumers 
require that bank marketers solicit views on how to meet customer satisfaction through effective service quality 
delivery.  

Because of the swift advancement in technology and stiff competition, most firms, especially banks, must 
provide excellent services to accomplish the dynamic banking needs of their customers. In a bid to maximize 
customer satisfaction, rural banks must examine the kind of service offered to customers. 

 Rural banking in Ghana today is transforming to warmly embrace the customer needs in their strategic 
orientation. Besides their dominance in the rural areas under their catchment areas, rural banks now find 
themselves in major cities that are within the mandated 40-kilometer radius. Universal banks are opening more 
mobilization centres in urban places. However, the challenge is that as rural economies undergo fundamental 
changes, so do the universal banks.  

Banking deregulation in recent times has encouraged the evolution of new financial institutions much as the 
nationwide branching of existing ones (Addeah, 2001).  

Larger financial institutions by virtue of their flexible policy regulations are extending their services and 
products from the cities into these rural places and competing with the rural banks. It is thus a common activity to 
witness the rural communities flooded with commercial banking and micro financing institutions (Bank of Ghana, 

http://crossmark.crossref.org/dialog/?doi=10.20448/journal.518.2018.31.33.40&domain=pdf&date_stamp=2017-01-14
http://ecsenet.com/index.php/2576-6759/article/view/9
https://orcid.org/0000-0003-4391-6484
https://orcid.org/0000-0001-9757-5799
https://orcid.org/0000-0003-2229-4620
http://ecsenet.com/index.php/2576-6759/article/view/9
https://orcid.org/0000-0003-4391-6484
https://orcid.org/0000-0001-9757-5799
https://orcid.org/0000-0003-2229-4620
http://ecsenet.com/index.php/2576-6759/article/view/9
https://orcid.org/0000-0003-4391-6484
https://orcid.org/0000-0001-9757-5799
https://orcid.org/0000-0003-2229-4620
http://ecsenet.com/index.php/2576-6759/article/view/9
https://orcid.org/0000-0003-4391-6484
https://orcid.org/0000-0001-9757-5799
https://orcid.org/0000-0003-2229-4620


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2011). In order to raise funds to fulfill their mandate of meeting financial obligation of the rural communities, rural 
banks have to re-strategise and expand into economically viable areas.  

However, unlike the universal banks that have the freedom to raise equity capital and open branches without 
constraints, rural banks are constrained by two main factors: they are permitted to operate within a forty-kilometer 
radius from their head office and equity capital is mainly sourced from their shareholders from their catchment area 
(Association of Rural Banks, 2002).  

These characteristics place restriction on the competitiveness of rural banks in the financial sector. Many rural 
banks find themselves disadvantaged by the recent economic and financial changes as well as deregulations in other 
financial establishments. This policy restriction poses as a regulatory burden on the rural banks, making it difficult 
for them to compete favourably with their counterparts in the other financial institutions. 

The above demands that rural banks must surely improve the quality of service offered in a bid to attract and 
satisfy the banking needs of their customers. Satisfied customers become royal and provide sustained revenue for 
the rural banks (Swar and Sahoo, 2012). 

 Satisfied customers also attract potential clients into rural banks. To these effects all organizations strive for 
customer satisfaction. High patronage of service offered by an organization largely relies upon the satisfaction that 
customers get from that service.  

Remarkably, sales to some extent are directly linked to customer satisfaction as increase in sales requires 
constant improvement in the service quality, leading to continuous patronage. As a result, the SERVQUAL model 
which was developed by Parasuraman et al. (1985;1988) has been employed by many researchers globally to 
measure the quality of service offered by various institutions.  

Parasuraman et al. (1988) conceptualized the SERVQUAL model as an instrument to measure the quality of 
service based on the suggestion that quality of service is the difference between a customer’s expectations and 
perception of service delivery.  

As it were, service quality assessment is conceptualized as the gap between what clients anticipate from a kind 
of service offered by an organization and the assessments of the performance of that particular service offered by 
that organization. Parasuraman et al. (1988) established, that high degrees of relationship exist between 
correspondence, ability, graciousness and security on one hand, and access and comprehension on the other.  

They developed two dimensions of empathy and assurance to make up the five merged dimensions, specifically, 
tangibility, reliability, responsiveness, assurance and empathy. These measurements, therefore, served as the basis 
for measuring or assessing the quality of service delivery of rural banks in this study.  

Though some rural banks have introduced some few programmes and policies aimed at mitigating the needs of 
its customers, no much scientific study has been done by the rural banks to ascertain whether or not these 
interventions have been able to yield the expected return.  

These programmes include provision of appealing materials and equipment’s, provision of convenient branches 
(sub branches, outlets) and operating in extended hours to all its customers without wasting much time in long 
queues. It is against this background that this study sought to apply the measurement to investigate service quality 
delivery of rural banks in an emerging economy, Ghana from the customers’ perspective. 

 

2. Literature Review 
2.1. The Concept of Service Offering 

Unlike tangible products, a service is an unpredictable phenomenon and many segmented definitions have 
surfaced (Jallat and Wood, 2005; Hirvonen, 2007). Jallat and Wood (2005) characterized a service as a concurrent 
process, a social interaction, a relationship and an intangible result. Zeithaml et al. (2000) noted that services can be 
observed as deeds, procedures and performance.  

As indicated by Kotler and Keller (2006) a service is a demonstration or execution that one party can offer 
another that is basically elusive and does not result in the ownership of anything. Different authors have proffered 
various definitions relative to what service is or is not. Notwithstanding the different definitions, many believe that 
services are intangible, interactive, experiential and do not include the exchange of possession 
 

2.2. Characteristics of Service 
There are four special service characteristics that distinguish services from goods. As noted by Zeithaml et al. 

(2006); Zeithaml et al. (2000) and Soutar and McNeil (1996) the four fundamental attributes that separate services 
from goods are inseparability, intangibility, variability and perishability.  

Zeithaml et al. (1990) in admission recognized intangibility, heterogeneity, perishability and inseparability as 
the principal attributes that makes service not the same as goods as far as how they are delivered, expended and 
evaluated.  

 

2.3. Types of Service 
Studies (Bitner, 1990; Chandon et al., 1997; Liljander and Mattsson, 2002) have indicated distinctive sorts of 

connections that may happen in an experience. These are face-to-face interactions, remote interactions, and phone 
interactions (Surprenant and Solomon, 1987; Bitner, 1990; Chandon et al., 1997; Liljander and Mattsson, 2002). It 
has also been suggested that the different categories of service encountered may affect the overall service 
assessment (Danaher and Mattsson, 1994; Liljander and Mattsson, 2002). 
 

2.4. Service Delivery in Banks 
Service delivery is very much associated with the kind of quality services provided to clients or customers. 

Bank service delivery can simply be observed as the delivery and provision of quality services rendered to 
customers. Banks’ ability to render a good quality service to their clients would definitely be evident in their 
customer base as every customer would want a quality service (Farayibi, 2016).  



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Obviously, one of the components that separate competitors (banks) from the others (different banks) in the 
Ghanaian financial sector is their quality, level and nature of service rendered. This is on the grounds that service 
quality delivery decides the level of clients' satisfaction and thus, the client base of any bank. The support by clients 
on the quality of service delivery by a given bank, presumably, is subject to the level of the fulfillment they so get 
from it.  

Satisfaction in connection to a bank service quality delivery is the clients' assessment of the service regarding 
whether that service addressed his or her issues and desires (Ako-Nai, 2011). Happy and satisfied customers behave 
in a positive manner.  

The impact of service quality delivery by banks and the satisfaction resultant by clients are getting to be 
recognizable. Given that contemporary clients are more enlighten and informed in recent time, Mkoma (2014) puts 
forward that meeting clients’ desire in relations to satisfaction is progressively becoming more cumbersome. 
 

2.5. The Concept of Quality 
Some literature suggests that it is quite difficult to define quality (Zeithaml et al., 2006). There is no globally 

acknowledged definition of the term quality.  
The term quality has been viewed differently by many researchers’. Quality might be characterized as a 

property of goods or service, or procedures in delivering these goods or services (Sahney et al., 2004) characterized 
quality as meeting or surpassing client desires or expectation. Some researchers contend that quality is the way 
clients characterize it Lovelock and Wirtz (2007) and must be characterized from client's point of view. Sahney et 
al. (2004) contend that customer’s definition of quality product helps distinguish and build up the applicable bases 
and criteria for assessing quality.  

A meaning of "quality" was given by Coulson-Thomas and Brown (1990) from customer’s point of view. They 
viewed quality as: "How reliably or dependent is the product or service rendered, meets or surpasses the customer? 
(external and internal) expectations and needs".  

Brenda and Steve (2000) support this view and postulate that the term quality alludes to a state of mind about 
how to conduct business, regardless of the kind of business adventure. That state of mind fixates on two things: the 
first being meeting or surpassing customers' wants, needs, and desires and the second is, doing it in a productive 
way. It does no great to deliver a phenomenal product that no one needs, similarly as it does no great to create a 
superb item utilizing wasteful procedures. The quality concept then refers not just product or service provided but 
also how it is provided. 
 

2.6. SERVQUAL Model 
Zeithaml et al. (2000) define service quality as “… a global judgment or attitude relating to the overall 

excellence or superiority of the service”. They conceptualized a customer’s assessment of overall quality of service 
by applying (Oliver, 1980) disconfirmation model, as the gap among desires and views of service assessment levels. 
Besides, Zeithaml et al. (2000) recommend that overall quality of service assessment could be controlled by the 
measurement scale, SERVQUAL which employs five generic measurements: Tangibles (the presence of physical 
facilities, equipment, personnel, and communications materials); Reliability (the capacity to perform the guaranteed 
benefit constantly and precisely); Responsiveness (the readiness to help clients and offer prompt service); Assurance 
(the competence of the system and its believability in giving a courteous and secure service); and Empathy (the 
approachability, ease of access and exertion taken to comprehend client's needs).  

Parasuraman et al. (1985) from their exploratory research developed the SERVQUAL instrument and set out a 
theoretical framework for the measurement of quality of service. The SERVQUAL instrument has since become 
the most prevailing instrument for measuring quality of service. It initially comprises 10 measurements with 97 
items. However, this was later reduced to 5 measurements with 22 items in 1991. The five dimensions are 
tangibles, reliability, responsiveness, assurance and empathy. 
 

2.6.1. Tangibility 
Tangibles involve the physical proof of the service. According to Zeithaml et al. (2006) tangibles in details 

normally show physical facilities of the service provider, the appearance of personnel, materials associated to the 
service (credit and debit sheets, cheque books etc.), decorations and business hours, the tools and equipment used to 
provide the service. Tangibles are usually used by firms to express image and signal quality. 
 

2.6.2. Reliability 
According to Zeithaml et al. (2006) reliability is “the ability to perform the promised service dependably and 

accurately” or “delivering on its promises ". Does the firm deliver the service comfortable the first time? Does the 
firm respects it promises? These are a portion of the inquiries which should be answered by providers of service if 
they are to accomplish unwavering quality. 

 This measurement of quality service as indicated by Parasuraman et al. (1985) is the means by which the 
providers of service can give service to a client as promised, tried and true in dealing with clients' service issues, 
performs service right at the first instance, give service at guaranteed time and keep clients always informed about 
when service will be performed or available. 
 

2.6.3. Assurance 
Assurance involves the knowledge and courtesy of employees and their capacity to pass on trust and certainty. 

It likewise incorporates skill, obligingness, believability and security.  In the view of Saad Andaleeb and Conway 
(2006) assurance may not be so vital with respect to different industries where the risk is higher and the result of 
utilizing the service is questionable.  

For example, in the medical and healthcare industry, assurance is an imperative measurement that clients 
utilize as criteria in evaluating a health center or a specialist for a task. The trust and ultimate confidence might be 
visible in an employee who connects the client to the organization (Zeithaml et al., 2006). 



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2.6.4. Responsiveness 
Responsiveness concerns the ability or preparation of employees to offer service (Parasuraman et al., 1985). 

Responsiveness is concerned with managing the client's inquiries and concerns and immediately attending to that 
concerns or providing solution to this issues. 

 A firm is known to be responsive when it conveys to its clients to what extent it would take to find solutions 
or have their issues managed. To be effective, organizations need to take a look at responsiveness from the view 
point of the client as opposed to the organization's point of view (Zeithaml et al., 2006).  
 

2.6.5. Empathy 
Empathy involves minding and arrangement of individualized regard for clients by employees of the firm 

(Zeithaml et al., 2006).   
In this respect, the client feels exceptional and extraordinary. While trying to create empathy, employees of the 

firm should try to know the names of their clients, their inclinations and needs and find a way to fulfill them. Small 
scale organizations through the customized services to customers are in a superior position to accomplish empathy 
than large organizations. 
 

3. Research Methodology  
This study adopted a descriptive survey design. This descriptive research is designed to describe the existing 

situations and the features of rural banks in Takoradi. The researchers sought to answer the questions who, what, 
when, where and how (Zikmund, 2003). 

 In this study, the researchers applied a survey technique by distributing questionnaires to gain feedback from 
respondents and to gain understanding about perceive customer service delivery at the rural banks. According to 
Zikmund (1994) a survey technique can gather data or information from people by using a questionnaire. In that 
regard this survey uses questionnaire to collect data.  

Study population is a group of people who have the information that researchers seek and from which 
conclusions can be acquired (Malhotra and Birks, 2007). In this case, the study population was 8,513 customers 
from the rural banks as follows: Ahantaman Rural Bank Ltd, Lower Pra Rural Bank Ltd, Arb Apex Bank Ltd, 
Mansoman Rural Bank Ltd and Lower Amenfi Rural Bank Ltd Amanfrom in Takoradi. From the total population, 
the sample size was 382 respondents. This was determined using the Sloven’s formula; which states as follows: n = 

 

   ( ) 
 where n = sample size, N = accessible population and e = level of significance at 0.05. 

The study employed non-probability sampling technique, specifically, convenience sampling technique was 
used to obtain data because it is generally believed to be fast, easy, inexpensive, and the customers are reachable for 
the study. The sample comprises customers who were demanding service and were present at the banking hall 
during the data collection period.  

Researchers employ convenience sampling in light of the fact that it additionally has other research advantages 
apart from ease of availability and time saving. Convenience sampling is generally utilized on the grounds that it 
enables the researchers to get essential information and trends relative to the study without the inconveniences of 
utilizing a randomized sample. The main instrument employed for the data collection was a structured closed-
ended questionnaire.  

The questionnaire was designed to provide specific responses aimed at addressing the research question. 
Respondents were given a questionnaire to fill. Likert scales were used in measuring the variables of interest that 
have to do with respondents’ level of perceived banking service quality delivery. Fifteen questions on quality 
service delivery were administered to the respondents on which the analysis was based. Respondents were expected 
to tick the chosen item that corresponds to a given mark in Likert scale starting from 1= least agree to 4=highest 
agree. There are some reasons behind the selection of this method. First, it allows large quantum of information to 
be solicited at a relatively low cost. Second, more accurate and precise responses are obtained because researchers’ 
bias can be avoided. 

In order to reduce the chances of getting a wrong answer, attention was paid to the reliability and validity of 
the instrument used. Some steps were taken into consideration to ensure the validity and reliability of the study: 
Data were obtained from the reliable sources.  

Which means that a respondent must be a customer of the bank under research; questionnaire was made based 
on literature review; questionnaire was pre-tested by experienced persons to ensure it measured what it was 
supposed to; data were obtained through a short period of time. Results from the pre-test showed Cronbach’s Alpha 
of 0.78 in line with Pallant (2007) suggestions. To ensure strict compliance with ethical standards of research, 
written permission was duly sought from the respective rural banks, which was duly granted before data were 
collected. The researchers introduced a clause in the introductory paragraph of the questionnaire assuring 
respondents of anonymity and confidentiality. In addition, the time required for filling the questionnaire was 
mutually agreed between the respondents and the researchers.  
 

4. Results and Conclusion 
4.1. Respondent’s Background Information 

In this study, respondents’ background information was described as regards of sex, age range, highest 
education level, experience with the bank and type of account. Respondents were to state their characteristics for 
the purposes of classification and comparison. The study employed a closed ended questionnaire to categorize 
respondent’s background information and responses were analyzed using frequencies and percentage distributions 
as shown in Table 1. The results indicate that males were the majority respondents as represented by 61.5 per cent 
while females were in the minority as represented by 38.5 per cent. This finding shows that the greater number of 
rural banking populace in Takoradi is dominated by male customers.  

 



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About 32.5 per cent of the respondents indicated that their ages fell within the range 26-35 years. This was 
followed by 23.8 per cent whose ages range between 36-45 years. About 13.9 per cent of the respondents affirmed 
the age range of 18-25 years.  

Cumulatively, 29.9 per cent of the respondents indicated a range of 46 years and above. The finding reveals 
that most of customers of the rural banks in Takoradi are youthful, thus between 18-45 years. Concerning the 
highest educational levels of respondents, the findings show that 27.2 per cent have senior high school certificate. 
Approximately 29.1 per cent indicated that their highest educational level was junior high school education. About 
12.3 per cent and 11.3 per cent of the respondents indicated that they have Higher National Diploma and 
Bachelor’s Degree respectively.  

The background information further presents respondents experience in terms of the number of years they 
have been transacting business with the rural bank. The figure shows that 37.2 per cent of the respondents had 
banked between 1-5 years.  

This was followed by 34.0 per cent of the respondents whose bank experience spans 10 years and above. 
Nineteen per cent had banked between 6-10 years. This indicates that the majority of the respondents have some 
knowledge and experience about the rural banks since they have been customers for these respective banks for 
relatively longer period of time.  

With regard to the type of accounts held, 45.8 per cent of the respondents hold savings account, 24.3 per cent 
hold salary account, 15.7 per cent hold current account and the remaining 14.2 per cent hold loan account. The 
findings show that most customers prefer savings account with the rural banks in Takoradi to other forms of 
accounts. 

 
Table-1. Description of Respondents’ Background Information 

Background information Frequency Per cent 

Sex 
Male 235 61.5 
Female 147 38.5 
Total 382 100 

Age range (years) 
18-25  53 13.9 
26-35 124 32.5 
36-45 91 23.8 
46-55 69 18.0 
56 and above 45 11.8 
Total 382 100.0 

Highest Education Level 
Middle School 59 15.4 
JHS 111 29.1 
SHS 104 27.2 
Diploma 6 1.6 
HND 47 12.3 
First Degree 43 11.3 
Postgraduate 12 3.1 
Total 382 100.0 

Experience with the Bank (years) 
Below 1 year 36 9.4 
1-5 142 37.2 
6-10 74 19.4 
Above 11 130 34.0 
Total 382 100.0 

Type of Account 
Current 60 15.7 
Savings 175 45.8 
Loan 54 14.2 
Salary 93 24.3 
Total 382 100.0 

              Source: Primary data, 2018 
 

4.2. Level of Perceived Service Quality Delivery 
The objective of this study was set to determine the level of perceived service quality delivery in rural banks in 

Takoradi, Western Region, Ghana. Service quality delivery was measured using fifteen quantitative questions. 
Respondents were required to indicate the extent to which they agree with each statement by indicating the 
number that best describes their perception.  

All the fifteen items on service quality delivery were Likert scaled using four points ranging between 1= least 
agreement and 4= highest agreement. The responses were analyzed and described using means and standard 
deviations as summarized in Table 2. 

In relation to the tangibility dimension, the results revealed that most of the respondents expressed high 
agreement on whether employees at the rural bank are neat in appearance (mean = 2.86, std = 1.19). The results 
obtained further showed that the rural banks in Takoradi have modern looking equipment (computers, fast ICT 
facilities etc.) (mean = 2.67, std = 1.29). The respondents, however, expressed low agreement with regard to 



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whether materials and equipment associated with the service by the bank (such as ATM, pamphlet or bank 
statements) are visually appealing and easy to understand at the bank (mean = 1.81, std = 1.02). 

With respect to the reliability dimension, the results showed that most respondents expressed high level of 
agreement on whether customers feel secure in transacting business with the rural banks (mean = 2.95, std = 1.28). 
Another issue on whether or not when the rural bank fulfils their promises when they promise to do something by 
a certain time, attracted high levels of agreement on the part of the respondents (mean = 2.71, std = 1.23). Most 
respondents highly agreed that the rural banks perform services right at the very first instance (mean = 2.64, std = 
1.31). 

On the responsiveness dimension of service quality delivery, the findings revealed that most respondents 
expressed very high agreement on the item that employees of the rural banks are always willing to help customers 
when they face any kind of challenge (mean = 3.57, std = 0.75). The results further showed that respondents 
expressed very high agreement on the issue that employees keep customers informed as to when a service would be 
performed (mean = 3.53, std = 0.69).  

Respondents again expressed very high levels of agreement on the issue that employees at the rural bank give 
customers immediate service when customers visit the rural bank (mean = 3.39, std = 0.94). 

In relation on the assurance dimension of service quality delivery, the findings reveal that employees at the 
rural bank make customers feel safe in their transactions (account maintenance, cash transfer, cash withdrawal and 
deposit) (mean = 3.05, std = 1.16).  

The respondents highly agreed that most employees of the rural bank have strong knowledge and therefore are 
in the position to answer customers’ questions about their offers and operations (mean = 2.81, std = 1.27). 
Respondents highly agreed that at any material time employees at the bank are consistently courteous to 
customers (mean = 2.76, std = 1.33). 
 

Table-2. Description of the Level of Service Quality Delivery 

 Mean Std. Dev. Interpretation 

Tangibility    

Employees at the bank are neat in appearance 2.86 1.19 High  
The rural bank has modern looking equipment (computers, fast 
ICT facilities etc.) 

2.67 1.29 
High  

Materials and equipment associated with the service (such as ATM 
Machines, pamphlet or bank statements) are visually appealing and 
easy to understand at the bank 

1.81 1.02 
Low  

Sub-total 2.45  Low  

Reliability    

Customer feels secure in transacting business with the bank 2.95 1.28 High  
When the bank promises to do something by a certain time, they 
do it. 

2.71 1.23 
High  

The bank performs services right the first time. 2.64 1.31 High 

Sub-total 2.77  High 

Responsiveness    

Employees of the bank are always willing to help customers when 
they face any kind of challenge. 

3.57 0.75 
Very high 

Employees keep customers informed as to when service will be 
performed. 

3.53 0.69 
Very high 

Employees at the bank give customers immediate service when 
they go to the bank. 

3.39 0.94 
Very high 

Sub-total 3.49  Very high 

Assurance    

Employees at the bank make customers feel safe in their 
transactions (account maintenance, cash transfer, cash withdrawal 
and deposit) 

3.05 1.16 
High 

Most employees of the bank have strong knowledge to answer 
customers’ questions about their offers and operations 

2.81 1.27 
High 

At any material time employees at the bank are consistently 
courteous to customers. 

2.76 1.33 
High 

Sub-total 2.87  High 

Empathy    

Whenever customers request for service, employees at the bank 
give customer full attention 

2.95 1.30 
High 

The bank always informs customers about new and attractive 
schemes and always suggests to them to take correct decisions 

2.88 1.12 
High 

The bank has convenient branches (sub branches, outlets) and 
operates in extended hours to all its customers without spending 
much time on queues 

2.34 1.26 
Low 

Sub-total 2.72  High 

Overall total 2.86  High 
Source: Primary Data, 2018 
Key: Mean range Interpretation on the level of service quality delivery 
3.26 – 4.00 - Very high level; 2.51 – 3.25 - High level; 1.76 – 2.50 - Low level; 1.00 – 1.75 - Very low level 

 
 
 
 
 



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The results on the empathy dimension of service quality delivery revealed that most respondents highly 
affirmed that whenever customers request for service, employees at the rural bank give customer full attention 
(mean = 2.95, std = 1.30).  

The findings further showed that respondents highly agreed that the rural banks always inform customers 
about new and attractive schemes and thus suggest to customers these new available offers to enable the customers 
make informed decisions (mean = 2.88, std = 1.12). Respondents expressed low level of agreement relative to 
whether the banks have convenient branches (sub branches, outlets) and operate extended hours to its customers 
(mean = 2.34, std = 1.26). 
 

5. Conclusion  
The results revealed that service quality delivery in rural banks at Takoradi, Western Region, Ghana exists at 

different levels. For instance, the findings portray only one dimension with the highest (very high) level of service 
quality delivery; responsiveness at (mean=3.49); and which is equivalent to very high levels of agreement on the 
Likert scale.  

Secondly, service quality delivery which corresponds with high levels of agreement on the Likert scale were 
assurance, reliability and empathy at (mean=2.87, 2.77 and 2.72) respectively. However, the results also showed a 
low level of service quality delivery relative to tangibility with a mean (means=2.45) which is equivalent to low 
agreement on the Likert scale. This study, therefore, documents that responsiveness to service quality delivery of 
rural banks in Takoradi, Ghana, is the most dominant dimension in the catchment area. The least service quality 
delivery dimension is, however, tangibility. 

 

6. Recommendations  
It is recommended that management of the rural banks in Takoradi, Western Region should liaise with 

stakeholders to put up more branches in their catchment areas to ease the congestion at the current banking halls. 
Management of the rural banks should also incorporate innovations and new technologies in the dissemination or 
advancement of information or alerts to customers on regular basis.  

Management of the rural banks in consultation with its stakeholders should install a user friendly equipment 
i.e. ATMs which are visually appealing to take care of all clients both educated and illiterate. Lastly, the rural 
banks should continue to organize regular in-service training for their staff to equip them with new trends in 
customer services. 
  

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Citation | Michael Ayikwei Quarshie; Reginald Djimatey; Ama 
Abakah-Anaman (2018). Service Quality Delivery of Rural Banks:  
Perception of Customers in Emerging Economies. Asian Business 
Research Journal, 3: 33-40. 
History:  
Received: 31 July 2018 
Revised: 4 September 2018 
Accepted: 9 October 2018 
Published: 15 November 2018 
Licensed: This work is licensed under a Creative Commons 

Attribution 3.0 License  
Publisher:  Eastern Centre of Science and Education 
 

Acknowledgement: All authors contributed to the conception and design of 
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Funding: This study received no specific financial support. 
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interests. 
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accurate, and transparent account of the study was reported; that no vital 
features of the study have been omitted; and that any discrepancies from the 
study as planned have been explained. 
Ethical: This study follows all ethical practices during writing.   

 

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