Impact of total quality management on customer satisfaction in Indian banking sector

Total quality management (TQM) has been practised in diverse industries from manufacturing to services. But its importance in the banking sector has attracted only a few researchers. The purpose of this study is to investigate the relationship between TQM practices and customer satisfaction (CS) in Indian banking sector. Data were collected from middle managers of retail banking sector in India using survey method. Exploratory factor analysis, correlation, confirmatory factor analysis are used to check validity and reliability of the data. Hypotheses are tested using multiple regression analysis. The result showed that five TQM practices leadership, servicescape, customer focus, human resource focus and technology-based banking services are significantly and positively related to customer satisfaction. This research provides constructive information that helps the practitioners to precisely identify areas of concerns and take corrective measures to enhance their level of customer satisfaction. Managerial implications of the findings, study limitations and directions for future research are discussed.