Examining the links between employee and customer variables of service profit chain: a case of Pakistani Banks

Abstract

The purpose of this paper is to test the links between employee and customer variables of service profit chain in banking sector of Pakistan. This is an analytical study based mainly on the primary data collected through scientifically developed questionnaires. The questionnaires have been personally administered on a sample size of 188 in case of employees and 192 in case of customers, chosen on a random sampling basis from top five banks of Pakistan, i.e. NBP, HBL, MCB, UBL, ABL. SPSS was used to analyze the data. Findings of the study suggest that significant relationship was found between internal service quality perceived by employees, employee satisfaction and loyalty and service quality perceived by customers, customer satisfaction and loyalty. The study also concludes that private banks’ customers and employees are more satisfied with the service quality than that of public banks’.