C/M/104. Investigate the ways in which financial services firms can get to know their customers better and how they can evaluate their performance in delivering quality services.

The present paper investigates the importance of service quality measurement in the context of financial service industry and what are the managerial implications. The discussion starts with the differentiation between service and goods quality and what is the place of financial service product in this continuum. On the basis of this positioning, the paper reviews different distinguishing features of service quality such as inseparability, intangibility, perishability and heterogeneity and its implications for financial service providers. The consequential section highlights the importance of service quality for financial service. The discussion is based on various arguments which support the existence of direct relationship between service quality and customer satisfaction. The line of discussion is built in such the way, to draw the consequential bridge between service quality, customer satisfaction, competitive advantage and profitability. The third section covers two aspects of consumer behaviour: purchase decision making and disconfirmation. The first part deals with analysis of the various phases of a purchase decision making and the place of service quality evaluation in the process. The second part investigates the relationship between customers' expectations and perception of service quality and the way the gap between them affect the overall satisfaction from the service encounter. The fourth section considers various research methods which might be applied by a financial service provider in order to evaluate its service quality level. Two types of measurement are identified: external and internal. The external measurement focuses on the sensing customer preferences and exploring the gap between customers' expectations and perception. The revision of various tools highlights the way financial service providers might identify various gaps in service delivery process. The last section introduces the managerial implications that arise from the incorporation of service quality research techniques in the strategic planning process.