Service quality represents a modern approach for quality in enterprises and organizations and serves the development of a truly customer-focused management and culture. Measuring service quality offers an immediate, meaningful and objective feedback about clients & apos; preferences and expectations. In this paper, we study the relationship between customer perceptions from service encounter quality and loyalty of customer to organization and employees. The proposed study is implemented for banking sector in Iran using SERVQUAL factors and considers various factors influencing the quality of service. The results of the survey indicate that service quality systems, customer satisfaction are the most desirable factors based on the feedback we received from the customers. In addition, response to customers and loyalty to employees, service encounter quality, service and loyalty to organization, arrangements are in the next levels, respectively.

The focus of this research is on assessing the quality of services of Tehran’s Saman bank and the available gap between customer’s expectation and perception. Also the relationship between customer’s satisfaction and each dimension of service quality (ie: reliability, tangibility, responsiveness, assurance and empathy) and ranking them accordingly, is investigated. The statistical population of this research is consisted of Tehran’s Saman bank customers. The research methods of this study are descriptive-survey as well as correlation. The statistical approaches of this study are correlation, t-student as well as Friedman tests. The results from a sample of 276, shows the service quality dimensions affect customers & apos; perception based on SERQUAL. In addition, there are significant relationship between customers & apos; perception and their satisfaction of the offered services. However, there are negative gaps between customers & apos; perception and their level of expectation.

The dimensions of service quality and their relationship with the behavioral pattern of customers have received immense importance in the banking sector. The relational impact of service quality on customers’ propensity to switch from their banking service provider, is therefore, very much relevant. Empirical studies have revealed that there is a significant relationship between retention of customers and profitability. Therefore, to have an understanding of the behavioral pattern of the customers with respect to their intention to defect from their bank is financially justified. This paper investigates the relationship between service quality and switching behavior of customers in the context of the largest nationalized bank of India –State Bank of India (SBI) for two of their branches in sub-urban West Bengal namely Bolpur and Santiniketan.