IRJC International Journal of Marketing, Financial Services & Management Research Vol.1 Issue 10, October 2012, ISSN 2277 3622 www.indianresearchjournals.com 1 SERVICE QUALITY AND CUSTOMER SATISFACTION: A CASE STUDY - BANKING SECTORS IN JAFFNA DISTRICT, SRI LANKA S.SIVESAN* *Lecturer, Department of Marketing, Faculty of Management Studies and Commerce, University of Jaffna, Sri Lanka. ABSTRACT This study was undertaken with the objective of finding out the impact of the service quality on customer‘s satisfaction in banking sectors. For this study, Quality of services is evaluated by reliability, functionality, responsiveness service design and assurances, and also reviewed with help of the GAP (SERVQUAL) analyze this was established by Zeithaml, Parasuramn and Berry. Customer satisfaction is appraised by service facility and accessories, convenience and supporting service, customer value, customer loyalty. The present study is initiated the impact of the service quality on customer satisfaction with the samples of 143 customers of banking. The study found that the correlation value between service quality and customer satisfaction is 0.767. It is significant at 0.01 levels. There is positive linear relationship between the service quality and customer satisfactions. According to the Regression analysis, 58.8 % service quality impact on customer satisfaction. Finally, service quality influences on customer satisfaction. The study further points out that keen attention should be paid to polish service quality. Because, service quality are inter related with customer satisfaction. KEYWORDS: customer satisfaction service quality, HSBC bank. ______________________________________________________________________________ 1.0 INTRODUCTION In Sri Lankan economy, banking sectors play is most significant role and also they faced more competition. If they continue to exist in the market, they need to maintain high level customer satisfaction. Customer satisfaction and service quality are global issues that affect all organizations, be it large or small, profit or non-profit, global or local. Many companies are interested in studying, evaluating and implementing marketing strategies that aim at improving customer satisfaction and maximizing share of customers in view of the beneficial effects on the financial performance for the firm. Quality and customer satisfaction have long been recognized as playing a crucial role for success and survival in today‘s competitive market. Not surprisingly, considerable research has been conducted on these two concepts. Notably, the quality and satisfaction concepts have been linked to customer behavioral intentions like purchase and loyalty intention willingness to spread positive word of mouth, referral, and complaint intention by many researchers (Olsen, 2002; Kang, Nobuyuki and Herbert, 2004; Soderlund and Ohman, 2005).Quality is an ability of a set of inherent characteristics of product, system or process to