Enterprise Risk Management ISSN 1937-7916 2010, Vol. 1, No. 1: E9 www.macrothink.org/erm 145 Application of Servqual Model on Measuring Service Quality: A Bayesian Approach Dr. K. Ravichandran, Assistant Professor, College of Business Administration in Alkharj, King Saud University, P O Box 165, 11942, Alkharj, Saudi Arabia. Email: varshal2@yahoo.com Dr. S. Prabhakaran, Assistant Professor, College of Business Administration in Alkharj, King Saud University, P O Box 165, 11942, Alkharj, Saudi Arabia. Email: jopraba@gmail.com Mr. S. Arun Kumar, Assistant Professor, Department of Management Studies, Saranathan College of Engineering, Trichy, Tamilnadu, India. email:arunkanthh@yahoo.co.in Abstract Financial liberalization has led to intense competitive pressures and private banks dealing in retail banking are consequently directing their strategies towards increasing service quality level which fosters customer satisfaction and loyalty through improved service quality. This