Importance-Performance Matrix Analysis (IPMA) of Service Quality and Customer Satisfaction in the Ghanaian Banking Industry

Drawing from the Importance-Performance Matrix Analysis (IPMA), this paper sought to examine service quality and customer satisfaction in the Ghanaian banking industry. A quantitative approach using questionnaires was adapted to survey 476 bank customers for the study. Data were analysed using structural equation model (SEM) - Partial Least Square (PLS). We found that except tangibility, the remaining four service quality dimensions - reliability, assurance, empathy, and responsiveness - have a significant influence on customer satisfaction. Meanwhile, the Importance Performance Matrix Analysis (IPMA) identified service reliability as the most important service quality dimension valued by customers but the highest service performance belongs to service tangibility. Performing well on tangibility dimension instead, the findings indicate a mismatch between customers’ interests and banks’ efforts. We recommend that the banks give the highest priority to service reliability and responsiveness by shifting their resource allocation focus from service tangibility, which appeared to be the least relevant service quality dimension from their customers’ perspective. The study contributes to the development and relevance of service quality dimensions towards improving banks’ service quality delivery practices in emerging economies.