Digital Service Quality and Customer Loyalty in Commercial Banking: A Comparative Analysis of Generation Z and Millennial
Keywords:
Digital Service Quality, SERVQUAL, Generation Z, Millennials, Customer Loyalty (Outcome Variable), Digital Banking, Generational ComparisonAbstract
This study examined six dimensions of digital service quality Reliability, Assurance, Tangibility, Empathy, Responsiveness, and Security and their relationship with Customer Loyalty, which was modelled as a distinct outcome variable rather than as one of the service quality dimensions itself, and compared perceptions of Generation Z and Millennial customers in commercial banks. Using a quantitative, comparative cross sectional design, data were collected from 400 digital banking users (200 Gen Z and 200 Millennials) through a structured five point Likert scale questionnaire. Reliability analysis indicated acceptable internal consistency for most constructs. Pearson correlation analysis revealed significant positive relationships both among the six digital service quality dimensions and between each of these dimensions and Customer Loyalty (r = .317–.708, p < .01). Independent samples t tests showed that Millennials reported significantly higher perceptions of Assurance (p = .002) and Responsiveness (p = .018), whereas no significant generational differences were observed for Reliability, Tangibility, Empathy, Security, or Customer Loyalty. Normality and outlier diagnostics supported the use of parametric tests. Both generations exhibited similar perceptions of digital banking service quality and comparable levels of loyalty, with generational differences confined to the assurance and responsiveness dimensions, providing practical implications for age segmented digital banking strategies.
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