Ethnicity and customer satisfaction in the financial services sector

The purpose of this paper is to describe research carried out to determine whether South Florida's heterogeneous retail banking customers have differing perceptions of the importance of service quality dimensions; and to ascertain whether various ethnic groups report different levels of customer satisfaction with their retail banks.

This study examines three distinct ethnic groups vis‐à‐vis the most significant dimensions of service quality causal to customer satisfaction with retail banking institutions. Because of the ethnic diversity of its residents, South Florida was chosen for this research.

As a group, 230 banking customers rated reliability and responsiveness as having the greatest impact on their satisfaction levels. Although no statistically significant differences were apparent in the overall levels of satisfaction among the groups, respondents from the three largest regional ethnic groups (African‐Americans, Latinos, and non‐Latino Caucasians) weighted the importance of several of ten service quality dimensions quite differently.

In general, the results of this study offer significant implications for retail banks seeking to improve customer satisfaction and striving for better retention rates, using customer‐oriented processes and training programs within an increasingly diverse marketplace.

Although significant research has been done regarding issues and factors contributing to customer satisfaction in the banking industry, very little has been published regarding individual perceptions of the dimensions that contribute to customer satisfaction in ethnically diverse marketplaces.