Service quality in the private banking business

This paper examines the concept of service quality in private banking theoretically and empirically and identifies factors which contribute to service quality. A multidimensional and hierarchical model is developed based on the work of Rust and Oliver (in Service Quality, pp. 1–20, 1994) and Brady and Cronin (in J. Mark. 65(3):34–49, 2001). The model is then empirically tested among private banking providers with the partial least squares method. Furthermore, the developed model is compared to other approaches, including Grönroos (in Eur. J. Mark. 18(4):36–44, 1984). Another model for comparison excludes the indirect effects of Grönroos (in Eur. J. Mark. 18(4):36–44, 1984) and focuses on the direct effects on service quality. We can conclude that the model based on Rust and Oliver (in Service Quality, pp. 1–20, 1994) and Brady and Cronin (in J. Mark. 65(3):34–49, 2001) produces the best results and can best explain service quality in private banking. Finally, an analysis of various provider groups is conducted in order to identify differences between private banking providers in Germany, Switzerland, Austria and Liechtenstein and between providers with various minimum investment requirements.