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Perceived service quality is very important concept in banking sector. It is therefore necessary to acknowledge the perception of customers from different areas-as they are becoming more critical and demanding. After studying many research papers and literature, the SERQUAL model modifies by adding up three variables (Sincerity, Formality, personalization) and excluding two variables (Empathy and tangibility) by keeping in view urban and rural banks services and perceived differences of both types of customers. Using a sample of 240 respondents, a selfcompletion questionnaire was given to rural and urban banks’ customers from Bahawalpur City and surrounding rural areas to determine perception of service quality of banks. Descriptive statistics, T-test and Cronbachs’ alpha were employed to get results of the study. The results show that urban banks customers have highest perception in assurance and lowest in personalization. Similarly, rural customers also perceive that they are getting highest assurance while formality is the lowest service quality dimension they are getting. Surprisingly, this study indicates that overall rural customers have more perceived satisfaction. This study suggests that rural banks should improve technology and infrastructure. Urban banks should focus on hiring and training employees having high level of sincerity, formality, and personalization for customers.

MUHAMMAD FAROOQ SHABBIR, MUHAMMAD SALMAN SHABBIR, JAWAD IQBAL, SADAF HAFEEZ, RABIA SALMAN. (2016) PERCEIVED SERVICE QUALITY IN CONTEXT OF RURAL AND URBAN BANKS IN PAKISTAN, Paradigms , Vol 10, Issue 1.
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