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Intensifying competition and increasing customer expectations have created a climate where “quality” is considered to be a major strategic variable for improving customer satisfaction and thus the profitability of financial service providers. Four distinguishing characteristics of services – intangibility, inseparability,heterogeneity and perishability have implications for the management and delivery of service quality. Findings from interviews with representatives of 50 small companies in the Manchester/Stockport area illustrate how these service characteristics affect clients′ perceptions of quality service from their bank.

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