Service quality dimensions and superior customer perceived value in retail banks: An empirical study on Mexican consumers

•Results confirm that service quality is an aspect that motivates satisfaction and client retention (loyalty).•Results also indicate that having satisfied and retained customers is not sufficient to say that there is a superior perceived value.•Results obtained do not allow for the assumption that there exist differences in perceived service quality for the bank brands here evaluated.•Entire results question if service quality constitutes a real source of differentiation and competitive advantage among bank brands.

This study concerns the service quality topic in the retail bank sector. A sample of 209 retail bank clients was taken, measuring the performance of service quality attributes of their principle retail bank. Behavioral performance variables such as satisfaction, loyalty and customer perceived value were also measured. In a factor analyses the attributes were separated into three factors. These three independent factors explain a considerable amount of variability of a satisfaction–loyalty factor. On the other hand, they could not explain the superior perceived value; and no differences between the service quality performances of the bank brands were found. In conclusion, regardless of the degree of satisfaction and loyalty, the customer is not willing to pay more for banking services at his regular bank than he would at other brands. This implies that superior perceived value is not being achieved via service quality, which suggests a lack of differentiation between brands in this sector.