Against the background of growing competition in the global marketplace,\ud
understanding customers, is a significant aspect of marketing. In the search for\ud
competitive advantage, there is a need to measure service quality to better understand its\ud
antecedents and consequences, and establish methods for its improvement.\ud
In the Libyan economy, the banking sector is one of the most important. Its significance\ud
increased after the 2003 lifting of the United Nations sanction. This was followed by\ud
entry to the sector of a number of domestic and multinational firms. Despite this\ud
increased competition, domestic banks are still widely considered to suffer from low\ud
levels of service quality. The main purpose of this study is to evaluate the actual level of\ud
service quality provided by Libyan public commercial banks as perceived by their\ud
customers.\ud
A modified SERVQUAL model was developed to measure service quality in Libyan\ud
commercial public banks. The resulting instrument is intended to help these banks to\ud
measure their service quality and focus on the service quality dimensions of most\ud
importance to their customers. It also aimed to gain an understanding of cultural and\ud
environmental influences on service quality in the Libyan banking sector, and their\ud
effect on banking management practices. It is also expected that this instrument, and its\ud
results, will contribute to future research into service quality.\ud
The findings of the present study have produced some important results. Firstly, the\ud
level of service quality offered by the Libyan public commercial banks as it was\ud
perceived by their customers was relatively high. Secondly, the theoretical five-factor\ud
structure of the SERVQUAL model was not confirmed in the Libyan banking context,\ud
and the service quality structure in the Libyan context appears to be four-dimensional.\ud
Furthermore, the study offers suggestions to banking managers to allocate their\ud
resources more efficiently to the most important dimensions, i. e. reliability and\ud
tangibles, to improve service quality, since the factor analysis indicates that these are\ud
the most important dimensions to customers. Finally, reflections on the methods used to\ud
modify SERVQUAL to make it more sensitive to a particular cultural context have\ud
implications for future researchers in terms of methodology, method and data analysis