Although internal marketing has been conceptually argued to improve service quality, empirical evidence in this respect has been limited. This research investigates the relationship between rewards, which are a key component of internal marketing paradigm, and service quality of frontline employees in banking call centres. In this context, the authors develop hypotheses with the help of literature review, and empirically examine the effects of various extrinsic and intrinsic rewards on service quality. The results indicate that intrinsic rewards have greater effect on service quality than extrinsic rewards, which offer managerial implications and directions for future research
