Service quality, satisfaction, trust, and loyalty: the moderating role of main-bank and wealth status

2019 ◽  
Vol 37 (1) ◽  
pp. 278-302 ◽  
Author(s):  
Karin Boonlertvanich
Keyword(s):  
Service Quality ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Retail Banking ◽  
Equation Modeling ◽  
Wealth Status ◽  
Cross Sectional ◽  
Content Type ◽  
Behavioral Loyalty ◽  
Main Bank

PurposeThe purpose of this paper is to develop a comprehensive model representing the relationships among service quality, customer satisfaction, trust and loyalty in a retail banking service. Because many banks now emphasize acquiring more high-wealth and main-bank customers, this study also focuses on investigating the moderating roles of main-bank and wealth status on such relationships.Design/methodology/approachThis study applies a hierarchical model to measure service quality in line with recent advances in the general-marketing and consumer-behavior literature. A total of 400 valid samples were obtained from customers of a large commercial bank in Thailand. Data were analyzed using partial least squares structural equation modeling and multigroup analysis.FindingsCustomer-perceived service quality directly and indirectly affects, via satisfaction and trust, attitudinal and behavioral loyalty. Service quality affects customer loyalty less if the customer holds main-bank status. It affects behavioral loyalty less for high-wealth customers than regular customers; however, its impacts on attitudinal loyalty are identical. Main-bank and wealth status have a co-moderating impact on the relationship between service quality and customer loyalty.Research limitations/implicationsThis study was conducted on a cross-sectional basis; further, longitudinal analysis could help to assess causality and time-dependent effects among variables.Practical implicationsThe present study reconceptualizes the loyalty model, forging a deeper understanding of the moderating effects of main-bank and wealth status and thus helping banks to formulate better strategies to win customer loyalty.Originality/valueThis study aims to contribute to further discussions regarding the direct and indirect effects of service quality on loyalty to help banks formulate effective strategies for acquiring main-bank and high-wealth customers.

Factors influencing consumer loyalty: evidence from the Ghanaian retail banking industry

2019 ◽  
Vol 37 (3) ◽  
pp. 798-820 ◽  
Author(s):  
Osaretin Kayode Omoregie ◽  
John Agyekum Addae ◽  
Stanley Coffie ◽  
George Oppong Appiagyei Ampong ◽  
Kwame Simpe Ofori
Keyword(s):  
Service Quality ◽  
Structural Equation ◽  
Banking Sector ◽  
Banking Industry ◽  
Retail Banking ◽  
Corporate Image ◽  
Equation Modeling ◽  
Design Data ◽  
Cross Sectional ◽  
Content Type

PurposeThe increasing number of banks in the Ghanaian banking industry has brought about intense competition in the industry. The purpose of this paper is, therefore, to examine the factors that influence retail banking customers’ loyalty intentions.Design/methodology/approachIn order to validate the proposed research model, the study adopts a survey design. Data were collected from 565 customers of the top performing banks in terms of customer deposits. Data analysis employed the partial least squares structural equation modeling (PLS–SEM) using SmartPLS version 3.FindingsResults from the PLS–SEM analysis indicated that satisfaction, service quality and trust had significant effect on loyalty, with satisfaction having the most significant effect. Interestingly corporate image was found to have a significant effect on both satisfaction and trust but not on loyalty. In all, the proposed model accounted for 63.3 percent of the variation in loyalty.Research limitations/implicationsThe current study samples customers from only the top performing banks in Ghana. The use of cross-sectional data makes it impossible to study how customers’ perceptions change over time. Results from this study could, however, help managers of banks in designing strategies aimed at improving customer loyalty in order to consolidate their market share.Originality/valueThis paper adds to existing works that focus on loyalty in the retail banking sector, especially from the context of a developing economy. The study draws attention to the interrelationship among service quality, perceived value, satisfaction, image, trust and loyalty.

A confirmatory factor analysis for SERVPERF instrument based on a sample of students from Syrian universities

2015 ◽  
Vol 57 (3) ◽  
pp. 343-359 ◽  
Author(s):  
Ali Bassam Mahmoud ◽  
Bayan Khalifa
Keyword(s):  
Service Quality ◽  
Structural Equation ◽  
Support Staff ◽  
Three Dimensions ◽  
Equation Modeling ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
Higher Education System

Purpose – The purpose of this paper is to confirm the factorial structure of SERVPERF based on an exploration of its dimensionality among Syrian universities’ students. It also aimed at assessing the perceived service quality offered at these universities. Design/methodology/approach – A cross-sectional survey was conducted targeting students at Syrian universities. Using a pilot sample of 40 students, the authors developed their hypotheses. Thereafter, based on a sample of 259 students, the hypotheses were tested using structural equation modeling and one-sample t-test. Findings – The findings revealed that SERVPERF in the Syrian universities’ context was a three-factor instrument consisting of the three dimensions: faculty-individualized attention, support staff helpfulness, and support staff empathy. Moreover, the findings showed that students at Syrian universities hold negative perceptions toward all of the three service quality dimensions provided by their universities. Practical implications – Given the imperative need for universities to monitor and improve the quality of their services, this study can help Syrian universities’ administrations understand the perceptions of their students toward services offered, which can help them formulate effective marketing strategies. Originality/value – This paper came to be one of the first studies that attempted to assess the perceived quality of services offered through the Syrian higher education system. Additionally, this study pioneered through drawing a factorial picture for SERVPERF at the Syrian Arab context.

Service innovativeness and tourism customer outcomes

2019 ◽  
Vol 31 (11) ◽  
pp. 4227-4246 ◽  
Author(s):  
Linda Hollebeek ◽  
Raouf Ahmad Rather
Keyword(s):  
Structural Equation ◽  
Longitudinal Research ◽  
Equation Modeling ◽  
Travel Agency ◽  
Cross Sectional ◽  
Convenience Sample ◽  
Content Type ◽  
Behavioral Loyalty ◽  
Body Of Knowledge ◽  
Confirmatory Factor

Purpose This study aims to develop/test a model that examines the effect of service innovativeness on customer cocreation, satisfaction, advocacy and behavioral loyalty intent in the travel agency context. Design/methodology/approach To explore these issues, the authors deploy a convenience sample of 340 travel agency customers. Data analysis centered on confirmatory factor analysis and structural equation modeling (SEM). Findings The results identify service innovativeness as a key driver of customer cocreation, satisfaction, advocacy and behavioral loyalty intent. The authors also identified customer cocreation to mediate the association between service innovativeness and customer advocacy, satisfaction and behavioral loyalty intent, respectively, and exerted a further direct effect on these variables. Research limitations/implications Given the cross-sectional data, further research may wish to explore the generalizability of the findings (e.g. in other sectors, cultures or by adopting a longitudinal research design that tracks the theorized relationships over time). Practical implications The findings suggest service innovativeness as an important driver of customers’ intra- (within) and extra-or trans-(across) interaction outcomes, thereby impacting the customer experience and highlighting the significance of service innovativeness for the travel sector. Originality/value While service innovativeness and cocreation are of significant interest, their integrative investigation in tourism has remained scant. Thus, by quantifying the influence of service innovativeness on customer-based cocreation, satisfaction, advocacy and loyalty intent, the paper adds to the emerging body of knowledge on service innovativeness in tourism.

Customer’s patronage decision toward health insurance products

2018 ◽  
Vol 30 (1) ◽  
pp. 62-83 ◽  
Author(s):  
Muhammad Sabbir Rahman ◽  
Fadi Abdel Muniem Abdel Fattah ◽  
Mahmud Zaman ◽  
Hasliza Hassan
Keyword(s):  
Factor Analysis ◽  
Health Insurance ◽  
Service Quality ◽  
Structural Equation ◽  
Service Providers ◽  
Dominant Role ◽  
Equation Modeling ◽  
Cross Sectional ◽  
Content Type

Purpose The purpose of this paper is to examine the influence of service quality, customer’s satisfaction and religiosity on customer’s patronage decision toward health insurance products. The paper also assesses the influence of religiosity on customer’s patronage decision. The influence of customers’ satisfaction as mediation between service quality and customer’s patronage decision was also measured. Design/methodology/approach A structured questionnaire was developed and administered to a sample of 200 respondents. This research applied the exploratory factor analysis, the confirmatory factor analysis and the structural equation modeling to test the proposed hypotheses. Findings The findings indicate that customers’ religiosity behavior has a significant influence on customer’s patronage decision for selecting health insurance products. The results also indicated that the role of customer’s satisfaction as a mediator in between the relationship of service quality and customer’s patronage decision is significant. Research limitations/implications This research is a cross-sectional study consisting of 200 respondents. In addition, the elements of the sample were Malaysian customers using health insurance products and services. Practical implications This study suggests that customers of health insurance products are more concerned with perceived service quality and perceived satisfaction. The role of religiosity also plays a dominant role. As a result, managers of the health insurance service providers need to focus more on benefits of service varieties centered toward their target customers in order to gain higher patronage decision of health insurance products. Originality/value The study sought to address the gap of religiosity aspects in health insurance products through intensive literature and offer a conceptual framework that tested service quality, customer’s satisfaction and religiosity in one integrated model under the perspective of health insurance industry. More importantly, it also examines the influence of religiosity on patronage behavior, thus shedding insights into the opportunities for understanding consumers in detail.

Mediators of the relationship between service quality and customer loyalty

2017 ◽  
Vol 35 (3) ◽  
pp. 540-556 ◽  
Author(s):  
Charles Makanyeza ◽  
Lovemore Chikazhe
Keyword(s):  
Service Quality ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Corporate Image ◽  
Bank Failures ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
Positive Direct ◽  
The Relationship

Purpose There is a dearth of studies that have investigated mediators of the effect of service quality on customer loyalty under the conditions prevailing in Zimbabwe; where bank customers’ confidence in the banking system has been dented by bank failures. Therefore, the purpose of this paper is to investigate the mediators of the effect of service quality on loyalty among bank customers in Zimbabwe. Design/methodology/approach A cross-sectional survey of 310 bank customers was conducted in Chinhoyi, Zimbabwe. A questionnaire with Likert type questions was used to collect data. Customers were randomly intercepted as they walked out of five major banks. Structural equation modelling was used to test the proposed relationships. Findings The study found that service quality, satisfaction and corporate image all have positive direct effects on loyalty. It was also found that satisfaction and corporate image all mediate the effect of service quality on loyalty. Research limitations/implications The study was conducted in Chinhoyi, one of the emerging towns in Zimbabwe. There is a need to conduct more similar studies in other parts of the world in future in order to have a better understanding of this subject. Practical implications Banks are advised to address issues to do with service quality, customer satisfaction and corporate image when designing marketing programmes intended to increase customer loyalty. Originality/value Studies that have investigated mediators of the relationship between service quality and customer loyalty in banking environments such as in Zimbabwe are scarce. This study was conducted to address this knowledge gap. Relationships among customer loyalty and its antecedents are not likely to change due to conditions prevailing in a particular banking environment.

Understanding customer loyalty in the coffee shop industry (A survey in Jakarta, Indonesia)

2020 ◽  
Vol 122 (7) ◽  
pp. 2253-2271
Author(s):  
Prameswari Purnamadewi Dhisasmito ◽  
Suresh Kumar
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Equation Modeling ◽  
Price Fairness ◽  
Validity And Reliability ◽  
Coffee Shop ◽  
Content Type ◽  
Average Variance

PurposeThe purpose of this study is to identify the drivers of loyalty model in the coffee shop industry in Indonesia based on service quality, store atmosphere and price fairness mediated by customer satisfaction.Design/methodology/approachThe sample size used for this study was 384 customers from 16 most comfortable coffee shops in Jakarta based on Nibble's survey. Confirmatory factor analysis was employed to confirm the attributes of each factor and to assess the validity and reliability, average variance extracted and composite reliability was applied. Further hypothesis testing was performed using structural equation modeling.FindingsThe result shows that customer loyalty is affected by service quality – comprising 5 subdimensions: tangible, reliability, responsiveness, assurance and empathy – and price fairness mediated by customer satisfaction. It was found that service quality plays a significant role in the coffee shop industry in Indonesia. However, the store atmosphere was found rejected.Originality/valueThis is the first study integrating service quality, store atmosphere, price fairness and customer satisfaction to study the customer loyalty model in the coffee shop industry in Jakarta.

scholarly journals Positive Service Encounter: A Tool for Customer Loyalty in Retail

2013 ◽  
Vol 1 (2) ◽  
pp. 244 ◽  
Author(s):  
Swati Singh
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Service Encounter ◽  
Equation Modeling ◽  
Good Service ◽  
Cross Sectional Survey ◽  
Marketing Practice ◽  
Cross Sectional

<p><em>Customers’ perception of service depends on service encounter. The purpose of this paper is to build and test a model of relationship between service quality, customer satisfaction and loyalty in a retail context. It also aims at understanding different factors that effect service quality. The subject is approached by a cross-sectional survey on a random sample of 230 customers after their service encounter with store employees in retail outlets. Structural Equation Modeling is used to test the model developed during the study.</em><em> </em><em>The findings indicate that responsiveness and assurance provided by the retail employees are the most important contributors of good service quality. Although competence is a better tool of customers’ measurement of service quality, appeal of the employees’ in terms of looks and personality are not found to effect customers’ perception of service quality. Results suggest that good service quality contributes to development of customer loyalty through customer satisfaction. The study would give an insight into understanding the importance of positive service encounter along with the implications of employees’ behavior for customer loyalty in service setting. This study contributes to marketing practice by offering an understanding to acquire customer loyalty. It also emphasizes the need to understand a positive service encounter which impacts the service quality. </em></p>

Engaging leadership in the job demands-resources model

2015 ◽  
Vol 20 (5) ◽  
pp. 446-463 ◽  
Author(s):  
Wilmar B. Schaufeli
Keyword(s):  
Structural Equation ◽  
Work Performance ◽  
Online Survey ◽  
Job Demands ◽  
Well Being ◽  
Organizational Outcomes ◽  
Job Resources ◽  
Equation Modeling ◽  
Cross Sectional ◽  
Content Type

Purpose – The purpose of this paper is to integrate leadership into the job demands-resources (JD-R) model. Based on self-determination theory, it was argued that engaging leaders who inspire, strengthen, and connect their followers would reduce employee’s levels of burnout and increase their levels of work engagement. Design/methodology/approach – An online survey was conducted among a representative sample of the Dutch workforce (n=1,213) and the research model was tested using structural equation modeling. Findings – It appeared that leadership only had an indirect effect on burnout and engagement – via job demands and job resources – but not a direct effect. Moreover, leadership also had a direct relationship with organizational outcomes such as employability, performance, and commitment. Research limitations/implications – The study used a cross-sectional design and all variables were based on self-reports. Hence, results should be replicated in a longitudinal study and using more objective measures (e.g. for work performance). Practical implications – Since engaged leaders, who inspire, strengthen, and connect their followers, provide a work context in which employees thrive, organizations are well advised to promote engaging leadership. Social implications – Leadership seems to be a crucial factor which has an indirect impact – via job demands and job resources – on employee well-being. Originality/value – The study demonstrates that engaging leadership can be integrated into the JD-R framework.

scholarly journals Can Corporate Fairness towards Public Authorities Enhance Customer Loyalty? A Multi-Sectorial Investigation in a Developing Country

2019 ◽  
Vol 12 (1) ◽  
pp. 187 ◽  
Author(s):  
Ovidiu I. Moisescu ◽  
Oana A. Gică ◽  
Victor O. Müller ◽  
Camelia Ancuța Müller
Keyword(s):  
Developing Country ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Positive Impact ◽  
Retail Banking ◽  
Equation Modeling ◽  
Public Authorities ◽  
Banking Services ◽  
Mediating Role ◽  
Company Identification

This paper investigates how customer loyalty can be enhanced by improving customers’ perceptions of corporate fairness towards public authorities, taking into account the mediating role of customer-company identification, in a multi-sectorial context, in a developing country in Central and Eastern Europe. The investigation is conducted comparatively within four main industries (telecom services, retail banking services, dairy products and personal care products) and depicts the particular impact these perceptions have on customer loyalty in each domain, with practical implications concerning corporate social responsibility (CSR) communications. A consumer survey was designed and implemented among a sample of 1464 customers from Romania. The collected data was analyzed by means of partial least squares structural equation modeling (PLS-SEM). We found that customers’ perception of corporate fairness towards public authorities has a significant and positive impact on customer loyalty in all investigated industries, both directly and indirectly via customer-company identification, with a higher impact for services, especially for retail banking services.

Loyalty towards Islamic banking: service quality, emotional or religious driven?

2019 ◽  
Vol 11 (1) ◽  
pp. 66-80 ◽  
Author(s):  
Dwi Suhartanto ◽  
Christopher Gan ◽  
Ira Siti Sarah ◽  
Setiawan Setiawan
Keyword(s):  
Service Quality ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Islamic Banking ◽  
Emotional Attachment ◽  
Islamic Banks ◽  
Content Type ◽  
Perceived Service Quality ◽  
Islamic Bank ◽  
Bank Managers

Purpose This paper aims to integrate and examine three loyalty routes (i.e. service quality, emotional attachment and religiosity) in developing customer loyalty towards Islamic banking. Design/methodology/approach Data were collected from 412 Islamic bank customers from Indonesia. Variance-based structural equation modelling was applied to evaluate the association between service quality, emotional attachment, religiosity and customer loyalty. Findings This study reveals that customer loyalty is more driven by emotional attachment and religiosity rather than by perceived service quality. Although not directly affecting customer loyalty, service quality strengthens customer satisfaction towards Islamic banks. Practical implications This study provides an opportunity for Islamic bank managers to increase their customer loyalty through the development of emotional attachment and religiosity. To improve customer loyalty, this study suggests that Islamic banks have to provide prompt, accurate and non-personal service. It is also important for Islamic bank managers to keep the bank operation compliant with the Sharia law. Originality/value This study is the first attempt to assess the three loyalty routes simultaneously in influencing customer loyalty.

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