The effect of service quality and customer satisfaction on customer loyalty

2019 ◽  
Vol 38 (2) ◽  
pp. 384-405 ◽  
Author(s):  
Pınar Özkan ◽  
Seda Süer ◽  
İstem Köymen Keser ◽  
İpek Deveci Kocakoç
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Corporate Reputation ◽  
Banking Industry ◽  
Perceived Value ◽  
Corporate Image ◽  
Mediation Effects ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of customer satisfaction, service quality, the perceived value of services, corporate image and corporate reputation on customer loyalty and their relationship in the Turkish banking industry. Mediation effects of the perceived value and corporate image and reputation are also studied. Understanding the relationships between the determinants of customer loyalty toward the bank helps management to use corporate image and reputation more effectively in its strategy, thus enhancing the institution’s position in the minds of consumers. Design/methodology/approach A model is proposed to explore the relationships of service quality and customer satisfaction with a perceived value and their effect on transforming the corporate image and corporate reputation into the form of customer loyalty toward the bank. A survey is designed within this framework and SEM analysis is conducted in order to study the nature of relationships between variables of interest hypothesized to affect customer behavior and customer loyalty. Mediation tests for perceived value and corporate image and reputation are also conducted. Findings The findings of the survey indicate that corporate image and corporate reputation can be used as a common marketing benchmark to measure a bank’s performance. The results demonstrated that customers perceive quality and satisfaction effects loyalty through perceived value, image and reputation. Research limitations/implications The study was conducted in Izmir, the third biggest city of Turkey. The sample is composed of regular customers, and the sample size is enough for the study but more studies are needed to generalize the results. Practical implications The results provide information to bank managers to effectively assist them to offer appropriate customer service levels sustaining satisfaction, quality and value to the customers within the transactions. Originality/value The paper studies the determinants of customer loyalty in the Turkish banking industry and considers the effects of corporate image and corporate reputation as measured by customer satisfaction, service quality and perceived value, on customer loyalty toward banks in Turkey. This model is not studied in bank marketing in Turkey and also in the banking literature.

Mobile communications: a comprehensive hierarchical modelling approach

2014 ◽  
Vol 26 (1) ◽  
pp. 114-146 ◽  
Author(s):  
Michael Daniel Clemes ◽  
Xin Shu ◽  
Christopher Gan
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Mobile Communications ◽  
Switching Costs ◽  
Important Determinant ◽  
Perceived Value ◽  
Corporate Image ◽  
Content Type ◽  
Customer Perceived Value

Purpose – Global mobile communication is one of the most dynamic and important service markets. Several researchers suggest using a theoretical approach to develop a much deeper insight into key marketing constructs such as service quality, customer perceived value, customer satisfaction, perceived switching costs, corporate image, and customer loyalty is of vital importance to the mobile communications market. This study aims to develop and test a comprehensive hierarchical model of these six important constructs. The model also incorporates the retailing function of a major mobile communication provider. Design/methodology/approach – The research sample of 516 was drawn from customers of one of the largest mobile communications service providers in China. The data were analysed using exploratory factor analysis, confirmatory factor analysis and structural equation modelling. Findings – The results of the study support using a hierarchical and multidimensional approach for conceptualising and measuring customers' perceptions of service quality in the mobile communications market. In addition, the findings illustrate that service quality is an important determinant of customer perceived value, customer satisfaction, corporate image, and perceived switching costs. Customer perceived value is also an antecedent of customer satisfaction. Corporate image, customer satisfaction, and perceived switching costs are three key drivers of customer loyalty. However, the findings also indicate that corporate image is not an important determinant of customer satisfaction and that customer perceived value is not a key driver of customer loyalty. Originality/value – This is the first paper that has developed and tested a comprehensive hierarchical model of the mobile communications market.

Get connected with your Takaful representatives

2019 ◽  
Vol 11 (5) ◽  
pp. 1175-1200
Author(s):  
Mohsin Abdur Rehman ◽  
Ismah Osman ◽  
Khurram Aziz ◽  
Hannah Koh ◽  
Muhammad Awais
Keyword(s):  
Service Quality ◽  
Relationship Marketing ◽  
Customer Loyalty ◽  
Corporate Reputation ◽  
Cultural Context ◽  
Corporate Image ◽  
Service Industries ◽  
Equation Modeling ◽  
Content Type ◽  
The Impact

Purpose Marketing investigations on the concomitant variables of both service quality and relationship marketing are very scarce. Hence, the purpose of this study is to examine the customers’ perception of the Takaful (Islamic insurance) in relation to service quality and relationship marketing. More importantly, the examination of the impact of both service quality and relationship marketing on corporate image is further established. Accordingly, corporate reputation and customer loyalty were further evaluated, along with these respective interactions. Design/methodology/approach A self-administered survey was conducted from 350 Malaysian customers of Takaful products and services. The purposive sampling was used to collect data from the existing customers of Takaful service operators in the Klang Valley, an area in Malaysia. The questionnaire was constructed through measures of PAKSERV for service quality, as well as other measures related to relationship marketing and other constructs in this study. Structured equation modeling was used in the analysis of data. Findings The current study is the first one of its kind to examine perceptions of customers of relationship marketing and service quality as predictors of corporate image, which drives corporate reputation and ultimate customer loyalty from the perspective of the Takaful industry in Malaysia. Service quality dimensions (tangibility, reliability and personalization) and relationship marketing dimensions (Islamic ethical behavior and structural bond) positively influence corporate image of the Takaful organizations. Moreover, customer loyalty can be predicted, mainly through corporate reputation as well as corporate image. Research limitations/implications The present study is focused on the existing Malaysian Takaful customers as the population frame. Accordingly, future research studies may evaluate the same model, but perhaps in another different cultural context where the Takaful industry can grow and expand in other countries, including Saudi Arabia, Sudan and Pakistan. More importantly, the same variables may be verified to different service industries in future studies, especially those constructs related to relationship marketing because many products and services at present can be attained without face-to-face interactions through online transactions without having brick and mortar businesses. Practical implications It is important for Takaful service operators to focus on connecting the social and financial bonds to ensure the fulfilment of customers’ needs. They also need to improve the qualities related to tangibility, reliability and personalization to be able to increase their market share, especially in this present highly competitive market. Indeed, Takaful generally provides financial protection and risk management; nevertheless, the religious and ethical values need to be embraced in totality unlike conventional insurance, which has the element of gambling, uncertainty and the imposition of interest. Hence, this study aims to assist the Takaful operators toward achieving corporate reputation and apparently customer loyalty for them to remain relevant in this industry. Originality/value The model used in this study is based on the cultural context of Malaysia from the perspective of the Takaful industry. It attempts to explain customer loyalty through the incorporation of service quality and relationship marketing dimensions, where it is associated with the elements of the values of Islamic ethics especially in business transactions. More importantly, these dimensions were put together to identify its impact on corporate image, corporate reputation, and ultimately, customer loyalty, thus illustrating a distinct set of outcomes of the present study.

Solo economy in Taiwan: a quality study of click-and-mortar malls

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chih-Chin Liang
Keyword(s):  
Service Quality ◽  
East Asia ◽  
Customer Loyalty ◽  
Perceived Value ◽  
Corporate Image ◽  
Asia Pacific ◽  
Equation Modeling ◽  
Managerial Implication ◽  
Content Type ◽  
The Impact

Purpose The rapid growth of the solo economy in the Asia-Pacific area indicates an economic transition. In East Asia, solitary households are growing along with low marital rates and birth rates under high economic pressure. Because of these population changes, malls must provide good quality service to meet the specific needs of solitary households and social households. The paper aims to discuss this issue. Design/methodology/approach In this study, relationships among service quality, customer satisfaction (CS), perceived value, corporate image and customer loyalty were compared between social and solitary customers of Taiwan click-and-mortar malls. The effects of five service quality dimensions on CS and customer loyalty were investigated by structural equation modeling. Findings The analytical results show that all hypothesized relationships among factors were supported with the exception of the impact of perceived value on satisfaction and the impact of the corporate image on satisfaction. Additionally, the comparison between solitary and social customers showed that service quality, corporate image and customer loyalty have strong relationships without differences between both kinds of customers. Solitary and social customers only differed in the impact of perceived value on loyalty. Practical implications The managerial implication of this study is that, to satisfy both social and solitary customers and to increase their loyalty, Click-and-mortar malls (CAM malls) should apply different service quality strategies for social and solitary customers. To satisfy both types of customers, a strategy for increasing visible cares should be applied in social customers, and a strategy for increasing the perception of reliability, assurance and visible cares should be applied in solitary customers. To enhance the loyalty of solitary customers, a CAM mall should enhance the value perceived by solitary customers, which can help CAM malls increase the loyalty of solitary customers in the solo economy. Originality/value The solo economy is a hot topic in East Asia because the issue of solo economy impacts the market. A CAM mall must evolve its business to attract solitary customers. However, no studies compared perceived quality, satisfaction, perceived value, corporate image and loyalty between solitary customers and social customers. This study is the first study investigated the business model of CAM malls.

Impact of service quality, corporate image and customer satisfaction towards customers’ perceived value in the banking sector in Pakistan

2015 ◽  
Vol 33 (4) ◽  
pp. 442-456 ◽  
Author(s):  
Hashim Zameer ◽  
Anam Tara ◽  
Uzma Kausar ◽  
Aisha Mohsin
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Banking Sector ◽  
Perceived Value ◽  
Corporate Image ◽  
Content Type ◽  
Independent Variables ◽  
Customer Perceived Value ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to explore the impact of services quality, customer satisfaction and corporate image on customer perceived value in the banking sector of Pakistan. Design/methodology/approach – A model is developed to show the relationship between dependent and independent variables taken from the existing literature. The data are collected from 200 respondents taken from the five major cities of Pakistan using structured questionnaire. Correlation and regression are applied to estimate the relationship between variables and find out the extent to which the independent variables have impact on the dependent variable. Findings – Results show that there is a positive relation between the service quality, customer satisfaction and corporate image. It is also analyzed by the results that service quality and customer satisfaction have high impact on the customer perceived value where corporate image also effect the customer perceived value. Originality/value – This paper identified the impact of service quality, customer satisfaction and corporate image on the customer perceived value that helps the services sector especially banks how they can improve the customer perceived value through improving their service quality, customer satisfaction and corporate image.

The impact of service quality, customer engagement and selected marketing constructs on airline passenger loyalty

2017 ◽  
Vol 9 (1) ◽  
pp. 21-40 ◽  
Author(s):  
Raditha Hapsari ◽  
Michael D. Clemes ◽  
David Dean
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Airline Industry ◽  
Perceived Value ◽  
Customer Engagement ◽  
Data Set ◽  
Content Type ◽  
Airline Passenger ◽  
The Impact

Purpose This study aims to empirically analyse the determinants of airline passenger loyalty in the high-frills Indonesian airline industry. The interrelationships among passenger loyalty, customer engagement, customer satisfaction, brand image, perceived value and service quality are identified and discussed. Design/methodology/approach The perceptions of 250 Indonesian airline passengers were used to examine the interrelationships among the constructs. The data set was analysed using confirmatory factor analysis and structural equation modelling. Findings The empirical results demonstrate that customer engagement has the most influential effect on passenger loyalty, followed by customer satisfaction. Customer satisfaction has the largest total effect on customer engagement. Service quality, perceived value and customer satisfaction also indirectly affect customer loyalty through mediation. Originality/value The integration of the customer engagement construct with the other important marketing constructs comprehensively explains the role of customer engagement on customer loyalty. The effects of the important marketing constructs on customer loyalty are not only explained in the direct relationships but also in indirect relationships through mediation.

A multidimensional and hierarchical model of banking services and behavioral intentions of customers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Md. Alamgir Hossain ◽  
Nusrat Jahan ◽  
Minho Kim
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Hierarchical Model ◽  
Behavioral Intentions ◽  
Perceived Value ◽  
Service Marketing ◽  
Corporate Image ◽  
Mediation Effects ◽  
Banking Services ◽  
Content Type

PurposeBanking services encounter major challenges in determining customer's psychometric behavioral intentions. Scholars suggest that a theoretical approach to better understand the key constructs of service marketing, such as service quality, perceived value, customer satisfaction, corporate image and behavioral intentions, is critical to bank performance. The present study aims to design and test a comprehensive multidimensional and hierarchical model of service quality with higher-order psychometric constructions and their mediation effects in the model.Design/methodology/approachData from a self-administered structured questionnaire are analyzed by confirmatory factor analysis and structural equation modeling.FindingsEmpirical results confirm that multidimensional and hierarchical service quality are best suited to assess overall banking service quality, in which outcome, interaction and environment quality are the important primary dimensions, with each of them having several subdimensions. Service quality is the significant antecedent of behavioral intentions, customer satisfaction, corporate image and perceived value. Customer satisfaction and service quality are the best determinants of behavioral intentions. In addition, customer satisfaction, perceived value and corporate image are complementary variables, having significant mediation effects on the relationship between service quality and behavioral intentions.Originality/valueAs a maiden study in the context of emerging economies, this research integrates a comprehensive service quality theory and valuable customer loyalty constructs, which are crucial to banks' financial performance, bolstering evidence for the theoretical pitch. This study also provides managers with a clear idea of how they can develop sustainable service marketing strategies and policies on the psychometric perceptions of customers, thereby leading banks to achieve long-term goals.

A comprehensive hierarchical model of retail banking

2017 ◽  
Vol 35 (4) ◽  
pp. 662-684 ◽  
Author(s):  
Juhaida Abu Bakar ◽  
Michael Daniel Clemes ◽  
Kathryn Bicknell
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Hierarchical Model ◽  
Switching Costs ◽  
Banking Industry ◽  
Perceived Value ◽  
Retail Banking ◽  
Corporate Image ◽  
Content Type ◽  
Behavioural Intentions

Purpose The purpose of this paper is to develop and test a comprehensive hierarchical model of behavioural intentions in the Malaysian retail banking industry. Design/methodology/approach The data were analysed using EFA, CFA and structural modelling. Findings The findings illustrate that customer satisfaction is the most important determinant of behavioural intentions, followed by switching costs, corporate image and perceived value. Service quality is indirectly related to behavioural intentions and customer satisfaction mediates the relationship between the two constructs. Customer satisfaction is strongly influenced by service quality, corporate image and perceived value. Service quality is also an antecedent of perceived value, corporate image and switching costs. The empirical results also support a hierarchical and multidimensional approach for conceptualising and measuring customers’ perceptions of service quality. Research limitations/implications The comprehensive hierarchical model developed in this research can be used as framework for additional studies on the banking industry. Practical implications The findings provide Malaysian bank managers with empirically-based insights into behavioural intentions and offer guidelines for assessing and improving service quality. Originality/value This is the first study that uses comprehensive hierarchical modelling to synthesise the effects of service quality, customer satisfaction, perceived value, corporate image and switching costs on the behavioural intentions of retail bank customers.

Customer satisfaction with sommelier services of upscale Chinese restaurants in Hong Kong

2019 ◽  
Vol 31 (4) ◽  
pp. 532-554 ◽  
Author(s):  
Tommy Lau ◽  
Man Lai Cheung ◽  
Guilherme D. Pires ◽  
Carol Chan
Keyword(s):  
Hong Kong ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Positive Impact ◽  
Partial Least Square ◽  
Least Square ◽  
Survey Method ◽  
Content Type ◽  
The Impact

Purpose The abolishment of the wine tax in Hong Kong has led to increased wine consumption and increased demand for wine-related professionals, such as sommeliers. Yet the importance of sommeliers’ value-adding performance in the context of upscale Chinese restaurants has not been examined. To address this gap, the SERVQUAL framework is adopted to examine the influence of sommeliers’ service quality (SQ) on customer satisfaction (CS) and loyalty in the context of upscale Chinese restaurants in Hong Kong. Design/methodology/approach The survey method is used to collect data from 302 units of the population of interest, partial least square-structural equation modelling (PLS-SEM) is used to test the links between constructs. Findings Four of the seven dimensions of sommeliers’ service quality, namely, empathy, tangibles, credibility and assurance, have a significant positive impact on customer satisfaction and customer loyalty, whereas the impact of perceived value and responsiveness on customer satisfaction and customer loyalty is positive but only marginally significant. Reliability has a weak and non-significant impact on customer satisfaction and customer loyalty. Research limitations/implications Examining a small number of upscale Chinese restaurants in Hong Kong limits generalisation of the findings to other contexts. Replication of the research in different contexts will enhance generalizability. In terms of implications, the discussion highlights the importance of sommeliers’ service performance on customers’ SQ perceptions SQ, CS and loyalty, all of which are important variables for restaurateurs. Originality/value To the best of the authors’ knowledge, this is the first study of the influence of the quality of sommelier’s SQ on CS and loyalty in upscale Chinese restaurants in Hong Kong. Given the lack of attention to this service role in the literature, the study contributes theory from which further understanding can develop.

The impact of perceived service quality dimensions on customer satisfaction

2017 ◽  
Vol 35 (3) ◽  
pp. 411-430 ◽  
Author(s):  
Rishi Kant ◽  
Deepak Jaiswal
Keyword(s):  
Public Sector ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Corporate Image ◽  
Content Type ◽  
Perceived Service Quality ◽  
Public Sector Banks ◽  
Quality Dimensions ◽  
Service Quality Dimensions ◽  
The Impact

Purpose In the present competitive scenario in the Indian banking industry, service quality has become one of the most important facets of interest to academic researchers. The purpose of this paper is to determine the dimensions of perceived service quality and investigate their impact on customer satisfaction in the Indian banking context, with special reference to selected public sector banks in India. Design/methodology/approach On the basis of the empirical study, the authors validate a measurement model using structural equation modeling for investigating the impact of perceived service quality dimensions on customer satisfaction. The study sample consists of 480 respondents in the National Capital Region (NCR) of India; the data were collected through a structured questionnaire utilizing a seven-point Likert scale while implementing a purposive sampling technique. Findings The perceived service quality dimensions identified were tangibility, reliability, assurance, responsiveness, empathy, and image. The empirical findings revealed that “responsiveness” was found to be the most significant predictor of customer satisfaction. On the other hand, “image” (corporate image) has a positive but the least significant relationship with customer satisfaction followed by all other constructs. The exception is “reliability,” which is insignificantly related to customer satisfaction in Indian public sector banks. Research limitations/implications The study cannot be generalized in the context of Indian banking sectors, as it only focused on the public sector. The findings of this study suggest that the six dimensions of perceived service quality model are a suitable instrument for evaluating bank service quality for public banks in India. Therefore, bank managers can use this model to assess the bank service quality in the context of Indian public sector banks. Originality/value There is dearth of research focusing on corporate image as a dimension of perceived service quality and its effect on customer satisfaction in the Indian banking context. Furthermore, similar studies were rarely found in the Indian context, especially within the public banking sector. Hence, this paper attempts to accomplish the research gap by empirically testing the satisfaction level of a large sample of the population in NCR toward six dimensions of perceived service quality rendered by selected public sector banks in India.

The effects of customer satisfaction, perceived value, corporate image and service quality on behavioral intentions in gaming establishments

2014 ◽  
Vol 26 (4) ◽  
pp. 540-565 ◽  
Author(s):  
Hung-Che Wu
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Behavioral Intentions ◽  
Perceived Value ◽  
Corporate Image ◽  
Gaming Industry ◽  
Content Type ◽  
Perceived Service Quality ◽  
Multi Level ◽  
Main Determinants

Purpose – The purpose of this paper is to identify the dimensions of service quality and examining the interrelationships among behavioral intentions, customer satisfaction, perceived value, corporate image and service quality in the gaming industry. A multi-level and hierarchical model is used as a framework to synthesize the effects of customer satisfaction, perceived value, corporate image and service quality on behavioral intentions of customers in the gaming industry. Design/methodology/approach – The data used in this study were based on a sample of 470 at a newly built casino in Macau. Data were analyzed using exploratory factor analysis and regression analysis. Findings – The findings support using a multi-level model consisting of three primary dimensions and ten sub-dimensions to conceptualize and measure perceived service quality. Perceived service quality significantly influences perceived value and corporate image, respectively. In addition, perceived value and corporate image are main determinants of customer satisfaction. Also, customer satisfaction and corporate image significantly affect behavioral intentions. Originality/value – This is the first study synthesizing behavioral intentions, customer satisfaction, perceived value, corporate image and perceived service quality in a Macau casino setting.

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