Examining the relationships among service features, customer loyalty and switching barriers in the Greek banking sector

2017 ◽  
Vol 9 (3/4) ◽  
pp. 425-440 ◽  
Author(s):  
Eleni Koutsothanassi ◽  
Nancy Bouranta ◽  
Evangelos Psomas
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Conceptual Framework ◽  
Customer Loyalty ◽  
Banking Sector ◽  
Banking Industry ◽  
Content Type ◽  
Switching Barriers ◽  
The Relationship

Purpose The aim of this paper is to present and empirically validate a conceptual framework that explores the links between the two service features (physical and interactive) and their impact on customer loyalty. It also introduces and investigates the potential intervening role of a single personality dimension (neuroticism) in the relationship between service features and customer loyalty. In addition, examining whether the customer’s switching barriers affect customer loyalty is also an aim of the present study. Design/methodology/approach A structured questionnaire was used to collect data from a sample of 224 customers in the banking industry in Greece. The respondents were picked using simple random sampling. Exploratory and confirmatory factor analyses were used to validate the latent factors of the proposed conceptual framework, whereas their relationships were examined through linear regression analyses. Findings The empirical data verify that physical and interactive features of service quality have a significant impact on customer loyalty. The study also concludes that customer neuroticism has an intervening effect on the relationship between service features and customer loyalty. In addition, switching barriers such as confidence benefits, special treatment benefits, switching costs and availability and attentiveness of alternatives affect a bank’s customer loyalty. Practical implications This perspective could improve managerial understanding of the service-quality/customer-loyalty relationship and lead to more focused decisions. During the period of economic Greek crisis, the customers’ learning and understanding, the immediate response to their needs and expectations, the provision of customer services in accordance with their personality type and the establishment a long and effective relationship with them may have an important impact not only on success but also mainly on bank survival. Originality/value Previous studies have shown the positive and significant relationship between customer satisfaction and loyalty in the banking industry, but this study extends the literature of consumer behavior theory by examining the distinct role that the physical and interactive service features play in the formation of customer loyalty. While it is known the role of personality in customer satisfaction has not been analyzed sufficiently the effect of neuroticism in the evolution of the above relationship. The present study tries to fill the bibliographic gap focusing on the Greek banking sector in the period of economic crisis.

scholarly journals Investigating the Role of Service Quality and Satisfaction on Debtor Loyalty Behavior

2021 ◽  
pp. 9-17
Author(s):  
Edy Bambang Wibowo ◽  
Retno Tanding Suryandari
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Banking Sector ◽  
Marketing Literature ◽  
Service Convenience ◽  
Conceptual Study ◽  
The Relationship

The current global economic challenges force each country to survive for the prosperity of its people. The banking sector, as one of the economic regulators, also helps to grow GDP. In this effort, the bank continues to strive to maintain customer satisfaction and build long-term relationships. Although many studies examine satisfaction, there are no studies that reveal the role of punctuality and convenience of service as solid constructs in explaining the process of bank customer loyalty behavior. The purpose of this article is to examine the relationship between timeliness and service convenience to satisfaction-mediated loyalty. This paper is a conceptual study so that there are several prepositions explained. The implications of this article are expected to give alternative insight to marketing literature, especially in the field of banking marketing, as well as a foundation that can later be investigated empirically for future researchers.

scholarly journals Investigating the Role of Service Quality and Satisfaction on Debtor Loyalty Behavior

2021 ◽  
pp. 17-25
Author(s):  
Edy Bambang Wibowo ◽  
Retno Tanding Suryandari
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Banking Sector ◽  
Marketing Literature ◽  
Service Convenience ◽  
Conceptual Study ◽  
The Relationship

The current global economic challenges force each country to survive for the prosperity of its people. The banking sector, as one of the economic regulators, also helps to grow GDP. In this effort, the bank continues to strive to maintain customer satisfaction and build long-term relationships. Although many studies examine satisfaction, there are no studies that reveal the role of punctuality and convenience of service as solid constructs in explaining the process of bank customer loyalty behavior. The purpose of this article is to examine the relationship between timeliness and service convenience to satisfaction-mediated loyalty. This paper is a conceptual study so that there are several prepositions explained. The implications of this article are expected to give alternative insight to marketing literature, especially in the field of banking marketing, as well as a foundation that can later be investigated empirically for future researchers.

The effect of service quality on customer satisfaction and loyalty and the mediating role of customer satisfaction

2020 ◽  
Vol 32 (3) ◽  
pp. 543-558 ◽  
Author(s):  
Neale J. Slack ◽  
Gurmeet Singh
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Policy Makers ◽  
Content Type ◽  
Mediating Role ◽  
Corporate Resources ◽  
Customer Satisfaction And Loyalty

PurposeThe purpose of this study is to determine the effect of service quality on customer satisfaction and loyalty and the mediating role of customer satisfaction in the supermarket sector.Design/methodology/approachIn total, 480 supermarket customers participated in an intercept survey in four urban centres of Fiji. Descriptive statistics were used to determine the level of service quality provided by supermarkets, and inferential statistics to determine the gap between customer's service quality expectations and perceptions and to test the research hypotheses.FindingsThe findings indicate service quality of supermarkets is perceived as being unsatisfactory, service quality significantly affects customer satisfaction and loyalty and customer satisfaction partially mediates the relationship between service quality and customer loyalty reducing customer's perceptions of service quality, leading to lower customer loyalty.Practical implicationsThis study provides an indication as to where supermarkets should target their marketing attention and scarce corporate resources and may help in their efforts to service, satisfy, retain and attract more long-term loyal customers in the increasingly competitive supermarket sector. This research could inform government policy makers in sequencing the supermarket sector transformation and assist local supermarkets to adapt to this changing retail landscape.Originality/valueThis study advances our understanding of the effect of service quality on customer satisfaction and loyalty and the mediating role of customer satisfaction in the supermarket sector.

scholarly journals Service quality, religiosity, customer satisfaction, customer engagement and Islamic bank’s customer loyalty

2019 ◽  
Vol 11 (6) ◽  
pp. 1691-1705 ◽  
Author(s):  
Abror Abror ◽  
Dina Patrisia ◽  
Yunita Engriani ◽  
Susi Evanita ◽  
Yasri Yasri ◽  
...  
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Customer Engagement ◽  
Equation Modeling ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank ◽  
Moderating Role

Purpose The purpose of this study is to investigate the influential factors of customer loyalty to Islamic banks, namely, service quality, customer satisfaction, customer engagement and religiosity. Design/methodology/approach This study is a survey of 335 Islamic bank customers in West Sumatra, Indonesia. This research deployed purposive sampling and analyzed the data by using covariance-based structural equation modeling. Findings Service quality has a positive and significant impact on customer satisfaction. Religiosity has a significant and negative moderating impact on the service quality–customer satisfaction relationship. Service quality has no significant influence on customer loyalty. Customer satisfaction is a significant antecedent of customer engagement and loyalty. Finally, customer engagement has a significant and positive effect on customer loyalty. Research limitations/implications This study is a combination of cross-sectional and a single-country case. Accordingly, the results may not be representative of other countries. Similar studies in longitudinal data collection are conducted in other countries (e.g. ASEAN countries), which would therefore be worthwhile. Some antecedents of customer loyalty have been neglected in this study (e.g. customer value co-creation and customer commitment); hence, the future study may investigate those factors. Practical implications By considering these Islamic banks’ antecedents, the Islamic banks might enhance their customer loyalty. Also, this study has revealed the moderating role of religiosity in a loyalty relationship. Therefore, it will give insights for the Islamic bank managers in decision-making. Originality/value This study has revealed the moderating role of religiosity on the link between service quality and customer satisfaction in Islamic banks, which is, to the authors’ knowledge, neglected in the previous studies. The customers with high religiosity will have a higher standard of satisfaction and demand a better service quality than the customers with low religiosity. This study has also examined the relationships between service quality, religiosity, customer satisfaction, customer engagement and loyalty as a whole, which have been limited previously.

scholarly journals PENGARUH KUALITAS PELAYANAN TERHADAP LOYALITAS PUBLIK DENGAN KEPUASAN PUBLIK SEBAGAI VARIABEL INTERVENING: PERAN NILAI PELANGGAN SEBAGAI MODERASI

2019 ◽  
Vol 4 (3) ◽  
pp. 157-164
Author(s):  
Sefnedi Sefnedi
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Customer Value ◽  
Birth Certificate ◽  
Hierarchical Regression ◽  
Research Population ◽  
The Relationship

This studyexamined the intervening effect of customer satisfaction on the relationship between service quality and customer loyalty and the role of customer value as moderating. The research population is all entire communities who received service quality of birth certificate issuance in the period of August-December 2014that accounted for 351customers and the numbers of usable samples were 187 customers.In order to test hypotheses, this study performs simple and hierarchical regression analyses. The results of analysis displayed that service quality positively influences customer satisfaction and customer loyalty, customer satisfaction was found to have positive effect on customer loyalty, customer satisfaction was proven as intervening variable on the relationship between service quality and customer loyalty, and customer value moderated the relationship between service quality and customer satisfaction. Keywords:Service Quality, Customer Satisfaction, Customer Value, and Customer Loyalty.

Moderating Effect of Marketing Mix Strategy on the Relationship Between Service Quality and Customer Satisfaction of Commercial Bank Customers, Nairobi Kenya

2017 ◽  
Vol 3 (1) ◽  
Author(s):  
Victor Lusala Aliata ◽  
Patrick B. Ojera ◽  
Jairo K. Mise
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Commercial Bank ◽  
Banking Industry ◽  
Marketing Mix ◽  
Product Price ◽  
Negative Results ◽  
Marketing Mix Strategy ◽  
The Relationship

Marketing strategy remains a critical driver of customer satisfaction and competitiveness in the banking industry globally. Despite this, Commercial banks in Kenya are yet to attain required customer satisfaction levels. This is evident in the low average customer satisfaction index (CSI) which dropped from 67% in 2011 with a downward trend to 60% in 2015 way below the Kenyan Banking industry benchmark of 77%. Studies on the relationship between service quality and customer satisfaction revealed both positive and negative results. These suggest that the relationship may be affected by other factors such as marketing mix strategy. Previous studies have not addressed the role of marketing mix strategy comprising of product, price, promotion, place, people, process and physical evidence in the relationship between service quality and customer satisfaction. The role of a moderating variable like marketing mix strategy can have a strong influence on the strength of the relationship thus it’s needed for the study. The main purpose of this study was to analyze the effect of marketing mix strategy on the relationship between service quality and customer satisfaction of commercial bank customers in Nairobi, Kenya.

Building customer loyalty in retail banking: a serial-mediation approach

2019 ◽  
Vol 38 (2) ◽  
pp. 456-484 ◽  
Author(s):  
Pallavi R. Kamath ◽  
Yogesh P. Pai ◽  
Nandan K.P. Prabhu
Keyword(s):  
Customer Satisfaction ◽  
Brand Equity ◽  
Customer Loyalty ◽  
Family Income ◽  
Customer Experience ◽  
Retail Banking ◽  
Equation Modeling ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to advance research on the relationship between customer experience and customer loyalty by exploring the serially mediating roles of brand equity and customer satisfaction and the moderating roles of age, gender, education and family income in the retail banking industry. Design/methodology/approach A total of 500 responses of retail banking customers were used to test the model using the partial least squares structural equation modeling approach. Advanced statistical techniques, such as importance-performance map analysis and a joint application of FIMIX-PLS and PLS-POS, were used to gain new insights. Findings The study highlighted that the relationship between customer experience and loyalty is serially mediated by brand equity and customer satisfaction. Age, gender and education were found to be significant moderators in the customer experience–loyalty relationship. Age and gender were found to be significant moderators in the brand equity–loyalty relationship. Practical implications The study strongly suggests that practitioners not only focus on delivering exceptional customer experiences but also on providing leverage brand equity and satisfaction to build customer loyalty. Practitioners should focus on training their front-line employees to improve the quality of their behavior and relations with customers and thereby build customer loyalty. Originality/value To the authors’ knowledge, this is the first study to explore the mediating role of several variables sequentially and the moderating role of customer demographics in the customer experience–customer loyalty relationship.

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.

scholarly journals Mediating Role of Customer Satisfaction between Service Quality and Customer Loyalty with Non-Interest Bank in Nigeria

2021 ◽  
Vol 4 (1) ◽  
Author(s):  
Sagir Muhammad Sulaiman ◽  
Muhammad Abdulaziz Muhammad ◽  
Aliyu Dahiru Muhammad ◽  
Tasiu Tijjani Sabiu
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
High Quality ◽  
Global Village ◽  
Mediating Role ◽  
Banking Business ◽  
Regulatory Bodies ◽  
The Relationship

The world has become a global village as competition among banks is now intense. Globalization is fuelling increased competition in Nigerian banking industry and as a result, banks are challenged to adopt customer centred strategies that would enable them to gain customer loyalty, maximize profitability and survive the competition. There is no business that survives without customers’ patronage and Islamic banks are not an exception. Customers are key stakeholders to the survival of any business, thus, satisfying the customer through providing high quality services is core to Islamic banking business. The aim of the study is to examine the mediating role of customer satisfaction in investigating the relationship between service quality and customer loyalty in non-interest bank i.e. Jaiz Bank of Kano state metropolis, Nigeria. The variance based (SEM) technique is employed in analyzing the hypothesized model of the study. Service quality positively and significantly influences customer satisfaction and customer loyalty, whereas, customer satisfaction does not significantly mediate the relationship between service quality and customer loyalty among customers of Jaiz bank in Kano state metropolis, Nigeria. The study recommends for providing high quality service in order to achieved maximum loyalty from the customers. It was further recommended on the need for reviving of the existing regulatory bodies or institutions that will ensure proper implementation of good service quality delivery among non-interest banks in Nigeria.

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