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.

Relationship between Service Quality and Customer Satisfaction of Commercial Bank Customers, Nairobi Kenya

2016 ◽  
Vol 2 (5) ◽  
Author(s):  
Victor Lusala Aliata ◽  
Patrick B. Ojera ◽  
Jairo K. Mise
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Commercial Bank ◽  
Banking Industry ◽  
Sampling Technique ◽  
Target Population ◽  
Quality Model ◽  
Satisfaction Index ◽  
Negative Results ◽  
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. The main purpose of this study was to analyse the relationship between service quality and customer satisfaction of commercial bank customers in Nairobi, Kenya. The target population was 1,072,500 customers of commercial bank customers in Nairobi. A sample of 384 was drawn using proportionate stratified random sampling technique to constitute 242 Retail, 81 Business and 61 corporate customers. The results revealed that service quality significantly contributed to customer satisfaction at (β=.488, p less than .05). It was concluded that service quality contributes to customer satisfaction. The study recommends a more emphasis on improving and maintaining high service quality levels translating to customer satisfaction. Therefore the research provides a validated service quality model that can be used to clearly measure levels of service quality in relation to levels of customer satisfaction.

scholarly journals The Influence of Service Marketing Mix and Umrah Service Quality on Customer Satisfaction and Customer Loyalty towards Umrah Travel Agents in Malaysia

2021 ◽  
Vol 22 ◽  
pp. 553-618
Author(s):  
Bestoon Othman ◽  
Amran Bin Harun
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Service Marketing ◽  
Marketing Mix ◽  
Mediating Effect ◽  
Marketing Communication ◽  
Product Price ◽  
Travel Agents ◽  
The Relationship

In the Malaysian Umrah industry, there are so many new participants selling and offering similar products and services. As a result, Umrah providers must compete to survive in this industry, as there are currently so many competitors.  They need to focus on customers’ special needs and preferences to maintain and retain the long-term relationship. Thus, the objective of this study is to examine the relationship between service marketing mix and Umrah service quality on customer loyalty towards Umrah travel agents, and the mediating effect of customer satisfaction in the relationship between service marketing mix/service quality and customer loyalty towards Umrah travel agents in Malaysia. This study explored and integrated two new dimensions    (not Ps) for service marketing mix namely after-sale service and marketing communication rather than traditional service marketing mix of 7 P’s. The study’s research framework was supported by the Stimulus-Organism-Response theory. Three of the four main constructs namely; service marketing mix, Umrah service quality and customer satisfaction were conceptualised as second order constructs and assessed via the reflective-formative approach. Customer loyalty which acted as the dependent variable was measured reflectively through seven multi items. All the items were assessed using the 5-point Likert scale. Data was derived from 384 Umrah customers who have used Umrah traveling services. All the constructs such as product, price, promotion, place, people, process, physical evidence, marketing communication, and after-sale service (marketing mix), Umrah service quality includes tangibles, reliability, responsiveness, assurance, and empathy had significant effects on customer satisfaction and customer loyalty. However, second hypothesis Umrah service quality and customer loyalty which were found not significant. Two indirect effect hypotheses to examine the role of customer satisfaction as mediators were accepted as full mediation. The study findings were discussed thoroughly and concluded with a discussion on the implications, the limitation of the study and recommendations for future study.

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.

ANALISIS PENGARUH STRATEGI MARKETING MIX TERHADAP KEPUASAN PELANGGAN DI TOKO SUGENG

2020 ◽  
Vol 4 (02) ◽  
Author(s):  
Farida Nur Solikhah ◽  
Bambang Mursito ◽  
Supawi Pawenang
Keyword(s):  
Customer Satisfaction ◽  
Marketing Strategy ◽  
Swot Analysis ◽  
Marketing Mix ◽  
Product Price ◽  
The Matrix ◽  
Marketing Mix Strategy ◽  
Place Promotion ◽  
Product Location ◽  
Cartesian Diagram

This study aims to analyze the effect of the marketing mix strategy on customer decisions at Toko Sugeng. This research uses the mix method. The strategy used is squential explanatory. The research were obtained from questionnaires, interviews, observation and documentation. The population in this study are all customers who have made repeat purchases. Samples taken as many as 100 customers. Result research shows the effect of price on customer satisfaction is 14,726%. The effect of the product on customer satisfaction is 13.764%. Effect of location on customer satisfaction of 18,470%. The effect of promotion on customer satisfaction is equal to 37.074%. The effect of price, product, location, and promotion on customer satisfaction is 84%. The marketing strategy applied by Toko Sugeng in increasing customer satisfaction, namely by implementing a marketing formulation strategy, segmenting, targeting, positioning and the marketing mix strategy or marketing mix which consists of four elements, namely product, price, place, promotion. The purpose of this is to attract buyers and retain existing customers. Toko Sugeng uses a SWOT analysis for improve customer satisfaction. In the calculation of the SWOT analysis both in terms of the matrix, EFAS and IFAS and the Cartesian diagram, show that Toko Sugeng is in the quadrant I position, namely (+, +). This position proves a strong and likely shop. Tactic recommendations given is progressive. So that it is really possible to continue to expand, enlarge growth and achieve maximum progress. Keywords: marketing mix, strategy, customer satisfaction

scholarly journals Factors of the Development and Decline in New Industrial Era: A Case Study of 7-Eleven

2021 ◽  
Vol 4 (1) ◽  
pp. 1-15
Author(s):  
Zi Jian Oh ◽  
Gai Sin Liem ◽  
Safina binti Ismail ◽  
Siti Aina Antasya binti Mohd Indera JR ◽  
Nur Muslihah binti Abdul Hakim ◽  
...  
Keyword(s):  
Customer Satisfaction ◽  
Marketing Mix ◽  
Sufficient Evidence ◽  
Marketing Mix Strategy ◽  
The Relationship

The purpose of this study is to investigate factors of the development and decline of 7-Eleven in the new industrial era. This study examined the relations between marketing mix strategy (4Ps) and customer satisfaction significantly predicting the development and decline of 7-Eleven. A total of 108 respondents, 56 Malaysian and 52 Indonesian, were involved to collect the data by questionnaires. The regression results provided sufficient evidence that factors of 7-Eleven development are positively related to its marketing mix strategy and customer satisfaction or vice versa. This finding provides profound understanding about the relationship between the development and decline factors in new industrial era, its marketing mix strategy and customer satisfaction.

scholarly journals The Effect of Marketing Mix, Service Quality and Trust on Customer Satisfaction and Loyalty at PT. Great Indonesian Milagros

2021 ◽  
Vol 8 (2) ◽  
pp. 127-141
Author(s):  
Andi Nuryadin ◽  
Mahfudnurnajamuddin . ◽  
Sabri Hasan
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Marketing Mix ◽  
Sem Analysis ◽  
Product Price ◽  
Insignificant Effect ◽  
Loyalty Marketing ◽  
Customer Satisfaction And Loyalty ◽  
Descriptive Statistical Analysis

This research purposes aims to analyze the effect of the marketing mix (product, price, promotion, place, employee, process and physical evidence) on customer satisfaction, the effect of service quality on customer satisfaction, the effect of trust on customer satisfaction, the effect of the marketing mix on customer loyalty, the influence of quality. service to customer loyalty, the effect of trust on customer loyalty and the effect of satisfaction on customer loyalty at PT. Great Indonesian Milagros. Test and analyze the effect of the marketing mix on customer loyalty through customer satisfaction at PT. Great Indonesian Milagros. Test and analyze the effect of service quality on customer loyalty through customer satisfaction at PT. Great Indonesian Milagros. Test and analyze the influence of trust on customer loyalty through customer satisfaction at PT. Great Indonesian Milagros. To achieve this research, questionnaires were distributed and documents were collected using descriptive statistical analysis methods, SEM analysis. The total population is all customers who have registered in 2015–2019, amounting to 558 subscribers. The numbers of samples in this study were 233 customers. The results of this study found that the marketing mix and service quality have a positive and significant effect on customer satisfaction, trust has a negative and insignificant effect on customer satisfaction. The marketing mix, service quality, and Trust have a positive and significant effect on customer loyalty. Marketing mix and service quality have a positive and significant effect on customer loyalty through customer satisfaction. Trust has a negative and insignificant effect on customer loyalty through customer satisfaction Keywords: Marketing Mix, Service Quality, Trust, Customer Satisfaction, Customer Loyalty.

Internal marketing, service quality and perceived customer satisfaction

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Leigh De Bruin ◽  
Mornay Roberts-Lombard ◽  
Christine De Meyer-Heydenrych
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Banking Industry ◽  
Marketing Mix ◽  
Internal Marketing ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Internal Process ◽  
Perceived Ability

Purpose This study aims to explore the extent to which internal marketing influences employees’ perceived ability to deliver service quality in the Islamic banking industry in Oman. Additionally, the influence of perceived service quality on perceived customer satisfaction is established. Design/methodology/approach Data was obtained from retail banking branch employees at the customer front line of Islamic banks in Oman using electronic and person-administered surveys, and 272 responses were deemed suitable for data analysis. The measurement and structural models were measured through structural equation modelling. Findings The findings show that internal promotion, internal process and internal purpose are enablers of employees’ perceived ability to deliver service quality in the Islamic banking industry of Oman. In addition, service quality was found to have a strong positive influence on perceived customer satisfaction in Islamic banks. Research limitations/implications This study demonstrates that internal product, internal price, internal promotion, internal process and internal purpose are influencers of service quality, and the latter has a direct relationship with perceived customer satisfaction in Islamic banking. Practical implications The findings can guide the Islamic banking sector in Oman on how internal marketing can foster service quality, ultimately leading to positive perceived customer satisfaction experiences. Originality/value The internal marketing mix model is predominately a Western model, which has been tested primarily in mature Western markets. This study reflects on ten internal marketing mix elements, which have been tested for the enablement of service quality and perceived customer satisfaction in Oman.

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.

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