The Role of Service Quality in Developing Customer Loyalty in the Banking Sector: A Case study of the Kingdom of Saudi Arabia

2014 ◽  
Vol 1 (1) ◽  
pp. 339
Author(s):  
Tariq Saeed Mian
Keyword(s):  
Saudi Arabia ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Banking Sector ◽  
Business Environment ◽  
Extensive Literature ◽  
Kingdom Of Saudi Arabia ◽  
Customer Base ◽  
Loyal Customer

Maintaining a strong and loyal customer base is the objective of every organisation. However, in reality this is difficult to achieve in the current competitive environment. When the widespread challenges of the business environment are taken into account, organisations cannot simply plan to absorb new customers but instead adopt the strategy of preserving existing customers and promoting their loyalty to the organisation. This study examined customer loyalty in the banking sector in the Kingdom of Saudi Arabia (KSA). A theoretical model was constructed through an extensive literature review and by extracting the most relevant and important variables for customer loyalty. A questionnaire was used to collect data from customers of different banks. Regression results showed that service quality significantly influences customer satisfaction and customer trust. Furthermore, customer satisfaction and trust significantly affect customer loyalty towards banks. In this respect, service quality is imperative to maintain customer loyalty through customer satisfaction and trust. 

scholarly journals An application of retailing service quality practices influencing customer loyalty toward retailers

2017 ◽  
Vol 35 (7) ◽  
pp. 842-857 ◽  
Author(s):  
Achchuthan Sivapalan ◽  
Charles Jebarajakirthy
Keyword(s):  
Service Quality ◽  
Customer Loyalty ◽  
Measurement Model ◽  
Cross Sectional ◽  
Content Type ◽  
Customer Base ◽  
Quality Practices ◽  
Personal Interaction ◽  
Loyal Customer ◽  
Favorable Evaluation

Purpose Enhancing retailing service quality (RSQ) serves as a basic strategy for gaining competitive advantage in the retailing industry and enables retailers to make a loyal customer base. The purpose of this paper is to propose and empirically investigate a comprehensive mechanism for enhancing customer loyalty to retail stores via service quality practices. This study suggests information on retailers can be the antecedent of the RSQ and its dimensions, thereby proposing a comprehensive mechanism for enhancing customer loyalty to retailers. Design/methodology/approach The data were collected using questionnaire surveys from 2,375 customers of three main supermarkets in Sri Lanka. After testing the measurement model, two structural models were run to test hypotheses. Findings The findings showed that the RSQ positively influenced customer loyalty. From all the RSQ dimensions, the store’s physical aspects, personal interaction and policy had a significant influence on customer loyalty. The findings also demonstrated that information on retailers contributes to enhancing a customer’s favorable evaluation of the supermarket’s physical aspects, personal interaction and retailing policy. Research limitations/implications This study was conducted with supermarket customers in one country using the cross-sectional data. Hence, the model should be replicated among retail customers in other countries with the longitudinal data. Practical implications Practically, this study recommends to retailers which dimensions of service quality they need to focus to enhance customer loyalty to their business. The study furthermore recommends certain dimensions that need to be emphasized while retailers design their promotional and communication programs. Originality/value Information on retailers has been suggested as an antecedent for enhancing supermarkets’ service quality practices. Thus, this study proposes a comprehensive mechanism for enhancing customer loyalty to retailers via service quality practices.

scholarly journals Influence of Human Resource Management Policy on Customer Loyalty

2021 ◽  
pp. 76-83
Author(s):  
Kamilė Mitašiūnaitė
Keyword(s):  
Resource Management ◽  
Customer Satisfaction ◽  
Human Resource Management ◽  
Human Resource ◽  
Customer Loyalty ◽  
Employee Motivation ◽  
Business Environment ◽  
Management Policy ◽  
Loyal Customer ◽  
The Impact

The business would not be able to achieve the set goals without qualified specialists. Therefore human resource management is one of the most important processes to an organisation. HRM policy aspects – employee motivation and job satisfaction – directly contribute to customer satisfaction and loyalty. The problem is that in today’s business environment, where there is a big rivalry, maintaining customer loyalty becomes a huge task for the business. The aim of this article is to evaluate the impact of human resource management policy on customer loyalty. The article analyses concept of human resource management, evaluates the development of loyal customer behaviour, distinguishes traditional and innovative concepts of human resource management. Also, the article notices a relationship between employee satisfaction and customer satisfaction. Analysis of empirical research level shows the impact of human resource management policy on customer loyalty and provides a research model.

Customer Loyalty in Financial Sector: A case study of Commercial Banks in Southern Punjab

2014 ◽  
Vol 1 (1) ◽  
pp. 587 ◽  
Author(s):  
Syed Usman Ali Gillani ◽  
Dr. Abdul Ghafoor Awan
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Service ◽  
Customer Loyalty ◽  
Commercial Banks ◽  
Perceived Value ◽  
Financial Sector ◽  
Business Environment ◽  
Comprehensive Model

By considering the intense competitiveness and prevalent challenges in the current business environment, organizations can’t survive just focusing on attracting and capturing new customer but they have to choose the strategy that help in retaining the existing customers and enhanced their loyalty to the organization. So, in the customer service based industry, satisfied customers are no longer suitable, and the businesses have to explore the new ways to flourish and promote the loyalty of customers. The current study hypothesize that customer loyalty is significantly affected by the customer satisfaction and trust of the customers. Whereas, perceived value and service quality is important determinants to create the customer satisfaction and trust. The data was collected from different customers of various banks and the hypothesize links are tested. Results indicate that there is a significant relationship between customer satisfaction and trust with customer loyalty. It is also confirmed that service quality and perceived value are important antecedents of customer satisfaction and trust. The results present a comprehensive model in the financial sector to create and manage customer loyalty.

scholarly journals An Overview of Customer Loyalty, Perceived Service Quality and Customer Satisfaction: Brief on Saudi Grocery Stores

2014 ◽  
Vol 1 (1) ◽  
pp. 79 ◽  
Author(s):  
Naif Mutlaq Al Otaibi ◽  
Kausar Yasmeen
Keyword(s):  
Saudi Arabia ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Future Research ◽  
Grocery Stores ◽  
Grocery Shopping ◽  
Shopping Malls ◽  
Perceived Service Quality ◽  
Convenience Stores

Lack perceived quality in Saudi Arabia has been repeatedly identified as one of the most formidable barriers to people for engaging in customer loyalty.Despite, the widespread establishment of shopping malls all over the country, the statistics revealed that Saudi consumers, although trying grocery shopping in some shopping malls, still prefer to do their grocery shopping activities in traditional grocery stores and convenience stores (Othaim, 2012).This paper provides an overview perceived service quality and customer satisfaction which affect Saudi customer loyalty,,and it reviews relevant previous studies that investigate the relationships among said three variables.  This paper provides the critical remarks and direction for future research.

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 Influence of Service Quality on Customer Satisfaction and Customer Loyalty in the Private Banking Sector of Bangladesh: A PLS Approach

2020 ◽  
Vol 1 (3) ◽  
pp. 8-17
Author(s):  
Rashed Al Karim
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Banking Sector ◽  
Bottom Line ◽  
Managerial Implication ◽  
Five Dimensions ◽  
Financial Organization ◽  
Private Banking ◽  
The Impact

In this competitive business era, the key strategy for the success and survival of any business organization is the deliverance of quality services to customers because service quality has beneficial effect on the bottom-line performance for the organization. As a financial organization, banks are continuously introducing their new products and services at regular intervals to satisfy and retain their customers and hence, achieving high levels of service is one of techniques to keep customers both satisfied and loyal. Thus, this study intends to determine the impact of Service Quality on Customer Satisfaction and Customer Loyalty in private banking sector of Bangladesh. Five dimensions of Servqual Model such as tangibility, reliability, responsiveness, empathy, and assurance (Parasuraman, Zeithaml, & Berry, 1985) are considered as the base for this study. A structured questionnaire with 5-point Likert scale has been used to gather the data for this study by conducting survey. The sample size is 100 and chosen on a convenient basis. Data has been analyzed by using PLS 3.0 software. SPSS software (version 20) package was also used to present the data demographically. The result shows that tangibility and empathy have significant effect on customer satisfaction, on the other hand, reliability, responsiveness and assurance don’t have any significant effect on customer satisfaction. Moreover, customer satisfaction has direct significant effect on customer loyalty. Finally, this study proposed few recommendations for the managerial implication.

scholarly journals PENGARUH KUALITAS PRODUK, KUALITAS LAYANAN, DAN CITRA MEREK TERHADAP LOYALITAS NASABAH YANG DIMEDIASI OLEH KEPUASAN NASABAH (Studi pada Nasabah PT. BRI (Persero) Tbk. Yogyakarta)

2020 ◽  
Vol 7 (2) ◽  
pp. 123
Author(s):  
Lita Ningrum Afriani ◽  
Hendro Setyono
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Product Quality ◽  
Customer Loyalty ◽  
Brand Image ◽  
Primary Data ◽  
Quality Service ◽  
Loyal Customer ◽  
Number Of Customers ◽  
Loyal Customers

For companies, loyal customers mean a lot besides illustrates the amount of profitability obtained by loyal consumers can also show the image or image of the company in the public eye. Loyal customers can become partners in developing new products, because they maintain and defend and even use the services of existing companies. According to Darsono (2004) a loyal customer becomes a valuable asset for the company. Loyal customers will reduce the effort to find new customers, giving positive feedback to the company. Companies must be able to satisfy old customers and create new customers, if you want to win the competition. PT. BRI (Persero) Tbk. Yogyakarta must be able to answer the existing competition challenges. The population in this study are customers of Bank Rakyat Indonesia Yogyakarta and have been customers for at least one year. While the sample in this study is a portion of the number of customers from BRI Bank Yogyakarta. The sampling technique uses accidental sampling and purposive sampling. While the data used in the study are primary data, that is data obtained directly from respondents by the researchers themselves through questionnaires. Analysis tools using multiple linear regression The results of the analysis can be concluded that: Product quality has a significant effect on customer satisfaction. Service quality has a significant effect on customer satisfaction. Brand image does not significantly influence customer satisfaction. Product quality, service quality and brand image together significantly influence customer satisfaction. Product quality does not significantly influence customer loyalty. Service quality has a significant effect on customer loyalty. Brand image does not significantly influence customer loyalty. Product quality, service quality and brand image together significantly influence customer loyalty. Customer satisfaction significantly influences customer loyalty. Customer satisfaction mediates the effect of product quality on customer loyalty. Customer satisfaction does not mediate the effect of service quality on customer loyalty. Customer satisfaction does not mediate the effect of brand image on loyalty the customer.

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.

scholarly journals Pengaruh Kualitas Pelayanan Islami Terhadap Kepuasan dan Loyalitas Nasabah Bank BRI Syariah Surabaya

2015 ◽  
Vol 1 (9) ◽  
pp. 622
Author(s):  
Rizky Pratama Putra ◽  
Sri Herianingrum
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Sampling Technique ◽  
Partial Least Square ◽  
Least Square ◽  
Religious Knowledge ◽  
Loyal Customer ◽  
Customer Satisfaction And Loyalty

This study aims to determine the influence of the Islamic service quality on customer satisfaction and loyalty switching intentions moderated by religious knowledge level in in Customer of BRISyariah Bank in Surabaya.The research method used is quantitative approach. This research use a total of 96 customers of BRISyariah Surabaya. Customer characteristics used are Moslem, registered as a funding or deposit customer for at least a year. The sampling technique is purposive sampling. This research uses a method PLS (Partial Least Square).The results showed that Islamic service quality has a positive and significant impact on customer satisfaction. Other results showed that customer satisfaction has significant impact to customer loyalty and Islamic service quality has significant effect on customer loyalty. This results in accordance with the theory of Othman and Owen that CARTER could be used to measure the quality of service on Islamic Banking. Suggestion for the BRISyariah Bank in Surabaya should maintain and improve its service quality in order to improve satisfaction and form a loyal customer. For further research, can be done by adding another variable which affect customer satisfaction and loyalty.

scholarly journals Sustainable Service Quality and Customer Loyalty: The Role of Customer Satisfaction and Switching Costs in the Pakistan Cellphone Industry

2019 ◽  
Vol 11 (8) ◽  
pp. 2408 ◽  
Author(s):  
Noor Ul Hadi ◽  
Nadia Aslam ◽  
Amir Gulzar
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Switching Cost ◽  
Customer Base ◽  
Mediating Role ◽  
Managerial Implications ◽  
Current Scenario ◽  
Telecom Sector

Generally, the current scenario in the hyperactive corporate world, and specifically in the telecom sector, renders companies to compete concurrently on two fronts: Expansion of their customer base and the retention of their current customers. In order to explore and examine the latter concept, the current study hypothesizes the effects of sustainable service quality on customer loyalty with a mediating role of customer satisfaction conceptualized through the reciprocity theory. The study also considers the suggested moderating role of switching cost by theorizing the Apostle model. Pertinently, the satisfied customer may not be loyal if the switching cost is low, since the dynamics of the switching cost provide a useful insight into the phenomenon of retaining the customers through customer satisfaction. The research opts for explanatory study where data were conveniently collected. The study has used the PROCESS macro model 4 and 14 to analyze the data. Findings reveal that the role of customer satisfaction is significant but the effect of the switching cost was considered to be insignificant, elucidating that a satisfied customer will remain loyal even if the switching cost is low. It means that sustaining service quality longitudinally did not affect customer loyalty in the presence of a low switching cost. With a view to complement the study, managerial implications of a switching cost have also been discussed.

Sign in / Sign up

Export Citation Format

Share Document