Factors Contributing to Customer Loyalty in Commercial Banking

2014 ◽  
Vol 1 (1) ◽  
pp. 413 ◽  
Author(s):  
Bareerah Khan ◽  
Muhammad Rizwan
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Banking Sector ◽  
Sampling Technique ◽  
Switching Cost ◽  
Commercial Banking ◽  
Corporate Image ◽  
Perceived Service Quality ◽  
Customer Involvement

Customer Loyalty has been realized as a significant aspect in the establishment and maintenance of competitive edge in services sectors. Firm’s performance is positively affected with customer loyalty.  Customer Loyalty not only increases the business value but they also allow it to uphold costs lower than those associated with attracting new customers. Now days, banking sectors are promoting Relational marketing which is beneficial for them to build long-term relationship with their customers. Empirical research of this paper examines the extent to which customer Satisfaction in accordance with Perceived Service quality and Trust, Switching Cost, Corporate Image, Customer Involvement Influence the Customer Loyalty in banking sector. For this analysis, Questionnaires were distributed among 150 people and data were collected from 148 questionnaires selected through non-probability sampling technique. Regression and Correlation techniques were used for the analysis of this study. Findings show that there is a direct positive and significant relationship between Customer Satisfaction together with Perceived Service Quality, Corporate Image, Customer involvement and Customer Loyalty. While, Switching Cost has a positive but insignificant relationship on Customer Loyalty.

scholarly journals The Relationship Between Service Quality and Customer Satisfaction in India’s Rural Banking Sector: An Item Analysis and Factor-Specific Approach

2013 ◽  
Vol 1 (2) ◽  
pp. 43-63 ◽  
Author(s):  
Mohammad Adil
Keyword(s):  
Regression Analysis ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Banking Sector ◽  
Item Analysis ◽  
Sampling Technique ◽  
Quality Data ◽  
Sampling Frame ◽  
Business World ◽  
Perceived Service Quality

Earlier research has shown that, in today’s highly competitive business world, service quality and satisfaction are central to management concerns for marketing effectiveness and success. This study attempts to determine customer-perceived service quality at rural Indian banks and identify the most significant predictors of overall customer satisfaction based on a five-dimensional ‘performance-only’ scale measuring service quality. Data was collected from 289 patrons of rural banks, based on a seven-point Likert scale ranging from 1 (”strongly disagree”) to 7 (“strongly agree”). The absence of a reliable sampling frame necessitated following a controlled sampling technique. In order to extract factors relevant to service quality, we employ exploratory factor analysis, means, standard deviations, t-tests, and regression analysis. Our preliminary analysis indicates that rural customers report high levels of perceived service quality across all five dimensions while the results of the regression analysis (β) show that reliability and assurance explain overall customer satisfaction at rural banks in India. The study’s findings can be employed by the banking industry to restructure and prioritize its service quality and develop appropriate promotional strategies by highlighting relevant aspects of service quality and customer satisfaction.

scholarly journals The Effect of Service Quality, Customer Satisfaction and Corporate Image on Customer Loyalty in the banking sector in Indonesia

2018 ◽  
Author(s):  
Didit Darmawan
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Banking Sector ◽  
Corporate Image ◽  
Decision Making Process ◽  
Positive Effects ◽  
Research Population ◽  
Positive Effect

The Main purpose of this study is to show the role of service quality, customer satisfaction and corporate image on customer loyalty. The research population is bank customers in East Java who have high involvement in decision making process. This study involved 250 respondents who came from retail customers from five largest banks in Indonesia. The research results indicate that service quality has significant positive effects on customer satisfaction, corporate image, and customer loyalty. Also, customer satisfaction has significant positive effects on corporate image. Finally, both of customer satisfaction and corporate image are found to have a significant positive effect on customer loyalty. The model indicates that corporate image has the bigger effect on customer loyalty when compared with both service quality and customer satisfaction. Service quality can enhance and create both of customer satisfaction and corporate image.he abstract should summarize the content of the paper. Keywords: Service quality, customer satisfaction and corporate image, customer loyalty

scholarly journals Pengaruh Perceived Service Quality dan Switching Cost terhadap Customer Loyalty

2019 ◽  
Vol 4 (2) ◽  
pp. 76-84
Author(s):  
Dhia Annisa Hidayaturrakhma ◽  
Eded Tarmedi ◽  
Lisnawati Lisnawati
Keyword(s):  
Regression Analysis ◽  
Service Quality ◽  
Customer Loyalty ◽  
Random Sampling ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
Switching Cost ◽  
Survey Method ◽  
Perceived Service Quality ◽  
High Category

Abstract: This research aims to determine the Effect of Perceived Service Quality and Switching Cost on Customer Loyaly in the IM3 Ooredoo Users in Indonesia. This research is a descriptive verification research, using explanatory survey method by simple random sampling technique with 150 respondents and the data were analized by multiple regression analysis with the help of SPSS 24.0. The outcome of this study indicate that the concept of perceived service quality is fairly high category, the concept of switching cost is fairly high category, the concept of customer loyalty is fairly high category, and the customer loyalty is influenced by both perceived service quality and switching cost.Keywords: Perceived Service Quality; Switching Cost; Customer Loyalty 

scholarly journals Effect of Service Quality and Corporate image on Customer Loyalty with Customer Satisfaction as Mediation Variables (Study at PT. BPR. Padma, Denpasar-Bali)

2020 ◽  
Vol 11 (01) ◽  
pp. 21729-21740
Author(s):  
Made Sukerta ◽  
Anak Agung Putu Agung ◽  
I Wayan Sujana
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Sampling Technique ◽  
Total Sample ◽  
Corporate Image ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling

The aim of this study is to know and test the effect of service quality, corporate image and customer satisfaction on customer loyalty at PT. BPR. Padma Denpasar-Bali, and to find out and test the effect of service quality, and corporate image on customer satisfaction at PT. BPR. Padma Denpasar-Bali. The study population was all customers at PT. BPR. Padma Denpasar-Bali, with 15,318 people. The number of samples was calculated using the Slovin method and obtained a total sample of 100 people, to determine the sample members used proportional random sampling technique that is the sample members taken proportionally in each part of the PT. BPR. Padma Denpasar-Bali. Data analysis techniques to answer the hypothesis of this study using Structural Equation Modeling (SEM) based on Partial Least Square (PLS). The results showed that (1) service quality had a positive and significant effect on customer loyalty, (2) corporate image had a positive and significant effect on customer loyalty, (3) service quality had a positive and significant effect on customer satisfaction, (4) corporate image had a positive effect and significantly to customer satisfaction (5) corporate image has a positive and significant effect on customer satisfaction, (6) customer satisfaction positively significantly mediates the effect of service quality on customer loyalty and (7) customer satisfaction positively significantly mediates the effect of corporate image on customer loyalty.

scholarly journals Factors Affecting Customer Loyalty in Banking Sector of Hyderabad, Pakistan: A Study on Conventional and Islamic Banking

2019 ◽  
pp. 1-16
Author(s):  
Zuhaib Khokhar ◽  
Iqra Laghari ◽  
Muhammad Qasim Lakhani
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Banking Sector ◽  
Brand Image ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Islamic Banking ◽  
Independent Variables ◽  
Customer Trust

Customers are the prime means for any company or an organization to be successful. Customer loyalty plays a very crucial role in the success of an organization. This research is based on identifying the factors that affect the loyalty of customers in Conventional and Islamic Banking. A sample of 200 respondents were selected which further classified into Conventional and Islamic Banking. There were 143 respondents of conventional banking (including 80 male and 63 female), whereas Islamic banking includes 57 respondents in which male and female accounts for 37 and 20 respectively. The data was collected using Convenience Random Sampling Technique and then transacted into software known as IBM SPSS Statistics version 21. Major four (4) tests were done such as Factor Loading (Confirmative Factor Analysis: CFA), Reliability (Cronbach’s Alpha), t-Test and finally Linear Regression Analysis. There are two (2) variables such as Independent Variables and Dependent Variable. Independent Variables include service quality, customer satisfaction, customer trust, and brand image. Dependent Variable includes only customer loyalty. The data was collected using questionnaire as an instrument for collecting data; the questionnaire contains both closed-ended and open-ended questions. There are five (5) construct in the study and each possesses five (5) items and open-ended questions contain three (3) questions. Data was analyzed using the SPSS software. The results show that there is positive significant relationship of service quality, customer satisfaction, customer trust, and brand image on customer loyalty of both conventional and Islamic banking. Based on findings, it was recommended to prohibit interest (Riba) from banking sectors whether they are conventional or Islamic, there is a need to train employees to behave properly with their customers, and time incurred in transactions should be improved and counters should be increased because of rush of people in banks.

scholarly journals Determining the Effect of Banking Service Quality on Customer Loyalty Using Customer Satisfaction as a Mediating Variable: An Applied Study on the Jordanian Commercial Banking Sector

2021 ◽  
Vol 14 (4) ◽  
pp. 58
Author(s):  
Zaher Abdel Fattah Al-Slehat
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Banking Sector ◽  
Service Providers ◽  
Hypothesis Test ◽  
Commercial Banking ◽  
Convenience Sample ◽  
Banking Service

Banks operate in an environment characterized by competition between banking service providers and the continuous development of financial technology. On this basis, the quality of banking services determines the success of banks. This study aims to test customer satisfaction as a mediating variable in the relationship between banking service quality and customer loyalty using the convenience sample method. Using the SmartPLS software, the data analysis and hypothesis test results show that the quality of banking service in all its dimensions positively affects customer loyalty. Moreover, customer satisfaction mediates such a relationship. Accordingly, the Jordanian commercial banking sector should focus on the tangibility dimension and influence customer satisfaction to promote customer loyalty.

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.

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