Service quality, customer satisfaction and loyalty: an empirical analysis of banking sector in Pakistan

Zafar, Mohsin and Zafar, Sana and Asif, Aasia and Hunjra, Ahmed Imran and Ahmad, H. Mushtaq (2011): Service quality, customer satisfaction and loyalty: an empirical analysis of banking sector in Pakistan. Published in: Information Management and Business Review , Vol. 4, No. 3 (2012): pp. 159-167.

Abstract

The basic aim of this study is to explore most common constructs for quality of banking services, which influence customer satisfaction and examine the impact of customer satisfaction on customer loyalty in the context of banking relationships. The questionnaire was used to collect the data from 192 valid respondents by convenience sampling method. SPSS was used to analyze the data and AMOS was used to test the model. The results of the study show that there is a positive and significant link between customer satisfaction and constructs of service quality like tangibility, reliability, competence conflict handling and further study inferred that customer satisfaction is positively significant related to customer loyalty.

• Item Type: MPRA Paper
• Language: English
• Keywords: Customer Satisfaction, Service Quality in banking, Customer Loyalty
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services

References

Angur, M. G., Nataraajan, R. & Jahera, J. S. (1999). Service Quality in the banking industry: an assessment in a developing economy. International Journal of Bank Marketing, 17(3), 116-123.

Bearden, W. O. & Teel, J .E. (1983). Selected Determinants of Consumer Satisfaction and Complaint Reports. Journal of Marketing Research, 20(1), 21–28.

Berry, L. L. (1995). Relationship marketing of services—growing interest, Emerging Perspectives. Journal of the Academy of Marketing Science, 23(4), 236-245.

Bitner, M. J., Booms, B .H. & Tetreault, M .S. (1990). The service Encounter: Diagnosing Favorable and Unfavorable Indents. Journal of Marketing, 54(1), 71-84.

Bloemer, J., de-Ruyter, K. & Wetzels, M. (1999). Linking perceived service quality and service loyalty: A multi- dimensional perspective. European Journal of Marketing, 33(11/12), 1082–1106.

Bolton, R. N. (1998). A Dynamic Model of the Duration of the Customer’s Relationship with a Continuous Service Provider: The Role of Satisfaction. Marketing Science, 17(1), 45–65.

Bolton, R. N. & Drew, J .H. (1991). A Multistage Model of Customers: Assessments of Service Quality and Value. Journal of Consumer Research, 17(4), 375–385.

Buzzell, R. D. & Gale, B. T. (1987). The PIMS Principles: Linking Strategy to Performance, The Free Press, and New York.

Cadotte, E. R., Woodruff, R. B. & Jenkins, R. L. (1987). Expectations and Norms in Models of Consumer Satisfaction. Journal of Marketing Research, 24 (3), 305-314.

Churchill, G. A. & Surprenant, C. (1982). An investigation into the determinants of customer satisfaction. Journal of Marketing Research, 19(4), 491-504.

Cronin, J. J. & Taylor, S. A. (1992). Measuring service quality: A re-examination and extension. Journal of Marketing, 56(3), 55-68.

Drucker, P. F. (2001). The new workforce. The Economist, 3, 8–12.

Dwyer, F. R., Schurr, P. H. & Oh, S. (1987). Developing buyer-seller relationships. Journal of Marketing, 51(2), 11–27.

Fen, Y. S. & Lian, K. M. (2007). Service quality and customer satisfaction: Antecedents of customer’s re- patronage intentions. Sunway Academic Journal, 4(1), 59 – 73.

Fornell, C. (1992). A National Customer Satisfaction Barometer: The Swedish Experience. Journal of Marketing, 56(1), 6–21.

Gurau, C. (2002). Online banking in transition economies: the implementation and development of online banking systems in Romania. International Journal of Bank Marketing, 20 (6), 285-296.

Hellier, P. K., Geursen, G. M., Carr, R. A. & Rickard, J. A. (2003). Customer repurchases intention: A general structural equation model. European Journal of Marketing, 37(11), 1762–1799.

Heskett, J. L., Jones. T., Loveman, G., Sasser, W. & Schlesinger, L. (1994). Putting the service profit chain to work. Harvard Business Review, 72(2), 164-174.

Howcroft, B., Hamilton, R. & Hewer P. (2002). Consumer attitude and the usage and adoption of home based banking in the United Kingdom. International Journal of Bank Marketing, 20 (3), 111-21.

Johnston, R. (1995). The Determinants of Service Quality: Satisfiers and Dissatisfies. International Journal of Service Industry Management, 6(5), 53-71.

Jun, M. & Cai, S. (2001). The key Determinant of Internet Banking Services Quality: A content analysis . International Journal of Bank Marketing, 19(7), 276-291.

Khalifa, M. & Liu, V. (2003). Determination of Satisfaction at Different Adoption Stages of Internet Based Services. Journal of Association for Information System, 4(5), 206-232.

Liao, Z. & Cheung, M. T. (2002). Internet-based e-banking and consumer attitudes: An empirical study. Information & Management, 39(4), 283-95.

Liu, C. & Arnett, K. P. (2000). Exploring Factors Associated with Web Site Success in the Context of Electronic Commerce. Information and Management, 38(2), 23 – 33.

Mckinney, V., Yoon, K. & Zahedi, F .M. (2002). The Measurement of Web Customer Satisfaction: An Expectation and Disconfirmation approach. Information System Research, 13(3), 296-315.

McShane, S. & Travaglione, T. (2007). Organizational behavior on the Pacific Rim (2nd Ed.), Pty Ltd, New South Whales: McGraw-Hill Australia

Mefford, R. N. (1993). Improving service Quality: Learning from Manufacturing. International Journal of Production Economics, 30, 399-413.

Mishra, A. A. (2009). A study on Customer Satisfaction in Indian Retail Banking. IUP Journal of Management Research, 8(11), 45-61.

Mols, N .P. (2000). The Internet and services marketing the case of Danish retail banking Internet Research. Electronic Networking Applications and Policy, 10(1), 7-18.

Ndubisi, N., Malhotra, N. & Wah, C. (2009). Relationship marketing, Customer satisfaction and loyalty: a Theoretical and Empirical Analysis from an Asian Perspective. Journal of International Consumer marketing, 21(1), 5-16.

Oliver, R .L. (1980). A Cognitive Model of the Antecedents and Consequences of Satisfaction decisions. Journal of marketing research, 17(4), 460-469.

Parasuraman, A. & Grewal, D. (2000). The Impact of Technology on the Quality Value Loyalty Chain. A Research Agenda. Journal of Academy of Marketing science, 28(1), 168-174.

Parasuraman, A. (1991). Refinement and reassessment of the SERVQUAL scale. Journal of Retailing, 67(4), 420-450.

Parasuraman, A., Berry, L. L. & Zeithaml, V. A. (1991). Understanding Customer Expectations of Service. Sloan Management Review, 32(3), 39-48.