Perceived Service Quality and Customer Loyalty: Evidence from Commercial Banks in Sri Lanka

Author(s):  
Praveena Thevisuthan
2019 ◽  
Vol 11 (1) ◽  
pp. 66-80 ◽  
Author(s):  
Dwi Suhartanto ◽  
Christopher Gan ◽  
Ira Siti Sarah ◽  
Setiawan Setiawan

Purpose This paper aims to integrate and examine three loyalty routes (i.e. service quality, emotional attachment and religiosity) in developing customer loyalty towards Islamic banking. Design/methodology/approach Data were collected from 412 Islamic bank customers from Indonesia. Variance-based structural equation modelling was applied to evaluate the association between service quality, emotional attachment, religiosity and customer loyalty. Findings This study reveals that customer loyalty is more driven by emotional attachment and religiosity rather than by perceived service quality. Although not directly affecting customer loyalty, service quality strengthens customer satisfaction towards Islamic banks. Practical implications This study provides an opportunity for Islamic bank managers to increase their customer loyalty through the development of emotional attachment and religiosity. To improve customer loyalty, this study suggests that Islamic banks have to provide prompt, accurate and non-personal service. It is also important for Islamic bank managers to keep the bank operation compliant with the Sharia law. Originality/value This study is the first attempt to assess the three loyalty routes simultaneously in influencing customer loyalty.


2020 ◽  
Vol 2 (2) ◽  
pp. 105-121
Author(s):  
Madumere Humphrey Ikenna ◽  
Dickson Ben Uche ◽  
Agu Godswill Agu

The purpose of this was to investigate the relationship between perceived service quality and customer loyalty in the road transport industry in Nigeria. Leveraging the RATER service quality model, only reliability, tangibles and responsiveness were explored. Participants were drawn from the customer base of organized road transport firms operating in the South East of Nigeria. Being a quantitative survey, results from 318 valid responses were analyzed with SPSS version 21.  Findings indicate that the three constructs (reliability, tangibles, and responsiveness) are significant predictors of customer loyalty, with reliability having the greatest influence, followed by responsiveness and tangibles. The study recommends steady monitoring of service quality as a step towards customer loyalty in the highly competitive road transport industry in Nigeria.


Author(s):  
Abdul Qayyum ◽  
Do Ba Khang

The paper evaluates various roles (direct antecedent, mediator or moderator) of perceived switching costs in determining customer loyalty in the mobile telecommunications market. Data were collected through a field survey of mobile phone users in Pakistan. Structural equation modelling was used to evaluate hypothesized relationships. Perceived switching costs were found to play all three roles. Findings suggest that perceived switching costs directly influence customer loyalty, mediate the impacts of perceived service quality, value, and trust on customer loyalty and negatively moderate the relationships of satisfaction and perceived service quality with customer loyalty. Implications of these findings are discussed.


Author(s):  
Syed Usman Ali Gillani ◽  
Dr. Abdul Ghafoor Awan

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.


2014 ◽  
Vol 1 (1) ◽  
pp. 79 ◽  
Author(s):  
Naif Mutlaq Al Otaibi ◽  
Kausar Yasmeen

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.


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