Investigating the Nexus of Service Quality and Customer Loyalty in Banking Industry via the Mediating Role of Customer Satisfaction

Rawan Alafeshat () and Uju Violet Alola ()

Academic Journal of Economic Studies, 2018, vol. 4, issue 3, 167-176

Abstract: This study aims to examine the relationship between Service Quality (SQ), Customer Satisfaction (CS) and Customer Loyalty (CL) in the Jordanian Commercial Bank. This Study also, investigates CS as a partial mediator of the impact of SQ on CL. Data was collected from 210 customers who work at the Jordanian Commercial Bank. Using SPSS program, multiple regressions was applied to measure the mediating role. The results of this study reveal that all five dimensions of SQ are positively linked with CS and all dimensions of SQ are positively affect with CL except the reliability dimension. The findings also indicate that CS partially mediates between the five dimensions of SQ and CL. The findings of this study can inform bank management about the importance of the dimensions of SQ and their impact on CS and CL. Bank management can take action in improving the bank design and equipment to create a proper atmosphere for customers, and in providing periodical training programs for their employees to improve their skills and their know-how to solve customer problems and meet customer satisfaction. The current study provides for finding a common understanding about the relationship between SQ, CS and CL and the role of their five dimensions on the banking industry in Jordan.

Keywords: Quality service; SERVQUAL; customer satisfaction; customer loyalty; commercial bank (search for similar items in EconPapers)
JEL-codes: E50 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:khe:scajes:v:4:y:2018:i:3:p:167-176

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