Linking Banking Service Quality to Customer Loyalty: Two Levels Perspective

Nikolina Palamidovska-Sterjadovska (), Nikola Levkov () and Anita Ciunova-Shuleska ()
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Nikolina Palamidovska-Sterjadovska: Ss. Cyril and Methodius University in Skopje, Faculty of Economics-Skopje
Nikola Levkov: Ss. Cyril and Methodius University in Skopje, Faculty of Economics-Skopje
Anita Ciunova-Shuleska: Ss. Cyril and Methodius University in Skopje, Faculty of Economics-Skopje

A chapter in Eurasian Business and Economics Perspectives, 2021, pp 193-211 from Springer

Abstract: Abstract The present paper analyzes service quality, customer satisfaction, and customer loyalty in the retail banking context in North Macedonia, emphasizing the two levels perspective of customer loyalty, i.e. at bank and at employee level. A survey on a sample of 786 respondents was performed and further structural equation modeling was conducted. In the research model service quality dimensions and customer satisfaction were analyzed as crucial antecedents of customer loyalty on both levels (loyalty to bank and loyalty to employees). Additionally, customer satisfaction was analyzed as a mediator in the relationship between service quality dimensions and customer loyalty. The results revealed that loyalty to employee is significantly determined by intangibles, followed by pricing, both mediated by customer satisfaction. Loyalty to bank is directly influenced by tangibles, while only indirectly affected by intangibles and pricing through customer satisfaction. At the same time, customer satisfaction is a significant predictor of both types of loyalty, additionally mediating the relationship between loyalty to employees and loyalty to bank. The present study contributes to the research corpus in this area by providing more comprehensive understanding of customer loyalty and its antecedents. The two levels perspective of customer loyalty adds further to the value of this research.

Keywords: Customer satisfaction; Loyalty to employee; Loyalty to bank; Retail banking; Service quality (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:eurchp:978-3-030-85304-4_12

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DOI: 10.1007/978-3-030-85304-4_12

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