A Model of Customer Loyalty: An Empirical Study of Indian Retail Banking Customer

Abstract

The present article proposes and tests an integrative model to examine the relationships among service quality (SQ), perceived value (PV), customer satisfaction (CS), corporate image (IMG) and customer loyalty (CL) in Indian retail banking context. The model is tested on the basis of data collected from 545 customers of Indian public sector banks (PSBs) using structural equation modeling (SEM) through path analysis. The finding exhibits that the present research model strongly predicts direct and/or indirect relationship of all constructs with CL phenomenon. However, the construct of PV was found to be insignificantly related to IMG in this integrative model. Moreover, the results also reveal that SQ exerts a strong influence on CS and CL; therefore, SQ is found as the most dominant construct in the model. The results of the model validate that SQ, PV, CS and IMG are the key antecedents of CL. Thus, integrative model of CL emerges as an ‘outcome’ in Indian context with special reference to selected PSBs.

Customer loyalty to Islamic banks: Evidence from Indonesia

“…The relationship between SQ and CS is significantly positive for both private and state-owned Islamic banks (H4). This conforms to Amin et al (2013) Bazrkar et al (2018), Dusuki and Abdullah (2007) Kant et al (2019), Wu and Hussein (2019)De Bruin et al 2020, and Abror et al (2019) explain that when customers perceive good quality service their satisfaction improves. This indicates that Islamic banks have improved their SQ based on Shariah and profit.…”

Determinants of university reputation: conceptual model and empirical investigation in an emerging higher education market

“…Positive image of an organisation can contribute towards the development of a unique bond. This has been observed in the context of places (Jiang et al, 2017;Kant et al, 2019). Universities create avenues for the image formation among students and also spawns relationships that often last longer even after the educational links cease to exist (Dennis et al, 2016;Stephenson and Yerger, 2014).…”

“…2.1 University image Scholars (Hu et al, 2009;Kant et al, 2019) have noted that perceptions of positive image leads to sustainable positioning and engender long term relationship with target customers, in turn affects corporates' competitive edge via differentiation and increased market share. Common interpretation of image has been "the sum of beliefs, attitudes, and impressions that a person or group has of an object" (Barich and Kotler, 1991 p. 95).…”

Comparative Analysis of Customer Loyalty in Islamic and Conventional Banks: A Literature Review

“…Customer satisfaction variables are not an intervening variable from the dimensions of service convenience such as decision convenience, access convenience, transaction convenience, convenience benefits, and postpaid convenience (Kaura et al, 2015), service quality dimensions, and customer complaint handling (Salim et al, 2018) towards customer loyalty. However, customer satisfaction intervenes from staff competence (Lee & Moghavvemi, 2015), customer value (Kant et al, 2019;Seiler et al, 2013), service quality dimensions (Chu et al, 2012;Amin, 2016;Kant et al, 2019;Famiyeh et al, 2018;Aslam et al, 2019;Boonlertvanich, 2019), service recovery and rational sales behavior (Chang & Hung, 2018), communication, control of opportunistic behavior, and trust (Shergill & Li, 2006) on customer loyalty.…”