Loyalty and Satisfaction Construct in Retail Banking - An Empirical Study on Bank Customers

Abstract

This study investigates customer satisfaction as the most important factor behind loyalty in retail banking. Various study showed that satisfaction plays an important role to establish loyal customer base. This study points out that satisfaction and loyalty relationship is critical for retail banks. Understanding the factors behind loyalty as well as the antecedents of customer satisfaction is an important issue for academic research as well as for marketing in financial services. The major aim of this study is to identify satisfaction as the major factor behind customer loyalty in retail banking. To comply with the aim, two basic questions has been investigated where one is related to determine the relationship between satisfaction and loyalty in retail banking, and the second one is to determine the role of dimensions of service quality towards satisfaction. The research has been carried out through secondary research and primary research. Survey method has been used for primary research. Personal contact approach through questionnaire has been introduced to conduct the survey. The findings reveal that satisfaction and loyalty are related to each other. Moreover, satisfaction has a positive and direct impact on loyalty in banking.

Keywords: Loyalty, Satisfaction, Retail bank