Customer Satisfaction and Competencies: An Econometric Study of an Italian Bank

SMG Working Paper No. 10/2007

35 Pages Posted: 17 Oct 2007

See all articles by Paola Gritti

Paola Gritti

University of Bergamo; Università degli Studi di Milano-Bicocca - Center for Interdisciplinary Studies in Economics, Psychology & Social Sciences (CISEPS)

Nicolai J. Foss

Copenhagen Business School - Department of Strategy and Innovation

Date Written: October 2007

Abstract

We empirically address how customer satisfaction and loyalty in the banking industry may affect profitability. This helps to identify the strategy and competencies necessary to benefit from customer relationships which are important sources for improved performance in the banking. We do this by analyzing data collected on 2,105 customers of 118 branches of one of the biggest banks of an Italian banking group. We find that customer satisfaction impacts loyalty, which in turn has a direct effect on financial and non-financial customer value/total customer value/complex customer value. Moreover, loyalty is a mediator between financial and not-financial customer value and two sources of customer satisfaction, namely relationships with the front office and the branch, on the one hand, and the products offered, on the other.

Keywords: Customer satisfaction, loyalty, long-term relations, financial and notfinancial customer value

JEL Classification: M5

Suggested Citation

Gritti, Paola and Foss, Nicolai J., Customer Satisfaction and Competencies: An Econometric Study of an Italian Bank (October 2007). SMG Working Paper No. 10/2007, Available at SSRN: https://ssrn.com/abstract=1022290 or http://dx.doi.org/10.2139/ssrn.1022290

Paola Gritti (Contact Author)

University of Bergamo ( email )

Via Salvecchio, 19
Bergamo, 24129
Italy

Università degli Studi di Milano-Bicocca - Center for Interdisciplinary Studies in Economics, Psychology & Social Sciences (CISEPS) ( email )

Piazza dell'Ateneo Nuovo, 1
Milano, 20126
Italy

Nicolai J. Foss

Copenhagen Business School - Department of Strategy and Innovation ( email )

Kilen
Frederiksberg, 2000
Denmark

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
947
Abstract Views
3,615
rank
26,365
PlumX Metrics