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

The Chittagong University Journal of Business Administration, Vol. 19, 2004

16 Pages Posted: 4 Nov 2008 Last revised: 7 Aug 2009

See all articles by Mohammad Shamsuddoha

Mohammad Shamsuddoha

Western Illinois State University; University of Chittagong

Mohammed Alamgir

University of Chittagong

Date Written: July 4, 2003

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

Suggested Citation

Shamsuddoha, Mohammad and Alamgir, Mohammed, Loyalty and Satisfaction Construct in Retail Banking - An Empirical Study on Bank Customers (July 4, 2003). The Chittagong University Journal of Business Administration, Vol. 19, 2004. Available at SSRN: https://ssrn.com/abstract=1295427

Mohammad Shamsuddoha (Contact Author)

Western Illinois State University ( email )

School of Management and Marketing
Macomb, IL 61455
United States
61455 (Fax)

HOME PAGE: http://www.wiu.edu

University of Chittagong ( email )

Department of Marketing, Faculty of Business Admin
University of Chittagong, Bangladesh
Chittagong, Chittagong 4331
Bangladesh

HOME PAGE: http://www.shamsuddoha.webs.com

Mohammed Alamgir

University of Chittagong ( email )

Chittagong
Bangladesh

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