Mediating Effect of Customer Satisfaction on the Relationship between Service Quality and Customer Loyalty in the Ghana Banking Industry (original) (raw)
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The impact of service Quality on Customer Satisfaction and Loyalty in the banking industry of Ghana
Zenodo (CERN European Organization for Nuclear Research), 2019
In Ghana, there is growing concerns about the quality of service provided by banks to their customers. The major issues concerning Service Quality related to customer relations, access to saved monies, limited loans with high-interest rates, and delays in service delivery. This study investigated the impact of service quality on customer satisfaction and loyalty in the banking sector of Ghana. A survey was conducted in three regions of Ghana with the highest banking activities in which a set of questionnaires were administered to 157 respondents. Data collected was analyzed using the Structural Equation Modelling-Partial Least Squares (SEM-PLS). It was revealed that customer satisfaction is highly influenced by the quality of services offered to them. The satisfaction derived by customers makes them loyal, which is an advantage to service providers in realizing their profit motive. The results of this study suggest that service quality is the precursor of customer satisfaction and instill confidence and loyalty in customers.
International Journal of Islamic Economics and Finance (IJIEF), 2021
The world has become a global village as competition among banks is now intense. Globalization is fuelling increased competition in Nigerian banking industry and as a result, banks are challenged to adopt customer centred strategies that would enable them to gain customer loyalty, maximize profitability and survive the competition. There is no business that survives without customers’ patronage and Islamic banks are not an exception. Customers are key stakeholders to the survival of any business, thus, satisfying the customer through providing high quality services is core to Islamic banking business. The aim of the study is to examine the mediating role of customer satisfaction in investigating the relationship between service quality and customer loyalty in non-interest bank i.e. Jaiz Bank of Kano state metropolis, Nigeria. The variance based (SEM) technique is employed in analyzing the hypothesized model of the study. Service quality positively and significantly influences custom...
International journal of business and management, 2015
As competition intensifies in the Ghanaian retail banking sector, understanding the antecedents of customer loyalty is critical for effective design and implementation of loyalty programs to ensure customer loyalty and retention. The objective of this study is to examine relationship between the dimensions of customer satisfaction and customer loyalty, as well as the effects of socioeconomic variables on customer loyalty in the retail banking sector of Ghana. Data were collected using questionnaire administered through personal interviews to 160 customers of retail banks in Ghana. Multiple regression, analysis of variance and one-sample t-test statistical methods were employed to examine the relationship between the independent and dependent variables. The study found assurance (knowledge and courtesy of employees and their ability to inspire trust and confidence) to be a significant driver of customer loyalty. The study also found a significant difference between age groups and customer loyalty. The study recommends that relationship managers give special consideration to such variables as Assurance and 'Age groups' when formulating strategies for developing customer loyalty in the retail banking sector of Ghana.
Journal of Management and Strategy, 2020
The aim of the study was to investigate customer satisfaction's mediation role in the relationship between service quality and customer loyalty within Ghana's telecommunication sector. The report followed an approach to quantitative analysis and questionnaires to collect data from 105 respondents. The statistical analysis was performed using descriptive methods and inferential statistical techniques in IBM SPSS. The mediation analysis was made using Hayes' PROCESS macro model 4. Results of the analysis showed that quality of service is a substantially positive indicator of customer loyalty. It was also evident that Service Quality had a significant and positive influence on customer satisfaction. The direction between the mediator (Customer Satisfaction) and Customer Loyalty was positive but not significant. Again, it became evident that customer satisfaction partially balances the relationship between service quality and customer loyalty. It was evident that telecommuni...
International Journal of Managerial Studies and Research
The intangible nature of services makes it difficult for an organisation to understand how its customers perceive and evaluate the quality of its services. The pressing need for banks to ensure customer satisfaction and loyalty makes it imperative for them to assess their service quality levels. The purpose of this study was to determine the degree of service quality, customer satisfaction and loyalty among retail banking customers in Ghana. The GAP analysis technique was applied to help in identifying the strengths or deficiencies in the service quality, customer satisfaction and customer loyalty levels, as judged by respondents. The results showed that the extent of Service Quality in Ghana's banking industry is reasonably high. Also, the extent of Customer Satisfaction, which was rated, based on the single item question, recorded a higher rating over and above service quality. The mean score for Overall Customer Loyalty was 5.08 (Gap score=1.92), indicating a slightly high rate of customer loyalty among bank customers in Ghana. Overall, Customer Loyalty has a relatively high Gap score of 1.92, compared with Service Quality (Gap = 1.75) and customer satisfaction (Gap of 1.50). This points to the existence of lower levels of customer loyalty for the Ghana banking industry, followed by service quality and then customer satisfaction. The study further concluded that the Ghanaian banks should particularly pay attention to behavioural loyalty to help improve on the overall customer loyalty.
European Journal of Business and Management, 2021
The purpose of this study is to ascertain whether there is an association between service quality and customer satisfaction. It is also to see whether there is a linear relationship between service quality, customer satisfaction and customer loyalty. Though there has been some studies conducted within the Banking system about service quality and customer satisfaction, none of them has demonstrated how service quality, customer satisfaction and customer loyalty are interrelated in the banking industry of Ghana. There is therefore a gap in literature and this has motivated the researcher to conduct this study in the face of the banking crisis in Ghana. A survey was conducted in the greater Accra region of Ghana. The research targeted customers of all the various banks operating in Accra. Both correlation and regression analyses were conducted to establish the various associations amongst the variables of interest. Cronbach alpha analysis was also conducted to test the reliability of the scale items. It was established that, technology ease of usage and reliability, technology security and information quality, technology convenience, customer service, customer satisfaction and customer loyalty are strongly associated. The various dimensions of service quality have significant positive influence on customer satisfaction. Then also, Customer satisfaction enhances customer loyalty. The present research shows what banks should do to satisfy their customers and ultimately retain them.
Academic Journal of Economic Studies, 2018
This study aims to examine the relationship between Service Quality (SQ), Customer Satisfaction (CS) and Customer Loyalty (CL) in the Jordanian Commercial Bank. This Study also, investigates CS as a partial mediator of the impact of SQ on CL. Data was collected from 210 customers who work at the Jordanian Commercial Bank. Using SPSS program, multiple regressions was applied to measure the mediating role. The results of this study reveal that all five dimensions of SQ are positively linked with CS and all dimensions of SQ are positively affect with CL except the reliability dimension. The findings also indicate that CS partially mediates between the five dimensions of SQ and CL. The findings of this study can inform bank management about the importance of the dimensions of SQ and their impact on CS and CL. Bank management can take action in improving the bank design and equipment to create a proper atmosphere for customers, and in providing periodical training programs for their empl...
2017
This study aims to analyze the effect of service quality toward satisfaction and customer loyalty for PT. BNI (Persero) Tbk, Aceh Province. The article also analyses customer satisfaction as a mediator variable between service quality and customer loyalty. The sampling technique in the study was based on cluster and convenience sampling with corresponding criteria; each respondent has a bank account and saving for at least one year. The primary data were collected from respondents using the structured questionnaires. A total of 220 questionnaires were distributed in five branch offices of PT. BNI (Persero) Tbk operating in Aceh Province, namely the branchs of Lhokseumawe, Bireuen, Langsa, Sigli and Meulaboh. The results showed that service quality has a significant and positive effect toward satisfaction and customer loyalty for PT. BNI (Persero) Tbk Aceh Province. Meanwhile, the variable of customer satisfaction can mediate the effect of service quality toward customer loyalty. How...
Customer Satisfaction and Customer Loyalty in the Post-Crisis Banking Sector of Ghana
Journal of Marketing and Consumer Research, 2021
The banking industry is immensely important to the socioeconomic development of emerging economies by facilitating the exchange of money between depositors and borrowers. The banking industry in Ghana is facing corporate governance challenges, which has led to non-performance and subsequent withdrawal of operating licenses. The withdrawal of the licenses by the Bank of Ghana has impact on customer loyalty and satisfaction, which has not been significantly investigated in a post crisis banking sector of Ghana. This has resulted in many companies undertaking numerous product design and innovation to satisfy customers. This study therefore is aimed at investigating the relationship between customer satisfaction and customer loyalty in the post crisis banking sector of Ghana. The study adopts the positivist traditional stance with a quantitative approach. Participants were drawn from among the customers of universal banks in Ghana. The purposive sampling technique was used to administer 250 questionnaires to customers of universal banks in Ghana in which 170 usable questionnaires were retrieved for analysis with a response rate of 68 per cent. The investigation revealed that customer satisfaction variables have significantly influenced the loyalty of customers of banks involved in this study. The results indicated that tangibles, reliability, responsiveness, assurance and empathy, and dimensions of service quality have positive influence on customer satisfaction.The investigation largely focused on quantitative analysis of results, hence; a further study adopting the qualitative approach would contribute to the body of knowledge on customer loyalty and satisfaction in the banking sector. This study provides a strong evidence for banks that have been negatively impacted by the banking crisis in Ghana and want to recover from the associated impacts on their customers to enhance their customer satisfaction by improving the tangibility and reliability of services to clients. It is recommended that Banks in Ghana focus on achieving high customer satisfaction by focusing on high quality services delivery based on the service quality dimensions.
2012
The concept of customer loyalty has received much consideration and attention from both academics and practitioners in different industries. Customer loyalty is one of the most frequently addressed subjects in the marketing and service literature (Heskett and Sasser, 1994). According to Lin and Wang, (2006), customer satisfaction is one of the major determinants of customer loyalty. In recent years, many companies have adopted total quality management programmes designed to constantly improve the quality of products, services, and market processes. Quality and satisfaction are seen as playing a crucial role for success of every business organization. Service quality and customer satisfaction concepts have been linked to customer behavioural intentions like purchase and loyalty intention, willingness to spread positive word of mouth, referral and complain intention (Olsen, 2002). Commenting on this, Timm (2011), said, “the number one task, regardless of your job title, will always be...