Service quality, satisfaction, trust, and loyalty: the moderating role of main-bank and wealth status

By Karin Boonlertvanich. International Journal of Bank Marketing, 2019

270 citations recorded by the source corpus.

PurposeThe purpose of this paper is to develop a comprehensive model representing the relationships among service quality, customer satisfaction, trust and loyalty in a retail banking service. Because many banks now emphasize acquiring more high-wealth and main-bank customers, this study also focuses on investigating the moderating roles of main-bank and wealth status on such relationships.Design/methodology/approachThis study applies a hierarchical model to measure service quality in line with recent advances in the general-marketing and consumer-behavior literature. A total of 400 valid samples were obtained from customers of a large commercial bank in Thailand. Data were analyzed using partial least squares structural equation modeling and multigroup analysis.FindingsCustomer-perceived service quality directly and indirectly affects, via satisfaction and trust, attitudinal and behavioral loyalty. Service quality affects customer loyalty less if the customer holds main-bank status. It affects behavioral loyalty less for high-wealth customers than regular customers; however, its impacts on attitudinal loyalty are identical. Main-bank and wealth status have a co-moderating impact on the relationship between service quality and customer loyalty.Research limitations/implicationsThis study was conducted on a cross-sectional basis; further, longitudinal analysis could help to assess causality and time-dependent effects among variables.Practical implicationsThe present study reconceptualizes the loyalty model, forging a deeper understanding of the moderating effects of main-bank and wealth status and thus helping banks to formulate better strategies to win customer loyalty.Originality/valueThis study aims to contribute to further discussions regarding the direct and indirect effects of service quality on loyalty to help banks formulate effective strategies for acquiring main-bank and high-wealth customers.

Subfields: Information Systems and Management, Marketing, Organizational Behavior and Human Resource Management

View Paper: https://www.semanticscholar.org/paper/24c4a36b7792af6cb59c74adcd55d85016e25a27

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In Information Systems and Management

1. Razali Haron
2. Noradilah Abdul Subar
3. Khairunisah Ibrahim

In Marketing

1. Razali Haron
2. Noradilah Abdul Subar
3. Khairunisah Ibrahim

In Organizational Behavior and Human Resource Management

1. Razali Haron
2. Noradilah Abdul Subar
3. Khairunisah Ibrahim

Citations in the corpus

• Service quality of Islamic banks: satisfaction, loyalty and the mediating role of trust (2020, background): “Trust is a paradigm applied to characterize customers’ struggles in reducing risk (Boonlertvanich, 2019).”