IDEAS home Printed from https://ideas.repec.org/a/ejn/ejbmjr/v1y2023i1p1-16.html
   My bibliography  Save this article

Effect of Service Quality on Customer Loyalty: the Mediation of Customer Satisfaction, and Corporate Reputation in Banking Industry

Author

Listed:
  • Ho Dinh Phi

    (Phan Thiet University, Vietnam)

  • Dien Pham Huong

    (Banking University of Ho Chi Minh City, Vietnam)

Abstract

This study devotes to investigate the reciprocal relationship between service quality, reputation, satisfaction, and loyalty in the banking sector. Data served the research objectives are collected by a comprehensive survey on 400 customers of the Bank for Investment and Development of Vietnam, Binh Thuan province, Vietnam. The data are then analyzed using the Partial Least Squares-Structural Equation Model (PLS-SEM) approach to examine the above-mentioned complex relationship. The findings confirmed an indirect relationship between service quality and customer loyalty. Particularly, satisfaction, and bank reputation are mediating factors in the relationship between service quality and customer loyalty. Components of service quality include the responsiveness; the tangibles; the assurance; the reliability, and the empathy. The study contributes to enriching the theoretical framework of customer relationship management in the banking sector by its empirical insights. Further studies can invest in other cases of commercial banks in Vietnam, especially in investigating more factors that also play important roles in customer loyalty.

Suggested Citation

  • Ho Dinh Phi & Dien Pham Huong, 2023. "Effect of Service Quality on Customer Loyalty: the Mediation of Customer Satisfaction, and Corporate Reputation in Banking Industry," Eurasian Journal of Business and Management, Eurasian Publications, vol. 11(1), pages 1-16.
    • Handle: RePEc:ejn:ejbmjr:v:1:y:2023:i:1:p:1-16
    as

    Download full text from publisher

    File URL: https://eurasianpublications.com/wp-content/uploads/2023/05/EJBM-11.1.1-1.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bloemer, JoseM. M. & Kasper, Hans D. P., 1995. "The complex relationship between consumer satisfaction and brand loyalty," Journal of Economic Psychology, Elsevier, vol. 16(2), pages 311-329, July.
    2. Mohsin Zafar & Aasia Asif & Ahmed Imran Hunjra & H. Mushtaq Ahmad, 2012. "Service Quality, Customer Satisfaction and Loyalty: An Empirical Analysis of Banking Sector in Pakistan," Information Management and Business Review, AMH International, vol. 4(4), pages 159-167.
    3. Brady, Michael K. & Robertson, Christopher J., 2001. "Searching for a consensus on the antecedent role of service quality and satisfaction: an exploratory cross-national study," Journal of Business Research, Elsevier, vol. 51(1), pages 53-60, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Demirci Orel, Fatma & Kara, Ali, 2014. "Supermarket self-checkout service quality, customer satisfaction, and loyalty: Empirical evidence from an emerging market," Journal of Retailing and Consumer Services, Elsevier, vol. 21(2), pages 118-129.
    2. Naif Mutlaq Al Otaibi & Kausar Yasmeen, 2014. "An Overview of Customer Loyalty, Perceived Service Quality and Customer Satisfaction: Brief on Saudi Grocery Stores," Journal of Entrepreneurship and Business Innovation, Macrothink Institute, Journal of Entrepreneurship and Business Innovation, vol. 1(1), pages 79-122, June.
    3. Wasib B Latif & Md. Aminul Islam & Idris Bin Mohd Noor, 2014. "A Conceptual Framework to Build Brand Loyalty in the Modern Marketing Environment," Journal of Asian Scientific Research, Asian Economic and Social Society, vol. 4(10), pages 547-557, October.
    4. Rauyruen, Papassapa & Miller, Kenneth E., 2007. "Relationship quality as a predictor of B2B customer loyalty," Journal of Business Research, Elsevier, vol. 60(1), pages 21-31, January.
    5. Ulas Akkucuk & Javed Esmaeili, 2016. "The Impact of Brands on Consumer Buying Behavior," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 5(4), pages 01-16, July.
    6. Chen, Chun-Chu & Huang, Wei-Jue & Petrick, James F., 2016. "Holiday recovery experiences, tourism satisfaction and life satisfaction – Is there a relationship?," Tourism Management, Elsevier, vol. 53(C), pages 140-147.
    7. Andreas Herrmann & Michael D. Johnson, 1999. "Die Kundenzufriedenheit als Bestimmungsfaktor der Kundenbindung," Schmalenbach Journal of Business Research, Springer, vol. 51(6), pages 579-598, June.
    8. G. Tomas M. Hult & Forrest V. Morgeson III & Udit Sharma & Claes Fornell, 2022. "Customer satisfaction and international business: A multidisciplinary review and avenues for research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(8), pages 1695-1733, October.
    9. Sahagun, Miguel A. & Vasquez-Parraga, Arturo Z., 2014. "Can fast-food consumers be loyal customers, if so how? Theory, method and findings," Journal of Retailing and Consumer Services, Elsevier, vol. 21(2), pages 168-174.
    10. P. Van Kenhove & K. De Wulf & D. Van Den Poelt, 2003. "Does Attitudinal Commitment to Stores Always Lead to Behavioral Loyalty? The Moderating Effect of Age," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/168, Ghent University, Faculty of Economics and Business Administration.
    11. M. Paula Fitzgerald & Thomas K. Bias, 2016. "Satisfaction and Repurchase Intentions for Health Insurance Marketplaces: Evidence from a Partnership State," Journal of Consumer Affairs, Wiley Blackwell, vol. 50(3), pages 638-651, November.
    12. Eymann, Torsten (Ed.), 2009. "Tagungsband zum Doctoral Consortium der WI 2009 [WI2009 Doctoral Consortium Proceedings]," Bayreuth Reports on Information Systems Management 40, University of Bayreuth, Chair of Information Systems Management.
    13. Sridhar N. Ramaswami & S. Arunachalam, 2016. "Divided attitudinal loyalty and customer value: role of dealers in an indirect channel," Journal of the Academy of Marketing Science, Springer, vol. 44(6), pages 770-790, November.
    14. Ofori Debrah & Nasiru Inusah & Joseph Yaw Dwommor, 2021. "Students' Satisfaction with Accounting Teachers' Lesson Delivery, the Role of Perceived Quality of Lesson Delivery in Ghanaian Senior High Schools," Business and Economic Research, Macrothink Institute, vol. 11(1), pages 109-124, March.
    15. Alden, Dana L. & He, Yi & Chen, Qimei, 2010. "Service recommendations and customer evaluations in the international marketplace: Cultural and situational contingencies," Journal of Business Research, Elsevier, vol. 63(1), pages 38-44, January.
    16. Namin, Aidin, 2017. "Revisiting customers' perception of service quality in fast food restaurants," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 70-81.
    17. Ndubisi, Nelson Oly, 2012. "Mindfulness, reliability, pre-emptive conflict handling, customer orientation and outcomes in Malaysia's healthcare sector," Journal of Business Research, Elsevier, vol. 65(4), pages 537-546.
    18. Fernando Oliveira Santini & Wagner Junior Ladeira & Claudio Hoffmann Sampaio & Diego Costa Pinto, 2018. "The brand experience extended model: a meta-analysis," Journal of Brand Management, Palgrave Macmillan, vol. 25(6), pages 519-535, November.
    19. Munawwer Husain, 2015. "The Role of Brand Loyalty: The Case Study of Telekom Malaysia," International Review of Management and Marketing, Econjournals, vol. 5(3), pages 173-179.
    20. Ersin Eskiler & Remzi Altunışık, 2021. "The Moderating Effect of Involvement in the Relationship Between Customer Behavioral Intentions and Its Antecedents," SAGE Open, , vol. 11(2), pages 21582440211, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ejn:ejbmjr:v:1:y:2023:i:1:p:1-16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Esra Barakli (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.