IDEAS home Printed from https://ideas.repec.org/a/bjc/journl/v9y2022i4p17-26.html
   My bibliography  Save this article

Mediating Effect of Customer Satisfaction on the Relationship between Service Quality and Customer Loyalty in the Ghana Banking Industry

Author

Listed:
  • Dr. Daniel Kasser Tee

    (Adjunct Lecturer and Marketing & Corporate Communications PractitionerAccra Institute of Technology (AIT) Accra-Ghana)

Abstract

Understanding customer satisfaction and customer loyalty in banking remains critical as banks strive to attain high performance standards to justify their existence. The aim of this paper, therefore, was to determine the mediating role of customer satisfaction between its antecedent, service quality and its consequent, customer loyalty. Quantitative research method was employed to generate 850 usable questionnaires through systematic random sampling. A mediation effect investigation was done, using regression analysis to establish the interrelationships between the three study constructs. Overall, the study empirically tested and established interrelationships between the three variables in Ghana’s retail banking industry with satisfaction emerging as a strong mediator variable. Results of the study also revealed a positive and significant mediating role of customer satisfaction between service quality and customer loyalty. There were positive and significant relationships between service quality and customer satisfaction and between customer satisfaction and customer loyalty. The positive relationship between service quality and customer loyalty was insignificant. It is, therefore, concluded that, there is the need for banks to improve service quality at all levels, as the benefits to be derived are enormous, impacting strongly on customer satisfaction and weakly on customer loyalty.

Suggested Citation

  • Dr. Daniel Kasser Tee, 2022. "Mediating Effect of Customer Satisfaction on the Relationship between Service Quality and Customer Loyalty in the Ghana Banking Industry," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 9(4), pages 17-26, April.
    • Handle: RePEc:bjc:journl:v:9:y:2022:i:4:p:17-26
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijrsi/digital-library/volume-9-issue-4/17-26.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/virtual-library/papers/mediating-effect-of-customer-satisfaction-on-the-relationship-between-service-quality-and-customer-loyalty-in-the-ghana-banking-industry/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lai, Fujun & Griffin, Mitch & Babin, Barry J., 2009. "How quality, value, image, and satisfaction create loyalty at a Chinese telecom," Journal of Business Research, Elsevier, vol. 62(10), pages 980-986, October.
    2. Martin Huber & Michael Lechner & Giovanni Mellace, 2016. "The Finite Sample Performance of Estimators for Mediation Analysis Under Sequential Conditional Independence," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 34(1), pages 139-160, January.
    3. Alan C. Acock, 2013. "Discovering Structural Equation Modeling Using Stata," Stata Press books, StataCorp LP, number dsemus, March.
    4. Achmad Supriyanto & Bambang Budi Wiyono & Burhanuddin Burhanuddin, 2021. "Effects of service quality and customer satisfaction on loyalty of bank customers," Cogent Business & Management, Taylor & Francis Journals, vol. 8(1), pages 1937847-193, January.
    5. Sweeney, Jill & Swait, Joffre, 2008. "The effects of brand credibility on customer loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 15(3), pages 179-193.
    6. Zahir Osman & Ilham Sentosa, 2013. "Mediating Effect of Customer Satisfaction on Service Quality and Customer Loyalty Relationship in Malaysian Rural Tourism," International Journal of Economics, Business and Management Studies, Online Science Publishing, vol. 2(1), pages 25-37.
    7. Lacramioara RADOMIR & Alan WILSON & Andrei Mircea Scridon, 2011. "Improving Bank Quality Dimensions To Increase Customer Satisfaction," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(1), pages 126-148, May.
    8. Akamavi, Raphaël K. & Mohamed, Elsayed & Pellmann, Katharina & Xu, Yue, 2015. "Key determinants of passenger loyalty in the low-cost airline business," Tourism Management, Elsevier, vol. 46(C), pages 528-545.
    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. Adis Puska & Admir Beganovic & Allen Popovic Beganovic, 2019. "Consumers' Loyalty Toward Dark Chocolate," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 28(1), pages 245-266, june.
    2. Nyadzayo, Munyaradzi W. & Khajehzadeh, Saman, 2016. "The antecedents of customer loyalty: A moderated mediation model of customer relationship management quality and brand image," Journal of Retailing and Consumer Services, Elsevier, vol. 30(C), pages 262-270.
    3. Veasna, Sou & Wu, Wann-Yih & Huang, Chu-Hsin, 2013. "The impact of destination source credibility on destination satisfaction: The mediating effects of destination attachment and destination image," Tourism Management, Elsevier, vol. 36(C), pages 511-526.
    4. Rawan Alafeshat & Uju Violet Alola, 2018. "Investigating the Nexus of Service Quality and Customer Loyalty in Banking Industry via the Mediating Role of Customer Satisfaction," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(3), pages 167-176, September.
    5. Andy Chin Woon Fook & Omkar Dastane, 2021. "Effectiveness of Loyalty Programs in Customer Retention: A Multiple Mediation Analysis," Jindal Journal of Business Research, , vol. 10(1), pages 7-32, June.
    6. Fahad Najeeb Khan & Muhammad Usman Arshad & Muhammad Munir, 2023. "Impact of e-service quality on e-loyalty of online banking customers in Pakistan during the Covid-19 pandemic: mediating role of e-satisfaction," Future Business Journal, Springer, vol. 9(1), pages 1-12, December.
    7. Garaus, Marion & Hudáková, Melánia, 2022. "The impact of the COVID-19 pandemic on tourists’ air travel intentions: The role of perceived health risk and trust in the airline," Journal of Air Transport Management, Elsevier, vol. 103(C).
    8. 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.
    9. Angulo-Ruiz, Fernando & Pergelova, Albena & Cheben, Juraj & Angulo-Altamirano, Eladio, 2016. "A cross-country study of marketing effectiveness in high-credence services," Journal of Business Research, Elsevier, vol. 69(9), pages 3636-3644.
    10. Yusra* & Arawati Agus, 2018. "The influence of Perceived Service Quality towards Customer Satisfaction and Loyalty in Airasia Self Check-in System," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 766-775:2.
    11. Rajesh Sharma, 2024. "Consumer perceived corporate social responsibility and electronic word of mouth in social media: mediating role of consumer–company identification and moderating role of user-generated content," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(2), pages 523-535, June.
    12. Zuzana Ringlerova, 2015. "Weathering the crisis: Evidence of diffuse support for the EU from a six-wave Dutch panel," European Union Politics, , vol. 16(4), pages 558-576, December.
    13. Janina Isabel Steinert & Lucie Dale Cluver & G. J. Melendez-Torres & Sebastian Vollmer, 2018. "One Size Fits All? The Validity of a Composite Poverty Index Across Urban and Rural Households in South Africa," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 136(1), pages 51-72, February.
    14. Deng, Zhaohua & Lu, Yaobin & Wei, Kwok Kee & Zhang, Jinlong, 2010. "Understanding customer satisfaction and loyalty: An empirical study of mobile instant messages in China," International Journal of Information Management, Elsevier, vol. 30(4), pages 289-300.
    15. Obinna C. Ojiaku & Aihie Osarenkhoe, 2018. "Determinants of Customers’ Brand Choice and Continuance Intentions with Mobile Data Service Provider: The Role of Past Experience," Global Business Review, International Management Institute, vol. 19(6), pages 1478-1493, December.
    16. Siti Noor Aishah Mohd Sidik & Hanis Athirah Abd Sukor & Nur Fatwa Atiqah & Aiezwa Zetty Syafina Saedon & Fatin Syafiqah Mohd Apandi & Muhammad Kamal Fudhail Mohd Rahim, 2024. "Customer Satisfaction among J&T Users in Terengganu," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(9), pages 352-362, September.
    17. Brenda Mak & Paul Beckman & Nicole Bohn, 2016. "Perceived Usefulness and Satisfaction of Mobile Phone for Users with Disabilities," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 13(02), pages 1-16, April.
    18. Wuryanti Kuncoro & Hanifah Azhar Windyasari, 2021. "Consumer Purchasing Decision Improvement Model through Brand Image, Religiosity, Brand Ambassador and Brand Awareness," International Business Research, Canadian Center of Science and Education, vol. 14(8), pages 1-42, August.
    19. Guo, Wenshan & Luo, Qiangqiang, 2023. "Investigating the impact of intelligent personal assistants on the purchase intentions of Generation Z consumers: The moderating role of brand credibility," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    20. Sandra Brucal & Cris Corpuz & Indra Abeysekera & Raul David, 2022. "Role of Service Quality, Price, and Firm Image on Customer Satisfaction in Philippine Accounting Firms," JRFM, MDPI, vol. 15(2), pages 1-16, February.

    More about this item

    Statistics

    Access and download statistics

    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:bjc:journl:v:9:y:2022:i:4:p:17-26. 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: Dr. Renu Malsaria (email available below). General contact details of provider: https://rsisinternational.org/journals/ijrsi/ .

    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.