Determinants of customer satisfaction in retail banking

TLDR

Customer satisfaction and retention are critical for retail banks. The study investigates the major determinants of customer satisfaction and future switching intentions in the retail banking sector. The authors identify determinants including service quality dimensions, service features, competitive interest rates, service problems, service recovery, and product usage. They find that service problems and the bank’s service recovery ability have the greatest impact on customer satisfaction and switching intentions.

Abstract

Points out that customer satisfaction and retention are critical for retail banks, and investigates the major determinants of customer satisfaction and future intentions in the retail bank sector. Identifies the determinants which include service quality dimensions (e.g. getting it right the first time), service features (e.g. competitive interest rates), service problems, service recovery and products used. Finds, in particular, that service problems and the bank’s service recovery ability have a major impact on customer satisfaction and intentions to switch.