Service loyalty

TLDR

Service loyalty, which ultimately influences customer repurchase, has received limited attention, and this study first defines the concept and distinguishes it from service quality and customer satisfaction. The study proposes a mediational model linking service quality to service loyalty through customer satisfaction. The authors delineate service loyalty, differentiate it from service quality and satisfaction, propose the mediational model, identify appropriate measures, and conduct a postal survey of 1,000 retail banking customers. The survey achieved a 20.5 % response rate and revealed that customer satisfaction mediates the effect of service quality on loyalty, identified demographic influences on loyalty, and discussed implications, limitations, and future research.

Abstract

Service loyalty, with its final effect on repurchasing by customers, appears to have received relatively little attention. This study starts by first delineating the concept of service loyalty and proceeds to distinguish between service quality and customer satisfaction. A mediational model that links service quality to service loyalty via customer satisfaction is proposed. Appropriate measures are identified and a postal survey is undertaken among 1,000 retail banking customers. A response rate of 20.5 per cent is obtained. Results indicate that customer satisfaction does play a mediating role in the effect of service quality on service loyalty. The effects of a number of demographic indicators on service loyalty are also reported. Implications are discussed, limitations of the study are noted and possible areas for further research are indicated.