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Full Length Research Paper
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Determinants
of customer loyalty in the banking sector: The case of
Pakistan
Bilal Afsar*, Zia Ur Rehman, Jaweria
Andleeb Qureshi and Asad Shahjehan
Department of Management Sciences, Hazara University,
Pakistan.
*Corresponding author. E-mail:
afsarbilal83@yahoo.com.
Accepted 18 March, 2010 |
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Abstract |
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The concept of customer loyalty has received much consideration
and attention from both academics and practitioners in different
industries. In increasingly
competitive markets, being able to build consumer loyalty is
seen as the key factor in winning market share and
developing a sustainable competitive advantage. Banking industry
is no exception as it has high interaction with the customers,
so managers must understand the factors which influence the
loyalty of the customers towards their respective banks.
It is always costly to attract new customers, so the managers
always try to find ways to retain their current customers and
concentrate on different factors which enhances the customer
loyalty among the customers of the organizations. This
research attempts to find the factors of customer loyalty and
their relationships with the banking industry in one of the
developing countries, which is Pakistan. Then analyzing the
relationship among different factors, a model for the customer
loyalty is proposed at the end of the research. In order to do
this, a questionnaire is designed and validated, then based on
the data which is gained from the 316 respondents' answers to
the designed questionnaire, the analysis is done and the results
and the relations among the factors are explained. Perceived
quality, satisfaction, trust, switching cost and commitment are
the factors which influence the loyalty of the customers. These
factors also influence each other as well. The relationships of
different factors with each other are also studied and the SPSS
software is used to analyze the data gathered from the
respondents.
Key words:
Customer loyalty, switching cost, banking sector. |
