Service Quality and Customer Loyalty in Private and Public Banks
DOI:
https://doi.org/10.62843/jefr/2023.7741309Keywords:
Customer Loyalty, Private Bank, Public Bank Sector, Tangibility, ReliabilityAbstract
In both public and private banking institutions, the purpose of this study was to investigate the relationship between customer loyalty and various service quality parameters, including tangibility, reliability, assurance, responsiveness, and empathy. A regression analysis was carried out in order to investigate the connections that exist between these factors and the occurrence of repeat business. Based on the findings, it has been determined that tangibility, reliability, assurance, and empathy have a substantial impact on customer loyalty in both public and private banking institutions. These criteria are relevant in the banking business since they have been found to have positive connections with client loyalty. Yet, in this scenario, responsiveness did not yield a statistically meaningful impact on client loyalty. The overall regression model showed a high level of statistical significance, indicating the effectiveness of Tangibility, Reliability, Assurance, and Empathy in jointly accounting for variations in consumer loyalty. This research provides valuable insights for banks aiming to improve customer retention by focusing on specific areas of exceptional service. The findings resulted in suggestions for banks to improve service quality by investing in physical and online environments (Tangibility), maintaining reliable and error-free services (Reliability), improving client trust and communication (Assurance), and promoting empathetic interactions (Empathy).
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