Multiple Mediating Effects on the Quality of and Loyalty to Banking Services

Abstract

This study aimed to determine the effects of banks’ service quality on customer loyalty, perceived value, and corporate image, as well as identify the mediating effect of perceived value and corporate image between on service quality and customer loyalty. Primary data was collected through an online structured questionnaire and analyzed with structural equation modeling. The results revealed that service quality exerted a significant on all the other three variables. In addition, perceived value not only positively affected customer loyalty and corporate image but also mediated the effect of service quality on customer loyalty. The findings of the current study provide not only additional evidence of theoretical relevance but also the means with which managers can develop a sustainable customer-centric marketing strategy. Such a strategy will help banks to analyze customer loyalty in relation to overall service quality, which can in turn improve re-patronization, long-term customer relationships, and sustainable competitive advantages.