Effect of failed service quality on customer loyalty in banking industry
Subject Areas : Jounal of Marketing Managementmehrnaz nejati 1 , ahmad rahchamani 2
1 - Master of Business Administration, Qazvin Unit, Islamic Azad University, Qazvin, Iran
2 - Assistant Professor, Department of Business Administration, Qazvin Branch, Islamic Azad University, Qazvin, Iran
Keywords: customers’ loyalty, customer dissatisfaction, Service Quality, lack of commitment to customers,
Abstract :
The aim of this study was to investigate the Effect of failed service quality on customer loyalty in banking industry. The study population sample consisted of three state-owned banks, three private banks, three semi-public banks (National Bank Sepah, Post Bank, the nation, trade, export, new economy, Pasargadae and Persians) based on the old Bank, collaboration, and a large share of the market were selected. Also available sampling was used to select customers. The questionnaire was distributed among 400 subscribers, 350 questionnaires were returned. To analyze research data using SPSS software and Smart PLS was used to confirm or reject hypotheses, structural equation modeling was used. The results indicate that the failure of service quality effects on customer dissatisfaction, lack of commitment to customers, and affect customer loyalty. The results also showed that customer dissatisfaction and lack of commitment effects on customer loyalty. It is recommended to increase customer satisfaction and increase the commitment and continue the ongoing relationship with the organization, a desirable quality of their services. By knowing the causes of the complaint or dissatisfaction, the type of impact and stress the weaknesses of each service would take the right decisions for their customer retention and reduce the cost of customer dissatisfaction. Banks must identify the exact dimensions of customer loyalty, guide and implement systems in order to maintain customer satisfaction and build loyalty.
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