THE RELATIONSHIP BETWEEN CUSTOMER SATISFACTION AND CUSTOMER LOYALTY, AND CUSTOMER LOYALTY AND CORPORATE IMAGE: A STUDY ON THE BANKING SECTOR OF DHAKA CITY

Published Online: 30 June, 2023 || Published in Print: 20 July, 2023

Abstract

This study has been conducted to identify the relationship between customer satisfaction and customer loyalty, and customer loyalty and corporate image of the banking sector of Dhaka city. A quantitative, descriptive approach was undertaken to consider the measurement model, Confirmatory Factor Analysis (CFA). Using the convenience sampling method, 219 responses were collected. The data were analyzed using Smart-PLS 2.0 software to investigate the hypothesized relationships. A modified SERVQUAL model has been used to determine customer satisfaction and a positive relationship between both customer satisfaction and customer loyalty, and customer loyalty and corporate image has been found. Three of the four dimensions positively affect customer satisfaction where responsiveness has the highest impact. However, no positive influence of tangibles on the satisfaction of customers is found. All in all, this research provides a theoretical contribution by extending the practical knowledge focusing on the relationship between customer satisfaction, customer loyalty, and corporate image in the banking industry. Besides, this study has also shown a concrete implication to the managers and policymakers of banks to comprehend what customers expect and what leads to their loyalty and amplifies the corporate image.

DOI: https://doi.org/10.58964/JBA44N105