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Linking Banking Service Quality to Customer Loyalty: Two Levels Perspective

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Eurasian Business and Economics Perspectives

Part of the book series: Eurasian Studies in Business and Economics ((EBES,volume 20))

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Abstract

The present paper analyzes service quality, customer satisfaction, and customer loyalty in the retail banking context in North Macedonia, emphasizing the two levels perspective of customer loyalty, i.e. at bank and at employee level. A survey on a sample of 786 respondents was performed and further structural equation modeling was conducted. In the research model service quality dimensions and customer satisfaction were analyzed as crucial antecedents of customer loyalty on both levels (loyalty to bank and loyalty to employees). Additionally, customer satisfaction was analyzed as a mediator in the relationship between service quality dimensions and customer loyalty. The results revealed that loyalty to employee is significantly determined by intangibles, followed by pricing, both mediated by customer satisfaction. Loyalty to bank is directly influenced by tangibles, while only indirectly affected by intangibles and pricing through customer satisfaction. At the same time, customer satisfaction is a significant predictor of both types of loyalty, additionally mediating the relationship between loyalty to employees and loyalty to bank. The present study contributes to the research corpus in this area by providing more comprehensive understanding of customer loyalty and its antecedents. The two levels perspective of customer loyalty adds further to the value of this research.

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Authors and Affiliations

  1. Ss. Cyril and Methodius University in Skopje, Faculty of Economics-Skopje, Skopje, North Macedonia

    Nikolina Palamidovska-Sterjadovska, Nikola Levkov & Anita Ciunova-Shuleska

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  1. Nikolina Palamidovska-Sterjadovska
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  2. Nikola Levkov
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  3. Anita Ciunova-Shuleska
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Correspondence to Nikolina Palamidovska-Sterjadovska .

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Editors and Affiliations

  1. Faculty of Political Sciences, Istanbul Medeniyet University, Uskudar, Istanbul, Turkey

    Mehmet Huseyin Bilgin

  2. MUFG Union Bank, San Francisco, CA, USA

    Hakan Danis

  3. Department of Business Administration, School of Social Sciences, Reykjavik University, Reykjavik, Iceland

    Ender Demir

  4. Faculty of Economics, Istanbul University, Fatih, Istanbul, Turkey

    Gokhan Karabulut

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Palamidovska-Sterjadovska, N., Levkov, N., Ciunova-Shuleska, A. (2021). Linking Banking Service Quality to Customer Loyalty: Two Levels Perspective. In: Bilgin, M.H., Danis, H., Demir, E., Karabulut, G. (eds) Eurasian Business and Economics Perspectives. Eurasian Studies in Business and Economics, vol 20. Springer, Cham. https://doi.org/10.1007/978-3-030-85304-4_12

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