The Establishment of Customer Loyalty in View of Service Quality and Bank Reputation
Keywords:
service quality, bank reputation, customer loyalty, bankingAbstract
This study aims to analyze the effect of service quality and bank reputation on customer loyalty. This research was conducted using quantitative methods. Data collection was carried out through questionnaires which were distributed via google form to 120 customers of the Indonesian state bank (BNI). The collected data were analyzed using descriptive statistical techniques and multiple linear regression analysis. The results of this study indicate that the quality of bank services has a positive and significant impact on customer loyalty. Customers tend to be more loyal to banks that provide high-quality services, including ease of transaction, speed of service, good personal interaction, and effective response to customer complaints. In addition, the bank's reputation also has a positive and significant influence on customer loyalty. Customers are more likely to remain loyal to a bank with a good reputation, which includes integrity and public trust.
References
Abratt, R., & Russell, J. (1999). Relationship Marketing in Private Banking in South Africa. International Journal of Bank Marketing, 17(1), 5-19.
Aldas-Manzano, J., C. Ruiz-Mafe., S. Sanz-Blas., & C. Lassala-Navarre. (2011). Internet Banking Loyalty: Evaluating the Role of Trust, Satisfaction, Perceived Risk and Frequency of Use. The Service Industries Journal, 31(7), 1165-1190.
Aramburu, I. A., & I. G. Pescador. (2019). The Effects of Corporate Social Responsibility on Customer Loyalty: The Mediating Effect of Reputation on Cooperative Banks Versus Commercial Banks on the Basque Country. Journal of Business Ethics, 154, 701-719.
Auka, D. O. (2012). Service Quality, Satisfaction, Perceived Value and Loyalty Among Customers in Commercial Banking in Nakuru Municipality, Kenya. African Journal of Marketing Management, 4(5), 185-203.
Ball, D., P. S. Coelho., & A. Machás. (2004). The Role of Communication and Trust in Explaining Customer Loyalty: An Extension to the ECSI Model. European Journal of Marketing, 38(9/10), 1272-1293.
Bapat, D. (2017). Exploring the Antecedents of Loyalty in The Context of Multi-Channel Banking. International Journal of Bank Marketing, 35(2), 174-186.
Bloemer, J., K. De Ruyter., & P. Peeters. (1998). Investigating Drivers of Bank Loyalty: The Complex Relationship Between Image, Service Quality and Satisfaction. International Journal of Bank Marketing, 16(7), 276-286.
Bontis, N., L. D. Booker., & A. Serenko. (2007). The Mediating Effect of Organizational Reputation on Customer Loyalty and Service Recommendation in the Banking Industry. Management Decision, 45(9), 1426-1445.
Boonlertvanich, K. (2019). Service Quality, Satisfaction, Trust, and Loyalty: The Moderating Role of Main-Bank and Wealth Status. International Journal of Bank Marketing, 37(1), 278-302.
Boshoff, C., & B. Gray. (2004). The Relationships Between Service Quality, Customer Satisfaction and Buying Intentions in the Private Hospital Industry. South African Journal of Business Management, 35(4), 27-37.
Chaudhuri, A., & M. B. Holbrook. (2001). The Chain of Effects from Brand Trust and Brand Affect to Brand Performance: The Role of Brand Loyalty. Journal of Marketing, 65(2), 81-93.
Diallo, M. F., F. Diop-Sall., S. Djelassi., & D. Godefroit-Winkel. (2018). How Shopping Mall Service Quality Affects Customer Loyalty Across Developing Countries: The Moderation of the Cultural Context. Journal of International Marketing, 26(4), 69-84.
Ehigie, B. O. (2006). Correlates of Customer Loyalty to Their Bank: A Case Study in Nigeria. International Journal of Bank Marketing, 24(7), 494-508.
El-Chaarani, H., & Z. El-Abiad. (2020). Determinants of Banks Reputation During Crises. International Journal of Research in Business Studies and Management, 7(5), 39-46.
Gheeraert, L. (2014). Does Islamic Finance Spur Banking Sector Development?. Journal of Economic Behavior & Organization, 103, 4-20.
Gul, R. (2014). The Relationship Between Reputation, Customer Satisfaction, Trust, and Loyalty. Journal of Public Administration and Governance, 4(3), 368-387.
Han, X., R. J. Kwortnik Jr., & C. Wang. (2008). Service Loyalty: An Integrative Model and Examination Across Service Contexts. Journal of Service Research, 11(1), 22-42.
Harris, L. C., & M. M. Goode. (2004). The Four Levels of Loyalty and the Pivotal Role of Trust: A Study of Online Service Dynamics. Journal of Retailing, 80(2), 139-158.
Kaura, V., C. S. Durga Prasad., & S. Sharma. (2015). Service Quality, Service Convenience, Price and Fairness, Customer Loyalty, and the Mediating Role of Customer Satisfaction. International Journal of Bank Marketing, 33(4), 404-422.
Makanyeza, C., & L. Chikazhe. (2017). Mediators of the Relationship Between Service Quality and Customer Loyalty: Evidence from the Banking Sector in Zimbabwe. International Journal of Bank Marketing, 35(3), 540-556.
Nimako, S. G., N. K. Gyamfi., & A. M. M. Wandaogou. (2013). Customer Satisfaction with Internet Banking Service Quality in the Ghanaian Banking Industry. International Journal of Scientific & Technology Research, 2(7), 165-175.
Okpala, K. E. (2012). Audit Committee and Integrity of Financial Statements: A Preventive Mechanism for Corporate Failure. Australian Journal of Business and Management Research, 2(8), 32-s40.
Oluwajodu, F., L. Greyling., D. Blaauw., & E. P. Kleynhans. (2015). Graduate Unemployment in South Africa: Perspectives from the Banking Sector. SA Journal of Human Resource Management, 13(1), 1-9.
Omoregie, O. K., J. A. Addae., S. Coffie., G. O. A. Ampong., & K. S. Ofori. (2019). Factors Influencing Consumer Loyalty: Evidence from the Ghanaian Retail Banking Industry. International Journal of Bank Marketing, 37(3), 798-820.
Osakwe, C. N., B. Ruiz., H. Amegbe., N. B. Chinje., J. H. Cheah., & T. Ramayah. (2020). A Multi-Country Study of Bank Reputation Among Customers in Africa: Key Antecedents and Consequences. Journal of Retailing and Consumer Services, 56, 1-11.
Özkan, P., S. Süer., I. K. Keser., & I. D. Kocakoç. (2020). The Effect of Service Quality and Customer Satisfaction on Customer Loyalty: The Mediation of Perceived Value of Services, Corporate Image, and Corporate Reputation. International Journal of Bank Marketing, 38(2), 384-405.
Pakurár, M., H. Haddad., J. Nagy., J. Popp., & J. Oláh. (2019). The Service Quality Dimensions that Affect Customer Satisfaction in the Jordanian Banking Sector. Sustainability, 11(4), 1113.
Tweneboah-Koduah, E. Y., & A. Y. D. Farley. (2016). Relationship Between Customer Satisfaction and Customer Loyalty in the Retail Banking Sector of Ghana. International Journal of Business and Management, 11(1), 249.
Walsh, G., V. W. Mitchell., P. R. Jackson., & S. E. Beatty. (2009). Examining the Antecedents and Consequences of Corporate Reputation: A Customer Perspective. British Journal of Management, 20(2), 187-203.
Zavareh, F. B., M. S. M. Ariff., A. Jusoh., N. Zakuan., A. Z. Bahari., & M. Ashourian. (2012). E-Service Quality Dimensions and Their Effects on E-Customer Satisfaction in Internet Banking Services. Procedia-Social and Behavioral Sciences, 40, 441-445.
Zeithaml, V. A., L. L. Berry., & A. Parasuraman. (1996). The Behavioral Consequences of Service Quality. Journal of Marketing, 60(2), 31-46.
