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The Relationship between Customer Satisfaction and Customer Trust on Customer Loyalty

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  • Vithya Leninkumar

Abstract

Furious competition among the banks induces the owners to find out the ways to ensure the sustainability in the market and to gain competitive advantage even among competition. Thus, focus towards the customer loyalty has increased more than ever before which drew the attention of the researchers en route for the identification of the antecedents of customer loyalty. In this regard, the relationship between customer satisfaction and trust on customer loyalty has investigated in the commercial banks of Sri Lanka. The findings revealed a significant positive correlation between customer trust and loyalty; customer satisfaction and loyalty; and customer satisfaction and trust. Customer satisfaction has identified as an important influencer on customer loyalty. Further, customer trust impacted by customer satisfaction which proved that customer satisfaction is an antecedent of customer trust. Moreover, an indirect relationship between customer satisfaction and loyalty through customer trust was observed. The future studies may replicate in other service contexts and comparison of models of government and private banks will give more understanding.

Suggested Citation

  • Vithya Leninkumar, 2017. "The Relationship between Customer Satisfaction and Customer Trust on Customer Loyalty," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(4), pages 450-465, April.
    • Handle: RePEc:hur:ijarbs:v:7:y:2017:i:4:p:450-465
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    Cited by:

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    10. Bashir Ahmad Fida & Umar Ahmed & Yousuf Al-Balushi & Dharmendra Singh, 2020. "Impact of Service Quality on Customer Loyalty and Customer Satisfaction in Islamic Banks in the Sultanate of Oman," SAGE Open, , vol. 10(2), pages 21582440209, May.
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    12. T. Praveen Kumar & Santosh Basavaraj & K. Soundarapandiyan, 2024. "Can co‐creating in CSR initiatives influence loyal customers? Evidence from the banking industry," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 180-195, January.
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    19. Ismulyana Djan & Siti Rubbiah Adawiyyah, 2021. "Customer satisfaction analysis and its impact on customer loyalty delivery services reviewed from service quality and price," Technium Social Sciences Journal, Technium Science, vol. 21(1), pages 635-644, July.
    20. Carlos Correa & David Alarcón & Ignacio Cepeda, 2021. "“I am Delighted!”: The Effect of Perceived Customer Value on Repurchase and Advocacy Intention in B2B Express Delivery Services," Sustainability, MDPI, vol. 13(11), pages 1-19, May.
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    24. Lee, Wei-Long & Liu, Chih-Hsing & Tseng, Tzu-Wen, 2022. "The multiple effects of service innovation and quality on transitional and electronic word-of-mouth in predicting customer behaviour," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).

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