Customer Retention in the Greek Banking Industry: Some Survey Evidence

The aim of this article is to identify the influence of service quality on customer loyalty in the Greek banking sector. Service quality was measured using the SERVQUAL model, including importance weights. Repurchase intention and positive word-of-mouth were used as behavioral components to measure customer loyalty. However, it should be noted that customers stated repurchase intention does not always ensure their actual repurchase behavior. Data were collected through a survey research and 120 customers of Greek banks were personally interviewed. The findings showed that there are relationships between service quality, customers stated repurchase intention and their recommendations to third parties in the Greek banking sector. The SERVQUAL model proved to be a reliable measure for service quality. Consideration was limited to the identified factors, but also several other variables influencing customer loyalty exist. Thus, the intermediate steps between formulating a service quality level and influencing customers to remain loyal need sturdier theoretical underpinning and significant empirical support.