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Acost-Benefit Approach In Developmentofservice Loyalty- An Application In The Banking Sector

Author

Listed:
  • Fikret Cankaya
  • Zuhal Cilingir

    () (Karadeniz Teknik University)

Abstract

As is known, for both of the goods and services, the most determining characteristic of customer loyalty is permanency. Consumers evaluate the service of a company by making a cost-benefit analysis before they become the regular customers of the company. This study aims to investigate both customers’ evaluations of the banking services and the effects of these evaluations on the service loyalty in terms of cost-benefit approach. In the development of service loyalty, the benefit component involves service quality factor, while the cost component involves economic costs, transaction cost and switching costs. With the data obtained from the customers of Trabzon and Ankara branches of a private bank, the roles of both benefit and cost dimensions on service loyalty were explored by regression analysis. Besides, we investigated the type of customer and customer’s residential area creates a statistically significant difference on service loyalty.

Suggested Citation

  • Fikret Cankaya & Zuhal Cilingir, 2008. "Acost-Benefit Approach In Developmentofservice Loyalty- An Application In The Banking Sector," Anadolu University Journal of Social Sciences, Anadolu University, vol. 8(1), pages 25-46, June.
  • Handle: RePEc:and:journl:v:8:y:2008:i:1:p:25-46
    as

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    File URL: http://www.anadolu.edu.tr/arastirma/hakemli_dergiler/sosyal_bilimler/pdf/2008-1/2008_01_03.pdf
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    References listed on IDEAS

    as
    1. Sharma, Arun & Stafford, Thomas F., 2000. "The Effect of Retail Atmospherics on Customers' Perceptions of Salespeople and Customer Persuasion:: An Empirical Investigation," Journal of Business Research, Elsevier, vol. 49(2), pages 183-191, August.
    2. David R. Bell & James M. Lattin, 1998. "Shopping Behavior and Consumer Preference for Store Price Format: Why “Large Basket” Shoppers Prefer EDLP," Marketing Science, INFORMS, pages 66-88.
    3. Belk, Russell W, 1975. " Situational Variables and Consumer Behavior," Journal of Consumer Research, Oxford University Press, vol. 2(3), pages 157-164, December.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Service Loyalty; Cost-Benefit Analysis; Service Quality;

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services

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