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Relationship between Customer Satisfaction and Customer Loyalty in the Retail Banking Sector of Ghana

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  • Ernest Tweneboah-Koduah
  • Augustine Yuty Duweh Farley

Abstract

As competition intensifies in the Ghanaian retail banking sector, understanding the antecedents of customer loyalty is critical for effective design and implementation of loyalty programs to ensure customer loyalty and retention. The objective of this study is to examine relationship between the dimensions of customer satisfaction and customer loyalty, as well as the effects of socio-economic variables on customer loyalty in the retail banking sector of Ghana. Data were collected using questionnaire administered through personal interviews to 160 customers of retail banks in Ghana. Multiple regression, analysis of variance and one-sample t-test statistical methods were employed to examine the relationship between the independent and dependent variables. The study found assurance (knowledge and courtesy of employees and their ability to inspire trust and confidence) to be a significant driver of customer loyalty. The study also found a significant difference between age groups and customer loyalty. The study recommends that relationship managers give special consideration to such variables as Assurance and ‘Age groups’ when formulating strategies for developing customer loyalty in the retail banking sector of Ghana.

Suggested Citation

  • Ernest Tweneboah-Koduah & Augustine Yuty Duweh Farley, 2015. "Relationship between Customer Satisfaction and Customer Loyalty in the Retail Banking Sector of Ghana," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(1), pages 249-249, December.
    • Handle: RePEc:ibn:ijbmjn:v:11:y:2015:i:1:p:249
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    Cited by:

    1. Ayodeji, Yusuf & Rjoub, Husam & Özgit, Hale, 2023. "Achieving sustainable customer loyalty in airports: The role of waiting time satisfaction and self-service technologies," Technology in Society, Elsevier, vol. 72(C).

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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