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Investigating the influence of service quality on loyalty in banking industry: the role of customer engagement

Author

Listed:
  • Reza Saral
  • Reza Salehzadeh
  • Seyed Mehdi Mirmehdi

Abstract

Over recent years, special attention in the banking industry has been paid to customer loyalty, mainly because of the relationship between loyalty and profitability in an organisation. This study aimed to evaluate the factors affecting customer engagement and loyalty. In this study, a cross-sectional questionnaire-based research project was employed to collect data from a sample of 356 customers from randomly selected banks in Isfahan. The content validity of the questionnaires was confirmed by experts and its construct validity was approved by using factor analysis. Reliability of the questionnaires was confirmed based on Cronbach's alpha method. Structural equation modelling was used to test the research hypotheses. According to the research findings, the rate of profit, brand, and service quality significantly affect the customer engagement. Furthermore, the rate of profit, brand, service quality and customer engagement have a significant impact on customer loyalty.

Suggested Citation

  • Reza Saral & Reza Salehzadeh & Seyed Mehdi Mirmehdi, 2024. "Investigating the influence of service quality on loyalty in banking industry: the role of customer engagement," International Journal of Services, Economics and Management, Inderscience Enterprises Ltd, vol. 15(1), pages 1-18.
    • Handle: RePEc:ids:injsem:v:15:y:2024:i:1:p:1-18
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