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Identifying the Determinants of Customer Retention in a Developing Country Context

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  • Norizan Mohd Kassim

    (University of Qatar, Qatar)

  • Salaheldin Ismail

    (University of Qatar, Qatar)

  • Nor Asiah Abdullah

    (Multimedia University, Malaysia)

Abstract

This article investigates how image, perceived service quality and satisfaction determine customer retention in the retail banking industry in Malaysia. Data was obtained using a self-administered survey involving a convenience sample of 134 retail banking customers in Malaysia. The results show that image is both directly and indirectly related to retention through satisfaction while perceived service quality is indirectly related to retention through satisfaction. The article concludes that satisfaction is not the sole determinant of retention in retail banking. Some managerial implications of this research find that the interrelationships between the determinants (image, quality and satisfaction) allow bank managers to better understand the dynamics of customer retention formation.

Suggested Citation

  • Norizan Mohd Kassim & Salaheldin Ismail & Nor Asiah Abdullah, 2010. "Identifying the Determinants of Customer Retention in a Developing Country Context," International Journal of Customer Relationship Marketing and Management (IJCRMM), IGI Global, vol. 1(1), pages 69-81, January.
    • Handle: RePEc:igg:jcrmm0:v:1:y:2010:i:1:p:69-81
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