Customer Satisfaction as a Determinant and Influencer of Customer Loyalty in Select Service Sector Organizations

This paper studies the relationship between rustomer satisfaction on the one hand and customer loyalty on the other in select service sector organizations viz; Telecom and Banking sectors. In order to present a comprehensive picture on the above investigation, customers of both public and private sector organizations are taken into consideration. Study is conducted in six leading public and private sector organizations - BSNL, Reliance, TATA, Andra Bank, SBI/SBH and IClCI. A sample of 424 (n=424) customers are drawn for this study. Two new measuring instruments are developed by the investigator - Customer Loyalty and Customer Satisfaction measuring instruments respectively. Item validity index for the items under testing are valid and significant. Similarly, Instruments' reliability coefficients are also quite significant as per the standard norms. Investigator has scientifically established the relationship between customer loyalty on the one hand customer satisfaction on the other in leading service sector organizations. Investigator showed that despite the prevalence of multiple loyalties in service sector organizations, customer loyalty promotion measures based on relationship marketing has got a vital say in raising the product demand and market share as well.