Open Access
Subscription Access
Open Access
Subscription Access
Revisiting Customer Satisfaction and Loyalty as a Sustainable Approach for Indian Consumer Banking
Subscribe/Renew Journal
One of the greatest problems faced by the marketers is the erosion of customer base. This is the result of not only the dissatisfaction inflicted by the marketers which prompts the customers to shift their patronage, but also the new competitive environment that makes customer flight much easier since the options are wide open. So the challenge is not to produce satisfied customers, but it lies in producing loyal customers. Thus, customisation of services is rapidly becoming a norm than a competitive advantage for complete satisfaction and a loyal customer base. Researches indicate the necessity of elaborations about the relationship between customer satisfaction and loyalty. Hence the paper examines the relationship between satisfaction and loyalty.
The empirical study reveals that ICICI and HDFC among private while PNB and SBI among public sector are the major banks emerging from the study. The level of satisfaction among ICICI consumers is highest followed by SBI. In addition to this, the theory empirically validated here, indicates a strong and positive association exists between satisfaction and loyalty, thereby implying that satisfaction is also an antecedent of loyalty in case of banking sector, where frequency and intensity of banker-customer interactions is high as compared to any other service.
Keywords
- Akbar, M. M., & Parvez, N. (2009). Impact of service quality, trust and customer satisfaction on custumer loyalty. ABAC Journal, 29(1), 24-38.
- Alrubaiee, L., & Al-Nazer, N. ( 2010). Investigate the impact of relationship marketing orientation on customer loyalty: The customer's perspective. International Journal of Marketing Studies, 2(1), 155-174.
- Anderson, E. W., Fornell, C., & Lehmann, D. R. (1994). Customer satisfaction, market share and profitability finding from Sweden. Journal of Marketing, 58(July), 53-56.
- Athanassopoulos, A., Gounaris, S., & Strathakopoulos, V. (2001). Behavioural responses to customer satisfaction: An empirical study. European Journal of Marketing, 35, 687-707.
- Bolton, R. N., Kannan, P. K., & Bramlett, M. D. (2000). Implications of loyalty program membership and service experiences for customer retention and value. Journal of the Academy of Marketing Sciences, 28(1), 95-108
- Bolton, R. N., & Lemon, K. N. (1999). A dynamic model of customers, uses of services: Usage as an antecedent and consequences of satisfaction. Journal of Marketing Research, 36(May), 171-186.
- Burmann, C., Meurer, J o r & Kanitz, C. (2011). Customer centricity as a key to success for pharma. Journal of Medical Marketing, 11(1), 49-59.
- Burnham, T. A., Frels, J. K., & Mahajan, V. (2003). Consumer switching costs: A typology, antecedents, and consequences. Journal of Academy of Marketing Science, 32(2).
- Churchill, G. A. (1988). Basic marketing research, Florida: The Dryden Press.
- Colgate, M., & Hedge, R. (2001). An investigation into the switching process in retail banking services. International Journal of Bank Marketing, 19(5), 201-212.
- Dobni, C. B., & Luffman, G. (2000). Implementing marketing strategy through a market orientation. Journal of Marketing Management, 16, 895-916.
- Fornell, C. (1992). A national customer satisfaction barometer: The Swedish experience. Journal of Marketing, 56(Jan), 6-21.
- Irfan, S., M., Mohsin, M., & Yousaf, I. (2009). Achieving service quality through its valuable human resources: An empirical study of banking sector of Pakistan. World Applied Sciences Journal, 7(10), 1222-1230.
- Jones, H., & Farquhar, J. D. (2003). Contact management and customer loyalty. Journal of Financial Services Marketing, 8(1), 71-78.
- Lovelock, C., Patterson, P., & Walkar, R. (2001). Services marketing: An Asia-pacific perspective, Printice-Hall, (2nd ed) Englewood Cliffs. NJ.
- Oliva, T. A., Oliver, R. L., & MacMillan, C. (1992). A catastrophe model for developing services satisfaction strategies. Journal of Marketing, 56 (July), 83-95.
- Parasuraman, A. (2000). Superior customer service and marketing excellence: Two sides of the same success coin. Vikalpa, 25 (September), 3-12.
- Rawami, A., & Gupta, M. P. (2000). IT vs service quality in banks. A few learning issues. In M. Raghavachari & K. V. Ramani, (Eds.) Delivering Service Quality, (pp.167-172). New Delhi: MacMillan India,
- Rust, R. T., & Zahorik, A. J. (1993). Customer satisfaction, customer retention and market share. Journal of Retailing, 69(2), 193-215.
- Sharma, N., & Patterson, P. (2000). Switching costs, alternative attractiveness and experience as moderators of relationship commitment in professional consumer services. International Journal of Service Industry management, 2(5), 470-490.
- Sheaves, D. E., & Barnes, J. G. (1996). The fundamentals of relationships: An exploration of the concept of guide marketing implementation. In T. A Swartz, D. E Bowen & S.W Brown (Eds.) Advances in Services Marketing and Management, JAI press, Greedwich, CT.
- Trif, S. M. (2013). The influence of overall satisfaction and trust on customer loyalty. Management & Marketing Challenges for the Knowledge Society, 8(1), 109-128
- Verma, H. V. (2003). Customer outrage and delight. Journal of Services Research, 3(1).
Abstract Views: 532
PDF Views: 4