Service Quality as Drivers of Customer Loyalty and Intention to Switch: Modeling the Mediating Effect of Customer Satisfation

  • Authors

    • Zailin Zainal Ariffin
    • Azizul Yadi Yaakop
    • Norsuhada Isa
    • Siti Sarah Omar
    • Nor Khasimah Aliman
    • Ramraini Ali Hassan
    2018-08-08
    https://doi.org/10.14419/ijet.v7i3.21.17092
  • Customer Satisfaction, Customer Loyalty, Intention To Switch, Servqual Model, Service Quality

  • Abstract

    The following study examines relationship of service quality, customer satisfaction, customer loyalty and consumers’ intentions to switch among finance and insurances consumers in Klang Valley area. Although many researchers have studied of service quality, customer satisfaction, customer loyalty and intention to switch, limited studies explore customer satisfaction as mediating role in the model. The present study proposes SERVQUAL model as indicator to determine the customer satisfaction among finance and insurances consumer. Stratified random sampling technique will be employed in the present study. Data collected also will be analyzed using the Smart PLS (Partial Least Square) to answer the hypothesis. It is believed that the mediating role of customer satisfaction is a promising area to explore and the potential to provide significant benefit to the finance and insurance institution.

     

     

  • References

    1. [1] 1. Malik SA, Nasim K, Iqbal MZ. TQM practices in electric fan manufacturing industry of Pakistan. International Journal of Productivity and Quality Management. 2013;12(4):361-78.

      [2] 2. Hossain M, Leo S. Customer perception on service quality in retail banking in Middle East: the case of Qatar. International Journal of Islamic and Middle Eastern Finance and Management. 2009;2(4):338-50.

      [3] 3. Ghost FH, Gnanadhas M. Impact of service quality in commercial banks on the customer’s satisfaction: An empirical study. International Journal of Multidisciplinary Research. 2011;1(6):19-37.

      [4] 4. Narteh B, Owusu-Frimpong N. An analysis of students' knowledge and choice criteria in retail bank selection in sub-Saharan Africa: The case of Ghana. International Journal of Bank Marketing. 2011;29(5):373-97.

      [5] 5. Khan MM, Fasih M. Impact of Service Quality on Customer Satisfaction and Customer Loyalty: Evidence from Banking Sector. Pakistan Journal of Commerce & Social Sciences. 2014;8(2).

      [6] 6. Mohsan F, Nawaz MM, Khan MS, Shaukat Z, Aslam N. Impact of customer satisfaction on customer loyalty and intentions to switch: Evidence from banking sector of Pakistan. International Journal of Business and Social Science. 2011;2(16).

      [7] 7. Büyüközkan G, Çifçi G, Güleryüz S. Strategic analysis of healthcare service quality using fuzzy AHP methodology. Expert systems with applications. 2011;38(8):9407-24.

      [8] 8. Kritikos K, Pernici B, Plebani P, Cappiello C, Comuzzi M, Benrernou S, et al. A survey on service quality description. ACM Computing Surveys (CSUR). 2013;46(1):1.

      [9] 9. Ye Q, Li H, Wang Z, Law R. The influence of hotel price on perceived service quality and value in e-tourism: an empirical investigation based on online traveler reviews. Journal of Hospitality & Tourism Research. 2014;38(1):23-39.

      [10] 10. Melaku M. Impact of Service Quality on Customer Satisfaction: The Case of Bank of Abyssinia SC: Addis Ababa University; 2015.

      [11] 11. Auka D, Bosire JN, Matern V. Perceived service quality and customer loyalty in retail banking in Kenya. 2013.

      [12] 12. Zeithaml VA, Berry LL, Parasuraman A. The behavioral consequences of service quality. the Journal of Marketing. 1996:31-46.

      [13] 13. Krishnamurthy R, SivaKumar MAK, Sellamuthu P. Influence of service quality on customer satisfaction: Application of SERVQUAL model. International Journal of Business and Management. 2010;5(4):117.

      [14] 14. Arch J. The brown adipocyte β-adrenoceptor. Proceedings of the Nutrition Society. 1989;48(2):215-23.

      [15] 15. Yarımoğlu K. Emel,(2014), A Review on Dimensions of Service Quality Models. Journal of Marketing Management.2(2):79-93.

      [16] 16. Dawi NM, Jusoh A, Nor KM, Qureshi MI. Service Quality Dimensions in Pay TV Industry: A Preliminary Study. International Review of Management and Marketing. 2016;6(4S).

      [17] 17. Qureshi MI, Khan A, Zaman K, Khaqan N. Structural investigation of service quality in conventional and islamic banking in pakistan. International Journal of Management and Innovation. 2014;6(1):84.

      [18] 18. Arokiasamy ARA. The impact of customer satisfaction on customer loyalty and intentions to switch in the banking sector in Malaysia. The journal of commerce. 2013;5(1):14-21.

      [19] 19. Mittal V, Kamakura WA. Satisfaction, repurchase intent, and repurchase behavior: Investigating the moderating effect of customer characteristics. Journal of marketing research. 2001;38(1):131-42.

      [20] 20. Tse DK, Wilton PC. Models of consumer satisfaction formation: An extension. Journal of marketing research. 1988:204-12.

      [21] 21. Demirgünescedil BK. Relative Importance of Perceived Value, Satisfaction and Perceived Risk on Willingness to Pay More. International Review of Management and Marketing. 2015;5(4).

      [22] 22. Selnes F. An examination of the effect of product performance on brand reputation, satisfaction and loyalty. European Journal of marketing. 1993;27(9):19-35.

      [23] 23. Chen S-C. Customer value and customer loyalty: Is competition a missing link? Journal of Retailing and Consumer Services. 2015;22:107-16.

      [24] 24. Jabeen S, Hamid ABA, Rehman SU. Switching Intentions: A Case of Saudi Arabian Hypermarkets. International Journal of Economics and Financial Issues. 2015;5(1S).

      [25] 25. Bansal HS, Taylor SF, St. James Y. “Migrating†to new service providers: Toward a unifying framework of consumers’ switching behaviors. Journal of the Academy of Marketing Science. 2005;33(1):96-115.

      [26] 26. Amin M, Zahora Nasharuddin S. Hospital service quality and its effects on patient satisfaction and behavioural intention. Clinical Governance: An International Journal. 2013;18(3):238-54.

      [27] 27. Kazemi N, Ehsani P, Abdi F, Bighami M. Measuring hospital service quality and its influence on patient satisfaction: An empirical study using structural equation modeling. Management Science Letters. 2013;3(7):2125-36.

      [28] 28. Ilyas A, Nasir H, Malik MR, Mirza UE, Munir S, Sajid A. Assessing the service quality of Bank using SERVQUAL model. Interdisciplinary journal of contemporary research in business. 2013;4(11):390-400.

      [29] 29. Shagari JN, Abubakar A. Appraisal of Customer Satisfaction with GSM Services in Dutsin-Ma, Katsina State, Nigeria.

      [30] 30. Flint DJ, Blocker CP, Boutin PJ. Customer value anticipation, customer satisfaction and loyalty: An empirical examination. Industrial marketing management. 2011;40(2):219-30.

      [31] 31. Shah SHA, Gul S, Shakir H, Qureshi I. Switching cost and consumer behaviour: A structural analysis of telecom sector of Pakistan. World Applied Sciences Journal. 2013;28(4):513-27.

      [32] 32. Siddiqi KO. Interrelations between service quality attributes, customer satisfaction and customer loyalty in the retail banking sector in Bangladesh. International Journal of Business and Management. 2011;6(3):12.

      [33] 33. Daikh J. A Research Proposal: The Relationship between Customer Satisfaction and Consumer Loyalty. 2015.

      [34] 34. Olsson F, Gall G. How do the predictors of switching intention influence switching behavior?: A quantitative study of students’ switching behavior in the retail banking context. 2012.

      [35] 35. Martins RC, Hor-Meyll LF, Ferreira JB. Factors affecting mobile users' switching intentions: A comparative study between the Brazilian and German markets. BAR-Brazilian Administration Review. 2013;10(3):239-62.

      [36] 36. Osman Z, Sentosa I. Mediating effect of customer satisfaction on service quality and customer loyalty relationship in Malaysian rural tourism. 2013.

      [37] 37. Srivastava K, Sharma NK. Service quality, corporate brand image, and switching behavior: The mediating role of customer satisfaction and repurchase intention. Services Marketing Quarterly. 2013;34(4):274-91.

      [38] 38. Hussain R. The mediating role of customer satisfaction: evidence from the airline industry. Asia Pacific Journal of Marketing and Logistics. 2016;28(2):234-55.

      [39] 39. Umar A, Bahrun R. The Mediating Relationship of Customer Satisfaction Between Brand Trust, Brand Social Responsibility Image with Moderating Role of Switching Cost. Advanced Science Letters. 2017;23(9):9020-5.

      [40] 40. Bansal HS, Taylor S, editors. Investigating the relationship between service quality, satisfaction and switching intentions. Proceedings of the 1997 Academy of Marketing Science (AMS) Annual Conference; 2015: Springer.

      [41] 41. Antón C, Camarero C, Carrero M. The mediating effect of satisfaction on consumers' switching intention. Psychology & Marketing. 2007;24(6):511-38.

      [42] 42. Zikmund WG, Babin BJ, Carr JC, Griffin M. Business research methods: Cengage Learning; 2013.

      [43] 43. Chingang Nde D, Lukong P. Using the SERVQUAL Model to assess Service Quality and Customer Satisfaction.: An Empirical Study of Grocery Stores in Umeå. 2010.

      [44] 44. Gibson C. Using SERVQUAL to assess the customer satisfaction level of the Oregon HIDTA ISC analytical unit. Hatfield School of Government. 2009.

      [45] 45. Lau MM, Cheung R, Lam AY, Chu YT. Measuring service quality in the banking industry: a Hong Kong based study. Contemporary Management Research. 2013;9(3):263.

      [46] 46. Benbernou S, Ivona B, Nitto D, Carro M, Kritikos K, Parkins M. A survey on service quality description. ACM Computing Survey V. 2009:1-77.

      [47] 47. Krishnamurthy A. How debt markets have malfunctioned in the crisis. The Journal of Economic Perspectives. 2010;24(1):3-28.

      [48] 48. Smith G, Smith A, Clarke A. Evaluating service quality in universities: a service department perspective. Quality assurance in education. 2007;15(3):334-51.

      [49] 49. de Jong S. Customer Satisfaction and Customer Loyalty Among Grocery Shoppers a Research Done in The Netherlands: Erasmus University; 2011.

      [50] 50. Hallowell R. The relationships of customer satisfaction, customer loyalty, and profitability: an empirical study. International journal of service industry management. 1996;7(4):27-42.

      [51] 51. Murad MMM. Direct and moderating factors affecting customer switching intentions: An empirical study on bank of Palestine and Cairo Amman Bank in Gaza Strip: The Islamic University-Gaza; 2011.

  • Downloads

  • How to Cite

    Zainal Ariffin, Z., Yadi Yaakop, A., Isa, N., Sarah Omar, S., Khasimah Aliman, N., & Ali Hassan, R. (2018). Service Quality as Drivers of Customer Loyalty and Intention to Switch: Modeling the Mediating Effect of Customer Satisfation. International Journal of Engineering & Technology, 7(3.21), 43-47. https://doi.org/10.14419/ijet.v7i3.21.17092

    Received date: 2018-08-08

    Accepted date: 2018-08-08

    Published date: 2018-08-08