Influence of Customer Satisfaction on Service Quality and Customer Loyalty Relationship in Malaysian Commercial Banking Industry

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Author	Zahir Osman, Ilham Sentosa
ISSN	2307-2466
On Pages	115-120
Volume No.	3
Issue No.	2
Issue Date	April 01, 2020
Publishing Date	April 01, 2020
Keywords	Customer loyalty, service quality, customer satisfaction, commercial bank

Abstract

The aim of this study is to establish understanding of a mediating effect of customer satisfaction on service quality satisfaction and customer loyalty relationship in Malaysian commercial banking industry. To analyze the casual relationships among customer satisfaction, customer trust and customer loyalty, the Structural Equation Model (SEM) was adopted. The model was designed and later analyzed by utilizing the Partial Least Square (PLS) procedure on data collected from a survey that yielded 521 usable questionnaires. The results showed that service quality enhances customer satisfaction in Malaysian commercial banking industry. It was also exposed that customer satisfaction partially mediates the relationship between service quality and customer loyalty. In future more research needs to be done to investigate the role of customer satisfaction in Malaysian commercial banking industry. It is vital to do the research utilizing experimental design by using longitudinal data in Malaysian commercial banking industry via vigorous measures. The findings suggest that the relationship between customer satisfaction and profitability may reside in customer satisfaction�s influence on customer loyalty, and the customer satisfaction plays a crucial role within the Malaysian commercial banking industry. This research is one of the first known efforts to use PROCESS to test the mediation effect.

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