Factors Contributing to Customer Loyalty in Commercial Banking

Bareerah Khan, Muhammad Rizwan


Customer Loyalty has been realized as a significant aspect in the establishment and maintenance of competitive edge in services sectors. Firm’s performance is positively affected with customer loyalty.  Customer Loyalty not only increases the business value but they also allow it to uphold costs lower than those associated with attracting new customers. Now days, banking sectors are promoting Relational marketing which is beneficial for them to build long-term relationship with their customers. Empirical research of this paper examines the extent to which customer Satisfaction in accordance with Perceived Service quality and Trust, Switching Cost, Corporate Image, Customer Involvement Influence the Customer Loyalty in banking sector. For this analysis, Questionnaires were distributed among 150 people and data were collected from 148 questionnaires selected through non-probability sampling technique. Regression and Correlation techniques were used for the analysis of this study. Findings show that there is a direct positive and significant relationship between Customer Satisfaction together with Perceived Service Quality, Corporate Image, Customer involvement and Customer Loyalty. While, Switching Cost has a positive but insignificant relationship on Customer Loyalty.

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DOI: https://doi.org/10.5296/ijafr.v4i2.6537


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