A Model for Explanation of Customer Satisfaction Consequences in Banking Industry: Evidence from Iran

Abstract

In recent years, customer satisfaction has come to be used not only as a performance indicator for individual firms but also an aggregate for economic analysis. In particular, it has been reported that changes in customer satisfaction are a leading, positive indicator of other financial and economic indicators such as GDP growth and customer spending. In our research, we have examined consequences of customer satisfaction by analyzing the relationships among variables such as customer complaints, loyalty, trust, switching costs, and corporate image. A sample of 551 respondents took part in this study. A cluster-sampling plan was used to collect data from estimated sample. Findings indicate that customer satisfaction appears to be linked to customer loyalty. Findings also indicate that customer satisfaction has a positive and significant impact on customer trust and complaints. In addition, as trust increases, the switching costs decreases. Similarly, when customer complaints decrease, the customer loyalty will increase. Finally, corporate image and switching costs have a significant impact on customer loyalty. Key words: Customer satisfaction; Loyalty; Trust; Corporate image; Switching cost