Bank Customers’ Satisfaction, Customers’ Loyalty and Additional Purchases of Banking Products and Services. A Case Study from the Czech Republic

The aim of this article was to determine whether satisfied bank customers were buying more bank products and services from several banks in comparison with clients who were dissatisfied with their bank services. At the same time it was also studied the dependence of buying banking products and the use of banks depending on sex, age and educational structure of consumers. In our research a special questionnaire survey was used, which was subsequently evaluated with the help of mathematical and statistical methods. Our research has not shown that satisfied clients used more banking products as customers who were dissatisfied. It was found that both in Slovakia and the Czech Republic bank customers aged 30 to 50 years old significantly more were buying 3 banking products. Number of banks that are used by Czech banks’ clients depends on customer satisfaction. The research results point to the need for achieving high levels of customer satisfaction. Suitable form of monopolization of relationships with clients allow banks to increase the value of CSI (Cross Selling Index) due to the influence of positive motivational factors, which usually bring the growth of the financial performance of commercial banks. DOI: 10.5901/mjss.2015.v6n6p339

Motivation: This paper is devoted to the issue of using banking products and services by young people, i.e. children under the age of 13, youths from 13 to 17 years of age and young adults from 18 to 25 years of age. Considering the current fast digitalization in banking as well as increased competition on the financial market, the group of young people naturally becomes an object of interest to banks. Aim: The work is aimed at characterising young people as the clients of banks. In particular the aim of the study is to identify the motives, terms and legal aspects of servicing young people by banks as well as to characterize reasons and frequency of using banking products and services by young people. To deepen the knowledge in scope of functioning of children youths and young adults on the market of banking products and services, the authors of this study have taken to carry out research through literature studies, legal regulations analysis and obtaining opinions of young people in the survey. Results: The basic motivation for servicing children, young people and young adults is linking a young client with a bank for a long period of time. Educational and social motives also exist. According to the research the majority of young people in Poland uses bank products and services. Such people start using banking offers mostly when they became adult and the share of users changes with the age, place of residence, formal education level and level of subjective financial knowledge. Young people decide to use bank products and services because of the need. They use banking products and services every day or several times per week.

This article is devoted to evaluating the effectiveness of corporate customer service in the banking sector. At the fi rst stage, the research examines the theoretical aspects of corporate customer service in commercial banks, highlights the importance of corporate customers for the banking sector. The article analyzes the current state of the Russian banking sector, characterizes the main macroeconomic indicators of the banking sector, highlights changes in the structure and number of banking institutions. The reasons for the reduction in the number of credit institutions are considered, including a decrease in banks with universal and basic licenses, as well as identified problems such as high loss-making and lack of sustainable sources of income. In addition, the article analyzes the modern practice of servicing large corporate clients in Sberbank PJSC, as well as analyzes the quality of corporate customer service in the bank, which is the object of research and in competing banks. The result of a criterion assessment of the quality of the banks’ service is presented, including the identification of advantages and disadvantages in the service. The relevance of the research is due to the need to adapt the banking sector to changing economic conditions and challenges, as well as high competition in this industry. The scientifi c novelty lies in identifying the positive consequences of the crisis, such as the cleansing of the sector from inefficient players and the growth of non-bank credit institutions. The article highlights the importance of improving corporate governance in commercial banks. According to the results of the conducted research, shortcomings in the service of corporate clients of Sberbank PJSC were identified and a set of measures was proposed to improve the comprehensive service of corporate clients, contributing to increasing their satisfaction.

The intention to use a product is one of the most important factors that must be considered by all companies to be able to make the product attractive and used by people. The purpose of this paper is to analyse, relation between Website Design, Assurance and Customer service towards Intention to adopt internet banking and Customer Service and Brand Image towards Customer Loyalty. A literature review was developed to prove that there are few factors related to intention to adopt internet banking and customer loyalty. Besides, the methodology related to intention to adopt internet banking and customer loyalty allows firms to know which factors are important to increase their customer intention and loyalties. This research proved that web design, customer service have an effect on intention to adopt internet banking and customer service and brand image have an effect on customer loyalty, but in this research, assurance have no effect on intention to adopt internet banking. This article was conducted on 111 respondents which located in DKI Jakarta with age range of under 25 years old to 35 years old. This research only addresses several variables namely Website Design, Assurance, Customer service, intention to adopt internet banking and customer loyalty. This is a replication model of a journal written by Rahi & Ghani (2018), this research conducted specifically on customers of Bank Central Asia (BCA) which helps Bank Central Asia to understand what factors are important to increase their number of customers to adopt their internet banking facility. Keywords: Website Design, Assurance, Customer Service, Brand Image, Intention to use a product and Customer Loyalty.

This research is conducted to find out the relationship among service quality, customer satisfaction, and customer loyalty of Cambodian Commercial banks. This study used translated version of the SERVQUAL instrument questionnaire. The questionnaire included 22 items of service expectations, 22 items of service performance perceptions, two different single items of overall service quality and overall customer satisfaction, and 4 items of customer loyalty to explore the relationship among service quality, customer satisfaction and customer loyalty of Cambodian Commercial banks. Total sample sizes of 200 respondents were chosen, distributed and collected from Commercial banks’ customers in Phnom Penh Capital city. Of the 200 questionnaires distributed, 147 respondents were collected back from customers of 8 Commercial banks. After descriptive and factor analysis, multivariate regression analyses were performed to study the impact of banking service quality on both customer satisfaction and customer loyalty of Cambodian Commercial banking industry setting. Factor analysis was performed among five dimensions of the SERVQUAL instrument and resulted in three new dimensions naming Tangibles, Reliability and Human Skills dimensions. The results from findings revealed that the expectations of Cambodian Commercial banks were higher than their perceptions in terms of service quality. Their expectations were not met and that the largest gap was found in Human Skills dimension. The findings from regression suggested that banking service quality was significant influence on overall customer satisfaction and thus banking service quality will lead to customer satisfaction. In addition, the results from multiple regressions showed that the Reliability dimension had the largest influence on overall customer satisfaction. Regression analysis also posited that overall customer satisfaction was positively influent on customer loyalty. However, Banking Service Quality had the indirect and positive impact on customer loyalty and this result was proved by performing two different models of regression. First, regression was analyzed using customer loyalty as dependent variable and banking service quality as independent variable. Second, regression analysis was performed using customer loyalty as dependent variable, banking service quality as independent variable, and customer satisfaction as mediator independent variable. In this study, managerial implications were provided to Management of Cambodian Commercial banks with the tested model of service quality that measures banking service quality and its attributes which had influences on overall customer satisfaction and then led to customer loyalty. Also, limitations of the study were provided and the directions for future research were suggested for further study on this field of banking service quality, customer satisfaction and customer loyalty. Contributions of this study were provided to both academic research and managerial practitioners in this field.

Abstract. Bank customer satisfaction is a hot topic of current scientific research for many reasons. In response to the negative impact of the recent financial crisis of 2008, the public has become very sensitive to all aspects of commercial bank activity. Banks are looking for ways to increase their financial performance. Researchers are trying to find the main determinants of bank customer satisfaction and examine these issues from different perspectives. The aim of our research was to investigate the relationship between gender and the major attributes of satisfaction and loyalty of the banking clients. In this context, we investigated at the same time whether there were statistically significant differences between the genders depending on age and education. Bank customer satisfaction research was conducted through a questionnaire survey on a sample of 459 respondents in the Czech Republic in 2014, of which 44% were men and 56% were women. We found that women relative to men prefer the following satisfaction factors: quality of banking products and services and convenient and friendly service in a branch. More women than men believe that the bank staff has a genuine interest in understanding their financial needs. In our research, women have more often reported that their bank's staff would explain to them the advantages and disadvantages of the bank products that were of interest to them. In addition, it was found that women are more loyal to their banks than men.Keywords: satisfaction of banking customers, loyalty, gender approach, factors of customer satisfaction, purchasing of other productsJEL classification: G21IntroductionCustomer satisfaction monitoring has become one of the priorities of current entrepreneurs regardless the sector they operate in. It is widely accepted that satisfied customers are the basis of a successful company. This issue is even more important in saturated markets with homogeneous products where clients can relatively easily change their provider in case they are not fully satisfied.Compliance with the consumers' needs and requirements (Bilan, 2013), comprehensive customer care, and bank customer satisfaction are currently at the centre of attention of re-10.14254/2071789X.2015/8-1/14 searchers and bankers, as they represent important marketing variables for most of the companies, especially those working in more competitive markets (Munari, Ielasi, Bajetta, 2013; De Matos, Henrique, and De Rosa, 2013).A satisfied customer is of great importance for the current and future performance of commercial banks (Belas and Gabcova, 2014). Koraus (2011) states that a satisfied customer remains loyal and to keep him a company requires five times less effort, time, and money than to get a new one. Such a client is willing to pay a higher price, and to get this customer to leave to a competitor would mean reducing the price of the product by 30% at equal product value. A satisfied customer represents a free form of advertisement and is inclined to purchase other products. This gives back to the bank employees a sense of satisfaction and pride in their work and business.This traditional approach is based on the assumption that satisfied customers are less likely to switch their bank and are more willing to purchase additional products or services. However, various studies (Fraering and Minor, 2013; Murugiah and Akgam, 2015; Cohon, 2007; Zamazalova, 2008) did not confirm this relations and showed that even satisfied customers switch their bank if another one offers them a better product. There are two ways to explain these findings. The first is loyalty. Loyal clients have a more intense, emotionally based connection to their bank. Thus they are more resistant to competitor banksoffers even though these offers are of better technical parameters. The second way to explain the quitting of satisfied customers is that not only objective factors, e.g. conditions of products, price or distribution channels reliability determine their satisfaction but subjective emotions and experience are getting more and more importantCurrent theoretical research on the satisfaction and loyalty of bank customers examines the various attributes of this process. …

Many banks in Indonesia have been conducting surveys to customers related to services at branch offices (Branch Service Quality) and Customer Engagement with results that continue to growevery year. With the advancement of digital technology, counter services have begun to shift to digital channels, especially mobile banking. Existing research related to the use of mobile banking uses e-servquality more often, which is generally used in research to see the excellence of services in internet banking, online shops, and digital marketplaces. Therefore, we consider it is necessary to carry on a research about the effect of mobile banking service quality on customer satisfaction and loyalty, the effect of customer perceived value on customer satisfaction and loyalty, and the effect of customer satisfaction with customer loyalty. The research was conducted by setting a sample of Bank XYZ customers who use Bank XYZ mobile banking, the total is 505 respondents. Structural equation modeling was used to carry outconfirmatory factor analysis and path analysis. From the results, it can be seen that mobile banking service quality and customer perceived value have a significant effect on customer satisfaction, but no significant effect on customer loyalty. Meanwhile, customer satisfaction has a significant effect on customer loyalty.

The article highlights issues related to the innovative activities of banking organizations from the point of view of developing and providing banking products and services. The need for objective research on the selection and classification of new banking products and services, which are brought to the market as objects of marketing activities of credit institutions, has been proven, since their properties are not the same. The conducted economic and theoretical analysis showed that despite the fact that banking services and products have a set of similar characteristics, they also have their own unique characteristics. The authors proposed an approach to identify classification features inherent in new banking products and services, which is key to the competent development of the bank’s marketing activities. It is proposed to define the concept of "new banking products" from the point of view of innovative marketing activities of the bank based on the degree of their novelty, which allows to supplement the existing classifications with new features in order to develop a clearer chosen marketing strategy. It was determined that depending on the degree of novelty of the product, innovative processes in the bank can be classified as differential or diversified. This distribution also allows focusing attention on the formation of the bank’s marketing strategy. When classifying banking products, it is recommended to provide detailed information about the target group of customers who use new banking products and consider the stage of the life cycle of banking products from the perspective of innovation. When classifying new banking products by life cycle stage, it is useful to consider the following stages: development of products and services; implementation of pilot projects or testing of new banking products; assessment of sales dynamics; maturity of new banking products; decrease in sales of new banking products. This approach makes it possible to take into account the specifics of the work of credit organizations and the interests of various groups of potential consumers in the process of introducing banking products and services.

This research is motivated by the increasingly competitive banking world, where the success or failure of a financial institution is inseparable from the policies and service treatment of its employees towards its customers. Therefore, banks are required to monitor customer satisfaction to establish good relationships with customers and potential customers. The role of marketing funding is not only to act as a seller of products with a high economic orientation but must also have a strategy that is able to improve, maintain, and promote the bank's products or services. With the support of loyal customers, PT. BPR Jatim Gresik Branch is expected to improve performance better according to the set targets. Criticism and suggestions from customers must be continuously considered and become a separate focus for marketing funding so as not to affect the level of satisfaction and loyalty of urban and suburban customers. The type of research used is qualitative research. This concept uses the theories of Jill Griffin and Kotler and Keller. Griffin's theory in Customer Loyalty states that customer loyalty is a random purchase that arises based on trust factors (trust) and self-awareness without any coercion over a long period of time. Kotler and Keller in Marketing Management theory state that service quality influences and customer satisfaction will shape the intention to buy or reuse a product, which means that the better the form of service provided and supported by a high level of satisfaction, of course, will form consumer or customer loyalty. The final results of this study can be classified into two conceptual categories: urban customer loyalty and suburban customer loyalty. Urban customer loyalty, in understanding the role of marketing funding, tends to be more critical in terms of service, convenience, trust, and the level of social relationships that impact the level of targets given to the banking company. Outlying customer loyalty, in understanding the role of marketing funding, tends to be more compliant in terms of service, convenience, trust, and prioritizes family relationships or high social levels. As a result, operational standards are not in line with the field and are more concerned with maintaining socio-cultural values.

In the current banking sector, characterized by an increasing competition, efficient management 
\nof selling additional products and services to existing satisfied customers represents a significant 
\nopportunity to improve the financial performance of a commercial bank. To sum up, the conclusion 
\nof the up to date literature is an idea that customer satisfaction leads to customer loyalty and loyalty 
\nleads to willingness to purchase additional products. However, there are practically no papers 
\nquantifying the influence of loyalty on additional products purchases. 
\nThe aim of this paper is to 
\ncreate a model among customer satisfaction, loyalty and 
\nfinancial performance of commercial banks 
\nin the Czech Republic. It is based on our original research realized as a survey with a total of 459 
\nrespondents that have been reached. The created model has proven that product quality, recognition 
\nof customers ́ 
\nfinancial needs and acceptance of prices by a customer have an impact on customer 
\nsatisfaction, which then influences customer loyalty and this in return influences additional purchases 
\npotential of a customer. 
\nThe regression model of relation between customer satisfaction and loyalty of bank customer has this form: CL = 0.01163 + 0.9191 x CS, where: CL – customer loyalty, CS – customer satisfaction. The regression model of relation between customer loyalty and additional 
\npurchases: APP = -0.05667 + 0.5848 x CL, where: APP – additional purchases potential, CL – 
\ncustomer loyalty. At 
\nthe end, the paper is dedicated to a model example showing that if a commercial 
\nbank is able to increase the number of satisfied customers by 10,000, it can obtain additional yearly 
\nincome of EUR 9.6 million.

Purpose: This paper examines whether customer experience has an influence on customer loyalty in a multichannel banking environment. Design/Method/Approach: The study used a sample of 466 bank customers in Durban, South Africa. Data from the survey of the bank customers was analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM), and a theoretical model was created and empirically tested. Findings: The study findings indicate that the relationship between customer experience and customer loyalty is mediated by service quality and customer satisfaction. The theoretical model developed indicates that customer loyalty can be achieved by improving customer experiences, enhancing service quality and improving customer satisfaction. Theoretical Implications: The study enhances theoretical understanding by demonstrating that the relationship between customer experience and loyalty is mediated by service quality and customer satisfaction. It highlights the importance of viewing customer experience as a multidimensional construct in multichannel banking. Practical Implications: The findings suggest that banks can improve customer loyalty by enhancing customer experience through better service quality and satisfaction. This requires integrating digital and traditional service channels and continuously improving customer touchpoints. Originality/Value: The success of service companies depends on their ability to build a loyal customer base, which can be achieved by delivering customer experiences that blend the different channels. Research Limitations/Future Research: The implication is that banks must exploit ways of improving customer experience as well as leveraging on customer satisfaction and service quality to enhance loyalty. Paper Type: Empirical JEL Classification: D12, G21, L81, M31

Purpose This paper aims to identify the generic service quality dimensions of technology‐based banking and to examine the effect of these dimensions on customer satisfaction and customer loyalty. Design/methodology/approach The generic service quality dimensions are identified using an exploratory factor analysis (EFA). Next the reliability and validity of the factors and customer satisfaction and customer loyalty are established through confirmatory factor analysis (CFA) using AMOS 16.0 s/w. The related hypotheses were tested using structural equation modeling using AMOS 16.0. Findings The paper identifies four generic service quality dimensions in the technology‐based banking services – customer service, technology security and information quality, technology convenience, and technology usage easiness and reliability. It was found that customer service and technology usage easiness and reliability have positive and significant impact on customer satisfaction and customer loyalty. It was also found that technology convenience and customer satisfaction have significant and positive impact on customer loyalty. Practical implications These dimensions of service quality should be viewed as the levers of improving perceived service quality with respect to technology‐based banking in the minds of its current customers. Examining the service quality dimensions' impact on customer satisfaction and customer loyalty for technology‐based banking can offer banks valuable insights regarding which aspects of the service to focus on in order to improve customer satisfaction and loyalty towards the firms. Originality/value This paper introduces the concept of generic service quality and its significance for customer satisfaction and loyalty in case of technology‐based banking wherein technology is used to deliver services.

Purpose– The price war and intense competition in Indian banking industry have exposed banks to one of the major threat of switching. Consumers are now more price and service conscious in their financial services purchasing behaviour. They are more prone to change their banking behaviour as banking products and services are nearly identical in nature. The purpose of this paper is to provide an insight of the drivers that lead a customer switch from one service provider to another in Indian banking industry using exploratory design.Design/methodology/approach– The impacts of the influencing factors have been studied and tested empirically using exploratory factor analysis. Quantitative data have been collected by means of questionnaire employed from Clemeset al.and administered to 296 banking customers of Rajasthan utilizing convenience sampling.Findings– Results reported that price, reputation, responses to service failure, customer satisfaction, service quality, service products, competition, customer commitment and involuntary switching have their significant effect on customers’ switching behaviour.Research limitations/implications– The findings of present study can be used by the Indian banks for their product and service designing strategies, marketing strategies and customer services practices in order to reduce customer switching. It would help them in improving their service operations and also in increasing customer satisfaction and loyalty by understanding the banking behaviour of their customers.Originality/value– The originality lies in the fact that this study is one of few which have focused on the drivers leading to the switching intentions of Indian banking customers.

Service capability plays an important role for the sustainability of a company in increasing customer satisfaction and loyalty. The main priority of a company engaged in banking services is customer satisfaction. In winning the increasingly competitive competition, the Bank strives to provide the best service (service excellent). This study aims to determine the importance of retaining customers and reaching potential customers. In addition, to find out how to maintain and improve the quality and loyalty of its customers. The research uses a library research method in which data is collected based on academic data bases, digital libraries, and repositories of educational institutions. Some references are obtained from books, scientific journals, articles and research reports relevant to customer service quality research in improving customer quality and loyalty. The result is that customer service quality has a crucial role in shaping customer perceptions of financial institutions. Quality of service is very concerned about satisfaction and loyalty to maintain a positive brand image or image in the eyes of the community. The effect of customer satisfaction on customer loyalty can show that customer satisfaction has a significant effect on customer loyalty. Increasing service quality has an impact on customer satisfaction and loyalty is also increasing. Conversely, if the quality of Customer Service service decreases, it will have an impact on worsening customer satisfaction and loyalty.

The intangible nature of services makes it difficult for an organisation to understand how its customers perceive and evaluate the quality of its services. The pressing need for banks to ensure customer satisfaction and loyalty makes it imperative for them to assess their service quality levels. The purpose of this study was to determine the degree of service quality, customer satisfaction and loyalty among retail banking customers in Ghana. The GAP analysis technique was applied to help in identifying the strengths or deficiencies in the service quality, customer satisfaction and customer loyalty levels, as judged by respondents. The results showed that the extent of Service Quality in Ghana’s banking industry is reasonably high. Also, the extent of Customer Satisfaction, which was rated, based on the single item question, recorded a higher rating over and above service quality. The mean score for Overall Customer Loyalty was 5.08 (Gap score=1.92), indicating a slightly high rate of customer loyalty among bank customers in Ghana. Overall, Customer Loyalty has a relatively high Gap score of 1.92, compared with Service Quality (Gap = 1.75) and customer satisfaction (Gap of 1.50). This points to the existence of lower levels of customer loyalty for the Ghana banking industry, followed by service quality and then customer satisfaction. The study further concluded that the Ghanaian banks should particularly pay attention to behavioural loyalty to help improve on the overall customer loyalty.