Abstract
Today, the banking sector plays a significant role due to the substantial increase in the number of banks and has become an intensely competitive field. The purpose of this paper is to strengthen knowledge of retail banking services by finding the interrelationships between service justice, service quality, social influence, and corporate image concerning service satisfaction and loyalty. In addition, we sought to determine the moderating effect of bank ownership (i.e., state-owned and private sector banks) on the above relationships. Data were collected at random through online surveys that were analyzed using structural equation modeling. Empirical findings revealed that service justice and quality have a significant effect on service satisfaction and customer loyalty. Social influence has a significant effect on customer loyalty, but not on service satisfaction; however, corporate image is positively related to service satisfaction, but not to customer loyalty. Understandably, service satisfaction was assumed to have a fundamental relationship to consumer loyalty. However, moderation results indicated that state or private sector ownership of banks was an equally important moderating factor for almost all dimensions relevant to customer loyalty, other than service justice, social influence, and service satisfaction. The study presents theoretical contributions and considers the managerial implications for banking services that are potentially applicable to other financial institutions.
Highlights
The banking activities of the country have taken a greater role in the service sector under the rapidly changing circumstances of the monetary market; the country’s banking system acts as a competitive and modern era of the financial system
Considering the current advancement of banking services, this study attempts to answer the following research questions (RQs): (RQ1) How are service satisfaction and customer loyalty driven by service justice, service quality, corporate image, and social influence?
Convergent validity is often evaluated by investigating composite reliability (CR) as well as the average variance extracted (AVE) [61]
Summary
The banking activities of the country have taken a greater role in the service sector under the rapidly changing circumstances of the monetary market; the country’s banking system acts as a competitive and modern era of the financial system. The COVID-19 pandemic has created rumors and anxieties among customers that drastically affect their financial decisions and can impact their preand postadoption behavior, including satisfaction, patronage behavior, and word-of-mouth approach [3]. These technological innovations, rumors, and anxieties have challenged the retail markets, which affects the financial conditions of customers and service providers.
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