Moderating Role of Perceived Transparency on the Relationship between Service Fairness and Customer Loyalty

Abstract

The aim of the present study is to probe the possible moderating role of perceived transparency on the relationship between service fairness and customer loyalty. A total of 215 copies of questionnaire were distributed to the customers of pension fund administrators in Kano state. Valid responses were analysed using SPSS version 20 and Smart PLS 3.0 applications. Findings from the study supported the four hypothesized main relationships, while the remaining three moderating relationships were rejected. Specifically, distributive fairness, procedural fairness, interactional fairness and perceived transparency were found to be positively and significantly related to customer loyalty. In other words, they were found to be the predictors of customer loyalty. Interestingly, the moderating role of perceived transparency on the relationship between distributive, procedural and interactional fairness and customer loyalty was not found to be significant. The implications of the finding are discussed and the study recommended that Pension Fund Administrators and the National Pension Commission hire competent staff with exceptional relationship management skills and simply the documentation processes for accessing retirement benefits. It is also recommended that the National Pension Commission increases its surveillance in the entire industry and devise means of measuring customer satisfaction.