Perceived Service Quality, Trust, Customer Satisfaction and Customer Loyalty in the Banking Sector of Bukavu (East of DR Congo)

Aganze Bisimwa,Dennis Nuwagaba,Samuel Musigire

doi:10.12691/jbms-7-3-1

Aganze Bisimwa, Dennis Nuwagaba + Show 1 more

Open Access

https://doi.org/10.12691/jbms-7-3-1

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Abstract

This research studies customer loyalty in the banking sector in a very unstable region of East Democratic Republic of Congo by underlining the mediating role of customer satisfaction. It examines the relationship between perceived service quality, trust, customer satisfaction and customer loyalty in the banking sector of Bukavu by adopting quantitative cross-sectional research design and using self-administered questionnaires. Convenience sampling helps in collecting data from a sample of 225 respondents. Correlation and hierarchical regression help to test the research hypotheses. Customers perceive a relatively high quality of services they enjoy, their level of trust is relatively high and they are slightly satisfied. Consequently, they are moderately loyal to their respective banks. There are positive and significant relationships between the different couples of variables studied. There is 49.1% of variance explained in customer loyalty. Customer satisfaction positively and fully mediates perceived service quality and customer loyalty relationship and partially mediates trust and customer loyalty. Regular talks between banks and their customers should be privileged; customer satisfaction and loyalty should regularly be assessed and ethical values integrated.

Highlights

In competing markets, loyalty has received particular attention from both scholars and practitioners in the banking industry [1]
Recall that this study investigates the relationships between perceived service quality, trust, customer satisfaction and customer loyalty the banking sector of Bukavu
The R Square indicates that 43.1 percent of variation in customer loyalty is explained by the independent variables and the model fit is acceptable (F = 20.158; p = .000)

Summary

Introduction

Loyalty has received particular attention from both scholars and practitioners in the banking industry [1]. References [2,3] and [4] argue that retaining existing customers is less onerous than attracting new ones. Customer loyalty is defined as the desire of clients to remain faithful to an organization [5] and continuing patronage over time [1]. Business sustainability for organizations can be achieved if their customers are loyal to them [6]. It is imperative that commercial banks create and maintain a loyal customer base [7,8]. Prior literature [6], [8], [9] mentions the importance of perceived service quality in developing bank customer loyalty. For [12] and [13], excellence in service quality leads to satisfaction which helps in retaining customers for banks

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