Service quality, satisfaction, trust, and loyalty: the moderating role of main-bank and wealth status

Abstract

PurposeThe purpose of this paper is to develop a comprehensive model representing the relationships among service quality, customer satisfaction, trust and loyalty in a retail banking service. Because many banks now emphasize acquiring more high-wealth and main-bank customers, this study also focuses on investigating the moderating roles of main-bank and wealth status on such relationships.Design/methodology/approachThis study applies a hierarchical model to measure service quality in line with recent advances in the general-marketing and consumer-behavior literature. A total of 400 valid samples were obtained from customers of a large commercial bank in Thailand. Data were analyzed using partial least squares structural equation modeling and multigroup analysis.FindingsCustomer-perceived service quality directly and indirectly affects, via satisfaction and trust, attitudinal and behavioral loyalty. Service quality affects customer loyalty less if the customer holds main-bank status. It affects behavioral loyalty less for high-wealth customers than regular customers; however, its impacts on attitudinal loyalty are identical. Main-bank and wealth status have a co-moderating impact on the relationship between service quality and customer loyalty.Research limitations/implicationsThis study was conducted on a cross-sectional basis; further, longitudinal analysis could help to assess causality and time-dependent effects among variables.Practical implicationsThe present study reconceptualizes the loyalty model, forging a deeper understanding of the moderating effects of main-bank and wealth status and thus helping banks to formulate better strategies to win customer loyalty.Originality/valueThis study aims to contribute to further discussions regarding the direct and indirect effects of service quality on loyalty to help banks formulate effective strategies for acquiring main-bank and high-wealth customers.