Customer loyalty in banking sector: a study from relationship marketing perspective

Abstract

Relationship marketing plays a pivotal role in services sector. Relationship marketing in banking gaining considerable importance for long term relationship with its customers. However, research on relationship in banking industry is limited. The present study focused to study the effect of of relationship marketing – trust, communication and commitment – and perceived security and perceived privacy on customer satisfaction and customer loyalty. Data were obtained from banking customers using self-administered and structured questionnaires based on convenience sampling technique. A total sample of 218 responses received and were analyzed using structural equation modelling with the support SPSS AMOS 20 version. Results of the study indicated a positive effect of trust, communication, commitment, perceived security and perceived privacy on customer satisfaction. Further, customer satisfaction proves a positive effect on customer loyalty. The concludes with limitations, scope for future research and implications.