TITLE:
Applying a SERVQUAL Model to Measure the Impact of Service Quality on Customer Loyalty among Local Saudi Banks in Riyadh
AUTHORS:
Abbas N. Albarq
KEYWORDS:
SERVQUAL; Customer Satisfaction; Customer Loyalty; Local Saudi Banks
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.3 No.8,
December
23,
2013
ABSTRACT:
This paper evaluates the impact of
service quality underlying the SERVQUAL model on customer loyalty, with customer
satisfaction mediating these variables. This analytical study is mainly based
on the primary data collected through a questionnaire that was personally
administered to 422 individuals selected from five local banks in Riyadh, Saudi
Arabia. The findings indicate that improving service quality can help to
enhance customer loyalty. Empathy, assurance, and reliability are the service
quality dimensions that play significant roles in this equation. The study’s
findings indicate that while the respondents evaluate the banks positively
overall, there is still room for improvement. Few studies have assessed
customer loyalty in Saudi banking. Increased competition between banks means
that service quality is increasingly important and bank managers should
consider how they can improve customer satisfaction with respect to service
quality in order to enhance customer loyalty.