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Impact of Bank's Service Quality on Customer Satisfaction and Loyalty: Focusing on the Difference between PB Customers and Regular Customers  

Cho, Yoon Joe (The Graduate School of Venture, Hoseo University)
Dong, Hak Lim (The Graduate School of Venture, Hoseo University)
Publication Information
Asia-Pacific Journal of Business Venturing and Entrepreneurship / v.14, no.5, 2019 , pp. 159-173 More about this Journal
Abstract
The purpose of this study is to examine the effect of service quality of banks on customer satisfaction and recommendation intention through empirical analysis. In particular, the focus was on the differences of the causal effect between PB(Private Banking) customers and regular customers. For this study, two groups were surveyed and 428 valid questionnaires were analyzed. The hypothesis was tested with a structural equation model using AMOS 23.0. As a result, empathy, reliability and tangibles of bank service quality had a positive(+) effect on customer satisfaction. However, responsiveness and assurance were not statistically significant. On the other hand, customer satisfaction has a positive effect on recommendation intention. This study was conducted to compare the two groups, PB customers and regular customers, and found a significant difference. In the PB customers group, tangibles had a positive effect on customer satisfaction, but no other factors were supported. On the other hand, in the regular customers group, empathy and reliability had a positive effect on customer satisfaction while responsiveness, assurance, and tangibles were not supported. Customer satisfaction were analyzed to have a positive influence on recommendation intention in both groups. These findings are academically significant by applying the SERVQUAL factors to banking services and revealing the differences between the PB customers and regular customers. In practice, it is meaningful in that it provided banks with the insights needed for future segmentation and management of customer groups.
Keywords
Bank; PB Customers; Regular Customers; Service Quality; Customer Satisfaction; Recommendation Intention;
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Times Cited By KSCI : 2  (Citation Analysis)
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