(1985) 10 dimensions of service quality can be identified: reliability, competence, credibility,courtesy, tangibles, comprehending the customer, responsiveness, access, security andcommunication (Othman Altwijrya &Muhamad Abduh, 2013, p.18). However, Berry, Bitner, andZeithaml have discovered that service quality comprises only five dimensions such as physicaltangibles, assurance, responsiveness, empathy and reliability (Ghalib Sanjuq, 2014, p.78). Tariq Saeed Mian (2014) suggests that service quality has always been defined as the mostimportant determinant of consumer satisfaction. Floh and Treinblmaier (2006) also proved thatservice quality positively affected overall satisfaction. Nevertheless, Dabholcar (1995) hasargued that these constructs can be overlapped in the mind of the customer if long-termrelationships take place (Tariq Saeed Mian, 2014, pp.354). Meanwhile, there is a high correlation between client satisfaction and client loyalty. Tariq SaeedMian (2014) said “A small shift in the level of client satisfaction will trigger a larger shift in
6CUSTOMER LOYALTY IN BANKING SECTOR IN PAKISTANclient loyalty. The findings of this research also confirm that client satisfaction has a strongcorrelation with client loyalty in finance sector of PAK” (p,356). Evidently, one of the additionalfactors that impact customer loyalty is the satisfaction that directly depends on service quality. Some studies do not find a direct relationship between service quality and loyalty (Cronin andTaylor, 1992), however, some authors state that there are significant differences in relationshipsbetween retail service quality and customer loyalty on the dimensions level (Bloemer, de Ruyterand Wetzels, 1999). Studies show that the overall experience with the service quality results incustomer satisfaction, which leads to customer loyalty. Where the overall service quality isviewed as a combination of core and relational aspects. In the service literature, core andrelational quality are the most basic elements of services. Where core is “what is delivered” andrelational is “how it is delivered” (McDougall and Levesque, 1992, 2000). Hypothesis 2: Customer satisfaction has an impact on customer loyalty.Customer Satisfaction The second factor that influences customer loyalty is customer`s satisfaction. If the levelof quality is high, it results in a higher rate of client satisfaction that conclusively leads toincrease of customer loyalty. The momentous impact of customer satisfaction on customerloyalty signifies that the customers would advise this bank to other clients. Accordingly, it wouldincrease the customer base of the bank and attract more customers by creating a basis for loyalcustomers who can impact others. The loyal consumers turn out to be less sensitive to changes inprice. Moreover, it takes to carry out the banking operations. Banks with strong customer loyalty
7CUSTOMER LOYALTY IN BANKING SECTOR IN PAKISTANincrease their revenues much faster that their contestants customary do (Tariq Saeed Mian, 2014,p.356).