Journal of Management Research
Volume 18, Number 3 (July–September 2018)
ISSN: 0972-5814 Online ISSN: 0974-455X
Examining The Roles of Perceived Quality and Customer Satisfaction as Predictors of Customer Loyalty in The Indian E-Banking Context
R. Ragu Prasadh
| Abstract |
Cultivating customer loyalty is a challenging task for businesses in the virtual world, such as those in e-banking. Customers’ perceived quality and their satisfaction have been traditionally regarded as the building blocks of customer loyalty. However, review of past studies showed that there is considerable ambiguity in the conceptualization of these constructs, as well as opposing views on their roles and relation- ships. This study aimed to examine the interrelationships between perceived quality, customer satisfaction, and customer loyalty in the Indian e-banking context. Data were collected from 324 regular e-banking users and were analysed using structural equation modelling. The study results showed that both perceived quality and customer satisfaction had a significant effect on customer loyalty, where perceived quality was the stronger predictor. Since perceived quality influenced customer loyalty directly as well as indirectly through customer satisfaction, this study validated the partial mediating role of customer satisfaction in the e-banking context.
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