Influence of Service Quality on Attitudinal Loyalty in Private Retail Banking : An Empirical Study

This paper examines the service quality dimensions of Indian private banks dealing with retail banking. Overall service quality level acts as an antecedent for customer satisfaction. The factors extracted give perceived service quality dimensions which correlate with overall attitudinal loyalty. Overall service quality further tested for any significant relationship with attitudinal loyalty, which is considered to be an important component of retaining valued customers. The data has been collected from 100 valued customers of two private retail banks of Tiruchirapalli. A questionnaireelicited information on socio-demographic variables along with SERVQUAL dimensions of service quality added with three extra contemporary validated variables and attitudinal loyalty variables. The results suggest that responsiveness and reliability of service quality dimensions determine customer satisfactionmore than the assurance, empathy and tangible aspects (SERVQUAL score analyzed using Factor Analysis and Multiple Regressions). Overall perceived service quality fosters customer's attitudinal loyalty through latent customer satisfaction (Tested using Chi-Square Statistics and Correlation Analysis). Increase in service quality of the banks can satisfy and develop attitudinal loyalty which ultimately retains valued customers