Investigation of the Factors Affecting Loyalty to Organization through The Structural Equation Modeling- Example from Private and Public Banks

This study is designed to find out the relationship between public and private bank customers’service quality perceptions and their loyalty to their banks through the use of a research model. To serve this purpose, 250 public and 100 private bank customers are requested to fill out a 37-item questionnaire. Empirical results revealed that while responsiveness and reliability are perceived to be the most influential factors increasing loyalty to the public banks, empathy and reliability are reported in the private banks. Discussion of the results, implications to the bank managers are also presented.