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Service quality, customer satisfaction, and loyalty in the banking sector: The moderating role of organizational culture

Samuel Famiyeh (Business School, Ghana Institute of Management and Public Administration, Achimota, Ghana)
Disraeli Asante-Darko (Business School, Ghana Institute of Management and Public Administration, Achimota, Ghana)
Amoako Kwarteng (Business School, Ghana Institute of Management and Public Administration, Achimota, Ghana)

International Journal of Quality & Reliability Management

ISSN: 0265-671X

Article publication date: 3 September 2018

7365

Abstract

Purpose

The purpose of this paper is to understand the moderating role of organizational culture in the relationship between service quality, customer satisfaction and loyalty in the banking sector using data from the Ghanaian banking sector. The idea is to understand the relative importance of the various service dimensions to customers patronizing banking services in Ghana and to ascertain what drives customer satisfaction and whether this satisfaction has implication on their loyalty.

Design/methodology/approach

The study used a survey and relied on partial least squares structural equation modeling to study the relationship between service quality and its impact on customer satisfaction and customer loyalty.

Findings

The result indicates that the reliability, ambiance and social factors all have a significant positive relationship with the satisfaction of customers doing business with these banks. However, assurance and responsiveness of the employees seem to have no significant relationship with the satisfaction of customers. It is also important to indicate that organizational culture seems to strengthen the positive relationship between the service quality dimensions and customer satisfaction. The results further indicate that customer satisfaction has a direct positive relationship with customer loyalty.

Research limitations/implications

Reliability, ambiance and social factors remain the three most important drivers of customer satisfaction in the banking sector in Ghana. It is, therefore, important for bankers to consistently undergo training and education in order to deliver more reliable services to customers. Managers should also make efforts to groom employees, provide attractive promotion materials, provide directions to the banks, make sure the banking halls are neat for customers while waiting and the provision of enough parking spaces for customers. One limitation of this work is that the data focused on only the Ghanaian banking environment.

Practical implications

The research shows the importance of the service quality constructs such as reliability, ambiance and the social factors on customer satisfaction and loyalty in the banking sector. The organizational culture seems to strengthen the positive relationship between empathy, reliability, tangibles and customer satisfaction. It is therefore important for banks to continue to build cultures that will commit employees to their work, so that they feel the sense of ownership of quality in order to contribute meaningfully.

Originality/value

The work illustrates and provides some insights and builds on the literature in the area of service quality, customer satisfaction and loyalty from a developing country’s environment using the stimulus-organism-response model. In addition, this work further highlights the importance of the moderating role of organizational culture in the relationship between the service quality dimensions and customer satisfaction.

Keywords

Citation

Famiyeh, S., Asante-Darko, D. and Kwarteng, A. (2018), "Service quality, customer satisfaction, and loyalty in the banking sector: The moderating role of organizational culture", International Journal of Quality & Reliability Management, Vol. 35 No. 8, pp. 1546-1567. https://doi.org/10.1108/IJQRM-01-2017-0008

Publisher

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Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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