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The purpose of this paper is to provide researchers with an overview of the service quality and delivery domain, focussing on the inclusion of customer co-production and customer integration. Specifically, this paper concentrates on service quality (including quality measurement), the service environment, controls and their consequences.

A comprehensive review of the literature is conducted, analysed and presented.

The review shows that service delivery is both complex and challenging, particularly when considering the unique characteristics of services and the high level of customer involvement in their creation. The facilitation, transformation and usage framework identifies how failures can occur at each stage of service delivery, beginning with the characteristics of the service environment, while control theory offers insights into the formal and informal controls that may be applied in the facilitation and transformation stages, which may reduce the likelihood or extent of such failures.

Despite the fact that it is widely accepted that service quality is an antecedent to customer satisfaction, it is surprising that this customer co-creation aspect has been largely neglected in the extant literature. As such, the role that customer co-production plays in service quality performance has been examined in this paper. It is hoped that this examination will enhance both theoretical and practical understanding of service quality. It would be useful to find modern tools that can help in improving service quality performance.

Since banks do not sell tangible products, they rely heavily on customer interactions and retention, which requires service quality, customer satisfaction and customer loyalty. Banks must innovate and develop new services and expand customer engagement efforts beyond stores, kiosks, direct mail and websites to include social media, mobile applications and location-based services in order to meet their customers’ growing demands. A multi-channel strategy that integrates the offline and online presences of banks can increase quality, customer satisfaction and loyalty. This paper aimed to use a service quality scale to: (1) examine the association between service quality and customer satisfaction; (2) examine the association between customer satisfaction and customer loyalty; (3) examine the indirect association between service quality and customer loyalty through customer satisfaction; and (4) examine the mediation effect of multi-channel integration quality in the relationships between service quality, customer satisfaction and customer loyalty.

The data was obtained from banks in Saudi Arabia. The analysis was based on an online survey of 265 Saudi bank customers. The multi-channel integration quality model and Statistical Package for the Social Sciences (SPSS) were used to test the proposed hypothesis and conduct the analysis.

The results found that there was a statistically significant link between service quality and customer satisfaction in the Saudi banking industry. Service quality did not directly affect customer loyalty. When multi-channel integration quality was moderate to high, service quality affected customer loyalty through customer satisfaction. For service quality and customer loyalty in the Saudi banking sector to be achieved, customers must be satisfied, but also the bank’s brand must manage the quality of integration channels provided to them with care, and thus branding plays a key role in achieving customer loyalty in the Saudi banking sector.

The academic community has provided little evidence to support how the relationships between constructs such as service quality, customer satisfaction, customer loyalty and multi-channel integration quality apply to the Saudi banking sector. A conceptual framework was proposed to show how these constructs affect the Saudi banking sector. An empirical study was conducted to see how the framework held up in banking settings. The conceptual framework serves to advance the fields of business and management and banking and their respected literature, as well as advance the understanding of multi-channel integration in boosting customer satisfaction and loyalty through high service quality in the Saudi banking sector.