The relationship between service quality, customer satisfaction and customer loyalty in retail banking – Turkey practice

Customers choose the banks they want to work with in line with their needs and expectations. Therefore, today banks are guided by customers and demand high service quality. Today, with the increasing awareness of bank customers about their rights, changing demands and intense competition, banks require continuous improvement in the service quality of the bank in order to remain loyal to their customers. Service quality is one of the most effective ways to establish a competitive position and increase profit performance. Banks should measure their customers' level of service quality if they want to establish a competitive position and retain their customers. In this research, the effects of bank service quality on customer satisfaction and loyalty were examined. For this purpose, the opinions of 182 individual bank customers were consulted. According to the results obtained from the research, from the service quality characteristics; physical assets, reliability, responsiveness, trust and empathy have been found to positively affect customer satisfaction. It has been determined that the service quality attributes that affect customer loyalty are physical assets, reliability, responsiveness and empathy. It has been determined that customer satisfaction has a full mediating effect on the effect of physical assets and responsiveness, which are service quality attributes, on customer loyalty. Customer satisfaction partially mediates the effect of reliability and empathy on customer loyalty.