An Application of the American Customer Satisfaction Index (ACSI) to the TRNC Banking Industry

The Banking sector plays a key role in the economy of the country. Customer satisfaction and customer loyalty are two positive outcomes achieved by customer satisfaction in the banking industry. This thesis aims to investigate the relationships among customer expectation, perceived quality, perceived value, and customer satisfaction. This study also examines the impact of customer satisfaction on customer loyalty and customer complaints. The relationship between customer complaint and customer loyalty has been assessed using data obtained from private banks in North Cyprus. A quantitative method was used to check the proposed hypotheses developed based on the ACSI model. The reliability and validity of the study measurements have been checked, and the results of a regression analysis for hypotheses testing revealed that customer expectation has significant and direct effects on perceived quality and perceived value. Perceived quality is associated significantly and positively with perceived value and customer satisfaction, where perceived value increases the satisfaction of bank customers. According to the results, a satisfied customer is more loyal, but Loyalty to the bank is decreased through an increase in customer complaints. Furthermore, recommendations for both bankers and researches have been discussed. Keywords: expectation, perceived quality, perceived value, loyalty, complaint, North Cyprus