The Influence of Service Quality on Loyalty through Satisfaction of Customers in the Nigeria Banking Sector

Globalization in every sector of the world’s economy has created a wide spectrum of opportunities which has brought about intense competition in every sector including the banking sector. Banks’ ability to gain competitive advantage depends on the level of quality services offered to customers. The main purpose behind this study was to examine the influence of offered dimensions of service quality on the satisfaction and loyalty of customers in the context of banking. The study considered customers of First Bank and Zenith Bank as they are both the largest banks in terms of customer deposit in the Nigeria banking industry. Convenient sampling technique was used to obtain primary data through administered survey questions to the study population made up of First Bank and Zenith Bank customers in Abuja, Nigeria. The result showed that “empathy dimension” of the five-dimensioned service quality measurement tool (SERVQUAL) had the most positive significant influence on satisfaction and loyalty of both First Bank and Zenith Bank customers. Similarly, satisfaction and loyalty had a significant positive association in both banks. The results of the study assist bank managers in identifying more important dimensions of quality service in need of improvement to achieve customer satisfaction and loyalty. Keywords: SERVQUAL dimensions, Customer loyalty, Customer satisfaction, Banking industry