Effects of bank service quality and customer satisfaction on customer loyalty: Banks around De La Salle University

• Main Authors: Canites, Charmaine C., Lam, Kavan Hobart Y., Reyes, Criselda Janine B., Villalobos, Raissa R.
• Format: text
• Language: English
• Published: Animo Repository 2011
• Subjects: Banks and banking > Philippines; Customer loyalty; Consumer satisfaction; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18503
• Institution: De La Salle University

Over the years, financial system in the Philippines has developed through continuous reform and deregulations. Due to intense competition, the major thing that distinguishes a bank among others is the standard of service they offer (Lasser et al., 2000 Yavas and Yasin, 2001, as cited in Dhandabani, 2010). This study aimed to find out whether bank customers are happy with he services provided to them. The five SERVQUAL dimensions on customer loyalty among at least 500 bank customers of the banks situated around De La Salle University (BDO, Metrobank, BPI, UCPB, Allied Bank, RCBC, China Bank, Union Bank, Security Bank and PNB), with customer satisfaction mediating these variables. The study also used a qualitative approach through interviews to satisfy the objective of determining the motivations of bank customers in choosing their preferred banks. The results of the regressions show that empathy, assurance and responsivenes play a significant role in the satisfcation of customers and eventually leading to customer loyalty. As for the qualitative part, the study concluded that most customers first look for the bank's image (both physical and reputation) before starting a banking relationship, and that deposit is considered to be the bank's best service. In addition, results in the qualitative data were found consistent with the quantitative data of the study. Although results seem reasonable, further researches are recommended to fully grasp the study.