Bank Customers' Satisfaction, Customers' Loyalty and Additional Purchases of Banking Products and Services. A Case Study from the Czech Republic

Anna Chochoľáková, Lenka Gabčová, Jaroslav Belás, Juraj Sipko
2015 Economics & Sociology  
The aim of this article was to examine and quantify 1) the dependence of additional purchases of banking products from customer loyalty and 2) dependence of bank clients' loyalty from their satisfaction with the bank's customer service. The respondents from our research in 2014 were divided into satisfied (loyal) and dissatisfied (disloyal) banking clients. Their attitudes in the area of loyalty and additional purchases of banking products were compared. Differences in attitudes were examined
more » ... des were examined by means of Pearson statistics. It was found that satisfied customers were significantly more likely to recommend their bank to their friends, they often considered that they would use their bank in the future and they were more resistant to offers from other banks. Loyal customers are more interested in the services of their own banks when considering investments in the financial market, keep their savings in their own bank, take out mortgage loans from their own bank and use other banking products and services offered by their own bank the intensity of customer loyalty reflects the likelihood that customers will purchase additional banking products. According to the results of our research, with the different intensities the loyalty of customers is transforming into a potential purchase of additional banking products. The greatest potential interest of the bank customers was in keeping their own savings in the bank and mortgage loans. The intensity of interest in the purchase of financial investments and other products was relatively low. Customers of retail banks with favorable perceptions of service quality had higher satisfaction. Customer satisfaction mediates the impact of service quality on loyalty (Karapete, 2011) . This study investigated customer satisfaction as a mediator of the effects on loyalty of service environment, interaction quality, empathy, and reliability. The results suggest that all service quality dimensions have significant positive impacts on customer satisfaction. Interaction quality is the most important determinant of customer satisfaction, followed by service environment, reliability, and empathy. According to Kaura (2013) , dimensions of service quality are employee behavior, tangibility and information technology. Dimensions of service convenience are decision convenience, access convenience, transaction convenience, benefit convenience and postbenefit convenience. Many other authors have analyzed various factors of customer satisfaction with regard to commercial banks, such as: Chakrabarty (2006) ; Manrai and Manrai (2007); Chavan and Ahmad (2013); Wruuck (2013); Chen, Liu, Sheu and Yang (2012); and Chu, Lee, Chao (2012). The findings of Činjarevič, Tatič, and Avdič (2010) confirm the mediating role of satisfaction on the relationship among service quality dimensions and customer loyalty and therefore reconfirm the significance of customer satisfaction in the service setting. Kašparovská (2006) states that emotions play a significant role in forming a bank's relationship with the customer. These feelings are formed in the course of the bank's communication with the client and do not arise based on rational considerations of this customer, and are persistent and show a positive dependence on the length on the relationship with the customer (the stronger and more positive those feelings, the more lasting the relationship with this customer). In this context Kláseková (2012) states that bankers should focus on 'emotional banking' because clients measure quality of services through the impressions that they have in connection with the bank. According to De Matos, Henrique, and De Rosa (2013) satisfaction is a relevant predictor of loyalty. More satisfied customers tend to be more loyal and more likely to recommend the bank to other consumers. Hansen, Samuelsen, and Sallis (2013) specify more precisely that satisfaction has a strong positive effect on loyalty for high NFCs, but no effect for low NFCs. That is, some people engage in and enjoy thinking more than others, which is the core personality trait of interest in this study: need for cognition -NFC. According to Marimon, Yaya, Fa (2012) , in internet banking there also exists a direct relationship between service quality and customer loyalty. Korauš (2011) states that loyalty is a state of mind and an emotional attitude of a customer towards products and services; it is also a rational assessment of previous experience with the business relationship. Fraering and Minor (2013) indicate that understanding of customer loyalty requires an understanding of the client's satisfaction in the first place. Their research is devoted to the relationship between satisfaction and customer loyalty. The authors analyzed in detail the four forms of loyalty (i.e. cognitive-cognitive, affective, conative (with the impulse to act) and decisive). According to the authors, customer satisfaction consists of a cognitive and active ingredient. The cognitive component consists of expectations and perceived performance, which is later manifested into positive or negative satisfaction. The authors report that studies of customer satisfaction and loyalty found that satisfaction, market position, service reliability and efficiency all contribute to influencing customer loyalty and willingness to pay more for services and to tolerate errors in these services. Baumann, Elliott and Burton (2012) investigated loyalty of banks' customers on the basis of overall satisfaction, emotional attitudes towards the bank, service quality, perception of the market situation (costs and benefits of change) and on the characteristics of customers.
doi:10.14254/2071-789x.2015/8-3/6 fatcat:7ik522rdhfbz3bvath4hwzcz2u