The relationship among customer satisfaction, loyalty and financial performance of commercial banks

Simple item page
dc.contributor.authorBelás, Jaroslav
dc.contributor.authorGabčová, Lenka
dc.contributor.otherEkonomická fakultacs
dc.date.accessioned2016-03-09
dc.date.available2016-03-09
dc.date.defense2016-03-09
dc.description.abstractIn the current banking sector, characterized by an increasing competition, efficient management of selling additional products and services to existing satisfied customers represents a significant opportunity to improve the financial performance of a commercial bank. To sum up, the conclusion of the up to date literature is an idea that customer satisfaction leads to customer loyalty and loyalty leads to willingness to purchase additional products. However, there are practically no papers quantifying the influence of loyalty on additional products purchases. The aim of this paper is to create a model among customer satisfaction, loyalty and financial performance of commercial banks in the Czech Republic. It is based on our original research realized as a survey with a total of 459 respondents that have been reached. The created model has proven that product quality, recognition of customers´ financial needs and acceptance of prices by a customer have an impact on customer satisfaction, which then influences customer loyalty and this in return influences additional purchases potential of a customer. The regression model of relation between customer satisfaction and loyalty of bank customer has this form: CL = 0.01163 + 0.9191 x CS, where: CL – customer loyalty, CS – customer satisfaction. The regression model of relation between customer loyalty and additional purchases: APP = -0.05667 + 0.5848 x CL, where: APP – additional purchases potential, CL – customer loyalty. At the end, the paper is dedicated to a model example showing that if a commercial bank is able to increase the number of satisfied customers by 10,000, it can obtain additional yearly income of EUR 9.6 million.en
dc.formattext
dc.format.extent132-147 s.cs
dc.identifier.doi10.15240/tul/001/2016-1-010
dc.identifier.eissn2336-5604
dc.identifier.issn12123609
dc.identifier.urihttps://dspace.tul.cz/handle/15240/13611
dc.language.isoen
dc.publisherTechnická Univerzita v Libercics
dc.publisherTechnical university of Liberec, Czech Republicen
dc.publisher.abbreviationTUL
dc.relation.isbasedonAl-Wugayan, A., & Plesko, L.P. (2010). A Study of Satisfaction, Loyalty, and Market Share in Kuwait Banks. Proceedings of the Academy for Studies in International Business, 10(1), 2-7. doi:10.1108/IJBM-11-2012-0114.
dc.relation.isbasedonAldas-Manzano, J. (2011). Internet Banking Loyalty: Evaluating the Role of Trust, Satisfaction, Perceived Risk and Frequency of Use. Service Industries Journal, 31(7), 1165-1190. doi:10.1080/02642060903433997.
dc.relation.isbasedonArbore, A., & Busacca, B. (2009). Customer Satisfaction and Dissatisfaction in Retail Banking: Exploring the Asymmetric Impact of Attribute Performances. Journal of Retailing and Consumer Services, 16(4), 271-280. doi:0.1016/j.jretconser.2009.02.002.
dc.relation.isbasedonBelás, J., Chochoľáková, A., & Gabčová., L. (2015). Satisfaction and loyalty of banking customers: a gender approach. Economics and Sociology, 8(1), 176-188. doi:10.14254/2071-789X.2015/8-1/14.
dc.relation.isbasedonBelás, J., Cipovová, E., & Demjan, V. (2014). Current trends in area of satisfaction of banks´ clients in the Czech Republic and Slovakia. Transformation in Business & Economics, 13.3(33), 219-234.
dc.relation.isbasedonBelás, J., & Gabčová, L. (2014). Reasons for Satisfaction and Dissatisfaction of Bank Customers: Study from Slovakia and the Czech Republic. International Journal of Entrepreneurial Knowledge, 2(1), 4-13. doi:10.15759/ijek/2014/v2i1/53759.
dc.relation.isbasedonBena, I. (2010). Evaluating Customer Satisfaction in Banking Services. Management & Marketing, 5(2), 143-150.
dc.relation.isbasedonBernhardt, K.L., et al. (2000). A Longitudinal Analysis of Satisfaction and Profitability. Journal of Business Research, 47(2), 161-171. doi:10.1016/S0148-2963(98)00042-3.
dc.relation.isbasedonBilan, Y. (2013). Sustainable development of a company: Building of new level relationship with the consumers of XXI. Century. Amfiteatru Economic, 15(7), 687-701.
dc.relation.isbasedonBurianová, L., Paulík, J. (2014). Corporate Social Responsibility in Commercial Banking. A Case Study from the Czech Republic. Journal of Competitiveness, 6(1), 50-70. doi:10.7441/joc.2014.01.04.
dc.relation.isbasedonClerfeuille, F., et al. (2008). Evaluation of Consumer Satisfaction Using the Tetra-class Model. Research in Social and Administrative Pharmacy, 4(3), 258-271. doi:10.1016/j.sapharm.2007.06.020.
dc.relation.isbasedonCohon, C. (2007). Customer Loyalty. Sales and Marketing Management, 159(5), 46-59.
dc.relation.isbasedonCzech National Bank. (2015). Arad: system časových řad. Retrieved July 11, 2015, from http://www.cnb.cz/cnb/STAT.ARADY_PKG.PARAMETRY_SESTAVY?p_sestuid=33051&p_strid=BAB&p_lang=CS.
dc.relation.isbasedonErnst & Young. (2014). Více než polovina českých klientů bank si důvěru v banku spojuje s otázkou poplatků. Retrieved March 19, 2015, from http://www.ey.com/CZ/cs/Newsroom/News-releases/2014_Vice-nez-polovina-ceskych-klientu-bank-si-duveru-v-banku-spojuje-s-otazkou-poplatku.
dc.relation.isbasedonFatima, J.K., Razzaque, M.A. (2014). Service quality and satisfaction in the banking sector. International Journal of Quality & Reliability Management, 31(4), 367-379.
dc.relation.isbasedonFerreira, F.A.F., Jalali, M.S., Kavaliauskiene, I.M., & Viana, B.A.C.P. (2015). A metacognitive decision making based-framework for bank customer loyalty measurement and management. Technological and Economic Development of Economy, 21(2), 280-300. doi:10.3846/20294913.2014.981764.
dc.relation.isbasedonFincentrum. (2015). Rekordní rok byl završen královsky. Retrieved April 8, 2015, from http://www.hypoindex.cz/fincentrum-prosinec-2014-rekordni-rok-byl-zavrsen-kralovsky/.
dc.relation.isbasedonFraering, M., & Minor, M.S. (2013). Beyond Loyalty: Customer Satisfaction, Loyalty, and Fortitude. The Journal of Services Marketing, 27(4), 334-344. doi:10.1108/08876041311330807.
dc.relation.isbasedonGee, R., et al. (2008). Understanding and Profitably Managing Customer Loyalty. Marketing Intelligence and Planning, 26(4), 359-374. doi:10.1108/02634500810879278.
dc.relation.isbasedonGursoy, D., & Swanger, N. (2007). Performance – enhancing Internal Strategic Factors: Impacts on Financial Success. International Journal of Hospitality Management, 26(1), 213-227. doi:10.1016/j.ijhm.2006.01.004.
dc.relation.isbasedonHair, J.F. (2010). Multivariate data analysis. Upper Saddle River: Prentice-Hall.
dc.relation.isbasedonHernaus, A.I., Stojanovic, A. (2015). Determinants of bank social responsibility: A case study of Croatia. E&M Ekonomie a Management, 18(2), 117-134. doi:10.15240/tul/001/2015-2-009.
dc.relation.isbasedonChavan, J., & Ahmad, F. (2013). Factors Affecting On Customer Satisfaction in Retail Banking: An Empirical Study. International Journal of Business and Management Invention, 2(1), 55-62.
dc.relation.isbasedonChi, C.G., & Gursoy, D. (2009). Employee Satisfaction, Customer Satisfaction, and Financial Performance: An Empirical Examination. International Journal of Hospitality Management, 28(2), 245-253. doi:10.1016/j.ijhm.2008.08.003.
dc.relation.isbasedonIlyas, A., et al. (2013). Assessing the Service Quality of Bank Using SERVQUAL Model. Interdisciplinary Journal of Contemporary Research In Business, 4(11), 390-400.
dc.relation.isbasedonKamakura, W.A., et al. (2002). Assessing the Service – Profit Chain. Marketing Science, 21(3), 294-317. doi:10.1287/mksc.21.3.294.140.
dc.relation.isbasedonKeisidou, E., Lazaros, S., Maditions, D.I., & Thalassinos, E.I. (2013). Customer satisfaction, loyalty and financial performance: a holistic approach of the Greek banking sector. International Journal of Bank Marketing, 31(4), 259-288. doi:10.1108/IJBM-11-2012-0114.
dc.relation.isbasedonKhan, M.M., & Fasih, M. (2014). Impact of Service Quality on Customer Satisfaction and Customer Loyalty: Evidence from Banking Sector of Pakistan. Journal of Commerce and Social Sciences, 8(2), 331-354.
dc.relation.isbasedonKhan, B., & Rizwan, M. (2014). Factors Contributing to Customer Loyalty in Commercial Banking. International Journal of Accounting and Financial Reporting, 4(2), 413-436. doi:10.5296/ijafr.v4i2.6537.
dc.relation.isbasedonKheng, L.L., et al. (2010). The Impact of Service Quality on Customer Loyalty: A study of Banks in Penang, Malaysia. International Journal of Marketing Studies, 2(2), 57-66. doi:10.5539/ijms.v2n2p57.
dc.relation.isbasedonKumar, V., Shah, D. (2004). Building and Sustaining Profitable Customer Loyalty for the 21st Century. Journal of Retailing, 80(4), 317-330. doi:10.1016/j.jretai.2004.10.007.
dc.relation.isbasedonLadhari, R., Souiden, N., & Ladhari, I. (2011). Determinants of loyalty and recommendation: the role of perceived service quality, emotional satisfaction and image. Journal of Financial Services Marketing, 16(2), 111-124. doi:10.1057/fsm.2011.10.
dc.relation.isbasedonLenka, U., Saur, D., & Mohapatra, P.K.J. (2009). Service quality, customer satisfaction and customer loyalty in Indian commercial banks. The Journal of Entrepreneurship, 18(1), 47-64. doi:10.1177/097135570801800103.
dc.relation.isbasedonLiang, C.J., et al. (2009). The Influence of Customer Perceptions on Financial Performance in Financial Services. International Journal of Bank Marketing, 27(2), 129-149. doi:10.1108/02652320910935616.
dc.relation.isbasedonMatzler, K., Renzl, B., & Faullant, R. (2007). Dimensions of Price Satisfaction: A Replication and Extension. International Journal of Bank Marketing, 25(6), 394-405. doi:10.1108/02652320710820345.
dc.relation.isbasedonMunari, L., Ielasi, F., Bajetta, L. (2013). Customer Satisfaction Management in Italian Banks. Qualitative Research in Financial Markets, 5(2), 139-160. doi:10.1108/QRFM-11-2011-0028.
dc.relation.isbasedonMurugiah, L., & Akgam, H.A. (2015). Study of Customer Satisfaction in the Banking Sector in Libya. Journal of Economics, Business and Management, 3(7), 674-677. doi:10.7763/JOEBM.2015.V3.264.
dc.relation.isbasedonOliver, R.L. (2010). Satisfaction: a behavioral perspective on the consumer. Armonk, N.Y.: M.E. Sharpe.
dc.relation.isbasedonRoig, J.C.F., Garcia, J.S., & Tena, M.A.M. (2009). Perceived value and customer loyalty in financial services. The Service Industries Journal, 29(6), 775-789. doi:10.1080/02642060902749286.
dc.relation.isbasedonShiv, B., & Huber, J. (2000). The Impact of Anticipating Satisfaction on Consumer Choice. Journal of Consumer Research, 27(2), 202-216.
dc.relation.isbasedonSmith, R.E., & Wright, W.F. (2004). Determinants of Customer Loyalty and Financial Performance. Journal of Management Accounting Research, 16(1), 183-205. doi:10.2308/jmar.2004.16.1.183.
dc.relation.isbasedonWang, J., & Wallendorf, M. (2006). Materialism, Status Signaling, and Product Satisfaction. Academy of Marketing Science Journal, 34(4), 494-505. doi:0.1177/0092070306289291.
dc.relation.isbasedonZeithaml, V. (2000). Service Quality, Profitability, and the Economic Worth of Customers: What We Know and What We Need to Learn. Journal of the Academy of Marketing Science, 28(1), 67-85. doi:10.1177/0092070300281007.
dc.relation.ispartofEkonomie a Managementcs
dc.relation.ispartofEconomics and Managementen
dc.relation.isrefereedtrue
dc.rightsCC BY-NC
dc.subjectbusiness continuity managementen
dc.subjectuse case pointsen
dc.subjectbusiness continuity testing pointsen
dc.subjectbusiness function recoveryen
dc.subject.classificationG21
dc.titleThe relationship among customer satisfaction, loyalty and financial performance of commercial banksen
dc.typeArticleen
local.accessopen
local.citation.epage147
local.citation.spage132
local.facultyFaculty of Economics
local.fulltextyes
local.relation.abbreviationE&Men
local.relation.abbreviationE+Mcs
local.relation.issue1
local.relation.volume19
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
EM_1_2016_10.pdf
Size:
1.15 MB
Format:
Adobe Portable Document Format
Description:
Download
Collections
Číslo 1