Abstract:
Purpose - The purpose of this paper is to examine the extent to which service quality,
perceived price and fairness and service convenience influence customer satisfaction and
customer loyalty for Karachi banking sector. It further examine the impact of customer
satisfaction on customer loyalty.
Methodology & Design - This research is quantitative in nature and primary data was
collected using a cross sectional survey that was electronically distributed. The main data
were collected in a web-based questionnaire survey. The questionnaire distributed online
to customers who has at least one bank account and total of 425 responses were used for
further analysis. Reliability test, correlation test and regression test were performed using
SPSS to test proposed hypotheses on the associations between variables.
Findings - Results reveal that service quality dimensions (employee behavior and
tangibility) shows a significant impact on customer satisfaction and loyalty except
information technology. Also perceived price and fairness identifies a significant impact
on customer satisfaction and loyalty. All dimensions ofservice convenience except benefit
convenience shows an impact on customer satisfaction whereas transaction convenience
and benefit convenience doesn’t show impact on loyalty.
Limitations - This research is based on non-probability convenience sampling technique
and data was collected through cross sectional survey which minimizes the diversity
impact. The study may suffer from lack of generalization as it is conducted in one city of
Pakistan (Karachi).
Recommendations-the recommendation of this research is based on results. Therefore it
is suggested that the bank executives should find a way to convey quality services and be
straightforward in making feasible promises to the clients also provide training to
employees to give uniform services.
