IMPACT OF SERVICE QUALITY, SERVICE CONVENIENCE AND PERCIEVED PRICE & FAIRNESS ON CUSTOMER SATISFACTION AND LOYALTY: FINDINGS FROM BANKS OPERATING IN KARACHI

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.