Mediators of the relationship between service quality and customer loyalty: Evidence from the banking sector in Zimbabwe

Abstract

Abstract Purpose – There is a dearth of studies that have investigated mediators of the effect of service quality on customer loyalty under the conditions prevailing in Zimbabwe; where bank customers’ confidence in the banking system has been dented by bank failures. Therefore, the purpose of this paper is to investigate the mediators of the effect of service quality on loyalty among bank customers in Zimbabwe. Design/methodology/approach – A cross-sectional survey of 310 bank customers was conducted in Chinhoyi, Zimbabwe. A questionnaire with Likert type questions was used to collect data. Customers were randomly intercepted as they walked out of five major banks. Structural equation modelling was used to test the proposed relationships. Findings – The study found that service quality, satisfaction and corporate image all have positive direct effects on loyalty. It was also found that satisfaction and corporate image all mediate the effect of service quality on loyalty. Research limitations/implications – The study was conducted in Chinhoyi, one of the emerging towns in Zimbabwe. There is a need to conduct more similar studies in other parts of the world in future in order to have a better understanding of this subject. Practical implications – Banks are advised to address issues to do with service quality, customer satisfaction and corporate image when designing marketing programmes intended to increase customer loyalty. Originality/value – Studies that have investigated mediators of the relationship between service quality and customer loyalty in banking environments such as in Zimbabwe are scarce. This study was conducted to address this knowledge gap. Relationships among customer loyalty and its antecedents are not likely to change due to conditions prevailing in a particular banking environment.