Abstract:
Customer loyalty within the banking sector has been negatively affected by the quality of services delivered to customers. This is evidenced by the fact that many registered banks in Zimbabwe are battling to survive the intense competition. The objective of this study was to examine the effect of service quality on customer loyalty within Zimbabwe’s banking sector. The study further investigated the mediating role of customer satisfaction on the relationship between service quality and customer loyalty. The literature review loked at service quality concepts and models, customer satisfaction models and customer loyalty models. The study adopted a post positivist philosophy and it was quantitative in nature. A cross-sectional survey was conducted between September and October 2023. The target population comprised bank customers in Harare CBD. Random sampling technique (simple random) was adopted in selecting the samples size. The sample size of 377 was determined using a RAOSOFT sample size calculator. A structured questionnaire with Likert type questions was used to collect data. A pilot test was conducted and improvements were made to the instrument before the actual data collection. Data were analysed using descriptive statistics and hypotheses testing in SPSS version 26 and Amos version 26 respectively. The study findings indicated that perceived service quality positively influences customer satisfaction and loyalty. The results demonstrate that customer satisfaction partially mediates the relationship between perceived service quality and customer loyalty. Results imply that customer satisfaction play an important role on the relationship between perceived service quality and customer loyalty. These findings contribute to the current services body of knowledge. Banks are therefore recommended to prioritise improvement of service quality, and customer satisfaction through continuous reviewing of products and services on offer to cater for the market demand, continuous training of staff, availing fast and reliable internet service and provision of reliable power back-up to avoid disruption of service within the bank and also introduce systems to get customer feedbacks and queries on time. Banks were further recommended to initiate loyalty promotions like offering affordable loans to their clients and can also achieve customer loyalty through keeping a database for their clients in order to remain in contact with them and to keep on sending appreciatory messages. As for improvement of current results, it was recommended that future studies be carried out across many cities in Zimbabwe and within the surrounding countries. In addition, comparative studies among other related sectors were recommended.
