In the banking sector, loyal customers are more profitable because they stick to the bank and thus easier to serve than those who are not faithful. Bowen and Shoemaker (1998) argues that a small increase in customer loyalty can lead to a substantial increase in profits. Furthermore, the longer the customer remains loyal to the firm, the more beneficial it is to the firm (Kim and Cha, 2002). Reichheld and Sasser (1990) found that firms can increase their profits 2-8% by reducing customer defections
satisfaction in banking sector of Pakistan and to find the connection between service quality, customer satisfaction and customer loyalty. Research of the study is quantitative and surveys research method has been used in it. Data was collected from different such as: Khairpur and Sukkur. Results of his study show that there is important correlation between service quality and attributes and customer satisfaction. It also exposed that link exist between customer satisfaction and customer loyalty. With help
2.2 Customer Loyalty Customer loyalty in banking institutions has been a main concern due to severe competition and customer expectations (Rezaei, Velashani, Afrough, Haghshenas, & Shakeri, 2015). Customer satisfaction has been the main focus of every organization for some times. However, various researchers proposed that only gaining customer satisfaction is not enough. A shift in emphasizes from customers satisfaction to loyalty appears to be a more effective change in strategy for most organizations
State Bank Freedom of State Bank of India, iMobile of ICICI, Axis Mobile for Android of AXIS Bank are the various mobile banking applications which are used for online fund transfer, utility bill payment. IRCTC Connect is used for railway ticket reservation, Mpesa by vodafone is used to transfer fund, pay utility bills, and BookMyShow is used to book movie tickets. The development
Jay Kandampully and Dwi Suhartanto (2000)21 conducted a research study on the dealer loyalty in the hotel industry. The objective is to identify factors of image and dealer satisfaction, which are positively related to dealer loyalty in the hotel industry. The research helps extend the understanding the relationship between dealer loyalty, dealer satisfaction, and image. The study identifies that competition has three major implications for the dealer, which provides: increased choice; greater value
History & Overview Wells Fargo and Company is an international banking and investment institution that provides financial products and services (History of Wells Fargo , n.d.). Since its inception, Wells Fargo has exhibited its ability to diversify its product base and services from coast to coast using a strategic focus to launch new ventures including insurance, investments, and mortgages (History of Wells Fargo , n.d.). For example, in 1852 the organization offered express delivery service in
The bank managers should identify the gap prevails between the perceived service quality and actual service quality of banking services provided to customers and find effective ways to enhance customer satisfaction with respect to important service quality features. Because there is a stiff competition in banking sector in India, customer service by exceeding the required needs of customers is the most vital component for each bank and bank managers need to emphasize
How has technology changed the banking industry? Technology growth in the financial industry are changing the way consumers bank. As consumers, corporations, and governments keep on demanding more efficiency, the payment system will continue to become more complex. In conformity with Wright, R. E., & Quadrini, V. (2009), states that the advent of cheap electronic computing and digital telecommunications after World War II, did in the end stimulated important innovation. Technology has had a very
SITUATION ANALYSIS Below are Malaysian banking industry’s external environment assessment using Porter’s 5 Forces Analysis. For the purpose of this assessment, 4 top-in-the-league existing domestic banking groups in terms of asset size have been chosen i.e. Maybank Berhad, CIMB Bank Berhad, Public Bank Berhad, and RHB Bank Berhad. All 8 domestic banking groups have operations in all the 3 segments of banking businesses namely Commercial, Islamic, and Investment bank. Upon analyzing and assessing
power of Buyers (High) The intense competition which characterises the banking sector in Zimbabwe has given buyers (clients) a high bargaining power. The bank in such an environment has to increase customer loyalty through the provision of differentiated products. Factors which affect / influence the bargaining power of Buyers in this industry include: • Existence of bank’s competitors. • Multiple options/ alternatives to banking services such as ecocash,