Title: A structural equations approach to assessing alternative service quality metrics within an extended service quality, customer satisfaction, customer loyalty model

Authors: Evangelos Tsoukatos, Maria Koulentaki

Addresses: Department of Finance and Insurance, TEI of Crete, P.O. Box 128, 72100, Agios Nikolaos, Crete, Greece. ' National Bank of Greece, 13, Maganaridon str., 71305, Heraklion, Crete, Greece

Abstract: This study contributes to the setting/industry specific metrics vs. the SERVQUAL metric debate. It also revisits the causality of relationships between customer loyalty dimensions and the effects of customer satisfaction on the latter. Evidence drawn from Greek banking, was analysed under a structural equations approach. Though generic, SERVQUAL was found to outperform all other metrics in terms of both grasping the particularities of the research setting and reflecting service quality|s effects. The banking specific BANQUAL-R and BSQ metrics failed in all above respects. SERVQUAL is capable of providing reliable service quality measurement in banking. Proposed industry specific metrics should be used with extreme caution. Customer satisfaction|s effects among loyalty|s dimensions were found unequal. The causality of relationships between loyalty dimensions runs from word-of-mouth to business extension passing through business retention. Customer satisfaction campaigns should better be targeted at attitudinal rather than behavioural loyalty.

Keywords: SERVQUAL; reliability responsiveness competence courtesy communication credibility security customers tangibility; customer loyalty; banks; BSQ; banking service quality; effectiveness access price service portfolio; BANQUAL-R; service quality metrics; empathy confidence; PAKSERV; Pakistan; Islam; Islamic culture; tangibles assurance sincerity formality personalisation; Greece; structural equations; customer satisfaction; causality; relationships; service quality measurement; industry specific metrics; word-of-mouth; business extension; business retention; satisfaction campaigns; attitudinal loyalty; behavioural loyalty; global business; economics; finance; accounting.

DOI: 10.1504/GBER.2011.041850

Global Business and Economics Review, 2011 Vol.13 No.3/4, pp.222 - 239

Published online: 30 Sep 2014 *

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