Title: Service quality and attitudinal loyalty: the mediating effect of delight on retail banking relationships

Authors: Alex Coetzee; Johan Coetzee

Addresses: Department of Business Management, University of the Free State, Bloemfontein, South Africa ' Department of Economics and Finance, University of the Free State, Bloemfontein, South Africa

Abstract: This study explores the mediating effect of customer delight on the relationship between service quality and attitudinal loyalty in the South African retail banking context. Using a quantitative research design, a sample of 400 retail banking customers were collected. Structural equation modelling and specifically the partial least squared (PLS) method were applied on the data. The results confirm that customer delight plays a partial mediating role on the relationship between service quality and attitudinal loyalty. This suggests that banks need to proactively pursue strategies that delight their customers, rather than merely satisfying them. This, however, is a major challenge for banks given the constant need to over-deliver on promises made to customers. In a competitive South African retail banking market driven by sales volumes and the growth in market share, this challenge is amplified further.

Keywords: customer delight; mediation; attitudinal loyalty; South Africa; relationship banking; structural equation modelling; partial least squares; PLS.

DOI: 10.1504/GBER.2019.096856

Global Business and Economics Review, 2019 Vol.21 No.1, pp.120 - 138

Received: 18 May 2017
Accepted: 25 Aug 2017

Published online: 19 Nov 2018 *

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