INVESTIGATING THE IMPACT OF SERVICE DIMENSIONS ON CUSTOMER SATISFACTION AND CUSTOMER LOYALTY: A CONTEXT ON EMERGING SERVICE ECONOMY

Abstract

This is an empirical endeavor to find out the impact of service dimensions on customer satisfaction and how customer satisfaction affects customer loyalty. In order to measure service quality SEVQUAL model was used based on five dimensions of quality -tangibility, empathy, responsiveness, reliability and assurance and to investigate which service determinants have direct impact on customer satisfaction correlation between the determinants and customer satisfaction was determined. Primary data was collected from 308 respondents who are customers of financial institutions in Bangladesh and analyzed using SPSS-17. Our empirical findings reveal that independent variables, the five dimensions of service quality is strongly correlated with customer satisfaction. Customer satisfaction has positive relationship with customer loyalty. Furthermore, it is found that the most important aspect is the level of assurance for achieving customer satisfaction and customer satisfaction is a strong predictor of customer loyalty.