A Model of Customer Loyalty: An Empirical Study of Indian Retail Banking Customer

The present article proposes and tests an integrative model to examine the relationships among service quality (SQ), perceived value (PV), customer satisfaction (CS), corporate image (IMG) and customer loyalty (CL) in Indian retail banking context. The model is tested on the basis of data collected from 545 customers of Indian public sector banks (PSBs) using structural equation modeling (SEM) through path analysis. The finding exhibits that the present research model strongly predicts direct and/or indirect relationship of all constructs with CL phenomenon. However, the construct of PV was found to be insignificantly related to IMG in this integrative model. Moreover, the results also reveal that SQ exerts a strong influence on CS and CL; therefore, SQ is found as the most dominant construct in the model. The results of the model validate that SQ, PV, CS and IMG are the key antecedents of CL. Thus, integrative model of CL emerges as an 'outcome' in Indian context with special reference to selected PSBs.