An applied study to measure the quality of banking services and customer loyalty : case study of the banks of the city of Saida

Abstract EN

Intense competition and shifting loyalties the banking sector are forcing to focus on service quality for increased customer satisfaction, customer loyalty, and organizational profitability.

Making loyal customers to the banks has become essential for the long term survival of any bank where the service quality of the banks has also played an important role in customer loyalty.

This study assesses the service quality for banks in City SAIDA the Country of Algeria the A using the SERVQUAL model and tests the effect of five SERVQUAL dimensions on the loyalty of customers.

The analysis of data using the partial least squared (PLS) based Structural Equation Modeling technique reveals a positive effect of reliability and assurance dimensions on loyalty.

However, the outcomes do not reflect any significantThe findings revealed that three dimensions of service quality namely tangibles, reliability and empathy have significant positive effect on customer loyalty.

Further service quality dimensions alone explain 46.

3% of the variance in customer loyalty.