Analysis the Relationship between Customer Satisfaction, Loyalty and Word-of-Mouth Intentions with Regard to the Moderating Role of Switching Costs of Bank (Case Study: The Bank of Maskan in Ahwaz (

Document Type : Quantitative Research Paper

Authors

1 Associate Professor, Department of Management, Faculty of Administrative Sciences and Economics, University of Isfahan, Isfahan, Iran

2 Assistant Professor, Department of Economics, Faculty of Administrative Sciences and Economics, University of Isfahan, Isfahan, Iran

3 Ms in Management

Abstract

Nowadays competition in business especially in banking industry is significantly increasing, thus the managers of banks and monetary credential institutions are interested in the loyalty of their customers and advertisements made by them orally, subsequently these became their two main goals. Accordingly, the aim of the present study is to investigate these two concepts as dependent variables relative to the satisfaction of customers as independent variable with regard to the cost of modifying factors such as changing bank. To do so a validated racializable researcher made questionnaire was distributed among 500 customers of Maskan bank in Ahwaz city. 350 questionnaires were received back and after omitting some, 308 were used for data analysis by SPSS23. Pearson correlation and hierarchical regression were used for testing research hypothesis. Results indicated that customer's satisfaction gradually increases loyalty. also increasing satisfaction would result in behavioral indications such as increased tolerance against problems in provided services and advertising orally for the bank. For banks knowing the satisfaction level of the customers is critical and brings a better competitive stand for them in completion with other banks.

Keywords


 
Bani Asadi, M. (2013). The Impact of Satisfaction Using Electronic Banking on Loyalty and Oral Advertising: A Case Study of New Economy Bank. First National Conference on Monetary and Banking Management Development, Tehran, Department of the Monetary and Banking Management Development Conference (in Persian).
Behnam, M., Modiri, M., & Hashemi, Z. (2015). The effect of word of mouth on creating a consumer-based brand equity in sports services. Sports Management Studies, (31), 85-104 (in Persian).
Beerli, A., Martin, J. D., & Quintana, A. (2004). A model of customer loyalty in the retail banking market. European journal of marketing, 38(1/2),253-275.
Burnham, T. A., Frels, J. K., & Mahajan, V. (2003). Consumer switching costs: a typology, antecedents, and consequences. Journal of the Academy of marketing Science31(2), 109-126.‏
Colgate, M., & Lang, B. (2001). Switching barriers in consumer markets: an investigation of the financial services industry. Journal of consumer marketing, 18(4),334-345.
Dehghanizadeh, M., & Akbaripour, Z. (2021). The effect of identity and social effect on perceived value and intention to buy organic products and the moderating effect of consumer innovation; Case study: Consumers of organic products in Karaj. Consumer Behavior Studies, 8(2), 156-175. (in Persian).
East, R., Hammond, K., & Wright, M. (2007). The relative incidence of positive and negative word of mouth: A multi-category study. International journal of research in marketing24(2), 175-184.‏
Farzinfar, Z., Saeed Ardakani, S., & Naderi Bani, M. (2015). The effect of corporate social responsibility on customer loyalty with respect to the mediating role of trust and satisfaction (Study of three-star and four-star hotels in Yazd). Tourism Management Studies, 11 (33), 63-83 (in Persian).
Foroughi Nasab, M. (2012). The relationship between customer satisfaction and loyalty and the role of brand change costs in the banking industry. Master Thesis, Shahid Chamran University of Ahvaz, Faculty of Economics and Social Sciences (in Persian).
Fullerton, G. (2003). When does commitment lead to loyalty?. Journal of service research5(4), 333-344.‏
Gharabi, M., & Hassannejad Kashani, B. (2011). Application of Kano model in offset printing customer satisfaction analysis. Scientific-Extensive Research Journal of Publishing, 2 (7) (in Persian).
Gilly, M. C., Graham, J. L., Wolfinbarger, M. F., & Yale, L. J. (1998). A dyadic study of interpersonal information search. Journal of the academy of marketing science26(2), 83-100.‏
Han, H., & Ryu, K. (2009). The roles of the physical environment, price perception, and customer satisfaction in determining customer loyalty in the restaurant industry. Journal of hospitality & tourism research33(4), 487-510.‏
Jones, M. A., Mothersbaugh, D. L., & Beatty, S. E. (2002). Why customers stay: measuring the underlying dimensions of services switching costs and managing their differential strategic outcomes. Journal of business research55(6), 441-450.‏
Khajoui, F., & Nayebzadeh, Sh. (2013). The Effect of Satisfaction and Indifference on Customer Loyalty (Case Study: Mobile Phone). Marketing Management, 8, 29-46 (in Persian).
Konuk, F., & Konuk, F. (2013). The relationship between service quality, economic and switching costs in retail banking. Business Systems Review2(1), 1-16.‏
Litvin, S. W., Goldsmith, R. E., & Pan, B. (2008). Electronic word-of-mouth in hospitality and tourism management. Tourism management29(3), 458-468.‏
Mousavi, S. M., & Amiri Aghdaei, S. F. (2020). Examining consumer behavior in order to create the expected value of the customer by macro data analysis. Consumer Behavior Studies, 7 (1), 160-1(in Persian).
Minarti, S. N., & Segoro, W. (2014). The influence of customer satisfaction, switching cost and trusts in a brand on customer loyalty–The survey on student as IM3 users in Depok, Indonesia. Procedia-Social and Behavioral Sciences143, 1015-1019.‏
Podoshen, J. S. (2008). The African-American consumer revisited: brand loyalty, word of mouth and the effects of the black experience. Journal of Consumer Marketing, 245 (4), 211-222.
Ram, J., & Wu, M. L. (2016). A fresh look at the role of switching cost in influencing customer loyalty: Empirical investigation using structural equation modelling analysis. Asia Pacific Journal of Marketing and Logistics.‏
Rangriz, H., Karami, N. (2011). Investigating the effect of satisfaction and ease of using the website on increasing the level of customer loyalty and positive word of mouth in electronic banking services (Case study of Bank Mellat, Zanjan province). 3 (1), 81-98(in Persian).
Tavakol, N., Sardari, A., & Ghazizadeh, M. (2014). Investigating the effect of e-banking acceptance factors on oral advertising with emphasis on the mediating role of customer satisfaction and loyalty (Case study: Branches of Eghtesad Novin Bank in Shiraz). Business Strategies, 21 (8), 49-60 (in Persian).
Wong, C. B., & Mula, J. M. (2009). The moderating effect of switching costs on the customer satisfaction-retention link: retail internet banking service in Hong Kong. Ibima business review2(3), 20-28.‏
Yanamandram, V., & White, L. (2006). Switching barriers in business-to-business services: a qualitative study. International Journal of Service Industry Management,17(2),158-192.
Yang, Z., & Peterson, R.T. (2004). Customer Perceived Value, Satisfaction, And Loyalty: The Role of Switching Costs. Psychology & Marketing, 21(10) ,799-822.
Zacharias, M. L. B., Figueiredo, K. F., & Silva Araujo, C. A. (2009). The influence of banking service customers’ satisfaction level on the perception of switching costs and on behavioural loyalty. Journal of Operations and Supply Chain Management (JOSCM)2(1), 1-13.‏
Venus, J., & Safaeian, M. (2004). Practical methods of marketing banking services for Iranian banks. Third Edition, Tehran: Agah Publications (in Persian).