Service Quality, Customer Satisfaction and Loyalty : The Practice and Case of Banking Industry

Banking sector is an important part of a country's economy which has seen precedent growth in the last decade and competition in this sector is raging at the moment. All the banking organizations in the market are striving hard to snatch their piece of pie from competitors. Satisfying customers and building their loyalty could prove to be very critical for the success of the banking organizations in Pakistan. This study look into this phenomenon by seeking empirical justification in this regard considering service quality as main contributory factor towards customer satisfaction and customer loyalty. The data were collected from 225 customers visiting the banks counters and had an account with banks serving in Pakistan. The collected data then analyzed using the Microsoft Excel and SPSS 19. The results of the study revealed that service quality has positive association with customer satisfaction and loyalty. Some recommendations for future research are also made.