Abstract
Customer satisfaction is an important indicator for customer loyalty, and numerous studies have identified the benefits that customer loyalty delivers to an organisation. Nevertheless, research also suggests that satisfied customers still defect. This study investigated the relationship between customer satisfaction and loyalty intentions within the Australian banking industry for two distinct customer segments, retirees and university students. Results indicate no significant difference in the satisfaction levels of either group; however, there were differences with respect to two of the five behavioural intentions dimensions: loyalty and switch. Satisfaction was found to have a significant impact on three of the five behavioural intentions dimensions: loyalty, pay more and external response, suggesting that management should initiate service policies aimed at securing improvements in customer satisfaction. However, there are also other constructs at work aside from satisfaction in determining future behavioural intentions.
Similar content being viewed by others
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Pont, M., McQuilken, L. An empirical investigation of customer satisfaction and loyalty across two divergent bank segments. J Financ Serv Mark 9, 344–359 (2005). https://doi.org/10.1057/palgrave.fsm.4770165
Revised:
Published:
Issue Date:
DOI: https://doi.org/10.1057/palgrave.fsm.4770165
Keywords
- banking
- customer relations
- e-business
- e-commerce
- financial brokers
- financial engineering
- financial institutions
- financial marketing
- financial models
- financial planning
- financial training
- insurance
- intermediation
- knowledge management
- management
- marketing
- marketing strategy
- pensions
- services quality
- virtual organisations
- satisfaction
- loyalty
- behavioural intentions
- Australian banking industry
- retirees
- university students