Impact of Perceived Service Quality on Customers' Loyalty; Mediating Role of Customers' Commitment

Abstract

In current modern economies, services sectors are considered the back bone of any economy. Servicesector organizations are striving hard to provide better service qualities to their customers so that theycan have maximum customers and ultimately can have maximum profit. On the other hand, customersselect service providers on the bases of their quality. Hence it is very imperative to evaluate the perceptionof customers regarding the service quality of any organization. This study aims to examine the impact ofperceived service quality of banking service on customer loyalty. Furthermore, the study also examinedthe mediating role of customer commitment in the relationship between perceived service quality andcustomers' loyalty. The study is quantitative in nature and data was collected using standardizedquestionnaires from existing studies. The study collected data from the customers of different privatebanks in Pakistan. The result revealed that PSQ has a positive and significant relationship with customerloyalty. Furthermore, customer commitment partially mediates the link between PSQ and customerloyalty. The study has many practical and theoretical implications.