The Impact of Service Quality and Communication in Developing Customer Loyalty: The Mediating Effect of Customer Satisfaction

Abstract

Satisfaction with the services of banks is just a launching point in constructing long-term relations with customers. Customer loyalty is one of the main determinants of the achievement of the marketing partnership. However, how customer satisfaction can be transferred to loyalty is the key problem. The aim of this study is to examine the influence of service quality and communication on loyalty through customer satisfaction. The scope of this study concentrated on Yemeni’s banking industry. Quantitative data was collected from 233 customers. Convenience sampling employed to determine the research respondents. The analysis was based on 160 usable questionnaires. Several data analysis techniques were conducted, such as frequencies, correlation and regression to examine the nature and the significance of the relationship between the variables. The findings revealed acceptable levels of agreement with satisfaction and loyalty factors. The results suggested that higher perception of service quality and communication led to stronger perceptions of customer satisfaction and loyalty. The results also showed that satisfaction is an essential mediator to promote loyalty to bank customers through developing effective communication and excellent service quality. Since the promotion of customer loyalty is a major concern for banks, this study is thought to contribute marginally to Yemen banks. Keywords: banking industry, communication, customer satisfaction, loyalty, service quality.