The mediating role of customer satisfaction in the relationship between service quality and customer loyalty in multi-channel retail banking

This study examines the interrelationships among service quality (SQ), customer satisfaction (CS), and customer loyalty (CL) in the context of multi-channel retail banking. While customer satisfaction measures a customer’s present evaluation of service, customer loyalty reflects their long-term comm...

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Main Authors: Shame Mugova, Nancy Gathoni Kiliswa, Margaret Mashizha
Format: Article
Language:English
Published: Taylor & Francis Group 2025-12-01
Series:Cogent Business & Management
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23311975.2025.2514937
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author Shame Mugova
Nancy Gathoni Kiliswa
Margaret Mashizha
author_facet Shame Mugova
Nancy Gathoni Kiliswa
Margaret Mashizha
author_sort Shame Mugova
collection DOAJ
description This study examines the interrelationships among service quality (SQ), customer satisfaction (CS), and customer loyalty (CL) in the context of multi-channel retail banking. While customer satisfaction measures a customer’s present evaluation of service, customer loyalty reflects their long-term commitment to an organisation. Service quality assessment involves comparing perceived service delivery against customer expectations. Convenience sampling was used to obtain 466 responses from bank customers. Using structural equation modelling, this research analyses primary data from 466 bank customers in Durban, South Africa, using a self-administered questionnaire to investigate these relationships. A refined model demonstrates that service quality indirectly affects customer loyalty through customer satisfaction, reinforcing the importance of customer experience in multi-channel banking. Furthermore, the results show that satisfied customers demonstrate stronger bank allegiance in a multichannel banking environment. Unlike previous studies that focus on traditional banking models, this research investigates multichannel banking environments where customers interact across multiple platforms. This study contributes new insights into the mediating role of satisfaction in the service loyalty relationship, highlighting the importance of integrating service strategies. The findings provide actionable insights for banks aiming to enhance service quality across multiple channels.
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institution Kabale University
issn 2331-1975
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publishDate 2025-12-01
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spelling doaj-art-5bd259b17d7644b7bb82d0d295643cd52025-08-20T03:29:03ZengTaylor & Francis GroupCogent Business & Management2331-19752025-12-0112110.1080/23311975.2025.2514937The mediating role of customer satisfaction in the relationship between service quality and customer loyalty in multi-channel retail bankingShame Mugova0Nancy Gathoni Kiliswa1Margaret Mashizha2Birmingham Business School, Birmingham City University, Birmingham, UKDepartment of Marketing, Durban University of Technology, Durban, South AfricaDepartment of Finance and Accounting, University of Zimbabwe, Harare, ZimbabweThis study examines the interrelationships among service quality (SQ), customer satisfaction (CS), and customer loyalty (CL) in the context of multi-channel retail banking. While customer satisfaction measures a customer’s present evaluation of service, customer loyalty reflects their long-term commitment to an organisation. Service quality assessment involves comparing perceived service delivery against customer expectations. Convenience sampling was used to obtain 466 responses from bank customers. Using structural equation modelling, this research analyses primary data from 466 bank customers in Durban, South Africa, using a self-administered questionnaire to investigate these relationships. A refined model demonstrates that service quality indirectly affects customer loyalty through customer satisfaction, reinforcing the importance of customer experience in multi-channel banking. Furthermore, the results show that satisfied customers demonstrate stronger bank allegiance in a multichannel banking environment. Unlike previous studies that focus on traditional banking models, this research investigates multichannel banking environments where customers interact across multiple platforms. This study contributes new insights into the mediating role of satisfaction in the service loyalty relationship, highlighting the importance of integrating service strategies. The findings provide actionable insights for banks aiming to enhance service quality across multiple channels.https://www.tandfonline.com/doi/10.1080/23311975.2025.2514937Customer satisfactionservice qualitycustomer loyaltymulti-channelretail bankingBusiness, Management and Accounting
spellingShingle Shame Mugova
Nancy Gathoni Kiliswa
Margaret Mashizha
The mediating role of customer satisfaction in the relationship between service quality and customer loyalty in multi-channel retail banking
Cogent Business & Management
Customer satisfaction
service quality
customer loyalty
multi-channel
retail banking
Business, Management and Accounting
title The mediating role of customer satisfaction in the relationship between service quality and customer loyalty in multi-channel retail banking
title_full The mediating role of customer satisfaction in the relationship between service quality and customer loyalty in multi-channel retail banking
title_fullStr The mediating role of customer satisfaction in the relationship between service quality and customer loyalty in multi-channel retail banking
title_full_unstemmed The mediating role of customer satisfaction in the relationship between service quality and customer loyalty in multi-channel retail banking
title_short The mediating role of customer satisfaction in the relationship between service quality and customer loyalty in multi-channel retail banking
title_sort mediating role of customer satisfaction in the relationship between service quality and customer loyalty in multi channel retail banking
topic Customer satisfaction
service quality
customer loyalty
multi-channel
retail banking
Business, Management and Accounting
url https://www.tandfonline.com/doi/10.1080/23311975.2025.2514937
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