Customer retention

Epistemology

Machine learning

Philosophy

Service quality

Business

Loyalty business model

Retail banking

Marketing

Customer satisfaction

Loyalty

Quality (philosophy)

Service (business)

Computer science

Structural equation modeling

International Journal of Bank Marketing

Purpose The purpose of this paper is to develop a comprehensive model representing the relationships among service quality, customer satisfaction, trust and loyalty in a retail banking service. Because many banks now emphasize acquiring more high-wealth and main-bank customers, this study also focuses on investigating the moderating roles of main-bank and wealth status on such relationships. Design/methodology/approach This study applies a hierarchical model to measure service quality in line with recent advances in the general-marketing and consumer-behavior literature. A total of 400 valid samples were obtained from customers of a large commercial bank in Thailand. Data were analyzed using partial least squares structural equation modeling and multigroup analysis. Findings Customer-perceived service quality directly and indirectly affects, via satisfaction and trust, attitudinal and behavioral loyalty. Service quality affects customer loyalty less if the customer holds main-bank status. It affects behavioral loyalty less for high-wealth customers than regular customers; however, its impacts on attitudinal loyalty are identical. Main-bank and wealth status have a co-moderating impact on the relationship between service quality and customer loyalty. Research limitations/implications This study was conducted on a cross-sectional basis; further, longitudinal analysis could help to assess causality and time-dependent effects among variables. Practical implications The present study reconceptualizes the loyalty model, forging a deeper understanding of the moderating effects of main-bank and wealth status and thus helping banks to formulate better strategies to win customer loyalty. Originality/value This study aims to contribute to further discussions regarding the direct and indirect effects of service quality on loyalty to help banks formulate effective strategies for acquiring main-bank and high-wealth customers.

Service quality, satisfaction, trust, and loyalty: the moderating role of main-bank and wealth status