Investigating Drivers of Loyalty: A Case of Rural Retail Banks in India

Abstract

The aim of the present study is to explore customer’s perceived service quality and also attempts to determine the most significant predictor of customer loyalty. It also aims at developing a comprehensive model by integrating service quality and customer loyalty particularly for Indian rural banks. For the study, five dimensional 22 item SERVPERF scale was adopted. Questionnaire developed in English was translated into Hindi by employing back translation method. Data were collected from 394 patrons of rural banks, on a 7-point Likert scale through researcher’s controlled sampling technique. To extract relevant factors of service quality, exploratory factor analysis (EFA), mean, standard deviation and structural equation model technique (SEM) were carried out.