Exploring the Impact of Service Quality Dimensions on Customer Loyalty with a Moderating Role of Customer trust: An Applied Study on the Saudi Commercial Banks in Eastern Province, Saudi Arabia

Abstract

Customer satisfaction with banking services is well-known, and it is crucial to financial institutions' overall success. Prior research has proven that service quality and customer satisfaction play a significant role in boosting client loyalty. However, this line of research falls short of addressing the role of other customers' psychological variables that might either improve or undermine the relationship. Thus, to address this gap in the research, the current study will examine the moderating effect of customer trust on the direct relationship between service quality and customer loyalty. To accomplish the study's aims, data were gathered from 340 banking customers in Saudi Arabia who were randomly selected using a systemic sampling technique. The data were analysed using the PLS-SEM approach and the SmartPLS 3.0 software. Service quality is viewed in this study as a multidimensional construct comprised of tangibility, reliability, responsiveness, assurance, and empathy. The study's findings indicated that each factor directly affects consumer loyalty. The study's findings revealed the moderating effect of customer trust on the established association between service quality aspects and customer loyalty. Additionally, the paper discusses the theoretical and practical ramifications and future research objectives