The Effects of the Service Quality Dimensions on Customer Satisfaction and Customer Loyalty: The Experience Of the Paphos Cooperative Bank In Cyprus
The aim of this study is to reveal the level of service quality in Cooperative Bank of Paphos and identify the effects and relationships the service quality has on customer satisfaction and customer loyalty. The study also aims to expose the possible gaps and omissions in the performance of the service and suggest ways for improvement. The research questionnaire was developed using the Servqual method that measures customers’ expectations and perceptions to define the level of quality through its five dimensions. Customer satisfaction and loyalty are also measured by the questionnaire. The sample consists of 100 bank customers who volunteered to participate in the study. The results indicated that the overall service quality of Paphos Coop Bank is at a fairly high level and that at least three quality dimensions of the Servqual model, Assurance, Reliability and Responsiveness are very important to the Bank’s customers. Although Empathy and Tangibility contribute to the overall quality perception, are found to be less important to customers. The study also revealed that the service quality level has a significant effect on the customers satisfaction and customer loyalty. Measuring the service quality in Paphos Coop Bank and examining its effects and relationships with other key aspects of the business, produced valuable information that can be used to improve the Bank’s competitive advantage.