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Abstract
Purpose: This paper aims to provide an understanding of how to create and capture values for customers and then strengthen their loyalty to the financial services provided. Customer loyalty is one of the crucial constructs explained with different concepts in the literature. In addition, the aim of the research is to deepen the understanding of the concepts of service quality, perceived value, and customer service loyalty for creating a practical framework that can gather most of the related dimensions and concepts, and attempt to examine the Iraqi environment for incubating these contemporary concepts. In order to explain customer service loyalty, value and service quality perception of customers are dealt within the scope of the present research.
Methodology: A questionnaire relating to the whole dimensions was designed to measure the amount of the effect that service quality can have on the choice of the relevant programs by private banks' managements. It also dealt with the effect of service quality on the perceived value as a mediator variable, and customer service loyalty as a dependent variable through using SERVPERF. The methodology was explanatory and analytical, and the researchers determined hypothesis which was tested by correlation, stepwise regression and hierarchical regression analyses.
Findings: The empirical evidence of present research indicates positive and strong relations among the service quality, perceived value, and customer service loyalty. The most important dimension of service quality is 'reliability and assurance' and vital dimension of perceived value is functional value to explain customer service loyalty. The research shows that perceived value variable plays a mediating role in the relationship between service quality and customer service loyalty.
Originality: Investigating the mediation role of the perceived value on the relationship between service quality and customer service loyalty in the private banking industry is in an unstable security context in Iraq. Present research offers vital contributions to the literature.
Keywords: Service quality, perceived value, customer service loyalty, and SERVPERF.
1. Introduction
The economy of the universe is becoming massively service oriented, whose movement is reversed in a large amount of research in the field of marketing that concentrated on services. The service industry in the United States of America creates more than 75% of its Gross Domestic Product (GDP) and more than 80% of the...