Transformations  in
Business & Economics

IMPACT OF PERCEIVED VALUE AND SATISFACTION ON CUSTOMER LOYALTY IN BANKING INDUSTRY
Maryam Abdoli, Reza Rostamzadeh, Jafarsadegh Feizi, Izolda Joksiene

ABSTRACT. Competition is increasing in some market. In order to gain share and compete with firms, building consumer loyalty is a crucial factor. Current study's goal is examination of the practicality and applications of perceived value (PV) and customer satisfaction (CS) on customer loyalty (CL) in banking industry based on European customer satisfaction index (ECSI) model.
 The results showed that PV affected positively by customer image (CI), customer expectation (CE), perceived quality of hardware and software. In addition, PV influences CS. On the other hand, CS affects CL positively. Based on the results, CS is the most important factor in determining CL. Therefore, organizations should go beyond customers' initial needs, meet customers' expectations and focus on creating loyalty and faithfulness by building a long-term, profitable and mutual relationship rather than concentrating on customer satisfaction solely. This paper provides valuable insight into the measurement of ECSI model in banking industry.

KEYWORDS: customer loyalty, perceived value, customer satisfaction, private sector, banking.

JEL classification: L81, L84, M30, M31.