Effects Of Bank's Competence On Customer Loyalty The Mediating Role Of Customer Commitment

Journal Name: 
Journal of Banking, Information Technology & Management
Volume: 
Vol. 14 - No. 2
Authors: 
Author Name Designation Organization
T.Padmavathi
J.Khaja Sheriff
Abstract: 

This paper aims to study the effects of competence on customer loyalty through the mediating role of customer commitment in Indian retail banks. A mediation model of customer commitment between competence and customer loyalty was developed based on literature and empirically tested among the customers of retail banks in India. A total of 272 valid responses were analyzed using Regression and mediation analysis. The findings of the study show that the bank's competency is significantly influence customer commitment and customer loyalty. The results of mediation analysis show that customer commitment partially mediates the relationship between competence and customer loyalty. The competencies of bank are related to the development of customer commitment and customer loyalty. Indian retail banks should therefore pay attention in their competencies in order to build customer commitment and customer loyalty.