Influence of perceived value, service quality, corporate image on customer loyalty: Empirical study on commercial banks in Nigeria
Customer loyalty has become a critical success factor for long-term business survival particularly in the banking industry. In spite of that, many commercial banks find it difficult to sustain and enhance customer loyalty. Extant literature has also identified some factors that may influence customer loyalty. As such, the study aims at exploring the influence of perceived value, service quality and corporate image on customer loyalty in the Nigerian commercial banks. Cross sectional research designs and convenient sampling technique through self-administered questionnaire were utilized. A sample size of 250 were administered to customers of 10 selected commercial banks in Kaduna Nigeria but only 237 were correctly filled, retrieved and used for the analysis. Data collected were analyzed using Partial Least Square–Structural Equation Model (PLS-SEM). The findings of the study revealed that service quality and corporate image have positive and significant effect on customer loyalty in the Nigerian commercial banks. However, perceived value also has positive effect on customer loyalty but not significant. It was concluded in the study that service quality and corporate image constitute major determinants of customer loyalty in the Nigerian commercial banks. It was therefore recommended that the commercial banks in Nigeria should pay maximum attention to these predictors of customer loyalty as it would help retaining existing customers and attracting new ones.