Does Service Quality Impact Word of Mouth, Customer Loyalty and Customer Retention Through Consumer Engagement: Evidence from Pakistan

Authors

  • Ali Danyal M. Phil scholar, Department of Business Administration, Ghazi University, Dera Ghazi Khan
  • Fahad Zain M. Phil scholar, Department of Business Administration, Ghazi University, Dera Ghazi Khan
  • Irshad Fida M. Phil scholar, Department of Business Administration, Ghazi University, Dera Ghazi Khan
  • Muhammad Zaigham Abbas `PhD scholar, Department of Sociology, University of Sindh, Jamshoro, Pakistan
  • Muhammad Rizwan Ali PhD scholar, Department of Zoology, Ghazi University, Dera Ghazi Khan. Pakistan

Keywords:

Service Quality, Consumer Engagement, Word of Mouth, Customer Loyalty, Customer Retention.

Abstract

The banking industry is a key contributor to the advancement of society as whole, offers useful tools such as resources and financial services. In light of social exchange theory, the study examined the impact of service quality (SQ) on word of mouth (WOM), customer loyalty (CL) and customer retention (CR) with mediating effect of consumer engagement (CE). Population for this study was customers of banks and primary data were collected with help of structured questionnaire. Out of 500 questionnaires, 380 complete filled questionnaires were received. Descriptive, correlation test were performed with help of SPSS-20. Measurement model and Structural model were performed with help of Partial Least Square (PLS-4). The study contains one independent (SQ) variable, one mediating (CE) and three dependent variables (WOM, CL and CR). The results showed that SQ has significant and positive impact on WOM, CL and CR. It also found a positive impact of CE on WOM, CL and CR. Moreover, CE mediates among SQ and WOM, CL and CR. Managers may have to improve the services that will help to build a sound relationship with the customers. Financial institutions (banks) should focus on SQ while making strategies in order to achieve a unique position in the market.  The study has theoretical and managerial implications.

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Published

31.07.2024

How to Cite

Does Service Quality Impact Word of Mouth, Customer Loyalty and Customer Retention Through Consumer Engagement: Evidence from Pakistan. (2024). PAKISTAN JOURNAL OF LAW, ANALYSIS AND WISDOM, 3(7), 84-101. https://pjlaw.com.pk/index.php/Journal/article/view/v3i7-84-101

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