Satisfaction and trust on customer loyalty: A PLS approach

• Published in: Business Strategy Series
• Main Author: Yap B.W.; Ramayah T.; Wan Shahidan W.N.
• Format: Article
• Language: English
• Published: 2012
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-84863854370&doi=10.1108%2f17515631211246221&partnerID=40&md5=a851def9b6062d0851158e22a861ed3a

This study proposed a CSI model which is adapted from the ESCI model. This model re-examines the relationship between satisfaction, trust and loyalty by proposing satisfaction as an antecedent of trust. The results of this study support the findings in the literature that service quality has a positive effect on customer satisfaction (Caruana, 2002; Levesque and McDougall, 1996). This study also provided empirical evidence that satisfaction has a positive effect on trust and this trust will eventually has a positive influence on loyalty to the bank (Hallowell, 1996; Bendall-Lyon and Powers, 2003; Lam and Burton, 2006; Ball et al., 2006). Complaint handling is found to have a significant effect on satisfaction, trust and loyalty (Johnston, 2001; Hansemark and Albinsson, 2004; Levesque and McDougall, 1996). Therefore, banks should not take complaint handling lightly as poorly handled complaints may be viewed by consumers as banks' incompetence and lack of care towards their customers. © Emerald Group Publishing Limited.