ABSTRACT
This paper examined the impact of customer satisfaction on customer loyalty. The objectives were: to determine the relationship between customer satisfaction and customer loyalty and to examine the impact of customer satisfaction on customer loyalty.
Survey research design was adopted for this study. Primary and secondary sources of data were used. The primary data includes a structured questionnaire used to elicit information from the target respondents who were customers of a reputable bank in Ekiti State, while the secondary data encompass the use of related materials, journals and periodicals, Regression analysis was used to analyse the data.
The findings shows that there is a significant relationship between customer satisfaction and customer loyalty (r = .617**, N= 107, P < .01). The implication of this result is that a 1% shift in customer satisfaction will cause a 61.7% shift in customer loyalty. The findings also shows the R2 value of 0.631 which reveals that customer satisfaction independently accounts for 63.1% of the variation in customer loyalty. The f-statistics of 33.500 reveals that the model is statistically significant at 0.05 significant level.
It was concluded that a 1% shift in customer satisfaction will cause a 61.7% shift in customer loyalty. Also there is a significant relationship between customer satisfaction and customer loyalty. To this end, the study concluded that customer loyalty is a function of customer satisfaction. Keywords: Customers, relationship, customer satisfaction and customer loyalty.
TABLE OF CONTENTS
Title page Declaration page Certification Dedication Acknowledgement Abstract Table of Contents
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study 1
1.2 Statement of The Problems 4
1.3 Objective of The Study 5
1.4 Research Questions 5
1.5 Research Hypothesis 5
CHAPTER TWO – LITERATURE REVIEW
2.0 Introduction 6
2.1 Customer Satisfaction 6
2.2 Customer Loyalty 9
2.3 Service Quality 11
2.4 Switching cost 14
2.5 Trust 14
2.6 Commitment 15
2.7 The relationship among bank brand image, customer satisfaction and loyalty 16
2.8 Service Quality and Customer Satisfaction 16
2.8.1 Tangibles and Customer Satisfaction 17
2.8.2 Reliability and Customer Satisfaction 18
2.8.3 Assurance and Customer Satisfaction 18
2.8.4 Empathy and Customer Satisfaction 19
2.9 Service Quality and Customer Loyalty 20
2.9.1 Tangibles and Customer Loyalty 20
2.9.2 Reliability and Customer Loyalty 21
2.9.3 Assurance and Customer Loyalty 21
2.10 Theoretical Framework 22
2.10.1 Underpinning Theory 22
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Design 23
3.2 Study Population/Sample 23
3.3 Sampling Method and Sample Size 23
3.4 Sources of Data 23
3.5 Data Collection Instrument 24
3.6 Methods of Data Analysis 24
3.7 Research Hypotheses 24
CHAPTER FOUR: DATA ANALYSIS AND DISCUSSION OF RESULTS
4.1 Presentation of Data 25
4.2 Research Questions 29
4.3 Test of Hypotheses 29
4.4 Discussion of Findings 32
CHAPTER FIVE: SUMMARY, CONCLUSION, RECOMMENDATIONS AND
5.1 Summary 34
5.2 Conclusion 35
5.3 Recommendations 35
References
Questionnaire
