Investigating the effects of service quality dimensions and expertise on loyalty

Abstract

Purpose – Very little research has investigated the effects of service quality dimensions on customer loyalty. Also, up to now, no research has investigated the direct effect of expertise on loyalty and the moderating effect of expertise on the link between satisfaction and loyalty. This paper seeks to fill these gaps in the literature and to investigate the effects of individual dimensions of service quality in creating and enhancing customer loyalty via customer satisfaction. It also aims to investigate the direct and indirect effects of customer expertise on customer loyalty. Design/methodology/approach – The paper uses a causal modelling approach and proposes a conceptual model after an extensive review of the literature. The paper is based on a sample of 200 bank users in Greece who completed a self-administered questionnaire. The paper uses exploratory factor analysis, confirmatory factor analysis and structural equation modelling to analyse and confirm the conceptual model proposed in this research. Findings – The paper finds that reliability, tangibility and empathy are positively related to customer satisfaction, which in turn is positively related to loyalty. Furthermore, while expertise is negatively related to loyalty, it positively moderates the link between satisfaction and loyalty. Originality/value – The paper discusses implications for brand managers in terms of targeting and advertising strategies and suggests future research directions.