Identifying the Determinants of Customer Retention in a Developing Country Context

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Author(s): Norizan Mohd Kassim (University of Qatar, Qatar), Salaheldin Ismail (University of Qatar, Qatar)and Nor Asiah Abdullah (Multimedia University, Malaysia)
Copyright: 2012
Pages: 14
Source title: Successful Customer Relationship Management Programs and Technologies: Issues and Trends
Source Author(s)/Editor(s): Riyad Eid (United Arab Emirates University, UAE)
DOI: 10.4018/978-1-4666-0288-5.ch005

Keywords: Business & Management / Business Science Reference / Consumer Management / E-Business

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Abstract

This paper investigates how image, perceived service quality and satisfaction determine customer retention in the retail banking industry in Malaysia. Data was obtained using a self-administered survey involving a convenience sample of 134 retail banking customers in Malaysia. The results show that image is both directly and indirectly related to retention through satisfaction while perceived service quality is indirectly related to retention through satisfaction. The paper concludes that satisfaction is not the sole determinant of retention in retail banking. Some managerial implications of this research find that the interrelationships between the determinants (image, quality and satisfaction) allow bank managers to better understand the dynamics of customer retention formation.

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Identifying the Determinants of Customer Retention in a Developing Country Context

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