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The IUP Journal of Marketing Management
Customer Satisfaction and Loyalty Relationship: The Mediating Role of Trust
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The role of trust is very important in developing and maintaining a good relationship between the customer and the service provider. Due to the inherent risky nature of financial transactions, it is important to build a relationship with the customer based on trust. The present study is an attempt to empirically analyze the mediating effect of trust on customer satisfaction and loyalty relationship in the Indian banking context. Though many researchers have argued in support of the mediating role of trust in satisfaction-loyalty link, the authors were not able to find such relationship in the context concerned. Although customer satisfaction was found positively related to Benevolence and Credibility—the two trust dimensions—as far as their mediation effect was concerned, it was found absent. Further, it was previously argued that education level affects customers’ trust, but in the Indian context, there was no such relationship to be found. In the light of the given outcomes, appropriate strategies concerning decision making in business have been suggested.

 
 
 

The banking industry is the backbone of the economic development of any country. Irrespective of the developed or developing economy context, a sound banking system is essential to maintain the pace of growth in all the aspects of the economy. The major banking function, viz., acceptance of deposits, granting loans, fund transfer, and locker facility, etc., by virtue of the involved risks and intangibility characteristics requires to have a feeling of trust between the bank and its customer (Bhowmik and Saha, 2013). An adequate level of employee/customer interaction is very important in order to develop and maintain a feeling of trust, especially in financial service transactions because it reduces the perceived risk (Kesharwani and Bisht, 2012) and provides stability to the banking industry (Dia, 2011).

 
 
 

Marketing Management,Understand the store attributes ,Individual’s Education , Customer Satisfaction, The Mediating Role of Trust, Customer Satisfaction and Loyalty Relationship.