The IUP Journal of Marketing Management
Linkages Between Service Quality, Customer Satisfaction and Customer Loyalty: A Literature Review

Article Details
Pub. Date :Nov, 2018
Product Name : The IUP Journal of Marketing Management
Product Type : Article
Product Code : IJMM21811
Author Name : Priyanka Arora and Sarang Narula
Availability : YES
Subject/Domain : Finance
Download Format : PDF Format
No. of Pages : 23



The main objective of this paper is to contribute to the existing research by studying the models having linkages between service quality, customer satisfaction and customer loyalty and summarize these models to have some ideas for future research on the basis of critical analysis of the available literature. The paper, firstly, examines different models of linkages between service quality, customer satisfaction and customer loyalty reported in the literature. Second, the paper summarizes all the models to have an idea of their practical implications and highlight the areas for further research. The review of various models revealed that service quality is dependent on many factors, including service setting, situation, time, etc. Further, service quality has positive impact on customer satisfaction and customer loyalty. This research developed a linkage between service quality, customer satisfaction and customer loyalty and came out with direct and indirect effects of service quality on customer loyalty through customer satisfaction. The growth of literature in this field has increased tremendously from time to time providing learning from the findings of earlier researchers, and this addition to literature will provide new directions to researchers of this field. This paper explores the new directions in linkages between service quality, customer satisfaction and customer loyalty.


During the past two-and-a-half decades, many regulatory, structural, and technological factors contributed to significant changes in the financial services marketing environment in the US as well as around the world (Angur et al., 1999). Financial liberalization has led to intense competitive pressures and companies are consequently directing their strategies towards increasing service quality level which fosters customer satisfaction and loyalty through improved service quality. Service quality is becoming an increasingly important factor and a prerequisite for economic performance in service industry. Brown and Swartz (1989) argued that consistent delivery of superior service is the strategy that is increasingly being offered as a key to success by service providers to position themselves more effectively in the marketplace. Financial services providers struggle to distinguish themselves from the competition as customers perceive very little difference in the products offered by financial services and any new offering is quickly matched by competitors. In order to promote them effectively, a service provider must first identify the dimensions used by consumer to evaluate service quality.


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