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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

The Association between Service Quality and Customer Loyalty on Domestic Commercial Banks in Klang Valley

Rohana Ahmad Shimi, Navin A/L Pelanivilo, Selvan A/L Sundran, Vivagan A/L Elencovan, Iskandar Danial Bin Adam Adonis, Muhammad Norsyafiq Bin Khairuddin

http://dx.doi.org/10.6007/IJARBSS/v15-i1/23993

Open access

In the banking sector, customer assurance of the services and products has a significant impact on the client's first engagement with the financial service business. One of the key elements affecting client loyalty is the assurance and dependability of the goods and services given. Yet, the reasons for the banks' inability to keep clients show how they failed to understand the needs and expectations of the customer, which had an effect on the bank's ability to keep the customer, particularly for the local banking industry. Because of this, research has been done to examine the link between customer loyalty and service quality for local commercial banks in the Klang Valley. This research has focused on five areas of service characteristics, including tangibility, empathy, reliability, and assurance. The objective of the study is to determine how tangibility, empathy, reliability, and assurance, affect client loyalty in Klang Valley domestic commercial banks. For data collection among local Malaysians who preferred to conduct their financial needs in domestic commercial banks in the Klang Valley, the convenience sampling of non-probability sampling method is used In terms of occupation types, race, age groups, salary ranges, academic qualifications, and their familiarity and experience interacting with domestic commercial banks, data were gathered from people with various backgrounds. The findings show the hypotheses of responsiveness, assurance, tangibility, and assurance were all rejected, while the hypothesis of reliability is the only one was accepted. It is concluded that improvise findings can be achieved by conducting broader data collection population including outside targeted current population to have a better perspective.