An Empirical Study of Direct Relationship of Service Quality, Customer Satisfaction and Bank Image on Customer Loyalty in Malaysian Commercial Banking Industry

The aim of this study is to develop a direct effect understanding of service quality, customer satisfaction and image on customer loyalty in Malaysian commercial banking industry. The Structural Equation Model (SEM) adopted to analyze the casual relationships between exogenous variables and endogenous variable. The model was developed and later tested by using the Partial Least Square (PLS) procedure on data collected from a survey that yielded 512 usable questionnaires. The findings demonstrated that service quality, customer satisfaction and image have significant and positive influence on customer loyalty in Malaysian commercial banking industry. It is important to do the study employing experimental design by capturing longitudinal data in Malaysian commercial banking industry using robust measures. The findings imply that the relationship of service quality, satisfaction and trust on customer loyalty will lead to commercial banks' profitability