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Impact of Service Quality, Customer Satisfaction and Loyalty Programs on Customer's Loyalty

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Impact of Service Quality, Customer Satisfaction and Loyalty Programs on Customer's Loyalty
International Journal of Business and Social Science

Vol. 3 No. 16 [Special Issue – August 2012]

The Impact of Service Quality, Customer Satisfaction and Loyalty Programs on Customer’s Loyalty: Evidence from Banking Sector of Pakistan.
Samraz Hafeez SZABIST Islamabad, Pakistan. Bakhtiar Muhammad Faculty Member SZABIST Islamabad, Pakistan Abstract
Top organizations know that the road to success runs through their customers. Hence in today’s world, the companies who do not provide value to their customers bring an opportunity for the competitors to steal these customers. Same rule applies in banking sector hence this research focuses on finding the impact of service quality, customer satisfaction and loyalty programs on customer’s loyalty in banking sector of Pakistan. A questionnaire was designed and survey was conducted to collect the data from 331 customers having bank accounts in different banks of Pakistan. The research concluded that service quality, customer satisfaction and loyalty programs are the important factors that can increase the loyalty of a customer so banks must focus on providing loyalty programs to their loyal and valued customers. Research also indicates that banks should focus on improving the quality of their services for better and greater customer satisfaction and customer loyalty.

Key Words: Service Quality, Customer Satisfaction, Loyalty Programs, Customer’s Loyalty, Banking Sector,
Pakistan.

1. Introduction
In today’s world, economy is one of the core subjects for the development of any country hence banking sector plays a key role as circulation of money is done through the banking system. Actually banking is an evolutionary concept which is in continuous expansion concerning its different activities and functions. Development in Pakistan is also dependent upon its banking sector. The State bank of Pakistan is the main bank of Pakistan. Some of functions performed by it include giving advances, accepting deposits,
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