Asian Journal of Research in Business Economics and Management
Year : 2014, Volume : 4, Issue : 8
First page : ( 95) Last page : ( 104)
Online ISSN : 2249-7307.

Client Devotion: An Empirical Assessment

Mir Rouf Ahmad

Research Scholar, Department of Business & Financial Studies, University of Kashmir

Online published on 6 August, 2014.

Abstract

Client loyalty is seen as the key factor in winning market share and developing a sustainable competitive advantage. Banking industry is no exception as it has high interaction with the clients, so managers must understand the factors which impact the loyalty of the clients towards their respective banks. This research attempts to find the factors affecting client loyalty and their relationships within the banking industry of the Kashmir valley. Manageable numbers of client loyalty factors were identified – client satisfaction, trust, and commitment that are supposed to influence the client loyalty. The purpose of this research is to understand the influence of these independent variables on client loyalty within banking industry. A structured questionnaire, with a five-point Likert scale was used. Pearson's correlation coefficient, collinearity statistics and multiple regression analysis approach were used to analyze the results. The main conclusion is that all the three factors have significant correlation with client loyalty. However, multiple regression analysis exhibited that client satisfaction had the highest influence on client loyalty and other independent variables also influence loyalty significantly. Satisfaction of client merely is not enough to ensure loyalty. Banking businesses need to focus on client trust and client commitment as well that play major role in relationship success. The implications of and limitations to the study are also discussed.

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Keywords

Banking sector, commitment, satisfaction, trust, loyalty, client relationship management, multi-collinearity.

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