The effects of digital and physical service quality on customer loyalty in the South African retail banking industry

Abstract

The researcher aimed to determine the effects of digital and physical service quality on customer loyalty in the South African retail banking industry. To measure the effects of service quality for the physical channel, the researcher used the SERVQUAL model, and the E-S-QUAL model were used to measure the digital channel service quality. A quantitative research approach was employed. Data were gathered using a self administered, structured questionnaire. Constructs were measured using a six-point Likert scale. A convenience sampling method was used for this study. A total of 384 valid responses from both male and female participants aged between 18 to 60 were collected using an online questionnaire. A descriptive and standard multiple regression directed on IBM Statistical Package for Social Sciences (SPSS) was used. This study established that customer loyalty and service quality are positively correlated and that both physical channel service quality and digital service quality influence customer loyalty. However, this study revealed that digital service quality has more impact on customer loyalty than physical channel service quality on customer loyalty. Bank managers are encouraged to find ways to constantly improve service quality, sustain their competitive edge and maintain customer loyalty. Bank managers can do this by creating an omnichannel customer experience. Practical and theoretical implications for the study are also provided