Factors of Customer Satisfaction in Service Sector: Does Quality of Service Matter?

Abstract

Purpose: The study aims to evaluate the impact of the cost of financing, customer loyalty, and customer security on customer satisfaction with financial services as moderating effects in the context of Pakistan. The purpose of the study is to provide the financial services concept between the cost of financing, customer loyalty, customer security, and customer satisfaction. Methodology: Data is gathered through the use of a questionnaire. A total of 330 respondents from Pakistan's five largest banks participated in the study. The information gathered pertains to the various roles that bank personnel play on behalf of bank clients. The sample approach utilised in this study is a convenience sampling method. The SPSS program is used to evaluate the data on the demographics of the area. The PLS-SEM (partial least squares equation model) is used to investigate the conceptual model. Findings: To achieve banking goals in the long term, financial service quality has a favorable impact on customer loyalty and satisfaction, as well as on the cost of financing. Even in the conventional banking sector, the quality of financial services is not adhered to. Financing prices, customer loyalty, customer security, and customer satisfaction all have a direct correlation to the quality of financial services. Practical Implications: To generate high profits and productivity, financial organizations must develop the quality mechanisms to get the best results from customer satisfaction goals.

Keywords

• Customer Satisfaction, Financial Services Quality, Conventional Banking, cost of financing, PLS-SEM