Research Article

Mediating Effect of Customer Satisfaction on the Relationship between Service Quality and Customer Retention: A Study of Jaiz Bank Plc Operations in Kano Metropolis, Nigeria

Salamat Ibrahim1*, Ahmad Audu Maiyaki2, Aliyu Dahiru Muhammad3
1 M.Sc Candidate, International Institute of Islamic Banking and Finance, Bayero University, Kano, Nigeria
2 Department of Business Administration and Entrepreneurship, Bayero University, Kano, Nigeria
3 International Institute of Islamic Banking and Finance, Bayero University, Kano, Nigeria
* Corresponding author: salamatibrahim@femsbukjournals.org.ng
Published: Nov, 2022
DOI: 10.67894/bbr.2022.zp1sb3u4
Pages: 46-72
Views: 13
Downloads: 3

Abstract

This study examined the mediating effect of customer satisfaction on the relationship between service quality and customer retention in Jaiz bank Plc, Kano Metropolis, Nigeria. Customer’s choice of a bank, loyalty and bank’s ability to retain such customer depend on the quality of service rendered by the bank. Structural equation model was analyzed using Analysis of Moment Structures (AMOS) on the 366 samples collected from the five branches of Jaiz bank located in Kano metropolis. The discovered results revealed a full mediation effect of customer satisfaction. The results also showed 58 percent indirect significant effect of customer satisfaction in the relationship between service quality and customer retention. Furthermore, the findings revealed R2 value of 0.81which indicated that Service Quality and Customer Satisfaction explained 81 percent of the variance in customer retention. Based on the findings, it is recommended that the bank should conduct periodic and regular customer feedback on service experienced such as calling the customer and use of mystery shopper to enquire customer’s experience. The study also recommended that staff appraisal should objectively reflect performance, based on defined and measurable service indicators, as they serve as an interface between the bank and the customers. 

Keywords

Service Quality Customer Satisfaction Customer Retention Jaiz Bank

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How to Cite

Ibrahim, S., Maiyaki, A. A., & Muhammad, A. D. (2022). Mediating Effect of Customer Satisfaction on the Relationship between Service Quality and Customer Retention: A Study of Jaiz Bank Plc Operations in Kano Metropolis, Nigeria. Bayero Business Review, 6(2), 46-72. https://doi.org/10.67894/bbr.2022.zp1sb3u4

S. Ibrahim, A. A. Maiyaki, and A. D. Muhammad, "Mediating Effect of Customer Satisfaction on the Relationship between Service Quality and Customer Retention: A Study of Jaiz Bank Plc Operations in Kano Metropolis, Nigeria," Bayero Business Review, vol. 6, no. 2, pp. 46-72, November 2022. doi: 10.67894/bbr.2022.zp1sb3u4

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