Service quality dimensions as predictors of customer satisfaction and loyalty in the banking industry: moderating effects of gender

Abstract

Purpose

The link between service quality and customer satisfaction has been well established; however, there are strong reasons to believe that gender moderates the effects of service quality dimensions on customer satisfaction. This study aims to uncover gender-based heterogeneity pertaining to the link between service quality dimensions and customer satisfaction in the context of banking services.

Design/methodology/approach

This study adopted a survey design. Data is collected from 282 customers of banks in Mauritius. Because of the prediction-oriented aim of the present study, the partial least squares-structural equation modeling technique is used to test a set of relevant hypotheses.

Findings

The results provide mixed findings and the moderating effect of gender is found to be statistically significant for one service quality dimension but not for the other two. The permutation and partial least squares-multigroup analysis tests both support the hypothesis that gender moderates the relationship between environment quality and customer satisfaction.

Research limitations/implications

Only customer satisfaction has been included as a mediator of service quality and customer loyalty link. Previous studies have identified other relevant constructs, such as image and the perceived value, as mediators. Future studies could consider including these constructs when testing gender’s moderating effects. Finally, given the significant moderating effect of gender, which suggests that the satisfaction of male customers depends to a larger extent on environmental quality, there is a need to further explore the specific expectations of male customers with this particular component of bank services.

Practical implications

The results show that male and female customers react differently to quality stimuli in the context of bank services has important managerial implications. It is highly recommended that banks develop differential strategies for both male and female customers.

Originality/value

The primary contribution of this study focuses on exploring the moderating effect of gender on the relationships between service quality dimensions and customer satisfaction among bank customers.

Citation

Teeroovengadum, V. (2022), "Service quality dimensions as predictors of customer satisfaction and loyalty in the banking industry: moderating effects of gender", European Business Review, Vol. 34 No. 1, pp. 1-19. https://doi.org/10.1108/EBR-10-2019-0270