The Impact of Banking Quality Dimensions on Customer Loyalty: Customer Satisfaction as a Mediator

The study aimed to verify the impact of quality dimensions on customer loyalty and the role of customer satisfaction as a mediator in the causal relationship. To achieve this goal, a random sample of 300 customers of Jumhuriya Bank in the Al-Khums municipality, Libya, was targeted. A questionnaire was distributed to them, with a total of 200 questionnaires valid for analysis. The ServQual model was used to measure the quality of banking services. Structural equation modeling using the AMOS technique was employed to test the study's hypotheses. The study reached a number of significant results, confirming that the Assurance dimension directly affects Jumhuriya Bank customer loyalty. However, the analysis did not provide empirical evidence that the remaining quality dimensions directly affect customer loyalty. The study also presented important findings. In addition, the results revealed that customer satisfaction partially influences the relationship between the Assurance and Reliability dimensions on the one hand and customer loyalty on the other. The study reached a set of directions for future research that will be presented in its own section.