SATISFACTION, TRUST AND COMMITMENT - KEY VARIABLES FOR UNDERSTANDING CUSTOMER LOYALTY IN RETAIL BANKING INDUSTRY

Objectives: The aim of the study is to investigate the main features of consumer behavior in Romanian retail banking and to highlight those variables that should be analyzed by companies in order to strengthen business relationships. Objectives relate primarily to understanding customer priorities in the process of bank selection, reasons for retention, loyalty types and effects of satisfaction, trust and commitment on future behavior. Results are quantifiable, referring to the leading banks in the market. Prior work: Previous researches published in the relationship marketing literature have shown a strong link between satisfaction, trust, commitment, bank image and customer loyalty. Methodology: The research was carried out by applying the survey method using the structured interview techniques and the questionnaire as a tool for gathering information. The sample of 1010 subjects was selected from Romanian consumers of banking services over 18 years old, by using a stratified random sampling, a confidence level of 95 per cent and a 3 per cent error in precision of results. Correlations between variables were highlighted in the process of information analysis by using the nonparametric statistical test Chi square. Results: Show that customer priorities in the process of bank selection are related more with banking products and employee competences and to a lower extent with distribution network. Retail customers maintain relationships with banks from both positive perceptions and constraining factors or habit. Strong associations were found between customer satisfaction and trust, commitment and trust, satisfaction and cross buying intention. The research is limited to retail banking consumers, not taking into account corporate customers. Implications: The paper has implications for both academics and practitioners in the field of banking services. It highlights recent theories in marketing and shows which variables have a significant influence on customer-bank relationships. Results are useful to banks managers in order to decrease switching behavior by understanding customer priorities. Results offer clues about the strategies that may be adopted by Romanian banks for obtaining customer loyalty and a better market position. Originality value: The study contributes to the relationship marketing literature and banking practice by providing quantitative evidence regarding consumer attitudes and behavior towards financial companies. The prerequisites of customer loyalty and its effects are tested in the context of Romanian retail banking services.