Applying a SERVQUAL Model to Measure the Impact of Service Quality on Customer Loyalty among Local Saudi Banks in Riyadh

Abstract

This paper evaluates the impact of service quality underlying the SERVQUAL model on customer loyalty, with customer satisfaction mediating these variables. This analytical study is mainly based on the primary data collected through a questionnaire that was personally administered to 422 individuals selected from five local banks in Riyadh, Saudi Arabia. The findings indicate that improving service quality can help to enhance customer loyalty. Empathy, assurance, and reliability are the service quality dimensions that play significant roles in this equation. The study’s findings indicate that while the respondents evaluate the banks positively overall, there is still room for improvement. Few studies have assessed customer loyalty in Saudi banking. Increased competition between banks means that service quality is increasingly important and bank managers should consider how they can improve customer satisfaction with respect to service quality in order to enhance customer loyalty.