The impact of pricing on customer loyalty in savings and loans sector in the financial industry: the mediating effect of customer service
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Date
AUGUST 2016
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Abstract
To ensure that customers remain loyal, Price satisfaction measurement variables such as Price Reliability, Relative Price, Price Fairness and Price Transparency plays an important role in pricing policy in Savings and Loans Sector of the Financial Industry in Ghana. The more customers have access to adequate information on prices and customers perception about how transparent and fair the prices are, leads to more favorable perception of satisfaction and will increase customer loyalty toward repurchase and recommendation. Recently, numerous complaints have been received by MCSL high interest rate and high bank charges as compared to rivals and as such the total number of customers and deposit mobilized at the has significantly reduced. The study investigated and focused on four price satisfaction measuring variables that influence customer loyalty with mediating effect of customer service at Sokoban branch of MCSL. A sample size of 222 was selected using simple random sampling technique. Questionnaire was the main data collection instrument used. The study found that all the four price satisfaction measuring variables have significantly impacted on customer loyalty. The study have also revealed that all four price satisfaction measuring variables significantly impacted on customer service thus explained and there was a significant positive relationship. Finally, the study revealed that pricing significantly impacted on customer loyalty but with the introduction of customer service, the impact of pricing on customer loyalty had reduced and the conclusion was that customer service partially mediates the relationship between pricing and customer loyalty in the Savings and Loans Sector in Financial Sector in Ghana. That meant that pricing still have an impact on customer loyalty. However, the study found that other variables also impacted on customer loyalty such as corporate image which must all be of importance to management.
Description
A thesis submitted to the Department of Marketing and Corporate Strategy of the Kwame Nkrumah University of Science and Technology in partial fulfillment of the award of the degree of Master of Business Administration (Strategic Management and Consulting).