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 College of Humanities and Social Sciences
School of business the Department of Marketing and Corporate
Strategy in partial fulfilment of the requirement for the degree of
Master’s of Business Administration – Strategic Management and
Consulting Option.