Effects of service quality on customer retention among commercial banks in Kenya
The purpose of this study was to examine the effect of service quality on customer retention among commercial banks in Kenya. The study was guided by the following research questions: How do customers perceive the quality of service offered by different banks? How does bank service quality relate to its customer retention? The objective of the study was to investigate the relationship between service quality practices and customer retention among commercial banks in Kenya. The research used a descriptive cross sectional research design. This research design was appropriate for this study since it seek to provide an overall picture of the extent to which service quality dimensions affect customer retention among commercial banks. Primary data was collected from bank customers using a likert type scale questionnaire. The finding was that most of the commercial banks in Kenya use the ServQual dimensions to some extent. Demographics data was analyzed by descriptive statistics while the relationship between service quality and customer retention was analyzed using regression model. There was significant relationship between ServQual dimensions (reliability, assurance, tangibility, empathy and responsiveness) and indicators of customer retention (customer trust, customer satisfaction, level of involvement, communication effectiveness, switching barriers and price). Therefore this study recommends that management should pay attention to service quality and other factors which may lead to customer retention.
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