ANALYZING THE RELATIONSHIP BETWEEN SERVQUAL MODEL, CUSTOMER SATISFACTION, AND LOYALTY IN ALGERIAN BANKING SECTOR USING PLS-SEM
Soraya Sedkaoui
Abstract: This study aims to explore the three main dimensions of the SERVQUAL model, namely reliability, assurance, and tangibility, and analyze the casual relationship with customer satisfaction and loyalty in the Algerian banking sector. For this, a sample of 253 clients of three public banking institutions in Algiers was analyzed. The measurement and structural models were evaluated using the Partial Least Squares Structural Equation Modeling (PLS-SEM) technique. The results indicate that banking service quality and consumer satisfaction are essential factors in customer loyalty. The values of R2 (60.2% in the variation of consumer loyalty and 52.7% in the variation of consumer satisfaction) make the confirmatory model relevant. The findings indicate that reliability and tangibility significantly impact customer satisfaction and loyalty in Algerian banks. Therefore, Algerian banks must recognize the significance of customer satisfaction and quality of service in fostering customer loyalty and improving the industry's overall quality of service.
Keywords: Service, Quality, Satisfaction, Loyalty, PLS-SEM, Algerian banking sector
DOI: 10.24874/IJQR18.02-20
Recieved: 08.05.2023 Accepted: 07.09.2023 UDC: 005.336.3
Reads: 92 
