The impact of customer satisfaction and bank image on loyalty: a case study (Sanandaj private banks) using structural equations method

ABSTRACT:Each customer nowadays has its own special value and organizations should consistently fight to obtain a greater share of a declining or steady market. The marketing in its evolutionary trend is in a stage in which marketers are not thinking only to find new customers, but, the main objective is to manage demand through increasing the number of customers and implementing strategies to enhance their loyalty to organization. Therefore this research attempts to study the effect of customer satisfaction and bank image on customer loyalty in the private banks of province of sanandaj. Six hypotheses were proposed for this purpose in this study which is applied in terms of objective. The research method used is descriptive-correlative and typically based on structural equations modeling, using software AMOS. The customer community of the private banks, the random sampling method and the observations on the questionnaire and variables related to any question were presented with a scale of 1 to 10. The results showed that there is a positive and significant correlation between customer satisfaction and customer loyalty and, of six hypotheses proposed five were confirmed. Also, although the regression model fitted between the independent satisfaction variable and the dependent variable of customer loyalty is appropriate and significant, between the dependent variable of the bank image and the dependent variable of customer loyalty is not so.