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The Impact of Service Quality and Service Characteristics on Customer Retention: Small Businesses and their Banks in the UK 1
Author(s) -
Ennew Christine T.,
Binks Martin R.
Publication year - 1996
Publication title -
british journal of management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.407
H-Index - 108
eISSN - 1467-8551
pISSN - 1045-3172
DOI - 10.1111/j.1467-8551.1996.tb00116.x
Subject(s) - customer retention , loyalty business model , marketing , business , customer advocacy , service quality , customer delight , profitability index , service (business) , loyalty , customer to customer , customer profitability , relationship marketing , customer equity , marketing management , finance
The recent developments in relationship marketing have increasingly focused attention on the beneficial effects of customer retention. The notion of building relationships and delivering quality service in order to encourage loyalty is perhaps of particular importance in the service sector where it is often argued that customer attraction costs are significantly higher than retention costs. Central to the idea of investment in the development of service quality and customer relationships is the belief that such investments will enhance loyalty, retention and profitability. Empirical evidence on the extent to which such links exist is still partial. This paper explores the relationship between service qualitylcustomer relationships and customer loyalty and retention using evidence from the UK banking sector and its small business customers.