A Interactive Effect of Perceived Value and Service Quality on Banking Customers’ Satisfaction and Loyalty in Pakistan

Abstract

Securing customer loyalty is vital for long-term success in the highly competitive banking sector. This research explores the dynamics of customer loyalty by examining the relationship between perceived value and customer satisfaction, with service quality serving as a moderating variable. Data were collected through a survey of 277 banking customers in Larkana, Sindh Province. The findings reveal that perceived value is a significant predictor of customer loyalty, with customer satisfaction acting as a mediating factor. Moreover, high service quality strengthens the relationship between perceived value and customer satisfaction, thereby intensifying the indirect effect of perceived value on customer loyalty. These results provide actionable insights for banking executives to refine their strategies aimed at building strong customer trust and loyalty, which is particularly crucial in the post-COVID era where adaptability and sustainability are essential for maintaining a competitive market presence