Impact of Customer Satisfaction on Customer Loyalty in the Banking Sector

Douglas Chiguvi, Paul T. Guruwo

Abstract: This study seeks to investigate the impact of customer satisfaction on customer loyalty in the banking sector in Botswana and the effect of demographics as moderating constructs was also investigated. An explanatory research design was adopted in which a self-administered questionnaire was distributed to forty-four respondents randomly selected from those who visited Standard Chartered Bank. Data analysis was done by Statistical Packages for Social Sciences (SPSS version 16.0). The study revealed that there is a positive relationship between customer satisfaction and customer loyalty. Banks were therefore recommended to influence customer satisfaction positively with the aim of achieving customer loyalty.

Keywords: Customer satisfaction, Customer loyalty, gender, income, age and educational qualification