Correlates of customer loyalty to their bank: a case study in Nigeria

Purpose This paper seeks to examine how customer expectations, perceived service quality and satisfaction predict loyalty among bank customers in Nigeria. Design/methodology/approach A survey research was conducted that included qualitative technique to explore customers' expectations from bank services on the basis of which measurement scales were developed to measure the variables of the study. Respondents for the qualitative research include 18 participants for focus group discussions and 24 for in‐depth interview; they were operators of savings, current, and electronic bank accounts. The quantitative research had 247 bank customers who responded to questionnaire items that measured the research variables. Findings A hierarchical regression analysis carried out revealed that perception of service quality and satisfaction are significant predictors of customer loyalty, with customer satisfaction contributing more. Research limitations/implications It is implied that management of banks in Nigeria should intermittently conduct market survey to identify the desires of their customers and attempt at satisfying their customers. Practical implications Management of Nigerian banks could design appropriate marketing strategies towards achieving customer satisfaction and this would culminate in enhanced customer loyalty. Originality/value The paper improves the external validity of similar findings in the West and demonstrates the generalizability of service quality perception and customer satisfaction as predictors of customer loyalty.