Service Fairness, Relationship Quality and Customer Loyalty in the Banking Sector of Pakistan

Abstract

This research intends to develop and corroborate the structural anatomy of service fairness perceptions, relationship quality in conjunction with customer loyalty in commercial banks. This study inspects the intervening mechanism of trustworthiness between service fairness and relationship quality explicitly. Systematically selected consumers of commercial banks provided the data via a self-administered structured questionnaire. Procedural and distributive perceptions of fairness proved to be significant predictors of trustworthiness, which in turn significantly intervenes the relationship between service fairness and relationship quality. Interactional fairness did not influence trustworthiness and relationship quality. Affective trust and affective commitment strongly predicted the loyalty of customers of commercial banks. To enhance customer loyalty, banking service providers may implement relationship-based strategies to cater to the dynamically competitive commercial banking market in Pakistan.