Study Of The Relationship Between Customer Satisfaction，Customer Loyalty And Business Performance In Banking Sector, Illustrated By Bank Of China

With the more and more relaxing of government regulation on the financialindustry and the development of technology and economy， the competition in thebanking sector is increased fiercely. After China’s accession to the WTO andspeeding up financial market liberalization, foreign banks added to the competitivepressures in the domestic banking sector, it can be described as "worse". Therefore,the primary problem of bank to be solved is that how to improve businessperformance and enhance their competitiveness. Only in that way our bank canshorten the gap between its competitors. The most important resource in the bankingindustry is customer, they are the key to obtaining corporate profits. If the customersare not satisfied with the product or service, the disappointed customers may remainsilent, but there is no doubt that, they have a chance to select other banks. Thence, towin more customer resources has become the focus of the banking sector to competewith each other. This paper is based on the theory of service profit chain andassociated with Chinese characteristics, then select one of the state-ownedbanks--Bank of China as an example to explore the relationship among customersatisfaction, customer loyalty and enterprise performance of the China Banking. Themain purpose of this paper is through make a research on the interactive relationshipbetween core subject “customer” and core object “business performance” to supplysome suggestion for the further development of China’s banking sector.Based on the lots of literature which are come from both home and abroad, thecurrent research progress are grasped. After then propose the framework andhypotheses of overall research. In fact, this study is divided into six parts: At the firstpart of the introductory chapter, the research background and significant researchpurposes are introduced. However, the research purposes are stated from both the theoretical and practical levels. Then, the part of literature review, according toresearch topics, making a review of literature about the theory and model. Part III, theframework and hypotheses of my research are proposed. Fourth part is about theresearch method, illustrated the data sources, measurement of variables. Besides, thedata analysis methods which are used in this paper are also explained in this chapter.The fifth part of this paper is about analysis of the data, in this part, using the dataanalysis software to analysis the collected data. At last, in the final part of this paper,summarized the discussion of the results of this study, presented the insufficient andproposed the outlook for the future research direction.In this paper,16hypotheses proposed in the study are sequentially verified bythe data analysis software SPSS19.0. The results showed that all hypotheses aresignificant supported except four. Main conclusions of this paper are mentioned：First, in China’s banking sector, customer satisfaction has a distinct positive impacton customer loyalty, if customer’s satisfaction to bank is higher, their loyalty to bankwill be higher too. Secondly, there is a positive correlation between the customersatisfaction of china banking and enterprise performance. Besides, customersatisfaction with the indicators which measure corporate performance also haspositive correlation, except one, that is operating capacity. However, situation forcustomer loyalty is a little different, customer loyalty with business performance andmeasures of corporate performance, the solvency and profitability have positivelycorrelated relationship, but, with another two indicators operational ability anddevelopment capacity, there has no significant positive correlation. Finally, the resultsof this study illustrate that customer loyalty plays the part of the intermediary rolebetween customer satisfaction and overall business performance, operationalcapability, profitability and development capacity. However, the impact that customerloyalty between customer satisfaction and the solvency of the enterprise is notsignificant.At the end of this research, according to the research results, putting forwardsome appropriate recommendations for China’s bank managers: At first, finding away to correct understanding of customer expectations is a prerequisite to improvethe customer satisfaction; Then,depth understanding of the customer to carry out targeted marketing campaigns; Third, providing value-added services for customers isa important way to retain them; Fourth, to analysis factors that affect the customerloyalty could improve customer loyalty comprehensively; Last but not the least, themost effective method to improve business performance is that customer satisfactionand loyalty of the banking sector are significant improved.