Determinants of Customer Loyalty in the Banking Industry: A Comparative Study of Private and Govt Sector Banks in Trichy District

Abstract

The Banking industry is the backbone of every economy and has a major role to play in the wellbeing of a nation. The
competition in the banking sector is so severe that the banks are finding it very difficult to increase their market share.
Acquiring customers as well as retaining them is a big challenge faced by them. Banks have to capitalize on service
delivery so as to ensure customer satisfaction and customer loyalty. Therefore, the banks have to formulate clear strategies
in meeting the dynamic customer demands and ensuring customer satisfaction. The objective of this research is to ascertain
factors influencing customer loyalty amongst the banking customers in Trichy District. Descriptive research was carried out
in identifying the problems as well as developing the concepts of this research. A total of the sample size of this research is
420 customers. Various research tools like Cronbach’s alpha test, ANOVA, correlation, and a weighted arithmetic mean
were employed in this study. The research found that Brand awareness and Perceived Quality are the strongest factors in
generating brand loyal customers. These factors have a greater role in modern day banking to ensure customer satisfaction
and provide the edge over the competitors.