A Relational Study on Customer Satisfaction, Loyalty, Switching Cost & Word of Mouth: A Study of Islamic Bank in Bangladesh

Mihir Kumar Roy and Ratna Akter

The study was undertaken to investigate the relationship between customer loyalty vis-à-vis word of mouth and customer satisfaction. Data for the study were collected both from secondary and primary sources. For primary data collection, total sample strength of the study was 80 and systematic sampling technique was used for the purpose. The SPSS version 21 software was employed for data analysis. The result shows the correlation among switching cost, customer satisfaction (employee competence, reliability, product innovation, pricing, physical evidence, convenience), word of mouth and customer loyalty. Through two step wise regression, the study find out employee competence, pricing, physical evidence and convenience fail to enter into the regression equation, which indicates that it was not significantly related with customer loyalty. employee competence, reliability, product innovation, pricing, physical evidence and convenience failed to enter into the regression equation, which indicates it was not that significantly related with word of mouth..From the study discussion product innovation, product reliability and switching cost were an important factor to gain customer satisfaction. So product innovation is important so the bank should continue this stage to gain overall good position in satisfactory level at the banking sector. Product reliability result is not significant so the bank management should modify their management system to improve reliability for which customer loyalty can be possible to increase in the bank. Another aspect is switching cost the result of which was not so encouraging. Now customers are switching their account from this bank and the bank management should take decision so that switching over of accounts from the bank can be improved. If the bank management wants zero percent switching cost to their bank, they would improve reliability product.