The Mediation Effect of Service Quality on The Relationship Between Relationship Marketing and Customer Satisfaction of Commercial Banks in Kenya.

Abstract

Commercial banks should endeavour in making sure that their customers are delighted by offering quality services. This study sought to assess the mediation effect of service quality on the relationship between relationship marketing and customer satisfaction of commercial banks in Kenya. This study was steered by the positivist’s philosophy to scientifically ascertain the mediation effect of service quality on the relationship between relationship marketing and customer satisfaction of commercial banks. This study is exploratory in nature and is grounded on a descriptive research design, using primary data. The target population was the 39 commercial bank clientele in Kenya with a sample of 602 customers. A structured questionnaire was administered as the research instrument. The mediating effect of service quality on the relationship between relationship marketing and customer satisfaction was ascertained using structural equation modeling, Baron and Kenny’s (1986) four-step approach was employed. The study found that service quality partially mediates the relationship between relationship marketing and customer satisfaction of commercial banks in Kenya. This study concludes that service quality partially mediates the relationship between relationship marketing and customer satisfaction of commercial banks in Kenya. The study recommends that commercial banks make their banking facilities appealing, which can be achieved by advancing the image of commercial banks both inside and outside. Outside can be through murals or panorama and inside can be through the use of interior decors that indicate the commercial bank’s services, mission, and vision. Commercial banks specifically tailor their services to align with the needs of the customers. In terms of policy implication, commercial banks may rationalize their customer service delivery policies and charter to match the customers’ anticipated services.