Customer Satisfaction Cues To Support Market Segmentation and Explain Switching Behavior

Abstract

In this paper, customer satisfaction cues in retail banking services in Greece are examined. The study proposes an instrument of customer satisfaction that contains service quality and such other attributes as price, convenience, and innovation. The proposed framework of customer satisfaction was verified empirically yielding four distinct facets for business customers and five for individual customers. The performance implications of the customer satisfaction instrument are also explored. What is shown is that customer segments, in fact, yield statistically different satisfaction scores, which verifies the managerial value of customer segmentation practices. Finally, the facets of customer satisfaction as explanatory cues for the switching behavior of individual and business customers were tested successfully.