My study want to prove the impacts of non-financial service quality on customer loyalty in banking sector. So my literature review will try to follow a structure to show evidence to support my topic. There will be 5 parts in my literature review, what is service quality; customer satisfaction; customer loyalty; the relationships and banking related.
1. Service quality
1.1 Definitions of service quality
Many literatures showed that high level of service quality can improve a lot of things for bank, such as high level of service quality is a good way to remain current customers and be attractive for now customers, it also can help bank to build a good reputation and generate positive word-of mouth recommendation, that can lead to more customers and higher profitability (Berry et al., 1989; Cronin et al., 2000; Kang & James, 2004; Reichheld & Sasser, 1990; Rust & Zahorik, 1993; Yoon & Suh, 2004). So we can see that service quality is important for an organization, about the definition of service quality, different people have different opinion. According to Parasuraman (1985) defined service quality as the degree of gaps between customers’ standard expectations for service and the received service performance. In some way Smith (1998) agreed with Parasuraman, he defined service quality as a standard that can meet the needs and expectations of the customer. Oliver (1980) said that service quality is important for firms, it has a great impact on firm’s performance, it can be considered as an unique feature and great importance.