Modeling the factors that explain customer loyalty in retail banking

Literature suggests that achieving adequate customer loyalty is a significant determinant of growth and profitability. However, in South Africa, there no evidence validated customer-loyalty-in-retail-banking scale. Thus, this study aimed to contribute the literature by validating retail banking as six-factor structure comprising loyalty, service quality, commitment, trust, switching cost satisfaction, which practitioners can use marketing guide better understand loyalty. Data was collected from one sample only once, size selected (N = 400). Descriptive confirmatory factor analyses were undertaken achieve study’s objective. Confirmatory analysis results includes satisfaction. The show serious multicollinearity between latent factors acceptable internal-consistency reliability returned for each factor. Moreover, measurement model composite together with construct, convergent discriminant validity. IFI, TLI, CFI, SRMR RMSEA fit index values suggest good fitting model. concluded reliable valid instrument first scale within retail-banking context Africa. Retail banks are encouraged their quest provide excellent services market segments, well build solid bank-customer relationships.