Customer Loyalty

The purpose of the research is to find out the impact of economic recession on customer loyalty to banks in the UK. This aim has been reached using methods of statistical analysis and through investigation of primary and secondary data. The methods of analysis that were implemented in the research included regression and correlation analysis of variance as well as chi-square tests. The data has been analysed for the period from 2005 to 2010 and recommendations have been based on the findings from the analysis. The main results of the study have shown that customer loyalty decreased after the economic recession. This can be explained by changes in consumer behaviour and economic adaptations in households. However, customer loyalty was not found to be dependent on any demographic factors but solely on economic and company related issues. Therefore, it is recommended that the management of financial institutions should improve customer service, make online banking easier to use and more secure, expand the types of deposits available to consumers, increase the size of the bank offers to clients and provide benefits to the long term customers.