The Effect of Service Quality and Customer Perceived Value on Customer Loyalty of the Bank for Agriculture and Agricultural Cooperatives in Roi Et Branch, Thailand

Abstract

              The objectives of this research were to investigate the effect of service quality on customer loyalty through customer perceived value of the Bank for Agriculture and Agricultural Cooperatives in Roi Et Branch, Thailand. The research was a quantitative research method. The population of this research was the bank's customers with the samples of 400 respondents determined by using simple random sampling based on Taro Yamane (1973) formula. Data were collected through 5-point Likert scale questionnaire surveys. Content validity was applied to ensure the accuracy of an assessment tool and Cronbach’s alpha was conducted to test for reliability. Data were analyzed by descriptive statistics including percentage, mean, and standard deviation; and inferential statistics including the Pearson Product-Moment Correlation and Path Analysis. The findings of the research from hypotheses testing found that service quality and customer perceived value can explain the variation of customer loyalty up to 63.70% (Adjusted R-Square 0.637) at 0.05 significant level. The service quality had statistically significant direct effect on customer loyalty with standardized coefficients (β) of 0.398 and customer perceived value had statistically significant direct effect on customer loyalty with standardized coefficients (β) of 0.448. The service quality had statistically significant direct effect on customer perceived value with standardized coefficients (β) of 0.785. The effect of service quality on customer loyalty through customer perceived value had statistically significant indirect effect with standardized coefficients (β) of 0.352.