ANTECEDENTS OF CUSTOMER LOYALITY TOWARDS PUBLIC SECTOR BANKS

Abstract Free trade is a big challenge for a bank to enhance its organization performance. Banking industry also faces challenges because of the free trade, since there have been many companies going bankrupt that it is feared that it will reduce customers’ savings or deposits in bank. Competitors need to be aware because only banks with advantages that are able to create product with high quality services that can satisfy customers. Challenges become harder particularly when customers are sensitive to the interest rate, thus loyalty is at stake. This circumstance is very important because customers define the future of a bank. Having a close relationship between the bank and the customer can become the strength that could increase customer value. The main objective of this research was to study how customer loyalty can be constructed using customer value and relational quality. For this purpose a sample of 150 was collected from the respondents and the respondents are those who use banking services in Coimbatore were percentage analysis, rank correlation and chi square were used as tools to analyse the data. The conclusion is that the overall the customers are satisfied with the service provided by the banks