Building Customer Loyalty in the Banking Sector in Yemen

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Adnan Abdullah S. Alkhateeba, B. Shivarajb


The current study investigates some variables affecting customer loyalty regarding the banking sector in Yemen. Besides, it examines the moderation effect of education factor impact on the perceived value. A self-administered questionnaire was deployed to a set of 579 bank customers by using opportunity sampling in the capital city of Sana’a in Yemen. The collected data was analyzed using the Partial Least Square-Structural Equation Modelling (PLS-SEM) approach to test the hypotheses of this study. The main finding showed a significant positive relationship and the non-significant relationship between some independent variables and customer loyalty in Yemen's banking sector.

Further, the moderating effect of education on perceived value significantly supports the relationship with customer loyalty.  Banking managers should build real confidence with customers, enhance the banks' reputation, and develop a variety of electronic banking services. They have to understand the necessity of attention to the education factor as a critical point to building customer loyalty. That requires them to give more attention to the customer who has a good education. This paper's uniqueness comes from its investigation of some important requirements of customer loyalty and examines the influence of education as the moderator on perceived value by customers in the theoretical framework proposed. Also, the study result presents a new contribution to the literature of marketing relationships related to the issue of customer loyalty in the banking sector in Yemen.

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